Cosmetics And Toiletries in Uzbekistan
Euromonitor International's Cosmetics And Toiletries in Uzbekistan 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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Tables: 9 | Publication date: Nov 2006
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Executive summary
Dramatically growing market
During 2000-2005, value sales of cosmetics and toiletries in Uzbekistan increased dramatically mainly due to the extremely high inflation rates that stood at almost 50 annual inflation rates for the first three years of the research period.
It is also worth mentioning that almost 30% of the total population is made up of 15 to 29 -year-olds, which means that the population is very young. In addition, average annual population growth is 1.4%. All of these facts make Uzbekistan a very attractive, especially for cosmetics and toiletries. This is due to the fact that young people in the country tend to be spending more time socialising, with them increasingly going out to cinemas, nightclubs and discos, where they like to look good.
Market remains unsaturated
Although local sales of cosmetics and toiletries are growing rapidly in value terms, the market still remains unsaturated in volume due to several reasons. The lack of local production is one of the most important arguments, since there were only two local facilities of cosmetics and toiletries in Uzbekistan. Generally, compared to consumers from Russia or Kazakhstan, Uzbeki consumers are not that “spoilt” in terms of product variety. There is high potential for growth in most areas of the market.
It is the same situation with baby care and sun care, which present very narrow assortments. This is despite the fact that Uzbekistan is a potentially strong market for sun care due to its hot climate.
Direct sales companies established presence
Oriflame Uzbekistan, Mary Kay, Faberlic and Avon are direct sales companies in Uzbekistan. Throughout the review only Oriflame gained remarkable share of the market, while other direct sellers retained fragmented sales. Oriflame has the widest network of sales consultants throughout Uzbekistan. Mary Kay is present in major cities only and its popularity is declining due to its high prices and the consumer preference for mass products. Meanwhile, Faberlic and Avon’s value shares are so small that they are not considered to be serious market players. Oriflame therefore has sixth position from the top.
Distribution development
Growth of the market, particularly in terms of product assortment, has caused distribution channels to develop further in Uzbekistan. Traditionally, before the review most of the products were sold through wholesale bazaars in Tashkent, such as Karvon, Urikzor, Yunusobod, Qatortol, and Alpomish. But throughout the review local distribution became more civilised and consumer goods became distributed countrywide. For instance, the local distribution company Grand Trade successfully distributes a wide range of Colgate-Palmolive products within the cosmetics and toiletries market across the country.
Urban vs rural sales
The urban population in Uzbekistan only represents 30-33% of the total population. However, compared to rural areas, urban sales account for 75-85% of overall sales of cosmetics and toiletries. There are several reasons for this: Consumers’ purchasing power is much lower in rural areas; unemployment is high; there is insufficient distribution; and many consumers tend to be migrating from the provinces to major cities.
Capital Tashkent is considered to be a special market. Many companies generate up to 75% of their overall sales in Tashkent. This is due to the higher living standards in Tashkent, as well as the low purchasing power in rural areas. Besides, in rural areas, people are more conservative and retrograde; for example, the same aged young girls in rural areas buy far less cosmetics and toiletries than those living in urban areas.
Table of contents
COSMETICS AND TOILETRIES IN UZBEKISTAN : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. COSMETICS AND TOILETRIES SALES
2.1 Market Performance
Table 1 Retail Sales of Cosmetics and Toiletries by Sector: Value 2000-2005
Table 2 Retail Sales of Cosmetics and Toiletries by Sector: % Value Growth 2000-2005
2.2 Competitive Environment
Table 3 Cosmetics and Toiletries Company Shares by Retail Value 2001-2005
Table 4 Cosmetics and Toiletries Brand Shares by Retail Value 2002-2005
2.3 Leading Company Profile – Kalina Concern OAO
2.4 Leading Company Profile – Oriflame Uzbekistan
2.5 New Product Launches
Summary 1 Major New Product Launches 2005
2.6 Retail Distribution
Table 5 Retail Sales of Cosmetics and Toiletries by Distribution Format: % Analysis 2000/2005
Table 6 Retail Sales of Cosmetics and Toiletries by Sector and by Distribution Format: % Analysis 2005
2.7 Retailer Activity and Private Label Trends
2.8 Forecast Market Performance
Table 7 Forecast Retail Sales of Cosmetics and Toiletries by Sector: Value 2005-2010
Table 8 Forecast Retail Sales of Cosmetics and Toiletries by Sector: % Value Growth 2005-2010
3. DEFINITIONS