Nevertheless, the weight of online sales is still low, at less than 5%, according to market information, as most Romanians still prefer to buy from physical stores, pharmacies or through direct sales companies’ agents.
“I can see the cosmetics market continuously increasing, so I believe that in five years time it will be more developed. The market will become more mature, which means that consumers will look after more qualitative products especially in skin care,” says Jacek Roznowicz, head of cosmetics maker and retailer Yves Rocher in Southeastern Europe and Africa.
At present, the Romanian cosmetics market is among the least developed in Europe and the region in the context where against a population of 20 million people and a market of EUR800 million, the average expense per capita stands at just EUR40 per annum, namely EUR3.3 per month.
By comparison, consumption of such products in countries of the region is around twice as high and in France 4-5 times higher. Moreover, consumption in Romania differs from that of France, as perfumes and makeup products have the biggest weight in the detriment of skin care ones.
Market players say that in this context the direction for the local cosmetics market is just one of growth and reaching maturity.
“I believe the trend of the past two years (2013 and 2014 i.e.) will maintain this year as well and that there will be no spectacular ups or downs. Romania’s market presents growth potential, but we do not expect to see any extraordinary performance this year as the economic climate is still challenging and consumers’ incomes are still low compared with other states,” explains Mircea Turdean, head of local cosmetics producer Farmec Cluj Napoca.
Because of people’s low incomes, there are still cosmetics where the penetration degree is still small.
In Romania, almost half of the population lives in the rural area, where cosmetics supply is limited and direct sales companies have the biggest coverage.
Half of the local cosmetics market is controlled by mass-market products with average and below-average prices. In Romania, direct sales companies such as Avon, Oriflame or Amway cover one quarter of the market, with their plus being that they cover the rural area.
However, this category’s sales rise at a slower pace compared with other segments. At the opposite end come private labels. While on segments such as staples or home care products private labels have come to account for as much as 20% of the market, on the cosmetics segment they haven’t managed to eat up not even 5% of the market as Romanians are brand loyal.
(English version by Catalina Apostoiu)