Contents:

Bath and Shower Products in Bulgaria Euromonitor International July 2009 List of Contents and Tables Executive Summary Growth Rates Continue To Rise Premium Cosmetics Becomes A Key Segment in the Market Multinational Brands Grow Aggressively at the Expense of Local Brands Economic Slowdown Unlikely To Affect the Market Competition Is Likely To Become Stiffer As the Market Reaches Maturity Key Trends and Developments the Market Is Performing Well, Despite the Economic Crisis Domestic Players Lose the Competition To the Multinationals Fairs and Presentations Are A Significant Driving Force Behind the Growth of the Market Imported Brands Dominate the Market in Almost All Categories Direct Selling Is the Main Driving Force in the Cosmetics and Toiletries Market Market Data Table 1 Sales of Cosmetics and Toiletries by Sector: Value 2003-2008 Table 2 Sales of Cosmetics and Toiletries by Sector: % Value Growth 2003-2008 Table 3 Sales of Premium Cosmetics by Sector: Value 2003-2008 Table 4 Sales of Premium Cosmetics by Sector: % Value Growth 2003-2008 Table 5 Cosmetics and Toiletries Company Shares by NBO Retail Value 2004-2008 Table 6 Cosmetics and Toiletries Company Shares by GBO Retail Value 2004-2008 Table 7 Cosmetics and Toiletries Brand Shares by Retail Value 2005-2008 Table 8 Penetration of Private Label by Sector by Retail Value 2003-2008 Table 9 Sales of Cosmetics and Toiletries by Distribution Format: % Analysis 2003-2008 Table 10 Sales of Cosmetics and Toiletries by Sector and by Distribution Format: % Analysis 2008 Table 11 Forecast Sales of Cosmetics and Toiletries by Sector: Value 2008-2013 Table 12 Forecast Sales of Cosmetics and Toiletries by Sector: % Value Growth 2008-2013 Table 13 Forecast Sales of Premium Cosmetics by Sector: Value 2008-2013 Table 14 Forecast Sales of Premium Cosmetics by Sector: % Value Growth 2008-2013 Appendix Gift Sets Definitions Summary 1 Research Sources Aroma Ad Strategic Direction Key Facts Summary 2 Aroma AD: Key Facts Summary 3 Aroma AD: Operational Indicators Company Background Production Competitive Positioning Summary 4 Aroma AD: Competitive Position 2008 Krasnaya Linia Bulgaria Ltd Strategic Direction Key Facts Summary 5 Krasnaya Linia Bulgaria Ltd: Key Facts Summary 6 Krasnaya Linia Bulgaria Ltd: Operational Indicators Company Background Production Competitive Positioning Summary 7 Krasnaya Linia Bulgaria Ltd: Competitive Position 2008 Rosa Impex Ood Strategic Direction Key Facts Summary 8 Rosa Impex OOD: Key Facts Summary 9 Rosa Impex OOD: Operational Indicators Company Background Production Competitive Positioning Summary 10 Rosa Impex OOD: Competitive Position 2008 Rubella Beauty Ad Strategic Direction Key Facts Summary 11 Rubella Beauty AD: Key Facts Summary 12 Rubella Beauty AD: Operational Indicators Company Background Production Competitive Positioning Summary 13 Rubella Beauty AD: Competitive Position 2008 Sts Cosmetics Ood Strategic Direction Key Facts Summary 14 STS Cosmetics OOD: Key Facts Summary 15 STS Cosmetics OOD: Operational Indicators Company Background Production Competitive Positioning Summary 16 STS Cosmetics OOD: Competitive Position 2008 Headlines Trends Competitive Landscape Prospects Sector Data Table 15 Sales of Bath and Shower Products by Subsector: Value 2003-2008 Table 16 Sales of Bath and Shower Products by Subsector: % Value Growth 2003-2008 Table 17 Bath and Shower Products Premium Vs Mass % Analysis 2003-2008 Table 18 Bath and Shower Products Company Shares by Retail Value 2004-2008 Table 19 Bath and Shower Products Brand Shares by Retail Value 2005-2008 Table 20 Bath and Shower Products Premium Brand Shares 2005-2008 Table 21 Forecast Sales of Bath and Shower Products by Subsector: Value 2008-2013 Table 22 Forecast Sales of Bath and Shower Products by Subsector: % Value Growth 2008-2013 Table 23 Forecast Bath and Shower Products Premium Vs Mass % Analysis 2008-2013

Summary:

2007 brought the highest growth rates in the past decade In 2007 Bulgarian cosmetics and toiletries achieved a successful year as most of the categories saw positive growth rates, both in terms of value and volume sales. Well above the average was the growth rate of sun care, for example, but its impressive progress was actually mostly due to its initial low base and the category still generates the low sales levels. The majority of the colour cosmetic categories performed well, with many managing to achieve double-digit growth in value and volume sales. Oral hygiene, however, was the least dynamic category but has significant potential for future growth. Premium cosmetics become a key segment in the industry 2007 was the year when rising disposable incomes stirred the market and stimulated the growth of premium and high-end cosmetics. Although actual sales achieved were still low, that was a clear indication that the local premium cosmetics category is changing and will become even more profitable for the key players. Premium colour cosmetics and sun care were the most dynamically progressing products but it is premium fragrances and premium skin care that generate the highest value sales. Conversely, the low end of the category is notably shrinking as the quality is becoming more important than the price of a product. A decade ago consumers were choosing most of the products by comparing prices. In the review period, however, it became clear that the attention of the users of cosmetics can be kept by showing consistency in quality and ensuring positive perception for the manufacturer and the brand. Multinational brands expand, local manufacturers shrink 2007 saw expected success for global brands such as Avon, Nivea, L’Oréal, Dove, etc. All of the multinational companies maintained their shares and stabilised their positions. Most managed to expand their share at the expense of local manufacturers, which were unable to cope with the intensifying competition. In spite of the recent investments in quality improvement, major Bulgarian companies such as Aroma AD, Alen Mak AD and Rubella Beauty AD remain unable to halt their falling shares. The key factor which limits their potential is their limited financial background, which does not allow them to invest in marketing and advertising. As a result, even new launches remain unnoticed while foreign companies invest massively in advertisements, which facilitate their progress further. Store-based retailing remains the key distribution channel Store-based retailing was the key distribution channel for cosmetics and toiletries in Bulgaria. Health and beauty retailers account for the greater part of the value sales in the industry, alongside perfumeries and independent small grocers. The importance of the grocery stores is increasing, mainly because of the growth of sales of the large supermarket/hypermarket chains as they are able to negotiate bigger discounts and offer popular brands at slightly lower prices. Along with that, the direct sellers like Avon and Oriflame have also managed to strengthen their distribution networks, resulting in growth of direct sales. Avon Bulgaria EOOD, which was the company with the largest overall share, is the major distributor of cosmetics and toiletries and successfully operates in categories including skin care, colour cosmetics and fragrances. Moderate growth and fierce competition expected The forecast period promises stable positive growth, driven by rising disposable income, which will boost demand for high quality sophisticated products. Skin care and sun care will show the highest growth as these categories are still underdeveloped and have the highest potential for progress. The positive advance and the increasing unit prices are expected to intensify competition between companies and they will bring the rivalry to another level – instead of only attracting the attention of the potential consumers, leading brands will have to keep it and invest in creating sustainable brand loyalty.

Companies Mentioned

ALEN MAK AD AROMA AD KRASNAYA LINIA BULGARIA LTD RUBELLA BEAUTY AD STS COSMETICS OOD