Polish cosmetic retailers found to be better financially than general business
The report analyzed financial results of over 200 retail chains over the past two years, of which data showed that the revenues of non-food retail networks are on the rise.
On the findings, Tomasz Starzyk from Bisnode D&B said that despite the financial crisis, Polish non-food retailers such as the cosmetics sector increased revenues by an average of 15 per cent and profits by an average of 27 per cent in 2012.
Going forward, fellow market researcher PMR, reckons that as cosmetics are one of the least expensive products in comparison to clothing, footwear or consumer electronics, they will continue to be the most commonly bought products by Polish customers over the next year.
Polish market building momentum
PMR also noted that thanks to the Polish market, the Central European cosmetics retail segment experienced 2 per cent growth in 2012 resulting in the market value of almost €8.6bn.
"The CE cosmetics market overall has stabilised over the last three years, boasting an average yearly increase of almost 2 per cent."
In terms of economic performance, the market researcher reports CE to have remained unfavourable in 2012, as the GDP grew slower in all the countries compared to 2011, and countries such as Hungary and the Czech Republic faced recession.
"The 0.3 p.p. decrease in growth rate is down to the difficult and uncertain situation on the CE labour markets as well as fiscal austerity measures, constraining the income of households as well as their propensity to consume.”
Even starting to focus on foreign markets
Polish cosmetics brands are now even starting to strengthen their position in the Middle East and North Africa markets as part of an EU funded scheme set up last year.
They are said to be the 6th most often exported European cosmetics worldwide, and the industry is looking to reinforce its presence in Saudi Arabia, Bahrain, Egypt, Iraq, Iran, Qatar, Kuwait, Lebanon, Libya, Morocco and the United Arab Emirates.
Many Polish brands, such as Eveline and Dr Irena Eris Cosmetics Laboratory are already accessible in many of the Gulf countries.
