The company’s products are now on the shelves of Cora, Auchan, XXL Mega Discount and Profi, modern retail chains with almost 350 stores. They are also present in Catena pharmacy chain, which, according to ZF’s latest data, has over 500 units, being Romania’s largest chain.
“Cosmetic Plant products are primarily sold through Plafar stores and pharmacies and pharmacy chains such as Catena and Remedium, but we are also present in dm DrogerieMarkt chain, in super and hypermarket chains such as Cora Romania Hypermarche, Auchan, XXL Mega Discount and Profi,” says Susana Laszlo, general manager of Cosmetic Plant and one of the company’s shareholders.
Cosmetic Plant was founded by her mother, Ileana Mester, a pharmacist by training, with an over 20-year experience in cosmetology.
“The first creams were manufactured in small series and labels were handwritten,” recounts Susana Laszlo.
The first major investment was made as late as six years later, when production moved to a proper building and the first professional equipment was acquired. “In 2007, we completed a new building, but as this was too big for our needs at that time, we rented it and it was as late as 2013 that we moved the plant, the warehouse and the offices here”.
The project took investments of around RON3.5 million. Moreover, in 2014 the company also invested in a retooling process, with two new machines being bought. Thus, production capacity rose by 70% to 2.5 million products annually.
The company’s revenue rose from RON850,000 in 2000 to RON7.5 million last year, according to company data. The main growth source was profit reinvestment, according to Susana Laszlo. “The truth is that our company was not hurt by the economic crisis, with our revenue rising each year despite economic challenges. Thus, in 2008-2014 revenue rose by around 95%”.
The company’s products address low and medium-income persons, mainly women aged 30-55. As a matter of fact, 85% of clients are women.
After a 6% advance in 2014 on 2013, the company budgeted a 10% increase for 2015, but figures will depend on this summer’s weather as a significant part of sales is generated by solar protection products. In the Cluj plant, the company manufactures only own brands.
The company’s products are sold both locally and abroad. Cosmetic Plant first exported in 2009 to Austria and Lebanon. Last year, other markets, such as Greece, Hong Kong, Great Britain, Azerbaijan and Hungary were added.
“While in 1Q, 2015 we posted a 94% export increase against 1Q, 2014, exports do not weigh too heavily in our business. We expect exports to rise by 42% in 2015 on the year,” adds the entrepreneur without providing further figures.
For the time being, the company does not plan to open own stores, after the model of Farmec, Romania’s largest cosmetics producer, also headquartered in Cluj. Romania produces only RON222 (EUR50 million) worth of cosmetics and perfumes on a market where 102 companies operate, mainly Romanian-held ones.
“For now, we do not plan to open own stores. We have an online store, which gained momentum in the spring of 2014 when we re-launched it”.
Susana Laszlo says the local cosmetics market is highly competitive, dominated by major international corporations, but she is confident we will see the weight of local producers slightly increase in the near future.
(English version by Catalina Apostoiu)