Beauty and personal care in the Czech Republic is dominated by mass products. The competition remains fierce, and further intensified by regular promotions.
With increasing product awareness, consumers have become concerned about the harsh chemicals used in some products, and have started looking for products which they believe to be more natural or safer. Natural products used to be sold primarily in health or bio stores.
Masstige products continued to gain popularity in 2018, due to successfully copying the identifying product aspects of premium products (for example design), as well as product features such as the key ingredients used, whilst offering them at considerably lower prices. Products combining key product features within a single product gained popularity in the most popular variations; for instance, skin care brands with anti-ageing, moisturising, firming/anti-cellulite or sun protection factor, and facial moisturisers and serums enriched with vitamins E and C.
The strengthening position of discounters and chained drugstores/parapharmacies such as dm-Drogerie Markt and Rossmann enables them to aggressively promote their own product lines. It is profitable for them because private label products provide significantly higher margins than branded products and are a good tool for building a unique offer.
Meanwhile, established brands use price discounts to stop private label products from taking share from them, and often branded products are at the same price level as private label lines. Price promotions are expected to ease off over the forecast period, due to rising average prices and purchasing power.
In the first half of 2018, dm-Drogerie Markt invested more than CZK100 million in the modernisation of its stores, their partial enlargement or relocation. In February 2018, the chain launched its own e-shop.
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