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Dermocosmetics sales in Poland transforms as distribution diversifies

By Andrew MCDOUGALL , 10-Jan-2013

Dermocosmetics sales in Poland transforms as distribution diversifies

Sales of dermocosmetics in Poland are tipped to increase, reaching one billion Polish zlotys (€245 million) in the next two years, as the country’s distribution channels become more diversified.

According to the latest report published by PMR, in 2014 sales of dermocosmetics at pharmacies in Poland will reach these figures, and that in 2012, in the wake of an increase in sales at the end of the year, they could be worth as much as PLN 895m.

The market researcher also forecasts that there will be a year-on-year increase of between 10 and 20 percent in online sales over the next few years, i.e. about 2.5 times the figure for sales at conventional pharmacies.

Significant changes in market

The last year has seen some big changes in the market, with the ban on pharmacy advertising the most significant one on the subgroup.

“As a result, at the beginning of the year some marketing tools such as promotional magazines and the offer of dermatological consultations disappeared from pharmacies,” Monika Stefanczyk, head Pharmaceutical Market Analyst at PMR, explained.

“In addition, in the wake of the turmoil on the pharmacy market and a reduction in revenue from reimbursed drugs, many pharmacies are in a poor financial situation: for example, some have declared themselves bankrupt or refrained from implementing expansion plans.”

“At present Poles are also spending more on drugs, reducing the amounts spent on dermocosmetics or choosing cheaper brands,” she added.

In 2010-2011 the economic crisis had a particularly adverse effect on the market. According to industry representatives, there is gradual market saturation.

Legislative procedure

Furthermore, the complicated legislative procedure (in comparison with those of other countries, rather than other kinds of products, e.g., drugs) does not make life for manufacturers and distributors easier.

“What is meant here is mainly the contradictory decisions issued by different institutions. Products available on foreign markets, in Scandinavia for example, can, as a result, be held up at the registration stage in Poland,” says the report.

PMR estimates that for 2012 as a whole the growth rate will be negative, with a figure of approximately 2 per cent, given an increase in dermocosmetics sales at the end of the year caused, in part, by Christmas gift purchases.

The analyst believes that in subsequent years, the market will adapt to the new legal situation, and more pharmacy owners may be interested in adding dermocosmetics to their product portfolios.

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