The Romanian cosmetics market is experiencing major changes in terms of consumer behaviour, migrating toward high-quality products. One of the main reasons behind this change is linked to the fact that a certain segment of the population that has had access to Western consumer patterns and that currently earns above-average incomes has returned to Romania.
a??We have felt an increase in population income as compared to the last two years, mainly due to the repatriation of revenues and people working abroad, but also to the lower salary taxa??, explains Dana Tudorache, an executive manager with The Body Shop store network.
The Romaniansa?? improved lifestyle means bigger sales for specialised stores, especially in the high and average price segments.
This year, The Body Shop store network, producing and selling cosmetics based on natural ingredients, expects turnover to reach 1.7 million euros, 30% higher on 2004. a??The first quarter of this year brought us 400,000 euros, exceeding our forecastsa??, says Dana Tudorache.
This fall, the company will open, in Timisoara, its first store in the west of the country and among the first in the world after those in Paris and Hanover that are equipped in line with the new brand design.
The opening of this store will trigger investments worth about 100,000 euros, with the highest costs being linked to the furnishing. Under the conditions imposed by the parent company, both the furniture and the promotional materials have to be brought over from Great Britain.
The firm has four stores in Bucharest and one in Constanta. a??We do not have any target as regards the number of stores, but we are open to all opportunities that might come up inside or outside Bucharest a??, Tudorache says.
The Body Shop originally targeted the opening of stores in Bucharest and in cities with over 300,000 inhabitants, with the evolution of sales to indicate smaller cities as well.
a??As there were no proper commercial spaces for us to carry a modern retail activity, we had to slow this process down a??, specified Dana Tudorache.
The latest store opened in Plaza Romania, last October.
The Body Shop Romania is the domestic branch of British company The Body Shop International, present in over 50 countries with a network of about 2,000 stores.
Networks of specialised cosmetics shops have seen strong growth over recent years. Ina Center and Privilege, controlled by Marionnaud French cosmetics company, last year added six stores to the network, getting to 32 locations.
Beauty Shop cosmetics and perfume stores, owned by Sephora France, last year logged turnover worth eight million euros, with projections for this year pointing to more than ten million euros. dana.ciriperu@zf.ro
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