| PHARMACY + BEAUTY |
|
On breaking of financial crisis panic and confusion could be observed on the cosmeceutics market of Ukraine as well as on many other markets. It was especially noticeable in comparison with several years 2007 and 2008, which were rather successful for the market of pharmacy cosmetics, when the share of the products of that category grew at a rapid pace – by more than 20% in quantity terms and by more than 50% in money terms per year.
It was not easy for Ukrainian companies to accommodate themselves to promptly varying market conditions and that really affected the market of pharmaceutical cosmetics. The regulation from the side of the government grew stronger and constantly fluctuated and that infringed on all the categories of pharmacy’s assortment.
As for cosmeceutics sales volume it increased 11,8% in national currency (in comparison with 2007-2008 the growth was 55,3%), but in dollar equivalent the market shown 25,6% fall. The same fall was also noticed in quantity terms and it came to 10,2% in 2008-2009.
The largest share cosmetics took in pharmacy’s basket in 2008 – 6,6% in pieces, till the end of 2009 its share fell to 5% – cosmetics was moved aside by drugs. The weighted average cost of one piece of pharma cosmetics increased 24,5% in national currency almost fully at the expense of inflation and switching a part of customers over to cheaper brands and products. This is also confirmed by distribution of shares of domestic and imported cosmetics in pharmacies sales. Traditionally imported products kept the lion’s share at the cosmeceutics market both in money and quantity terms. But in autumn 2009 the crucial point came when for the first time the share of domestic cosmetics in quantity terms became larger than imported products. Nevertheless in money terms sales of imported cosmetics still make up more than 70%.
PHARMACY RETAIL
In 2009 pharmacies had difficult times. Indeed it was cosmetics that gave them the least trouble. The main misunderstanding was connected with attempts of government to regulate pharmaceutical market manually. In addition to excessive interest of government in this segment of pharmaceutical market and regular issuing of various directive and decrees, sometimes quite controversial, there were also problems in commodity distribution chain, especially with those distributors, who had been raising prices since the autumn of 2008 for the purpose of currency risks hedging. On the other hand pharmacies had to take constant care of availability of spare funds for renewal of trade stock and to control their assortment competently. The primary tasks for pharmacies in 2009 were the following: raise of turnover, increase of income, keeping of loyal customers and attraction of new clients. Pharmacies continue to cooperate actively with manufacturers, a lot of major chains started to conclude direct contracts without the participation of mediators (distributors). It is necessary to notice that in spite of all difficulties pharmacy’s cosmetics go through crisis time in an appropriate manner. It is testified by entering on the market of new brands and lines, which appear in pharmacies chains. The short period of confusion at the end of 2008 and at the beginning of 2009 is over now and manufacturers concentrated mainly upon tactical maneuvers realizing that this market is of high potential and in any case it will continue to develop, so it is necessary to work at it. Positive dynamics of the fist two months in 2010 In January-February the volume of pharma cosmetics sales amounted to 188,8 million of UAH (in comparison with the similar period in 2009 - 22,7% increase) per 9,4 million of pieces (13,3% growth, respectively). The unit weight of the category «cosmetics» went up from 4,9% in 2009 to 5,3% in money terms, and from 3% to 3,3% in quantity terms. The share holding of cosmetics and BAAs grew up to a little degree and made 5,3% and 3,0% in money terms, 3,3% and 2,2% in quantity terms, respectively. The weighted average cost of 1 unit of cosmetics increased 8,3% to 20 hryvnas. As for ratio of domestic/imported cosmetic products it is 30/70 now (in 2009 - 26,5% / 73,5%) in money terms. In quantity terms - 57,4% / 42,6% (the similar period in 2010 - 52,6% / 47,4%). |
.jpg)
