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By Marian Craciun
Unofficial statistics show that Romanian customers spent around 800 million Euro on cosmetic products in 2014, accounting for a five per cent increase from the year before. With their solid expansion, online sales had a significant contribution to the overall sales growth, nearly one third of all local customers making the transition to the virtual shopping environment. Even so, the average annual per capita expenditure on cosmetics stands at just 40 Euro, representing 3.3 Euro per month, which is one of the lowest levels in Europe and four to five times below the average value recorded in western Europe.
Even though women are usually pegged as more avid shoppers, men seem to reverse the trend when it comes to online shopping. According to a GfK Romania survey, one third of the male respondents said they had acquired at least one product or a service online in the last 12 months. In turn, 29 per cent of female respondents gave a positive answer. People under the age of 35 are the most active in the online shopping segment, but the survey revealed significant disparities between rural and urban regions, with towns exceeding 200,000 inhabitants leading in terms of online orders. “Cosmetics, clothing, and IT&C products and services are the most popular online acquisitions. Household appliances and books are also among the best online selling products,” said Andreea Coca, Digital Market Intelligence Consultant, GfK Romania.            
However, studies monitoring FMCG sales show that only one in three households in Romania buy face or body cream. Thus, 32 per cent of the households in this country purchase a face cream at least once a year, and 35 per cent purchase body lotion or cream.    
“Women in Romania have to handle numerous responsibilities, and skin care is clearly not one of their priorities. Only ten per cent of them believe it is very important for them to take care of their skin. Another essential reason for the low consumption of skin care products is the poor awareness on the importance of preventing the effects of aging on skin,” said Mdlina Carstea, Custom Research & Strategy Director GfK România. Studies have shown a higher consumption of such products in the Czech Republic, with 54 per cent of the Czech families buying face cream and 71 per cent purchasing body lotion, and in Austria, where 58 per cent of households buy face cream and 62 per cent take body cream. Serbia is at the bottom of the scale, with poorer results than Romania in terms of face care creams. However, some 50 per cent of Serbian households purchase body care lotions.      
And while the cosmetics market is dominated by multinational giants, local producers are not discouraged. In fact, they make new investments every year and launch new products in order to consolidate their brands on the domestic market. And customers appreciate their efforts, as certain local brands continue to be among the best selling cosmetic products. 

To read the full version, see the print edition of Business Arena.

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