InterCHARM.kiev.ua - about perfumery and cosmetics market from professionals

According to the data of the research company Euromonitor International, the volume of perfumery and cosmetics market in 2009 showed 9% growth in money terms (hryvna) and amounted to 15 508 million hryvnas. The highest increase was observed in the category «skin care products», its growth in money terms accounted for 23%. The second category, which showed active dynamics, was hair care products – 18% increase in money terms. Not so active was the category of perfumery with 17% growth. The least active was baby cosmetics – its growth was only 2 % in money terms.

In quality terms slump in sales made up 8-10% at the average.
As regards the market tendencies, in 2009 there appeared some changes in Ukrainian customers’ behavior:

• The majority of customers switched to more affordable products. At the same time the users of luxury products continued to purchase the goods they used to buy before.
• Switching over to economy packages of products for every day use, hygienic products, household goods.
• At the same time – switching over to smaller packages when purchasing more expensive products.
• Considerable sales decrease in the segment of body care products for home use (except hand care and anti-cellulites products) – almost two times drop. But since December 2009 there is steady growth in this category products sales.
• Customers want to get more benefits for more money now, i.e. they are ready to pay for expensive products only when the quality of these products is actually higher. Customers do not want to pay only for image.

The most widespread changes in perfumery and cosmetics business of Ukraine are the following:

• Return of owners to strategical management of their companies.
• Costs reduction.
• Review of delivery terms and tightening of receivables inspection.
• Considerable breakthrough of domestic companies on the market. At the expense of exchange fluctuations their products have become cheaper than imported ones, that is very important in the situation when the price factor appeared to be dominating for most customers.
• Reduction of novelties number, planning of their launch in 2010.
• Increase of cross-promotion actions between chains and trade marks.