Depilatories in Latvia

PROSPECTS

Rising environmental awareness continues to discourage consumption of depilatories

Latvian consumers are becoming increasingly interested in the environment and ecological issues are often at the forefront of their concerns when purchasing beauty and personal care products. This poses something of a threat to sales of depilatories as there are widespread environmental concerns over the regular usage of some of the category’s most common products.

Low per capita usage of depilatories means considerable room for further sales growth

There is still huge potential for growth in sales of depilatories in Latvia as per capita usage is still considerably lower than the European average. This means that there is even room for newcomers to make their mark on the category.

Growth set to be supported by rising incomes and rising female employment levels

Depilatories is slated for further positive growth over the forecast period and the main reason for this is set to be the higher earning potential of Latvian women, which is in turn set to be the result of higher female participation in the workforce and the general improvements that are being seen in the Latvian economy. In previous years, the high prices of women’s shaving products have held back sales growth as many women were encouraged to use more economical men’s shaving products instead and this is likely to become less of an issue during the forecast period as income levels rise and these products become more affordable.

COMPETITIVE LANDSCAPE

The dominance of the leading players presents barriers to entry

The strong positions of the three leading brands Veet, Gillette Venus and Bic means that the parent companies of these three brands Reckitt Benckiser, Procter & Gamble and Sté Bic respectively, are able to set the pace in the category and exercise a high degree of control. This of course make it difficult for newcomers to enter the category and makes it likely that there will be few changes seen in the competitive environment in depilatories during the forecast period.

More intense competition translates into lower unit prices

Competition between the leading brands in depilatories is expected to intensify over the course of the forecast period and this is likely to result in more intense price competition in both hair removers/bleaches and women’s razors and blades. This is set to mean lower prices in both categories and this can be expected to result in high numbers of women abandoning their use of men’s shaving products and turning to depilatories that are designed and marketed as being especially suitable for women.

Fragmentation continues to define category outside of the dominant leaders

While the three leading players Reckitt Benckiser, Procter & Gamble and Sté Bic accounted for around half of value sales in depilatories in 2018, outside of this consolidated bloc of leading players, sales remain highly fragmented. Despite the fairly high barriers to entry, new players do tend to appear in the category with some regularity, although it is uncommon for new brands to survive for any length of time in what has become a highly competitive category.

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