Skin Care in Serbia

PROSPECTS

Innovative products in terms of ingredients attract a growing number of consumers

There were several important innovations within skin care in Serbia over the review period, and in 2018 some of these increased in importance. One of the most prominent such innovations saw the introduction of several different product types that contain clay and charcoal as main “active” ingredients.

Drugstores/parapharmacies leads distribution

The largest distribution channel for skin care in Serbia in 2018 was drugstores/parapharmacies. This was thanks to the huge popularity of and large number of outlets held by two chains in this channel – Lilly and dm.

Most premium skin care categories perform well

Premium skin care categories recorded much higher growth rates in 2017 and 2018 than was the case in 2016. One of the most important factors that influenced this was the fact that premium products were much more frequently offered at visibly discounted prices in 2017 and 2018 than in previous years.

COMPETITIVE LANDSCAPE

Frequent discounts on premium skin care products negatively affect direct sellers

Another consequence of the lower prices of skin care products, especially premium products, was the declining sales of both the large direct sellers (Avon Cosmetics and Oriflame Kozmetika) within skin care in 2018. These two producers changed their overall strategy by slowly shifting to premium products in the second part of the review period, and this put them in direct competition with the most popular premium brands.

Private label remains insignificant

Skin care is one of the beauty and personal care categories in Serbia in which strong brand loyalty prevents private label from claiming a significant value share. Large retailers are well-aware of this fact, and are not willing to invest notably in private label skin care lines.

Numerous new launches are observed

There were many new launches seen within skin care in 2018. However, by far the most active in this regard was Beiersdorf (Serbia).

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