Mass Beauty and Personal Care in Croatia

PROSPECTS

Consumers seek offers on premium products, but buy mass if necessary

Croatian consumers are known for their preference for recognised branded products. If their budgets allow them, they will always opt for the highest-quality option – this usually entails buying a popular global brand.

Price movements affect the performance of mass beauty and personal care

Mass beauty and personal care had a period of declining prices, when the influx of cheaper products originating from EU countries pushed down prices. This ended relatively quickly, when rising disposable incomes increased demand for products and allowed prices to rise once again.

Moderate growth is expected

With current value growth remaining low, mass beauty and personal care has not yet reached its historical high level of sales from 2008. Times of economic trouble usually hit those with lowest incomes the hardest; thus, the decline in sales of mass beauty and personal care products was significant during the economic crisis.

COMPETITIVE LANDSCAPE

Private label enters troubled waters

Beauty and personal care in general sees very high levels of brand loyalty, although not loyalty to a specific brand, but rather towards buying popular branded products as opposed to buying cheaper lesser-known brands. Private label has therefore had a problem breaking through, as most of these products have no historical reference with consumers, and have yet to gain a reputation.

Beiersdorf is strong in mass beauty and personal care

One of the two prominent leaders in beauty and personal care, Beiersdorf (Croatia), has built its strong competitive position around mass products. It appeals to the biggest part of the market, which demands value for money.

Increasing fragmentation

The sheer number of competitors streaming into mass beauty and personal care is so high that it necessarily leads to fragmentation. Mass beauty and personal care includes various categories, each of which has a specialist company; for instance, specialists in razors and blades are not necessarily also specialists in shampoos.

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