Mass Beauty and Personal Care in Georgia

PROSPECTS

Forecast period growth predicted to be lower than the review period

Value growth at constant 2017 prices is predicted to be marginally slower over the forecast period compared to the review period for mass beauty and personal care. Due to the strong waves of devaluation of the Georgian lari against the US dollar and the euro, unit prices in overall beauty and personal care were affected; the market strongly depends on imports and the more expensive foreign currencies made products more expensive for final retail consumers.

Emerging growth expected for limited mass beauty and personal care categories

The strongly developed direct selling, expanding modern grocery retailing and already maturing chained pharmacies have taken many areas of the mass beauty and personal care to the point that they are close to maturity for the current level of economic development. Awareness amongst Georgian consumers of most of the categories is quite high; availability is also high and assortments of products are rich in all existing channels.

Mass sets/kits continues to offer potential growth for forecast period

Out of the limited number of emerging categories, the more remarkable will be mass sets/kits. There is significant growth expected across the category; mass fragrance sets/kits, mass skin care sets/kits, and mass colour cosmetics sets/kits.

COMPETITIVE LANDSCAPE

Three leaders of mass beauty and personal care

The Procter & Gamble Co, L’Oréal Groupe and Avon Georgia led value sales of mass beauty and personal care in 2017. The reason behind their success is their expansive portfolios, as they own well-established brands in Georgia.

Direct sellers are stable players within mass beauty and personal care

Direct sellers are the most flexible players within mass beauty and personal care. They easily adapt to new realities, whether it is devaluation of local currency, consumers reducing their expenditure or prospering GDP.

No space left for local producers

The loyalty to international well-established brands in store-based retailing and the flexible portfolios and successful pricing policies of direct sellers are factors that leave very few chances for local producers to gain any significant position in mass beauty and personal care in Georgia. Due to low economies of scale, local producers are unable to compete with international players in terms of prices.

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