Mass Beauty and Personal Care in Croatia

PROSPECTS

Desire and reality not always the same thing

In European terms, Croatian consumers are considered among those with the highest preference for well-recognised branded products. Financial conditions permitting, they would typically choose the highest quality option.

Prices increasing even in mass beauty and personal care

Mass beauty and personal care witnessed a decline in unit price over the review period, because there were many new products with economical prices after 2013, coming from EU countries. The reverse in 2017 saw increasing disposable household income allow consumers to loosen their belts even in the mass segment.

Future to bring further growth

Mass beauty and personal care, as the larger part of total beauty and personal care market, witnessed an abrupt decline in sales when the credit crunch occurred in 2009. Sales have not recovered since then, and the levels in 2017 were still below the peak levels from 2008.

COMPETITIVE LANDSCAPE

Private label risks venturing into beauty and personal care

Beauty and personal care is characterised by strong brand loyalty; not so much loyalty to one brand, but loyalty to brands in general, which works against no-name and economy brands. Private label, therefore, must fight against lack of acceptance, because a lower price is not enough to secure sales.

Beiersdorf doo garners strength from mass

One of the leading beauty and personal care companies, Beiersdorf doo operates mainly in mass beauty and personal care. The company creates affordable products and pushes volumes by offering a wide product portfolio.

Competitive landscape increasingly fragmented

Mass beauty and personal care has traditionally had a handful of strong leading companies (all of them multinationals). The three key players are local subsidiaries of well-known multinationals: Beiersdorf doo, L'Oréal Adria doo and Procter & Gamble doo.

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