Holding their own

"Poland is a unique market in European terms," says the owner of Oceanic, Dorota Soszyńska, and it is hard to disagree with her. While large foreign personal-hygiene manufacturers such  as Unilever, Beiersdorfer or L'Oreal are all present on Poland's market (which is estimated to be worth around zł.6 billion), domestic producers have managed to hold their own and still have a very significant slice of the pie.

"Polish companies could amount for around 40 percent of the sales on the market," the owner of Dr Irena Eris Cosmetic Laboratories, Dr Irena Eris, estimates. She underlines that this has happened despite the maturity of the market.

Soszyńska says that there are around 400 domestic cosmetics producers. "In Germany, which is much larger, the number is two times smaller," she stresses, adding that only the French market is as competitive as the Polish one. According to mid-year estimates, Polish producers could claim up to 50 percent of sales in the skincare products sector.

Dr Eris credits tradition as a one of the main reasons for the local companies' strong position. "In the former communist bloc Poland specialized in face and skincare cosmetics, and it was a very strong industry," she said, adding: "When the large foreign producers began to enter the market in the beginning of the 1990s, they were surprised because they expected to conquer the market easily."

Currently, Dr Irena Eris has a more than 13-percent share of the market in the facial-cosmetics sector, which makes it the second-largest player overall, and number one among Polish producers. There are seven Polish producers among the top ten companies in the market. Furthermore, the Polish players are no longer satisfied with their success in their own market and are now expanding abroad.

Oceanic's cosmetics are present in fifteen markets: in some EU states, the CEE region, North America and the Middle East (Jordan and Lebanon). "We have a very strong position in Slovakia where we are the second largest player," Soszyńska said, adding that the company holds a similar position in the Kaliningrad enclave. The company wants to continue the expansion abroad and it is currently negotiating with partners in Bulgaria, Romania, Estonia, Ukraine, Egypt, the UK and Sweden. 

Among other Polish firms finding success abroad is Ziaja, which is present in Germany, Austria, the US, Canada, Denmark and the Czech Republic to name but a few. Exports make up five percent of the company's revenue. Products by another Polish firm, Kolastyna, are on shelves in Russia, Ukraine, Spain as well as in North America. "Having a large market share, for us [Polish cosmetics producers] exports are a natural path of growth," Dr Eris explained. 

Oceanic has built its success on finding a niche in the market. It is the only company in Poland specializing in producing cosmetics for people with sensitive skin and allergies. "We have found our niche not only in the Polish market, but also in the global market," Soszyńska said. "Because our products are made for a niche market, our ambition is to become a company with strong international presence," she added.

What's more, the company also sees men as an important target. "Cosmetics for men are a significant sector for us. Our AA MEN cosmetics are ranked second in the market with an 18-percent share," Soszyńska said. Although face and skincare cosmetics for men are a rapidly growing segment, it still is a fairly insignificant chunk of the market. "Male cosmetics make up around 0.5 percent of sales of skincare products," Dr Eris explained, adding that men in Poland still are ashamed to use cosmetics and are not product-conscious.