Rubbing it in
Katarzyna Dębek: Many of the Polish cosmetics producers set up their companies in the mid-1980s when the economic situation in Poland started to change. Why did you decide to launch your line of cosmetics?
Jacek Majdax: We started off just like a number of Polish cosmetics producers still operating on the market - we had very small capital but a good pharmaceutical background. Wojciech Szulc and I studied together at the department of pharmacy and then continued our scientific research at the Academy of Medicine. So we simply started doing what we knew and enjoyed doing. And step-by-step our company was growing, although the early 1990s were a very difficult period with low quality Western products flooding the Polish market and Poles eager to buy anything from outside the Iron Curtain. But we managed to survive. I think the most important factor was quality.
How are cosmetics producers in Poland coping now?
For the last five years, the situation has been pretty stable with eight companies dominating the market and their position changing only slightly: two international concerns, L'Oréal and Beiersdorf, and then the Polish firms: Eris, Dermika, Soraya, Oceanic [and others]. It is very different for make-up cosmetics producers - make-up products flood the market both by legal and illegal means and their purchase is much more dependent on fashion than quality. Our best customer is a woman above 35-years-old fully conscious of the needs of her skin and who cares about quality, so she is more likely to opt for a brand she knows and trusts.
What about the situation of your company?
In comparison to the previous year, we recorded a decrease in sales amounting to four percent. There are two reasons for that - [firstly] a very poor summer season with few sunny days. Dax is one of the leading producers of sun lotions and their sales account for approximately 20 percent of our income. The other factor was the modernization of our offer - instead of selling separate, unrelated products we now want switch to a series of cosmetics.
Dax is very innovation-orientated. We were the first in Poland to introduce anti-cellulite creams, UVA and UVB filters in sun cosmetics, and anti-acne serums for teenagers. We also experimented with packaging - before we introduced red and orange packaging the tendency was only for white. Now the whole market follows.
What percentage of your earnings do you spend on advertising?
It is about 16 percent. But a couple of years ago we conducted market research in order to find out how familiar Polish customers were with the Dax Cosmetics brand and we were not satisfied with the results. We employed a new marketing manager who has already started implementing some changes.
Is the new marketing strategy effective?
Definitely. Our H1 2005 sales are16.2 percent higher than in the same period of last year.
So it's not just about quality when it comes to cosmetics?
Of course marketing is crucial. But our resources for advertising are limited. Let's be honest, I have to generate profits systematically. I am not part of a global company and I can't count on financial help from outside in leaner periods.
What about cosmetics for men - are they becoming more and more popular?
We were one of the first companies in Poland to offer cosmetics for men, but only the after-shave ones play an important role. Dax Cosmetics products for men account for a mere 2.5 percent of overall sales. But if we observe the tendencies in Western European countries, it is very likely the figure will soar at an impressive pace.
And do you use skincare products?
Of course. I'm the first one to test them when our laboratories launch a new cosmetic and they really work.
Jacek Majdax: We started off just like a number of Polish cosmetics producers still operating on the market - we had very small capital but a good pharmaceutical background. Wojciech Szulc and I studied together at the department of pharmacy and then continued our scientific research at the Academy of Medicine. So we simply started doing what we knew and enjoyed doing. And step-by-step our company was growing, although the early 1990s were a very difficult period with low quality Western products flooding the Polish market and Poles eager to buy anything from outside the Iron Curtain. But we managed to survive. I think the most important factor was quality.
How are cosmetics producers in Poland coping now?
For the last five years, the situation has been pretty stable with eight companies dominating the market and their position changing only slightly: two international concerns, L'Oréal and Beiersdorf, and then the Polish firms: Eris, Dermika, Soraya, Oceanic [and others]. It is very different for make-up cosmetics producers - make-up products flood the market both by legal and illegal means and their purchase is much more dependent on fashion than quality. Our best customer is a woman above 35-years-old fully conscious of the needs of her skin and who cares about quality, so she is more likely to opt for a brand she knows and trusts.
What about the situation of your company?
In comparison to the previous year, we recorded a decrease in sales amounting to four percent. There are two reasons for that - [firstly] a very poor summer season with few sunny days. Dax is one of the leading producers of sun lotions and their sales account for approximately 20 percent of our income. The other factor was the modernization of our offer - instead of selling separate, unrelated products we now want switch to a series of cosmetics.
Dax is very innovation-orientated. We were the first in Poland to introduce anti-cellulite creams, UVA and UVB filters in sun cosmetics, and anti-acne serums for teenagers. We also experimented with packaging - before we introduced red and orange packaging the tendency was only for white. Now the whole market follows.
What percentage of your earnings do you spend on advertising?
It is about 16 percent. But a couple of years ago we conducted market research in order to find out how familiar Polish customers were with the Dax Cosmetics brand and we were not satisfied with the results. We employed a new marketing manager who has already started implementing some changes.
Is the new marketing strategy effective?
Definitely. Our H1 2005 sales are16.2 percent higher than in the same period of last year.
So it's not just about quality when it comes to cosmetics?
Of course marketing is crucial. But our resources for advertising are limited. Let's be honest, I have to generate profits systematically. I am not part of a global company and I can't count on financial help from outside in leaner periods.
What about cosmetics for men - are they becoming more and more popular?
We were one of the first companies in Poland to offer cosmetics for men, but only the after-shave ones play an important role. Dax Cosmetics products for men account for a mere 2.5 percent of overall sales. But if we observe the tendencies in Western European countries, it is very likely the figure will soar at an impressive pace.
And do you use skincare products?
Of course. I'm the first one to test them when our laboratories launch a new cosmetic and they really work.
