Super Premium Beauty and Personal Care in Romania

PROSPECTS

Strong performance growing from low sales base, dominated by super premium fragrances

Super premium beauty and personal care in Romania remained underdeveloped compared to many Western countries, which is translating into a strong performance in current value terms, due to growing from a low sales base. Super premium fragrances continued to dominate value sales in 2019, due to offering a high average unit price, although affluent local consumers, particularly younger Romanians, tend to be influenced by social media platforms which often collaborate with or are endorsed by celebrities including high-profile models, and therefore have greater exposure to global trends within this category.

Polarising trends within smaller categories

The impressive performances of two smaller categories of super premium colour cosmetics and super premium skin care are due to polarising trends. The former recorded the highest retail volume and current value growth in 2019 and is predicted to outperform all other types of super premium beauty and personal care over the forecast period.

Omnichannel approach increasingly taken by brands and beauty specialist retailers

The rapid expansion of premium chained beauty specialist retailers such as Douglas, Marionnaud, and Sephora are helping to support greater distribution and therefore drive sales of super premium beauty and personal care in Romania. With many of these chains adopting an omnichannel approach, internet retailing continued to strengthen its position as a viable distribution channel for this category in 2019, with a strong focus on super premium fragrances.

COMPETITIVE LANDSCAPE

Further consolidation within intense competitive landscape

Super premium beauty and personal care continued to offer a fairly consolidated competitive landscape in 2018, led by high-profile global brands such as Paco Rabanne, Christian Dior, Giorgio Armani, Hugo Boss, and Chanel. These names are among the most coveted and recognisable brands in Romania, with many offering a range of luxury goods, including both beauty and personal care as well as apparel and accessories.

L'Oréal Romania makes gains and launches high-end fragrance store in Bucharest

L'Oréal Romania SRL regained its third position after being forced into fourth the previous year by EPCD RO Distribution SRL (Christian Dior). The player offers Yves Saint Laurent and Giorgio Armani, with the latter recording the strongest performance and leading to the significant share gain.

Baneasa Shopping City attracts increasing number of super premium and luxury brand names due to future growth potential

With strong prospects for super premium beauty and personal care in Romania as it continues to evolve, an increasing number of brands are being encouraged to open their own mono-brand stores. Baneasa Shopping City, which is a hub for luxury brands and is situated close to The Grand Avenue Luxury Shopping Mall in the JW Marriott Bucharest Grand Hotel, is therefore a popular location for launching new super premium beauty and personal care brands.

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