Premium Beauty and Personal Care in Croatia

PROSPECTS

Decisive surge for premium

Croatia always had a premium-seeking consumer group in beauty and personal care. Croatian beauty and personal care consumers traditionally have a tendency to buy somewhat above their level.

Historical high already reached

In most fast-moving consumer goods categories, after peaking in 2008, abrupt decline in 2009 saw sales descend into a downward spiral from which most categories are yet to recover. However, this is not the case with premium beauty and personal care; the decline in value sales over the years of hardship was negligible.

Premium advances from two directions

Apart from the above-mentioned group that is motivated to buy premium products for their prestige and feel-good factor, there is also another group of premium buyers contributing to the positive growth. This is the group of environmentally-aware health-seeking people with higher incomes, mainly the younger ones.

COMPETITIVE LANDSCAPE

Local players enter

Lacking brand recognition, more typical of major global premium brands, domestic manufacturers must resort to other strategies. They do not have the means to invest in visible advertising, nor the budgets to set up elaborate laboratories to create products using advanced technology.

With Beiersdorf doo not present, L'Oréal Adria doo thrives

The overall leader in Croatian beauty and personal care, L'Oréal Adria doo, achieves its leadership by fighting on many fronts simultaneously. Even in mass beauty and personal care, it leads it arch-rival Beiersdorf doo by combining the forces of its numerous umbrella brands.

In contrast to mass, premium goes in direction of consolidation

While mass beauty and personal care has seen an avalanche of new economy players, increasing the number of competitors, premium beauty and personal care manufacturers are not so numerous. Particularly in Croatia, with such a low level of disposable household income, where some luxury retail outlets had to close after a year due to the lack of customers, premium manufacturers are not particularly eager to take the risk of entering the market.

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