Sotirios Marinidis, one of the most powerful executives in theconsumer goods sector, provides the first optimistic forecasts forthis market in 2010.
The general manager of P&G Balkans, the company that makesHead&Shoulders, Gillette and Pampers, relies on a stabilisationof consumer spending and a progressive rebound of retail this year,after an about 10% decline in 2009. The estimate is in line withthe government's forecast, which built the budget on a 3% increasein consumer spending.
P&G is currently building its biggest shampoo factory in theworld in the town of Urlati, Prahova county, following a 100million-dollar investment. The first phase of the project will becompleted in the next few months.
"We hope for a stabilisation of the market in 2010. Discipline andstrictness in cost control and investments in production facilitiesand innovation will be strategies that will allow companies to copewith the current macroeconomic situation," says P&G Balkansboss.
The 44-year-old manager who supervises a 400 million-dollarbusiness in Romania says that retail sales fell by about 10% lastyear compared with 2008.
"After an apparent stabilisation in spring, the decline of domesticdemand became worse in June, and all the sectors were affected -with the food sector affected less and the services sector more.The consumer goods segment continued to increase in value lastyear, compared with 2008, but we could also notice less frequentshopping and an increase in sales of hypermarkets and discountstores," Marinidis says.
The company saw declines especially for those categories regardedas "dispensable", such as fabric softener and hair conditioner in2009.
The segment of fabric softener shrank by 32% in volume last yearcompared with 2008, double the decline of the detergent market, asrevealed in a survey by market research company MEMRB.
The increase in consumer goods sales in hypermarkets anddiscounters was another effect of the drop in purchasing power,given that the two store formats - which account for 50-60% of themodern food retail together, relied on selling products with thelowest price on the market.
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