Beauty and personal care shows healthy growth
Although Austria continued to face economic stagnation during 2013, this was not enough to dampen the performance of beauty and personal care as the industry continued to register robust value growth, offering manufacturers and retailers strong revenues. The main reasons for this growth were that beauty and personal care products remain an indispensable part of the lifestyles of modern Austrian consumers and extensive marketing support from the leading players. There was noticeable growth in consumer demand for value-added products and the leading brands in 2013. Products which are based on advanced technology or are the result of scientific studies enjoyed the highest popularity. Colour cosmetics, deodorants, depilatories, fragrances and men’s grooming were the best performing beauty and personal care categories during 2013.
Austria’s leading drugstores/parapharmacies chains enter into bankruptcy
Anton Schlecker Austria GmbH, previously the leading drugstores/parapharmacies chain in Austria, went bankrupt during 2013. The major factor contributing to the company’s demise was its excessive focus on rapid and aggressive expansion without paying attention to the profits and margins on offer in each outlet. Schlecker’s demise underlines the importance of maintaining strong outlet concepts and marketing strategies for drugstores/parapharmacies. TAP Dayli Vertriebs GmbH subsequently acquired Schlecker and reopened closed Schlecker outlets under the Dayli fascia, although the Dayli chain was also bankrupt by the end of 2013.
Multinational players and the leading local companies secure the lion’s share
Beauty and personal care in Austria remained dominated by leading multinational and domestic companies at the end of the review period. During 2013, the ten leading companies in the industry comprised the bulk of value sales, with increases recorded in their value shares over the review period. In sharp contrast, the minimal value share of private label declined further in 2013. One crucial contributory factor to the success of these leading companies was their major investment in research and development, the frequent launch of new products in line with the latest fashion trends, the creation of new trends through innovation, high profile advertising and promotional campaigns and strong brand building activity. The presence of these companies remained crucial to growth in beauty and personal care during the review period.
Health and beauty specialist retailers continue to dominate distribution
The bulk of the beauty and personal care products in Austria are sold through health and beauty specialist retailers. The outlets in this channel offer a broad range of products and consumers value their expert advice, which contributed substantially to the success of the channel during 2013. Health and beauty specialist retailers also have a strong advantage in that the leading manufacturers sell their leading brands mainly through this channel in order to generate and maintain exclusivity, credibility and a premium image. The shift in consumer demand towards the industry’s leading brands and the fact that Austrian consumers are less price- sensitive when it comes to beauty and personal care also contributed to the success of health and beauty specialist retailers in 2013.
Positive performance expected in beauty and personal care during the forecast period
Beauty and personal care in Austria is expected to perform well during the forecast period, with growth likely to be sustained throughout the forecast period, although at a slower pace than during the review period. Some of the categories which have previously been lucrative are facing maturity and saturation, while consumer demand is slowing down generally. This is set to have a negative influence on beauty and personal care overall during the forecast period. However, the effective marketing strategies of the industry’s leading manufacturers contributed to the revival of saturated categories during the review period and this is also expected to be the case during the forecast period. Thus, beauty and personal care is expected set to benefit in a major way from these marketing strategies during the forecast period as well.
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The Beauty and Personal Care in Austria market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
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- What are the major brands in Austria?
- How are sales of mass versus premium beauty products evolving?
- What are the key shifts in retail channel distribution?
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This industry report originates from Passport, our Beauty and Personal Care market research database.