Growth in skin care used to come mainly through premiumisation, which pushed up prices. However, there is another force at work in skin care, which works in the opposite direction: price promotions.
Lately, new launches tended to stack multiple functions in one product. Most products address the issue of skin moisturisation, while others deal with the deep cleansing.
Croatian consumers who want to experience a sense of premium treatments tend to buy skin care products in chemists/pharmacies. This trend has been going on for some time.
The clash between premium and mass products is visible in the competitive landscape in skin care: the two distinctive leaders each represent a different price segment. The leader L'Oréal Adria owes its lead to the high prices of the premium products it markets and sells, but the real winning card is the number of brands this group owns.
Although ranked second, the king of mass skin care, Beiersdorf (Croatia), creates the sense of being more active and innovative even than the leader. With a smaller group of brands (Nivea, Eucerin, Labello and Atrix) it manages to launch the by far biggest number of new products on the market during a given year.
With strong consolidation at the top and a pretty packed competitive environment, new players have a hard time introducing themselves to consumers. The general belief is that there is not much to offer aside from the product portfolio already offered on the market.
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This industry report originates from Passport, our Beauty and Personal Care market research database.