The 2012 optimistic estimates come after a difficult year when the company failed to attain its sales target and moreover, saw its sales down in lei for the first time in its sixteen-year history.
“This is an ambitious plan that we devised and are prepared to achieve. We analyzed the things that did not go well last year and developed new strategies whose purpose is to better adjust to the current market demands,” says Constantin Tudorache, general manager of Sarantis Romania, one of the largest local cosmetics producers. “We intend to improve distribution both in terms of quality and in terms of quantity in 2012.”
He says the sales will not increase as a result of a spectacular rebound in consumer spending, but as a result of the steps the company took in 2011, which are expected to produce the desired positive results. Consumer spending decline began in 2009, due to the financial crisis and extended into 2011, as well, when it was down by 4% in the first eleven months, according to the National Statistics Institute data.
Sarantis’ portfolio includes mass perfumery products such as STR8, BU, C-THRU, selective perfumery (Paco Rabanne, Carolina Hererra, La Prairie), personal care products (Elmiplant, Johnson Baby, Listerine, OB, Carefree, Aquafresh, Sensodyne, Parodontax, Evyap, Neutrogena) and household cleaning products (Fino, Camel).
Sarantis Romania made some changes to its distribution structure last year, outsourcing the storage services in Cluj, Iasi and Timisoara (NW, NE and W Romania), while the central warehouse in Bucharest was relocated. “We reviewed all expenses and cut them to make operations efficient and reduce operating costs.”
Tudorache, who has been running the local arm of Sarantis for fifteen years says last year was a difficult one for the company he runs.
“We posted RON160.5 million (EUR37.3 million at a rate of RON4.3 to the euro) in sales, 1.35% lower than in the previous year, even though the company had initially budgeted growth of 5%. This is the first time our company has posted decline in turnover – though small as it was, since its establishment in 1996.”
(English version by Loredana Fratila-Cristescu)