2005 proved successful for Bulgarian cosmetics and toiletries
2005 proved successful for Bulgarian cosmetics and toiletries, with
current value sales recording growth of 5% over the previous year, said
market research outfit Euromonitor.
Fragmented shares with strong
competition contributed to the launch of many new products, which
combined with a rise in demand for cosmetics and toiletries. Active
marketing and advertisement for new products also boosted growth.
Unilever's Dove skin care significantly increased its sales thanks to
active marketing, for example, becoming one of the five most popular
skin care brands.
A stable increase in disposable incomes was among
the main factors stimulating the rise in cosmetics and toiletries
during the review period, said Euromonitor.
2005 is expected to see
the growing supremacy of foreign brands at the expense of domestic
products. All top four foreign brand owners recorded an increase in
their value share in 2005 over the previous year. On the opposite pole
is top Bulgarian producer Aroma AD with stagnant value sales and
shrinking value share. International players are increasingly utilising
umbrella brand names for ranges, while high competitiveness is
resulting in lower prices, said Euromonitor.
The top four
international companies are Avon, Beiersdorf, Unilever and Oriflame.
These are expected to improve their sales performance in 2005 thanks to
a better recognition of their brands from consumers, who prefer quality
for the money they spend. Furthermore, younger consumers are fuelling
the growth of international brands, having been raised with Western
culture over the last decade.
In 2005 direct sellers registered the
highest growth rates, with direct sales becoming the most dynamic
distribution channel especially for skin care, where is expected to
dominate. Both Avon and Oriflame improved their sales techniques
through better delivery of current editions of their catalogues to
clients. Consultants are the main force behind the growth of direct
sales offering door-to-door expertise.
In addition, 2005 saw the
greater presence of TV and billboard advertising, especially from Avon
Bulgaria EOOD. Furthermore, Avon and Oriflame both improved their
online presence, further growing their customer bases.
Distribution
over the review period changed significantly. Pharmacies/drugstores
increased the number of cosmetics and toiletries on their shelves and
hired consultants to assist consumers in selecting cosmetics and
toiletries. Moreover, supermarkets/hypermarkets is proving successful
within cosmetics and toiletries through the application of massive
promotions, both in terms of volume and price.
Due to strong
competition and the introduction of many new products during the review
period, the price of mass cosmetics dropped, said Euromonitor.
Branding
and marketing became the most significant tools for producers and
distributors of international brands in gaining share in mid-priced and
premium cosmetics and toiletries during the review period. In response,
domestic companies such as Aroma and Rubela applied up-to-date branding
techniques to solidify their positions with well-recognised brands such
as Astera and Deva in order to compete with strong quality brands such
as Unilever's Dove and Beiersdorf's Nivea.
Over the review period,
there was a new trend towards more sophisticated and refined cosmetics
and toiletries. Together with the leadership of traditional products,
more innovative products spiced up the variety of products on offer.
Younger consumers are being influenced by Western trends and the
emergence of the "metrosexual man" fuelled growth, as more expensive
and sophisticated cosmetics and toiletries gained value share at the
expense of traditional and domestic products, said Euromonitor.
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