Constantin Tudorache, the general manager of Sarantis Romania, one of the biggest players on the cosmetics market, says that although the company has an adequate sales and distribution system specialising in various channels, it believes buying a distribution company will give it a competitive edge.
"To increase our growth rate we are interested in buying a local company operating in our field of expertise, that is the distribution of non-food consumer goods," Tudorache explains.
The representative of Sarantis did not reveal the name of the company he was targeting or how far the talks had progressed so far.
Sarantis Romania, the local branch of the Greek cosmetics producer and distributor by the same name, works with more than 6,200 customers. The company's products are sold both through traditional retail, and in drugstores, and through key accounts and indirect distribution channels. The company also owns a distribution and sales division specialising in luxury stores and beauty parlours. Sarantis focuses on its merchandiser division, which is responsible for the image of the company's products in stores.
"We try to meet the demands of our partners by making available to them sales and distribution teams specialising on dedicated channels, as our purpose is to provide the right product lines for each type of store. The merchandising division is very important to us, too, as it is responsible for the image of our products within stores," Tudorache added.
He believes that on a market seen as a reflection of domestic consumer behaviour and preferences, which is dynamic and becoming increasingly stronger (15% a year), a consistent marketing strategy is needed for a company to be able to grow and even maintain its position on the market.
"The cosmetics market in Romania is attractive and offers lots of opportunities. As far as producers and importers are concerned, competition is getting fiercer and fiercer. Companies need to invest significant amounts of money in structural development, in marketing and especially in human resources, which will have to support the dynamics of the market and will generate competitiveness," Sarantis Romania's general manager explains.
Sarantis Romania posted a 12.26% increase in turnover last year to 32.25 million euros compared with 2005.
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