Although they are far from values reached in times of economic
growth, when rises amounted to up to 80%, these estimates are the
first positive signal for this market since the beginning of the
crisis.
“The number of Oriflame customers who order sunscreen products has
gone up this year against the similar period of 2010 – May to
September – our reference period. One of the reasons for this rise
is the increase in the company’s sales force,” says Pavlina
Marinova, managing director of Oriflame Romania.
Marinova explains that in the case of Oriflame, sunscreen products are ordered from the end of May to the beginning of September.
The sunscreen market, which includes companies such as Beiersdorf, Avon, Oriflame, Amway and others, fell from EUR12 million in 2009, according to estimates made at the time, to EUR10.3 million last year, but is estimated to grow to 45.6 million lei (EUR10.7 million at Wednesday’s exchange rate). The EUR10.3 million is a value calculated by market research company Euromonitor, and cited by Beiersdorf representatives, while the RON45.6 million is a Euromonitor estimate, cited by Avon.
Sun protection products account for 70% of the total, with the rest of the market being shared by self-tanning products and after-sun products, according to Avon representatives.
Oriflame officials believe sunscreen products account for only 1% of the overall cosmetics market. A calculation reveals that the market amounts to just $8 million (EUR5.6 million), while the local cosmetics industry is worth $800 million a year.
While Oriflame representatives are optimistic, Beiersdorf, whose portfolio includes the Nivea brand and Nivea Sun sunscreen products, and posted EUR40 million in turnover last year, also looks at the factors dragging down this market, despite the signs of revival.
“In the last two years, there have been two major directions on the Romanian sunscreen market. On one hand, we have noticed a change in consumer behavior – more concern for protection against solar radiation. On the other hand, a decline in the number of tourists on the local market reflected in the overall sales of products in this category,” says Erik Hageleit, who runs Beiersdorf’s Romanian operations.
In the case of Amway, a company present on the direct sales market, with EUR22 million in turnover last year, sales are the same as in 2010.
The large drugstore chains in turn talk about a sales increase for sunscreen products this summer.
“We expect sales of sun protection products to rise by more than 5% for the entire summer season compared with last summer, probably thanks to awareness campaigns by big sunscreen producers,” said Dorin Catana, general manager of Centrofarm. He says the marketing and discount policies have become much more aggressive this year, so prices in this category have been cut.
In June 2011 against the same month of 2010, Centrofarm sales for this segment were 3% higher.
The Sensiblu chain also expects growth of 5% for sales of sun protection products. (EUR1=RON4.267)
(English version by Daniela Stoican; Editing by Radu Bostan)