Premium Beauty and Personal Care in Georgia

PROSPECTS

Premium beauty and personal care exhibits stable value growth

Premium beauty and personal care posted stable current value growth in 2018, with its dynamism mainly linked to the overall economic situation and local consumers’ willingness to spend more on beauty and personal care products as the currency stabilised, especially in urban areas of the country. However, a major factor hampering the growth of premium beauty and personal care in Georgia was increasing unit prices due to currency volatility.

Major growth generators in premium beauty and personal care

The majority of Georgian consumers cannot boast of high disposable incomes, especially taking into consideration the country’s exposure to its neighbours’ economic situation due to its floating exchange rate. However, the interest in beauty and personal care products remains, and with disposable incomes growing and consumers spending more on personal care, the habit of trying premium products is expected to grow over the forecast period.

Good potential for future growth

Unlike mass beauty and personal care, premium beauty and personal care has numerous categories that remain underdeveloped and hold strong potential for further growth over the forecast period. Many expansion opportunities are targeted towards the growing spending opportunities of urban dwellers, and Georgian consumers’ love of premium products.

COMPETITIVE LANDSCAPE

LVMH Moët Hennessy Louis Vuitton continues to lead

LVMH Moët Hennessy Louis Vuitton is the world’s leading luxury goods company, operating across many luxury goods categories, including luxury alcoholic drinks, fashion, beauty, fragrances and jewellery. LVMH was the absolute leader in premium beauty and personal care in Georgia throughout the review period, with iconic premium brands such as Givenchy, Kenzo, Guerlain, Bvlgari and more.

Puig Rus is closing the gap

Despite maintaining its lead in 2018, LVMH Moët Hennessy Louis Vuitton saw stronger competition from Puig Rus, with global brands such as Jean Paul Gaultier, Paco Rabanne, Prada and Carolina Herrera, amongst others. The switch of some consumers from super-premium to premium brands due to the unstable currency, as well as broad distribution networks (both modern and traditional channels, including markets, beauty specialist retailers and internet retailing, amongst others) contributed to growth for Puig over the review period.

Premium players focus mainly on one major category – fragrances

The leading players in premium beauty and personal care in 2018 were LVMH Moët Hennessy Louis Vuitton, Puig Rus and The Procter & Gamble Co. Their leading positions are mainly based on their focus on and good performance in premium fragrances, the biggest category within premium beauty and personal care.

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