Skin Care in Azerbaijan

PROSPECTS

Skin care growth due to improved economic situation and growing consumer awareness

In 2018, skin care posted growth both in volume and current value terms, driven by a resurged economy and increased consumer purchasing power. As there are no culturally specific traditional product alternatives to skin care, well-educated local consumers increased their consumption of these products over the review period.

Trading up to premium products in 2018

2018 was characterised by relative stability after consecutive years of economic vulnerability, caused by monetary devaluation and the loss of value of the local currency by up to 98%. With improved disposable incomes, there was a shift back to premium products.

Beauty specialist retailers hold the highest share, whilst modern grocery retailers record strong growth

Skin care was traditionally more popular in Azerbaijan through beauty specialist retailers and drugstores/parapharmacies. However, during the review period, modern grocery retailers posted a substantial increase in both the number of outlets and number of visitors due to their convenience.

COMPETITIVE LANDSCAPE

Kalina Concern OAO leads due to its wider distribution and competitive prices

In 2018, several large companies were fighting for the leading position in skin care. However, Kalina Concern OAO retained its leadership thank to its rich brand portfolio, including the Barkhatniye Ruchki, Chistaya Liniya, Cherniy Zhemchug brands.

Local skin care products remain in minority

Skin care is led by multinationals, which offer a wide range of products and brands at different prices. Local manufacture was therefore highly fragmented and distributed through limited channels during 2018.

Convenience and price are the key drivers of consumers’ purchasing behaviour

The busier lifestyles of consumers and enriched assortment of products supported the growing number of new launches. Most new products were claiming instant beauty, instant repair and restoration, an instant photoshop effect, an effect in 10 seconds and others.

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