According to its estimates, analysts say Poland’s cosmetics and drugstore products market was worth €5.7bn in 2008. This translates to a growth of 13 per cent in comparison with 2007.
Retail analyst at PMR, Patrycja Nalepa, has said that the cosmetics market in Poland will be one of the most resistant to the poor economic climate.
“Even in the most difficult of times, consumers will want to be able to purchase cosmetics, especially mid-priced items, which represent the bulk of the assortments offered by drugstore chains”.
Nalepa added that heavier investment in branding and advertising also accounted for the increased consumption of mid-range cosmetics available at drugstores in Poland.
Redistribution of market share
The report finds that drugstore chains are “rapidly building up their share of the drug-cosmetics segment in Poland”. Store counts and sales have increased as well as the share of the market, which is up by 6 percentage points 2006-2008.
Whilst supermarkets and drugstore chains have grown in importance, hypermarkets have declined in their share of the cosmetics market.
Furthermore, the analysts at PMR predict that drugstore chains will continue to increase their share in the coming years.
This is attributed to three factors: the opening of new stores, the incorporation of existing individual outlets into chains on a franchising basis and finally, the fact that it is easier for chains to obtain high street locations which were previously the preserve of banks.
Continued expansion predicted
Based on their research, which analyses Poland’s cosmetics market from 2006 until 2009, PMR predict that Poland’s 10 largest drugstores will have 24 per cent share of the market in 2009, rising from 21.7 per cent in 2008.
Stating 2009 to be a “favourable year” for drugstore chains in Poland, the biggest brands are said to be adding 270 new stores this year, in comparison with 170 in 2008 and 190 in 2007.
Of these brands, the most successful has been Rossmann, say PMR. Their estimates state that the Rossmann drugstore chain boosted sales by 36 per cent in 2008, bringing its total share of the cosmetics market up to 12 per cent. During 2008, the chain opened 64 new shops, closing the year with 342 outlets in Poland.
Other brands Drogerie Natura and Sephora were noted for their increased share on the market.
This PMR report is the latest to state the way in which the recession is altering consumer attitudes to cosmetics.