Cosmetics And Toiletries in Azerbaijan
Euromonitor International's Cosmetics And Toiletries in Azerbaijan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Publication date: Nov 2006
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Growth slower but still dynamic due to growing niches
In 2005, cosmetics and toiletries continued to show dynamic development in Azerbaijan. The market growth can be seen in sectors such as bath and shower products, hair care and skin care products. The popularity of cosmetics and toiletries has grown over the review period; cosmetics are viewed not only as a means to achieve beauty, but as a tool to combat the damaging effects of pollution and to achieve a general improvement of health. The demand for individualized cosmetic products has grown. As a result, beauty salons and professional cosmetic products are becoming more and more popular.
A stable economic situation and flexible investment policies made Azerbaijan open for investments and some companies have launched local production. However, there still are bureaucratic obstacles that create difficulties for local producers, as well as for traders and importers.
Sharpening competition among the top five
The review period brought changes in terms of position among the top five leading companies. Image and brand awareness became more important to maintain share within cosmetics and toiletries. Western players and their products dominate sales throughout cosmetics and toiletries in Azerbaijan. However, there is a local producer; Gazelli Cosmetics, which plays a minor role in the local market. Foreign companies accounted for over 95% of total value sales over the review period.
The top two players in cosmetics and toiletries are Engin Ltd (Procter & Gamble) and Colgate-Palmolive Azerbaijan. Together, these accounted for more than 43% of overall value sales in 2005, creating a relatively competitive environment in the majority of sectors. Meanwhile, Turkish producers Ipek (Canan), Hayat and others are striving to gain leading positions in the Azeri market as well.
Survey of Azeri consumers
The survey was conducted within the project development period (second part of December 2005) after initiative by a freelance expert. 102 persons (20 males and 82 females) were surveyed in one supermarket and one department store. The main aim of the survey was to define the preferences of Azeri consumers in hair care (shampoo) and oral hygiene (toothpaste) products.
Results from the survey showed that, in oral hygiene, Colgate brand was chosen as the most preferred. All respondents indicated a considerable range of Colgate toothpaste products stressing the quality and flexible price offerings.
Blend-a-Med gained second position, indicating the strong competition among Colgate-Palmolive Azerbaijan and Engin Ltd (Procter & Gamble) in oral hygiene. Its important to note that ASTERA toothpaste products (from Aroma Cosmetics Bulgaria) that only began to be promoted in Azerbaijan from summer 2005, also gained the preference of Azeri consumers as the products have acceptable quality at reasonable cost.
Procter & Gamble’s (represented by Engine Ltd) Pantene Pro-V shampoo products gained the first position among hair care brands. Second place was also covered by Procter & Gamble’s products reinforcing its strong position in this particular sector. Meanwhile, due to increased demand for hair care products Turkish and Russian brands also started to increase their sales.
Future potential – rising tendency
The potential size of cosmetics and toiletries sales in Azerbaijan is around AZM579 billion in 2005. However, it has a tendency towards sales and consumption increase in the forecast period.
The market is almost fully dependant on foreign producers (imports) and it is foreseen that the foreign brands will increase their presence within Azerbaijan. The competitive environment is almost absent because of highly corrupted official control of the market. Consumers are expected to continue the trend seen in 2005 of switching from extra-economy goods to upper mass-market and some premium goods. Moreover, there is a strong competition between US, European and Russian brands. Local consumers prefer to use US or European products in oral hygiene and hair care, while the Russian products are mainly popular in skin care and baby care. Products with natural ingredients will also increase in importance and local companies (such as Gazelli Ltd.) will have a good chance to gain share in this profitable niche in the forecast period.
Table of contents
COSMETICS AND TOILETRIES IN AZERBAIJAN : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. COSMETICS AND TOILETRIES SALES
2.1 Market Performance
2.2 Leading Company Profile – Gazelli Ltd
2.3 Leading Company Profile – Taki Distribution
2.4 Leading Company Profile – Sabina
2.5 Retail Distribution
2.6 Forecast Market Performance
3. DEFINITIONS