Premium Beauty and Personal Care in Azerbaijan

PROSPECTS

Premium beauty and personal care outperforms mass beauty in 2018

The performance of premium beauty and personal care in 2018 was driven by the improved macroeconomic situation in Azerbaijan and higher disposable incomes compared with the review period. Growth, however, was mainly attributable to price increases - manufacturers and distributors sought to recover the margin they partially lost during the monetary volatility period in 2015 and 2016 by increasing their prices.

Premium colour cosmetics records the fastest growth

Premium colour cosmetics outperformed during 2018 due to the increased demand for eye and face products thanks to the improved macroeconomic situation and increased disposable incomes. Manufacturers and distributors of premium colour cosmetics used this chance to increase the price of colour cosmetics, targeting consumers with a higher income level.

Beauty specialist retailers remains the key distribution channel

During the review period, premium beauty and personal care remained generally available through beauty specialist retailers, which provide a first-class service and allow the distributors to allocate their own educated and well-trained representatives to serve customers. In addition, beauty specialist retailers created an opportunity for distributors and manufacturers to effectively market their products by using high-quality marketing tools, such as large displays or attractive positioning.

COMPETITIVE LANDSCAPE

L'Oréal Groupe leads premium beauty and personal care

Premium beauty and personal care was led by L'Oréal Groupe in 2018. The company owns the Lancôme, L'Oréal Paris and Giorgio Armani brands, which are well established and available from many healthcare and beauty specialist retailers.

Premium beauty and personal care remains predominantly imported

During 2018, premium products in beauty and personal care were primarily imported from Italy, France, the UK, Sweden and other, mainly European, countries. Local consumers with higher incomes prefer well-recognised global brands.

Nostalgia trend drives premium fragrances in 2018

In 2018, numerous manufacturers introduced Arabian scents, which were very popular amongst Azerbaijanis due to historical, geographical and cultural factors. Amongst the most popular premium products were Arabian Oud by Dolce & Gabbana and Arabian Oud by Montale.

Files are delivered directly into your account within a few minutes of purchase.