Mass Beauty and Personal Care in Romania

PROSPECTS

Mass beauty and personal care tracks changes in lifestyles

Rising disposable incomes led to changes in lifestyles in 2018, especially in cities seeing significant economic activity. Consumers have become more discerning not only in terms of purchasing decisions but also when it comes to creating a certain image.

Expansion of modern retailing stimulates sales

Modern retailing continues to shape the way consumers approach their daily and weekly purchasing habits. The strong performance of modern retailing in beauty and personal care over the review period was the result of aggressive expansion in the country, as well as the growing range of mass products which are available.

The rural environment is a source of growth

44% of Romania’s population lived in rural areas in 2018, and their consumption habits tend to be different from those of urban consumers, although the gap is reducing due to increasing access to information. In the villages, the best selling categories are those based on necessity and less on other reasons, such as lifestyle shopping, self-care or demand for premium products.

COMPETITIVE LANDSCAPE

Avon Cosmetics Romania SRL retains leadership

The leading position of Avon Cosmetics Romania SRL is the result of its dominance in direct selling, with the company having successfully established a presence across the whole country. Its detailed catalogues of products not only encourage consumers to buy on impulse, but also help educate them further in terms of consumption of beauty and personal care.

Domestic actor Farmec challenges the international players

Mass beauty and personal care is in the hands of international players, with Avon, L’Oréal, Beiersdorf, Coty and Unilever being the leading multinationals, owing to their broad distribution and wide ranges of products. Within this landscape, however, the domestic company Farmec has succeeded in gaining share from the big players, and has become a respected company, with many loyal customers who appreciate local brands.

Private label is not a threat to the established brands

Despite the rapid expansion of modern retailing across the country, the presence of private label remains very limited. The main reason for this is the presence of strong international brands, which have succeeded in capturing the attention of mass consumers through advertising, extensive distribution and affordable prices.

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