The summer season in Romania started with a booming consumption of mineral water, juice or ice cream, with sales on these segments expected to be around 80% higher than in the similar period of last year and double the values the main players had originally projected.
For companies with seasonal activities, that usually generate 80% of their annual turnover during these months, this is the time to launch new products and promotions to get an as big a slice as possible from a "burgeoning" market.
The early summer is equally reflected in the accounts of companies producing or distributing sunscreens. The market in Romania, which is still immature, sees both domestic producers and big names in the cosmetics industry competing for a slice of it.
Sunscreen products reach the shelves as early as April, but sales in stores get to considerable levels starting June-July, according to market players.
"The seasonality pattern has changed from previous years, and as the summer period practically begins in May sun products start selling in May and reach a peak between June 15 and August 31," says Roxana Minculescu, procurement manager with Help Net drugstore network, one of the main players in this field.
According to Euromonitor data quoted by Gerocossen, a global producer in this field, the sun care cosmetics market is boasting the fastest growth in the general category of cosmetics and personal care products.
The trend, Gerocossen representatives say, is the same in Romania, too, owing to the "highly competitive environment on this category (...)".
"Romania's sunscreen cosmetics market is primarily a market characterised by consumer immaturity in terms of education and information on the need to get protected against UV radiation during the summer period and not only," said Andreea Sas, marketing manager with Gerocossen. Still, as offerings have risen, so have consumers' requirements related to these products.
In the case of drugstore networks, around 20% of turnover is generated by sales of cosmetics and dermato-cosmetics. During this period, sun products sales account for around 40% in overall cosmetics sales.
"The hot weather and the promotions we're prepared for our customers on this segment make us expect sales of sun protection/beach products to be 80% higher than in the same period of last year," said Minculescu.
For Oriflame, 2006 brought 0.5m-euro sales of sunscreens, with steep growth on the segment of baby and anti-aging products. On the other hand, Elmiplant posted 0.5m-euro sales during the summer period alone.
Gerocossen has also seen its sales expand each year. It expects sales to grow further this year, too.
Baby sun care cosmetics market
The value of the market hit 475.2 RON (135,000 euros) in 2006, 94% higher against 2005
The top 5 brands, Nivea, Avene, Garnier, Elmiplant, Infinite, concentrate 92.2% of the market
The top 5 producers in terms of market share are BDF Germany, Avene Dermatological Laboratories, Garnier France, Elmi Prodfarm SRL, Chicco Italy
In 2006, 62.7% of baby sun cosmetics sales were operated through supermarkets and hypermarkets
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