Attractive figures
But one of Polish women's best-kept secrets may finally be slipping out, and it could give their continental counterparts a helping hand in the beauty stakes.
While Polish women may get some of their beauty from the country's cosmetic industry, there is little doubt that the industry's figures are pleasing to the eye. The value of the Polish cosmetics market is estimated at zł.6 billion. On the one hand, Poland is a favored location within the CEE region for foreign personal-care product manufacturers, such as Johnson & Johnson, Unilever, Beiersdorf, L'Oréal and Avon. On the other, the importance of local players, such as Eris, Dax Cosmetics, Dermika, Kolastyna, and Oceanic, cannot be overestimated. Polish producers have managed to occupy a formidable market position. According to recent estimates, they control 30 percent of sales in the industry or 50 percent in the case of skincare products.
The brand beautiful
Polish cosmetic firms say their success is down to the high quality and competitive prices of their products, as well as the trust of customers towards local brands. The biggest individual cosmetics producer on the market is Beiersdorf-Lechia. As for the Polish players, the fastest developing firms are Oceanic, Eris, Ziaja and Kolastyna, however Pollena-Ewa and Miraculum, both founded in the early 1920s, remain the leaders of Polish cosmetics production, drawing on their long traditions and past monopoly on the cosmetics market.
During communist times, Poland was a major producer of personal hygiene products for the whole Eastern bloc, and the Pollena brand was a symbol of elegance and beauty behind the Iron Curtain. The formerly state-owned giants were later privatized and are now listed on the Warsaw Stock Exchange. But in the early 1980s and 1990s there appeared a number of new companies that were established, in the majority of cases, by people with a thorough pharmaceutical education but little managerial experience.
Perfect skin
Urszula Grzegorzewska, the founder of Laboratorium Kolastyna, developed and implemented a technique for the production of collagen, which she later sold to big cosmetic producers such as Pollena. But when the state-owned monolith started to fall into decline and could no longer be depended on as a reliable buyer, Grzegorzewska decided to launch her own range of beauty products. The year 1991 marked a real watershed for the company. This is when Kolastyna started to produce suntan lotions, and soon the firm became the leader in this segment with a 25 percent share of the market.
In the late 1990s Kolastyna took over Ann Cosmetics with a popular brand of shampoos and creams, and four years later it bought 67 percent of shares in the Kraków-based cosmetics plant Miraculum. "By taking over a majority share in Miraculum, Kolastyna became part of the 80-year-long tradition of the Polish cosmetics industry. Our aim now is to further strengthen our position on the local market and increase exports to the most promising foreign countries. We are still working on a more and more attractive product portfolio for our customers," said Andrzej Grzegorzewski, CEO of Kolastyna.
Smooth takeovers
In 2005, Kolastyna is planning to generate sales earnings of zł.79 million and a net income of zł.2.6 million. Its products are exported to Russia, Ukraine, Spain, the US, Canada and many other countries. New funds for further development were obtained by way of a non-public offer of shares worth zł.6 million.
But while expanding their companies, Polish cosmetics producers still treat high quality and innovation as their priorities. With hundreds of 'miracle potions' appearing on the market and supermodels constantly boasting of the astounding effects of different serums on TV, cosmetics producers who want a strong market position must be informed about the latest inventions or, even better, stay one step ahead of the competition. To that end, Dermika, established by biologist Jolanta Zwolińska, spends five percent of its total income (approximately zł.1.4 million in 2004) on research and development (R&D) every year.
Profits salve
"Moisturizers' recipes are prepared in cooperation with outstanding dermatologists, biochemists and pharmacists. The company regularly consults such scientific institutions as the Warsaw University of Technology, the Polish Academy of Medicine, the Higher School of Cosmetology and Healthcare and other cosmetic schools. Before they are introduced to the market, our products undergo thorough dermatological tests in order for their high quality to be confirmed. We also constantly monitor the market," explained Anna Irzycka, a PR specialist with Dermika.
The same is true in the case of Dr Irena Eris, the winner of the 2005 Marqua prize for the best Polish brand. In 2004, the company earmarked 3.4 percent of its zł.97.6 million turnover for R&D and this year the figure will probably reach 4.6 percent of the planned zł.102 million turnover. "The company strategy assumes further strengthening of the brand in the Polish and foreign markets, investments in R&D activities and development of Dr Irena Eris beauty institutes. After the great success of our spa in Krynica Zdrój, we have started another project in Wysoka Wieś near Ostróda, where a new Eris spa will be launched in mid-2006," said Aneta Dymarska, a spokesperson for Dr Irena Eris.
Finding a niche
What seems to be important, apart from R&D investments, is to find one's niche in the market. In the case of Kolastyna it was sun block, while Oceanic, the owner of the AA brand, turned to antiallergenic products. "The idea to set up a company specializing in the production of antiallergenic cosmetics was the answer to market needs and results of our research," says Dorota Soszyńska, owner of Oceanic. "Today, 30 percent of people around the globe suffer from some kind of allergy. By 2012, the figure will increase to 50 percent. We developed the recipe for our first antiallergenic preparation 20 years ago - it was a face cream and we called it AA, which stands for antiallergenic. The success of the product reassured us that we were heading in the right direction and that is when we decided to launch a wide range of antiallergenic face and body creams for women, men, teenagers and children."
In 1992, an Avon Products-owned subsidiary was established in Poland and it soon became the leader in cosmetics sales. Five years later it opened its manufacturing plant in Garwolin, near Warsaw, and Poland became Avon's second market in terms of sales volume, after the United Kingdom. The entrance of international players was a challenge for Polish companies, but the well-established firms managed to handle the increased competition successfully.
It's chemistry
With the the average monthly spend on cosmetics in Poland amounting to $7 (zł.24) per person, the country is still far behind EU member states. As beauty lotions are not essential goods, the majority of Polish consumers still look for bargains. But considering that most people will think twice before rubbing a substance of unknown origin into their face, tried and tested Polish products are a natural choice. With their recognizable brands and high quality goods, local cosmetics producers are also a target for foreign investors. Dermika, Eris and Oceanic often get purchase offers but are not interested in selling their brands.
They managed to conquer their home market and are now aiming to drum up new customers abroad. With luxury product spending likely to increase in the developing new EU member states, Polish companies have every chance of enlarging their incomes. Of course this expansion means that love-hungry men will now not necessarily have to come to Poland to meet a real stunner.
While Polish women may get some of their beauty from the country's cosmetic industry, there is little doubt that the industry's figures are pleasing to the eye. The value of the Polish cosmetics market is estimated at zł.6 billion. On the one hand, Poland is a favored location within the CEE region for foreign personal-care product manufacturers, such as Johnson & Johnson, Unilever, Beiersdorf, L'Oréal and Avon. On the other, the importance of local players, such as Eris, Dax Cosmetics, Dermika, Kolastyna, and Oceanic, cannot be overestimated. Polish producers have managed to occupy a formidable market position. According to recent estimates, they control 30 percent of sales in the industry or 50 percent in the case of skincare products.
The brand beautiful
Polish cosmetic firms say their success is down to the high quality and competitive prices of their products, as well as the trust of customers towards local brands. The biggest individual cosmetics producer on the market is Beiersdorf-Lechia. As for the Polish players, the fastest developing firms are Oceanic, Eris, Ziaja and Kolastyna, however Pollena-Ewa and Miraculum, both founded in the early 1920s, remain the leaders of Polish cosmetics production, drawing on their long traditions and past monopoly on the cosmetics market.
During communist times, Poland was a major producer of personal hygiene products for the whole Eastern bloc, and the Pollena brand was a symbol of elegance and beauty behind the Iron Curtain. The formerly state-owned giants were later privatized and are now listed on the Warsaw Stock Exchange. But in the early 1980s and 1990s there appeared a number of new companies that were established, in the majority of cases, by people with a thorough pharmaceutical education but little managerial experience.
Perfect skin
Urszula Grzegorzewska, the founder of Laboratorium Kolastyna, developed and implemented a technique for the production of collagen, which she later sold to big cosmetic producers such as Pollena. But when the state-owned monolith started to fall into decline and could no longer be depended on as a reliable buyer, Grzegorzewska decided to launch her own range of beauty products. The year 1991 marked a real watershed for the company. This is when Kolastyna started to produce suntan lotions, and soon the firm became the leader in this segment with a 25 percent share of the market.
In the late 1990s Kolastyna took over Ann Cosmetics with a popular brand of shampoos and creams, and four years later it bought 67 percent of shares in the Kraków-based cosmetics plant Miraculum. "By taking over a majority share in Miraculum, Kolastyna became part of the 80-year-long tradition of the Polish cosmetics industry. Our aim now is to further strengthen our position on the local market and increase exports to the most promising foreign countries. We are still working on a more and more attractive product portfolio for our customers," said Andrzej Grzegorzewski, CEO of Kolastyna.
Smooth takeovers
In 2005, Kolastyna is planning to generate sales earnings of zł.79 million and a net income of zł.2.6 million. Its products are exported to Russia, Ukraine, Spain, the US, Canada and many other countries. New funds for further development were obtained by way of a non-public offer of shares worth zł.6 million.
But while expanding their companies, Polish cosmetics producers still treat high quality and innovation as their priorities. With hundreds of 'miracle potions' appearing on the market and supermodels constantly boasting of the astounding effects of different serums on TV, cosmetics producers who want a strong market position must be informed about the latest inventions or, even better, stay one step ahead of the competition. To that end, Dermika, established by biologist Jolanta Zwolińska, spends five percent of its total income (approximately zł.1.4 million in 2004) on research and development (R&D) every year.
Profits salve
"Moisturizers' recipes are prepared in cooperation with outstanding dermatologists, biochemists and pharmacists. The company regularly consults such scientific institutions as the Warsaw University of Technology, the Polish Academy of Medicine, the Higher School of Cosmetology and Healthcare and other cosmetic schools. Before they are introduced to the market, our products undergo thorough dermatological tests in order for their high quality to be confirmed. We also constantly monitor the market," explained Anna Irzycka, a PR specialist with Dermika.
The same is true in the case of Dr Irena Eris, the winner of the 2005 Marqua prize for the best Polish brand. In 2004, the company earmarked 3.4 percent of its zł.97.6 million turnover for R&D and this year the figure will probably reach 4.6 percent of the planned zł.102 million turnover. "The company strategy assumes further strengthening of the brand in the Polish and foreign markets, investments in R&D activities and development of Dr Irena Eris beauty institutes. After the great success of our spa in Krynica Zdrój, we have started another project in Wysoka Wieś near Ostróda, where a new Eris spa will be launched in mid-2006," said Aneta Dymarska, a spokesperson for Dr Irena Eris.
Finding a niche
What seems to be important, apart from R&D investments, is to find one's niche in the market. In the case of Kolastyna it was sun block, while Oceanic, the owner of the AA brand, turned to antiallergenic products. "The idea to set up a company specializing in the production of antiallergenic cosmetics was the answer to market needs and results of our research," says Dorota Soszyńska, owner of Oceanic. "Today, 30 percent of people around the globe suffer from some kind of allergy. By 2012, the figure will increase to 50 percent. We developed the recipe for our first antiallergenic preparation 20 years ago - it was a face cream and we called it AA, which stands for antiallergenic. The success of the product reassured us that we were heading in the right direction and that is when we decided to launch a wide range of antiallergenic face and body creams for women, men, teenagers and children."
In 1992, an Avon Products-owned subsidiary was established in Poland and it soon became the leader in cosmetics sales. Five years later it opened its manufacturing plant in Garwolin, near Warsaw, and Poland became Avon's second market in terms of sales volume, after the United Kingdom. The entrance of international players was a challenge for Polish companies, but the well-established firms managed to handle the increased competition successfully.
It's chemistry
With the the average monthly spend on cosmetics in Poland amounting to $7 (zł.24) per person, the country is still far behind EU member states. As beauty lotions are not essential goods, the majority of Polish consumers still look for bargains. But considering that most people will think twice before rubbing a substance of unknown origin into their face, tried and tested Polish products are a natural choice. With their recognizable brands and high quality goods, local cosmetics producers are also a target for foreign investors. Dermika, Eris and Oceanic often get purchase offers but are not interested in selling their brands.
They managed to conquer their home market and are now aiming to drum up new customers abroad. With luxury product spending likely to increase in the developing new EU member states, Polish companies have every chance of enlarging their incomes. Of course this expansion means that love-hungry men will now not necessarily have to come to Poland to meet a real stunner.
