Viorel Ognean, general manager with Coty Cosmetics, says the increasing clients' demands prompted the company to expand its semi-selective and entry-selective perfume portfolio, triggering a more aggressive approach of decorative cosmetics' market.
"On the mass perfume segment, we maintained the brands that strengthened our position on the market, namely Pr?t-?-porter, Chanson d'Eau and Crossmen, which posted a significant sales volume since they entered the domestic market, ten years ago. We are currently focused on the growing segments, namely the semi-selective and entry-selective ones, as the consumers become increasingly more sophisticated once their incomes increase," says Viorel Ognean.
He thinks the change in consumers' behaviour is caused by the efforts made by the major players on the market and by the investments made in promotion.
"Today, the Romanian consumers prefer strong brands instead of the unknown ones," adds Ognean.
The company entered the semi-selective perfume segment four years ago, with the Isabella Roselini brand, which currently holds a 5% market share, according to MEMRB data, quoted by Coty. The company's best selling perfume is Celine Dion, with some 8% market share, which makes it one of the two top brands on the market, show the quoted data.
"We currently hold over 30% of the women's perfume segment and almost 20% of the whole toilet water and after-shave market," says Viorel Ognean.
Coty entered the entry-selective perfume segment a few years ago and it currently owns the Esprit and Beckham brands. The company intends to expand its portfolio by adding the Kylie Minogue perfume, early next year.
Coty will also invest in the decorative cosmetics' segment.
"The decorative cosmetics' market is a highly competitive segment. We plan an aggressive approach of this segment," adds Ognean.
Image and promotion are equally important on the decorative cosmetics market, as well as on the perfume market, considering the similar budgets earmarked for the promotion of the two categories. The sales of decorative cosmetics account for some 20% of the company's turnover, the equivalent of 3 million euros, the value derived last year.
Television is the major medium for Coty's promotion, whereas a small part of the promotion budget is earmarked for written media, according to the company's representatives.
"We will make some changes to our communication mix, due to the development of the advertising on the Internet on one hand, and to the increasing reach posted by the written media on this segment, on the other hand," mentions Coty representative.
The company projected for this year a growth pace above the market average. "We are trying to gain from the market share held by the other players, which are either our direct competitors, with strong brands, or other players that will be eliminated from the market, following the increasing clients' demands," states Ognean.
Coty Cosmetics
Posted 18.5 million-dollar (14.8 million-euro) turnover in 2005, up 15% on 2004
Sales of decorative cosmetics account for about 20% in turnover, and reached 3 million euros last year
Its best-selling perfume is Celine Dion, with 8% market share
Share of women's perfume market - 30%, share of toilet water and after-shaves - nearly 20%
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