Premium Beauty and Personal Care in the Czech Republic

PRE-COVID-19 PERFORMANCE

Marketing, high-end positioning and rising consumer purchasing power help to drive value growth in 2019

Beauty and personal care continued to see growing popularity for premium brands/products in 2019. However, the importance of the premium segment appeared increasingly to vary according to gender and the specific category.

Product safety and quality concerns support premium brands and pharmacies

Czech consumers paid increasing attention to the composition of the products they use in 2019. This was particularly visible in beauty and personal care, as these products, which can contain numerous chemicals, are applied to hair or skin on various parts of the body.

Added-value in-store experiences and services catch the eye of premium consumers

The upmarket association informed manufacturers’ and retailers’ strategies to promote premium beauty and personal care. As premium players responded to the demand for unique and personalised shopping experiences, omnichannel and added-value strategies became more important in driving sales of premium brands.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 12% in 2020 in 2019 constant value terms in light of the impact of COVID-19.

Affected products within premium beauty and personal care

Over 2020 as a whole, premium beauty and personal care is projected to see a stronger decline in retail value sales at constant 2019 prices, compared with mass beauty and personal care. Regardless of quality or prestige, the use of fragrances, colour cosmetics, hair care and sun care and other product types are expected to be much reduced as stay-at-home measures and social distancing limit their relevance.

Recovery and opportunities

Premium beauty and personal care is also predicted to recover quickly from the projected fast decline in sales in 2020. In 2021, strong value growth at constant 2019 prices is expected across most premium categories, before stabilising.

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