Exports and financial performances in French cosmetic industry:Long live the ‘lipstick effect’!

French cosmetic industry is of great interest given its agglomeration of firms, innovation and economies of scale, as Cosmetic Valley near Paris or PASS (Perfumes, Aroma, Scents, and Savours) in the Alpe-Cote d’Azur province. In this context, the paper analyses the impact of exports, as a key driver of globalization process, on financial performances of the French cosmetic companies, based on a sample with 704 cosmetic business entities, for the period 2003-2015. The methodology follows static and dynamic panel model estimations. The main finding shows that the exports have a positive linear impact on their financial performances, both for producers and distributors. We validate the existence of ‘lipstick effect’, since the rigidity of foreign cosmetics demand makes the exporters’ financial performances insensitive to the economic turbulences. Moreover, the producers seem to be more affected by the regulation adjustments, while the investments and debt management are very important elements for distribution companies.