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Czech Republic cosmetics and toiletries market was valued at US$1.07 billion in 2007. The Czech consumers are often known for being traditional, conservative and price sensitive however, it is the younger generation who are becoming more globally aware and fashion conscious.
The economic crisis has impacted on the sales of skin care and make-up products in Czech Republic, dampening sales. However, distributors in the Czech Republic have seen increases in certain price categories for both skin care and make-up products during the same period. The Czech Republic cosmetics market and toiletries market reported an increase of approximately 10% in 2011 as the markets recovered.
The local Czech Republic toiletries and cosmetics market is heavily influenced by foreign brands whose market share has increased significantly over recent years following the country's independence. Over the past decade, consumer purchasing power has increased although the average per capita consumption for cosmetics and personal care products remains significantly below the average experienced in West Europe.
The Central and East European cosmetics and personal care market was valued at approximately US$16 billion before the 2008 financial crisis with the Czech Republic reporting sales worth US$1.07 billion in 2007. Since 2007, the market has reported steady growth. The Czechs are becoming increasingly fashion and health conscious with disposable incomes of the population significantly higher compared to the other East European nations. Products that incorporate natural and organic ingredients are becoming increasingly popular.
It is not unusual for Czechs to mix the higher value cosmetics with lower priced goods. Private labels have also fared relatively well, maintaining their market share over recent years largely due to the popularity of Marks & Spencer and other private label brands such as The Body Shop or L'Occitane. Sales of private label cosmetics and toiletries products were on average 10 to 15 percent of the total retail trade in the Czech Republic.
In terms of specific products, anti-aging products are gaining popularity and skin care products kept relatively stable despite the economic crisis. The Czech market for sun care products is rapidly growing in connection with greater awareness of the dangerous effects of prolonged sun exposure. Sun-tanning products are also doing well since heavily tanned skin is a beauty trend.
The market for skincare and makeup products is dominated by imports, especially in the area of high end and brand name cosmetics, and foreign brands manufactured in country. Although the economic crisis negatively impacted rapid growth in the sector over the last few years, it is expected that there will be 14 percent growth in this segment until 2014. The main importers of cosmetics goods in Czech Republic are Germany, France and Poland although American brands have strong recognition. Only 4 percent of cosmetics imports originate from the United States although the US brands tend to manufacture their goods in Europe and therefore import from these countries.
The Czech cosmetics market is extremely competitive with most major international players already here. The Czech Republic has a relatively large number of medium and small-size producers of cosmetics, toiletries and perfumes. At the same time, a large number of varied products coming from other European countries and a lesser number of products coming from the U.S. and Asia are also available in the market. Besides skincare and makeup products, which are available in supermarkets, drugstores, and convenience stores, top-sellers in cosmetics are those that are distributed via direct selling Avon, Herbalife, Oriflame (Sweden), Mary Kay, Nu Skin and Amway. The majority of these direct sales products are U.S. brands. Local subsidiaries of direct sales companies make up nearly 10% of the overall cosmetics market. Several Czech companies hold solid positions in the market such as Dermacol and Ryor among others. Dermacol was founded in 1966 at the Barrandov film studios to produce cosmetics to meet the needs of the local movie industry. The license for its Make-Up Cover product, a clinical makeup with 50 percent pigment particles, was first sold to Hollywood studios back in the 1960s. Currently, the UK company McBride has invested in Dermacol. The Czech cosmetic firm Ryor is well known throughout the entire country and its products can also be found on shelves worldwide. Today, the Ryor line includes over one hundred products - 40 for cosmetic salons and 87 sold in retail stores. Since its beginning, the firm's logo and brand name on products has been accompanied by the slogan Natural Herbal Cosmetics. There are also a number of smaller companies that produce herbal cosmetics (Botanicus, etc.).Large multinational firms increasingly dominate the market. The market leader is Beiersdorf AG (Germany). Beiersdorf led sales of skin care products with a 17% share in 2010 thanks to strong promotional activities and new product development. The second-largest player is L'Oreal S.A. (France). Unilever (The Netherlands/UK) and Estee Lauder (USA) also hold strong positions. Other U.S. companies with representation in the country include Johnson & Johnson.
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