Makeups and fragrances – new innovations in beauty care

By: Budai Klára Date: 2024. 12. 03. 20:12

This article is available for reading in Trade magazin 2024/12-01

Bettina Kovács
category manager
Primőr

Bettina Kovács, category manager of Primőr Kozmetikai Kft. has experienced a boom in the decorative cosmetics market for years. Citing Rossmann and dm scanning data, she says the category grew by 17% in value sales in the drugstore channel in January-September 2024 vs. January-September 2023.

“Decorative cosmetics have always been drugstore-focused, as many people like to try and test the latest looks at makeup stands”,

she explains.

In her view the eye category has been the strongest for years: mascaras, eyeliners and eyebrow brushes are among the best-sellers. On the one hand, people are sticking to the favourites they have used for years, but the majority are also open to new solutions. Vegan, fragrance-free formulas with minimal artificial ingredients are very popular too. The company distributes the essence, Catrice and Makeup Revolution brands in the decorative cosmetics category.

Decor cosmetics has always been a drugstore focus, where you can test the latest looks

Upgraded app

Hajnalka Horváth-Tokaji
senior category
manager
Rossmann

Hajnalka Horváth-Tokaji, senior category manager of Rossmann Ma­gyarország adds that in Hungary the decorative cosmetics category grew faster in value in the first 10 months of 2024, while in terms of items sold the growth was more measured. Rossmann has seen similar changes in value and unit sales for 2024. According to their research, the main factors influencing decorative cosmetics product choice are whether customers have used similar makeup before or whether they are familiar with the brand’s offering. Although in-store shopping is still the most common way to make a decision, shoppers get more and more help online too.

By using the Rossmann app, from this spring customers can virtually try on lipstick colours by certain brands. With brands that are exclusive to Rossmann, such as Rival Loves Me, Alterra, Ardell, NYX, Nora Beauty and Eveline, they use tailor-made marketing strategies that can support the most dynamic and profitable development of the brand.

The eye category has been the strongest in years

Mascara at the top

Value sales of decorative cosmetics in dm store grew more than the overall market.

Nóra Valkó-Fekete
assortment manager
dm

“Currently sales are mainly driven by the three largest suppliers – L’Oréal, Coty and Primőr – and our three own brands, Trend It Up, S.he and Alverde. In December we are doing an exciting decor collaboration in dm stores”,

reveals Nóra Valkó-Fekete, assortment manager of dm Kft.

It varies from brand to brand which segments they have the most relevant offerings, but with the TOP 3 brands there are no big surprises: the dominance of mascaras continues. They sell twice as many of these as from any other subcategory. The assortment manager believes that if a brand is innovative, it will attract consumers. Colours always adapt to the given season, but now manufacturers are even introducing gloss into their collections.

If a brand is an innovator and often innovates, it will “attract” consumers

Fragrance dilemmas

The world of perfumes has always been synonymous with luxury, uniqueness and self-expression, but in recent years the market underwent a dramatic transformation. For new generations perfume isn’t only an object, but also a means of identity and sustainability.

Hajnalka Horváth-Tokaji from Rossmann Magyarország explains that perfume is a drugstore-specific product group, and it is primarily in this sales channel that customers look for the best fragrance for themselves for everyday use or as a gift for their loved ones. In 2024 mid-price brands continue to top the sales charts. Competition is really fierce among the TOP 5 brands and a promotional period can periodically overturn the rankings. The success of perfumes isn’t only determined by price: a new fragrance is usually well received by brand-loyal customers. Products smaller than 50ml account for more than 60% of sales, but it is the larger sizes that produce the most dynamic growth. Research by Rossmann reveals that fragrance is the most important factor, with price being the second most important in choosing between two preferred fragrances.

The perfume assortment needs to be constantly renewed, as customers usually surprise themselves or their loved ones with new fragrances every season

Modern fashion and timeless values

Ildikó Tóth
assortment manager
dm

Relying on Nielsen IQ Discover data, dm’s assortment manager Ildikó Tóth says perfume sales grew by 16.8% in value and 19.2% in volume over the past 52 weeks. Drugstores are responsible for 94.6% of category sales.

“We are witnessing a bipolar growth: the share of the cheaper and premium categories is growing dynamically, while the mid-price range is declining”,

adds the expert.

She compares the category to fashion, as shoppers usually surprise themselves or their loved ones with new fragrances every season. Around a quarter of the product selection is renewed every six months, in order to keep the latest fragrances up to date. There are also classics with a stable customer base and these stay in the spotlight for years. //

 

Decorative cosmetics in the spotlight

The decorative cosmetics market went above HUF 26bn in the September 2023 – August 2024 period. Compared to the previous 12 months, this was a 16% increase in value terms.

Guest writer:
Zsófia Horváth
analytic insights associate
NIQ

In volume the category also saw double-digit growth, with 10% more decorative cosmetics products ending up in shopping baskets. Drugstores remain the main places for buying these products, accounting for 97% of sales. Manufacturer brands realised 87% of value sales, while private labels accounted for the remaining 13%. In value share foundation is the leader among the different segments, representing 23% of the decorative cosmetics market. Other popular products include mascaras and nail polishes, with 19% and 9% value shares, respectively. In the last 12 months blusher sales were up 44% in value and 38% in volume. //

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