Beauty and Personal Care in Kazakhstan

Transcription

BEAUTY AND PERSONAL CARE
IN KAZAKHSTAN
Euromonitor International
August 2013
BEAUTY AND PERSONAL CARE IN KAZAKHSTAN
LIST OF CONTENTS AND TABLES
Beauty and Personal Care in Kazakhstan - Industry Overview .................................................... 1
Executive Summary ..................................................................................................................... 1
Demand for Beauty and Personal Care Remains Strong in Kazakhstan .................................. 1
Naturalness and Advanced Formulations Become Important in Intensifying Competition ........ 1
Competition Among Main Players Intensifies ........................................................................... 1
Supermarkets, Direct Selling, Health and Beauty Retailers Improve Their Positions As
Distribution Channels ................................................................................................................ 1
Growth Is Expected To Continue Accelerating ......................................................................... 2
Market Data .................................................................................................................................. 2
Table 1
Table 2
Table 3
Table 4
Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Sales of Beauty and Personal Care by Category: Value 2007-2012 ............ 2
Sales of Beauty and Personal Care by Category: % Value Growth
2007-2012 .................................................................................................... 2
Sales of Premium Cosmetics by Category: Value 2007-2012 ...................... 3
Sales of Premium Cosmetics by Category: % Value Growth 20072012 ............................................................................................................. 3
Beauty and Personal Care Company Shares by NBO 2008-2012 ............... 3
Beauty and Personal Care Company Shares by GBO 2008-2012 ............... 4
Beauty and Personal Care Brand Shares 2009-2012 .................................. 5
Sales of Beauty and Personal Care by Distribution Format: %
Analysis 2007-2012...................................................................................... 6
Sales of Beauty and Personal Care by Category and by Distribution
Format: % Analysis 2012 ............................................................................. 7
Forecast Sales of Beauty and Personal Care by Category: Value
2012-2017 .................................................................................................... 9
Forecast Sales of Beauty and Personal Care by Category: % Value
Growth 2012-2017 ..................................................................................... 10
Forecast Sales of Premium Cosmetics by Category: Value 2012-2017 ..... 10
Forecast Sales of Premium Cosmetics by Category: % Value Growth
2012-2017 .................................................................................................. 10
Sources ...................................................................................................................................... 11
Summary 1
Research Sources ...................................................................................... 11
Beauty and Personal Care in Kazakhstan - Company Profiles................................................... 12
Adenna Trade Too in Beauty and Personal Care (kazakhstan) ................................................. 12
Strategic Direction .................................................................................................................. 12
Key Facts ................................................................................................................................ 12
Summary 2
Adenna Trade TOO: Key Facts .................................................................. 12
Company Background ............................................................................................................ 12
Production .............................................................................................................................. 12
Competitive Positioning .......................................................................................................... 13
Ak Erke Too in Beauty and Personal Care (kazakhstan) ........................................................... 13
Key Facts ................................................................................................................................ 13
Summary 3
Ak Erke TOO: Key Facts ............................................................................ 13
Production .............................................................................................................................. 14
© Euromonitor International
Passport
I
Dudar Too in Beauty and Personal Care (kazakhstan) .............................................................. 14
Key Facts ................................................................................................................................ 15
Summary 4
Dudar TOO: Key Facts ............................................................................... 15
Production .............................................................................................................................. 15
Mon Amie Too in Beauty and Personal Care (kazakhstan) ........................................................ 15
Key Facts ................................................................................................................................ 16
Summary 5
Mon Amie TOO : Key Facts ....................................................................... 16
Internet Strategy ..................................................................................................................... 16
Private Label ........................................................................................................................... 16
Baby and Child-specific Products in Kazakhstan - Category analysis ........................................ 18
Headlines ................................................................................................................................... 18
Trends ........................................................................................................................................ 18
Competitive Landscape .............................................................................................................. 19
Prospects ................................................................................................................................... 20
Category Data ............................................................................................................................ 20
Table 14
Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Sales of Baby and Child-specific Products by Category: Value 20072012 ........................................................................................................... 20
Sales of Baby and Child-specific Products by Category: % Value
Growth 2007-2012 ..................................................................................... 21
Baby and Child-specific Products Premium Vs Mass % Analysis
2007-2012 .................................................................................................. 21
Baby and Child-specific Products Company Shares 2008-2012 ................ 21
Baby and Child-specific Products Brand Shares 2009-2012 ...................... 22
Baby and Child-specific Sun Care Brand Shares 2009-2012 ..................... 22
Forecast Sales of Baby and Child-specific Products by Category:
Value 2012-2017 ........................................................................................ 23
Forecast Sales of Baby and Child-specific Products by Category: %
Value Growth 2012-2017 ........................................................................... 23
Forecast Baby and Child-specific Products Premium Vs Mass %
Analysis 2012-2017.................................................................................... 23
Bath and Shower in Kazakhstan - Category analysis ................................................................. 25
Headlines ................................................................................................................................... 25
Trends ........................................................................................................................................ 25
Prospects ................................................................................................................................... 27
Category Data ............................................................................................................................ 27
Table 23
Table 24
Table 25
Table 26
Table 27
Sales of Bath and Shower by Category: Value 2007-2012 ........................ 27
Sales of Bath and Shower by Category: % Value Growth 2007-2012 ........ 28
Bath and Shower Premium Vs Mass % Analysis 2007-2012 ..................... 28
Bath and Shower Company Shares 2008-2012 ......................................... 28
Bath and Shower Brand Shares 2009-2012 ............................................... 29
Passport
II
Table 28
Table 29
Table 30
Forecast Sales of Bath and Shower by Category: Value 2012-2017 ......... 29
Forecast Sales of Bath and Shower by Category: % Value Growth
2012-2017 .................................................................................................. 30
Forecast Bath and Shower Premium Vs Mass % Analysis 2012-2017 ...... 30
Colour Cosmetics in Kazakhstan - Category analysis ................................................................ 31
Headlines ................................................................................................................................... 31
Trends ........................................................................................................................................ 31
Prospects ................................................................................................................................... 33
Category Data ............................................................................................................................ 33
Table 31
Table 32
Table 33
Table 34
Table 35
Table 36
Table 37
Table 38
Table 39
Sales of Colour Cosmetics by Category: Value 2007-2012........................ 33
Sales of Colour Cosmetics by Category: % Value Growth 2007-2012 ....... 33
Colour Cosmetics Premium Vs Mass % Analysis 2007-2012 .................... 34
Colour Cosmetics Company Shares 2008-2012 ........................................ 34
Colour Cosmetics Brand Shares 2009-2012 .............................................. 34
Colour Cosmetics Premium Brand Shares 2009-2012 ............................... 35
Forecast Sales of Colour Cosmetics by Category: Value 2012-2017 ......... 35
Forecast Sales of Colour Cosmetics by Category: % Value Growth
2012-2017 .................................................................................................. 35
Forecast Colour Cosmetics Premium Vs Mass % Analysis 2012-2017...... 35
Deodorants in Kazakhstan - Category analysis .......................................................................... 37
Headlines ................................................................................................................................... 37
Trends ........................................................................................................................................ 37
Prospects ................................................................................................................................... 38
Category Data ............................................................................................................................ 39
Table 40
Table 41
Table 42
Table 43
Table 44
Table 45
Table 46
Table 47
Sales of Deodorants by Category: Value 2007-2012 ................................. 39
Sales of Deodorants by Category: % Value Growth 2007-2012................. 39
Deodorants Premium Vs Mass % Analysis 2007-2012 .............................. 39
Deodorants Company Shares 2008-2012 .................................................. 40
Deodorants Brand Shares 2009-2012 ........................................................ 40
Forecast Sales of Deodorants by Category: Value 2012-2017 .................. 41
Forecast Sales of Deodorants by Category: % Value Growth 20122017 ........................................................................................................... 41
Forecast Deodorants Premium Vs Mass % Analysis 2012-2017 ............... 41
Depilatories in Kazakhstan - Category analysis ......................................................................... 42
Headlines ................................................................................................................................... 42
Trends ........................................................................................................................................ 42
Prospects ................................................................................................................................... 43
Category Data ............................................................................................................................ 44
Table 48
Table 49
Table 50
Table 51
Table 52
Table 53
Sales of Depilatories by Category: Value 2007-2012 ................................. 44
Sales of Depilatories by Category: % Value Growth 2007-2012 ................ 44
Depilatories Company Shares 2008-2012.................................................. 45
Depilatories Brand Shares 2009-2012 ....................................................... 45
Forecast Sales of Depilatories by Category: Value 2012-2017 .................. 45
Forecast Sales of Depilatories by Category: % Value Growth 20122017 ........................................................................................................... 45
Passport
III
Fragrances in Kazakhstan - Category analysis .......................................................................... 47
Headlines ................................................................................................................................... 47
Trends ........................................................................................................................................ 47
Prospects ................................................................................................................................... 49
Category Data ............................................................................................................................ 49
Table 54
Table 55
Table 56
Table 57
Table 58
Table 59
Table 60
Table 61
Table 62
Sales of Fragrances by Category: Value 2007-2012 .................................. 49
Sales of Fragrances by Category: % Value Growth 2007-2012 ................. 50
Fragrances Company Shares 2008-2012 .................................................. 50
Fragrances Brand Shares 2009-2012 ........................................................ 51
Men's Premium Fragrances Brand Shares 2009-2012 .............................. 52
Women's Premium Fragrances Brand Shares 2009-2012 ......................... 52
Forecast Sales of Fragrances by Category: Value 2012-2017 ................... 53
Forecast Sales of Fragrances by Category: % Value Growth 20122017 ........................................................................................................... 53
Sales of Fragrances by Concentration: % Value Analysis 2007-2012 ....... 53
Hair Care in Kazakhstan - Category analysis ............................................................................. 54
Headlines ................................................................................................................................... 54
Trends ........................................................................................................................................ 54
Prospects ................................................................................................................................... 55
Category Data ............................................................................................................................ 56
Table 63
Table 64
Table 65
Table 66
Table 67
Table 68
Table 69
Table 70
Table 71
Table 72
Table 73
Table 74
Sales of Hair Care by Category: Value 2007-2012 .................................... 56
Sales of Hair Care by Category: % Value Growth 2007-2012 .................... 56
Hair Care Premium Vs Mass % Analysis 2007-2012 ................................. 57
Sales of Styling Agents by Type: % Value Breakdown 2007-2012 ............ 57
Hair Care Company Shares 2008-2012 ..................................................... 57
Hair Care Brand Shares 2009-2012 ........................................................... 58
Salon Hair Care Company Shares 2008-2012 ........................................... 59
Salon Hair Care Brand Shares 2009-2012 ................................................. 59
Hair Care Premium Brand Shares 2009-2012............................................ 59
Forecast Sales of Hair Care by Category: Value 2012-2017...................... 60
Forecast Sales of Hair Care by Category: % Value Growth 2012-2017 ..... 60
Forecast Hair Care Premium Vs Mass % Analysis 2012-2017 .................. 60
Men's Grooming in Kazakhstan - Category analysis .................................................................. 61
Headlines ................................................................................................................................... 61
Trends ........................................................................................................................................ 61
Prospects ................................................................................................................................... 63
Category Data ............................................................................................................................ 63
Table 75
Table 76
Table 77
Table 78
Table 79
Table 80
Table 81
Sales of Men‘s Grooming by Category: Value 2007-2012.......................... 63
Sales of Men‘s Grooming by Category: % Value Growth 2007-2012 ......... 64
Sales of Men's Razors and Blades by Type: % Value Breakdown
2008-2012 .................................................................................................. 64
Men‘s Grooming Company Shares 2008-2012 .......................................... 64
Men‘s Grooming Brand Shares 2009-2012 ................................................ 65
Men's Razors and Blades Brand Shares 2009-2012.................................. 65
Forecast Sales of Men‘s Grooming by Category: Value 2012-2017 ........... 66
Passport
IV
Table 82
Forecast Sales of Men‘s Grooming by Category: % Value Growth
2012-2017 .................................................................................................. 66
Oral Care in Kazakhstan - Category analysis ............................................................................. 67
Headlines ................................................................................................................................... 67
Trends ........................................................................................................................................ 67
Prospects ................................................................................................................................... 69
Category Data ............................................................................................................................ 69
Table 83
Table 85
Table 86
Table 87
Table 88
Table 89
Table 90
Table 91
Table 92
Table 93
Sales of Oral Care by Category: Value 2007-2012 .................................... 69
Sales of Toothbrushes by Type: Value 2007-2012 .................................... 70
Sales of Toothbrushes by Type: % Value Growth 2007-2012 .................... 70
Sales of Toothpaste by Type: % Value Breakdown 2008-2012 ................. 71
Oral Care Company Shares 2008-2012 ..................................................... 71
Oral Care Brand Shares 2009-2012 ........................................................... 71
Forecast Sales of Oral Care by Category: Value 2012-2017 ..................... 72
Forecast Sales of Oral Care by Category: % Value Growth 2012-2017 ..... 72
Forecast Sales of Toothbrushes by Type: Value 2012-2017...................... 72
Forecast Sales of Toothbrushes by Type: % Value Growth 2012-2017 ..... 73
Skin Care in Kazakhstan - Category analysis............................................................................. 74
Headlines ................................................................................................................................... 74
Trends ........................................................................................................................................ 74
Prospects ................................................................................................................................... 76
Category Data ............................................................................................................................ 76
Table 94
Table 95
Table 96
Table 97
Table 98
Table 99
Table 100
Table 101
Table 102
Sales of Skin Care by Category: Value 2007-2012 .................................... 76
Sales of Skin Care by Category: % Value Growth 2007-2012 ................... 77
Skin Care Premium Vs Mass % Analysis 2007-2012 ................................. 77
Skin Care Company Shares 2008-2012 ..................................................... 78
Skin Care Brand Shares 2009-2012........................................................... 78
Skin Care Premium Brand Shares 2009-2012 ........................................... 79
Forecast Sales of Skin Care by Category: Value 2012-2017 ..................... 79
Forecast Sales of Skin Care by Category: % Value Growth 2012-2017..... 80
Forecast Skin Care Premium Vs Mass % Analysis 2012-2017 .................. 80
Sun Care in Kazakhstan - Category analysis ............................................................................. 81
Headlines ................................................................................................................................... 81
Trends ........................................................................................................................................ 81
Prospects ................................................................................................................................... 82
Category Data ............................................................................................................................ 83
Table 103
Table 104
Table 105
Table 106
Table 107
Table 108
Table 109
Table 110
Sales of Sun Care by Category: Value 2007-2012 ..................................... 83
Sales of Sun Care by Category: % Value Growth 2007-2012 .................... 83
Sun Care Premium Vs Mass % Analysis 2007-2012.................................. 84
Sun Care Company Shares 2008-2012 ..................................................... 84
Sun Care Brand Shares 2009-2012 ........................................................... 84
Forecast Sales of Sun Care by Category: Value 2012-2017 ...................... 84
Forecast Sales of Sun Care by Category: % Value Growth 2012-2017 ..... 85
Forecast Sun Care Premium Vs Mass % Analysis 2012-2017................... 85
Sets/kits in Kazakhstan - Category analysis ............................................................................... 86
Passport
V
Headlines ................................................................................................................................... 86
Trends ........................................................................................................................................ 86
Prospects ................................................................................................................................... 87
Category Data ............................................................................................................................ 88
Table 111
Table 112
Table 113
Table 114
Table 115
Table 116
Table 117
Table 118
Sales of Sets/Kits: Value 2007-2012 .......................................................... 88
Sales of Sets/Kits: % Value Growth 2007-2012 ......................................... 88
Sets/Kits Premium Vs Mass % Analysis 2007-2012 .................................. 88
Sets/Kits Company Shares 2008-2012 ...................................................... 88
Sets/Kits Brand Shares 2009-2012 ............................................................ 89
Forecast Sales of Sets/Kits: Value 2012-2017 ........................................... 89
Forecast Sales of Sets/Kits: % Value Growth 2012-2017 .......................... 89
Forecast Sets/Kits Premium Vs Mass % Analysis 2012-2017.................... 89
Passport
VI
BEAUTY AND PERSONAL CARE IN
KAZAKHSTAN - INDUSTRY
OVERVIEW
EXECUTIVE SUMMARY
Demand for Beauty and Personal Care Remains Strong in Kazakhstan
Beauty and personal care in Kazakhstan continued to enjoy positive growth in 2012. Kazakhs,
particularly women, continued to search for various cosmetics, with basic products being
considered a necessity and non-basic items regarded as an affordable luxury. Demand was also
driven by a number of new product developments supported by promotional and advertising
campaigns. Nonetheless, there was still a shift towards cheaper brands, notably amongst priceconscious Kazakhs, as they offer good value-for-money.
Naturalness and Advanced Formulations Become Important in
Intensifying Competition
For many Kazakhs, naturalness and advanced formulations have become important matters.
In the face of intensifying competition, manufacturers gradually increased their spending on
research and development in an attempt to be one step ahead of their competitors and attract
consumer interest. Consequently, at the end of the review period, amongst the most popular
trends within beauty and personal care were natural products as well as technologicallyadvanced offerings. Natural ingredients started to prove popular with Kazakh consumers as they
are considered both safe and effective, while advanced formulations are popular with the most
demanding audience seeking effective and fast-working solutions.
Competition Among Main Players Intensifies
Competition amongst multinational players such as The Procter & Gamble Co, Oriflame
Kazakhstan, Avon Cosmetics Kazakhstan TOO, L'Oréal Groupe and Kalina Concern OAO
intensified, being in the top five in terms of sales share in 2012. Their strong positions are due to
well-established brand names, wide ranges of products, widespread availability, advertising as
well as frequent new product extensions. Direct companies continued to fight for better market
positions and aim to further improve their performance by following the latest trends in
developing new products as well as by engaging in mass media campaigns.
Supermarkets, Direct Selling, Health and Beauty Retailers Improve
Their Positions As Distribution Channels
The leadership of supermarkets, direct selling and health and beauty retailers continues to
develop. The heavy competition in these channels forced the leading chained supermarkets and
health and beauty retailers in Kazakhstan to expand their product ranges and offer attractive
discounts, which in turn is set to boost interest in purchasing beauty and personal care through
these outlets. Direct selling continued to generate a vital part of total revenue in beauty and
personal care in Kazakhstan. The channel‘s well-established position is underpinned by the
considerable popularity of the Avon and Oriflame brands, particularly amongst female
consumers. Many women are loyal consumers as they are attracted by face-to-face
consultations, large selection of high-quality products and affordable prices.
Passport
1
Passport
Growth Is Expected To Continue Accelerating
Over the forecast period, beauty and personal care in Kazakhstan is expected to enjoy
positive growth with an expanding consumer base and rising frequency of usage of beauty and
personal care. New launches throughout beauty and personal care and competitive price ranges
will also encourage demand. Mass media coverage on appearance issues in line with the
overall desire to look good will prompt consumers to pay more attention to their daily hygiene
and thus increase their spending on various necessary and unnecessary cosmetics.
MARKET DATA
Table 1
Sales of Beauty and Personal Care by Category: Value 2007-2012
KZT mn
Baby and Child-specific
Products
Bath and Shower
Colour Cosmetics
Deodorants
Depilatories
Fragrances
Hair Care
Men's Grooming
Oral Care
Oral Care Excl Power
Toothbrushes
Skin Care
Sun Care
Sets/Kits
Premium Cosmetics
Mass Cosmetics
Beauty and Personal Care
Source:
Note 1:
Note 2:
Table 2
2007
2008
2009
2010
2011
2012
2,786.9
3,290.9
3,785.9
4,335.7
4,846.7
5,380.9
6,336.1
17,684.5
5,507.9
706.4
14,987.5
20,336.2
12,151.7
6,635.6
6,590.5
7,324.3
18,856.4
5,991.1
737.9
16,260.2
21,682.0
12,957.9
6,952.7
6,901.6
8,193.1
19,808.9
6,168.2
778.0
16,729.6
23,116.9
13,572.6
7,251.4
7,198.4
9,272.1
21,450.2
6,486.2
839.8
18,635.6
24,795.6
14,284.0
7,659.5
7,611.3
10,334.5
23,287.5
6,879.7
908.9
20,912.4
26,956.8
15,171.7
8,161.0
8,108.6
11,357.8
25,241.9
7,311.2
988.1
23,442.9
29,387.3
16,390.9
8,610.2
8,551.3
9,899.1
311.9
2,797.3
7,054.7
73,592.7
95,891.9
11,323.7
325.0
2,998.4
7,625.3
80,426.6
104,065.2
12,107.9
333.5
3,293.1
7,447.8
86,089.4
110,387.3
13,075.6
360.8
3,564.2
7,934.2
94,041.7
119,787.3
14,246.5
384.4
3,850.1
8,606.7
103,091.9
130,570.1
15,623.1
411.4
4,184.6
9,483.0
112,858.1
142,275.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Premium/mass cosmetic sales are additionally included within baby and child-specific products, bath and
shower, colour cosmetics, deodorants, fragrances, hair care, sets/kits, skin care and sun care.
Sum of categories is greater than market size because the four men‘s toiletries categories are included
in men‘s grooming as well as in bath and shower, deodorants, hair care and skin care.
Sales of Beauty and Personal Care by Category: % Value Growth 2007-2012
% current value growth
Baby and Child-specific Products
Bath and Shower
Colour Cosmetics
Deodorants
Depilatories
Fragrances
Hair Care
Men's Grooming
Oral Care
2011/12
2007-12 CAGR
2007/12 Total
11.0
9.9
8.4
6.3
8.7
12.1
9.0
8.0
5.5
14.1
12.4
7.4
5.8
6.9
9.4
7.6
6.2
5.3
93.1
79.3
42.7
32.7
39.9
56.4
44.5
34.9
29.8
2
Passport
Oral Care Excl Power Toothbrushes
Skin Care
Sun Care
Sets/Kits
Premium Cosmetics
Mass Cosmetics
Source:
Note 1:
Note 2:
Table 3
5.5
9.7
7.0
8.7
10.2
9.5
9.0
5.3
9.6
5.7
8.4
6.1
8.9
8.2
29.8
57.8
31.9
49.6
34.4
53.4
48.4
in men‘s grooming as well as in bath and shower, deodorants, hair care and skin care.
Sales of Premium Cosmetics by Category: Value 2007-2012
KZT mn
Premium Baby and Childspecific Products
Premium Bath and Shower
Premium Colour Cosmetics
Premium Deodorants
Premium Fragrances
Premium Hair Care
Premium Skin Care
Premium Sun Care
Premium Sets/Kits
Premium Cosmetics
Source:
Note:
Table 4
2007
2008
2009
2010
2011
2012
69.7
82.3
94.6
108.4
121.2
134.5
126.7
1,618.1
110.2
3,747.5
600.0
563.3
9.4
209.8
7,054.7
146.5
1,857.4
119.8
3,996.2
497.7
674.3
11.4
239.9
7,625.3
163.9
1,980.9
154.2
3,699.6
378.2
734.1
11.7
230.5
7,447.8
185.4
2,155.7
162.2
3,894.0
360.7
805.7
12.6
249.5
7,934.2
206.7
2,363.7
172.0
4,199.9
355.8
885.3
13.5
288.8
8,606.7
283.9
2,612.5
182.8
4,600.2
362.8
977.9
14.4
313.8
9,483.0
Sales of Premium Cosmetics by Category: % Value Growth 2007-2012
Premium Baby and Child-specific Products
Premium Deodorants
Premium Fragrances
Premium Hair Care
Premium Skin Care
Premium Sun Care
Premium Sets/Kits
Premium Cosmetics
Source:
Note:
Table 5
2011/12
2007-12 CAGR
2007/12 Total
11.0
37.4
10.5
6.3
9.5
2.0
10.5
7.0
8.7
10.2
14.1
17.5
10.1
10.7
4.2
-9.6
11.7
9.0
8.4
6.1
93.1
124.1
61.5
65.9
22.8
-39.5
73.6
53.9
49.6
34.4
Beauty and Personal Care Company Shares by NBO 2008-2012
3
% retail value rsp
Company
Procter & Gamble Co, The
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
L'Oréal Groupe
Kalina Concern OAO
Henkel AG & Co KGaA
Beiersdorf AG
Mary Kay (Kazakhstan) Inc
Colgate-Palmolive Co
Unilever Group
Johnson & Johnson Inc
Sté Bic SA
Energizer Holdings Inc
Orion Oyj
Faberlic-Kazakhstan Ltd
Chanel SA
Evyap Sabun Yag
Gliserin San ve Tic AS
Givenchy SA, Parfums
Christian Dior SA,
Parfums
Kimberly-Clark Corp
Procter & Gamble
Central Asia
LVMH Moët Hennessy
Louis Vuitton SA
Puig SL
SCA Group
Nasha Mama OOO
GlaxoSmithKline Plc
Reckitt Benckiser Plc
Estée Lauder Cos Inc
Bayer Schering Pharma AG
Müster e Dikson Service
SpA
Gillette Co, The
Urker Cosmetic AO
Antonio Puig SA
Others
Total
Passport
2008
2009
2010
2011
2012
14.2
11.0
6.1
14.2
9.2
7.4
14.0
11.0
8.5
14.1
10.1
8.4
14.4
9.6
9.0
6.1
3.0
3.9
3.3
3.1
3.2
3.3
1.5
1.2
1.1
0.6
0.4
0.4
0.4
6.4
3.5
3.9
3.4
3.3
3.3
3.2
1.4
1.3
1.0
0.6
0.4
0.4
0.4
6.5
3.9
3.9
3.5
3.3
3.4
3.0
1.4
1.3
1.0
0.6
0.4
0.4
0.4
6.7
5.2
4.0
3.8
3.4
3.4
3.1
1.4
1.3
0.9
0.6
0.5
0.4
0.4
6.9
5.4
4.2
4.1
3.4
3.3
3.2
1.4
1.2
0.9
0.7
0.6
0.4
0.4
0.2
0.3
0.3
0.4
0.4
0.4
0.4
0.3
0.4
0.3
0.2
0.1
0.2
0.2
0.3
0.2
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.1
0.1
0.2
0.1
0.1
0.1
0.1
0.2
0.1
0.2
0.3
0.1
0.1
0.1
0.1
0.2
0.1
0.2
0.2
0.1
0.1
0.1
0.0
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.0
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.0
0.0
0.1
0.3
34.7
100.0
0.0
0.1
34.1
100.0
0.0
0.0
30.9
100.0
0.0
29.7
100.0
0.0
28.3
100.0
Source:
Table 6
Beauty and Personal Care Company Shares by GBO 2008-2012
% retail value rsp
Company
2008
2009
2010
2011
2012
Oriflame Cosmetics SA
Avon Products Inc
Unilever Group
L'Oréal Groupe
Henkel AG & Co KGaA
14.4
11.0
6.1
3.3
6.1
4.0
14.5
9.2
7.4
3.2
6.4
4.0
14.4
11.0
8.5
3.0
6.5
3.9
14.5
10.1
8.4
8.2
6.7
4.0
14.8
9.6
9.0
8.5
6.9
4.2
4
Beiersdorf AG
Mary Kay Inc
Sté Bic SA
LVMH Moët Hennessy
Louis Vuitton SA
Lumene Oy
Faberlic OAO
Chanel SA
Evyap Sabun Yag
Puig SL
Kimberly-Clark Corp
Merck & Co Inc
SCA Group
Nasha Mama OOO
GlaxoSmithKline Plc
Kalina Concern OAO
SpA
Urker Cosmetic AO
Puig Beauty & Fashion
Group SL
Schering-Plough Corp
Wella AG
Orion Oyj
Pfizer Inc
Gillette Co, The
Others
Total
Source:
Passport
3.3
3.1
3.2
1.5
1.2
1.0
3.4
3.3
3.3
1.4
1.3
1.1
3.5
3.3
3.4
1.4
1.3
1.2
3.8
3.4
3.4
1.4
1.3
1.1
4.1
3.4
3.3
1.4
1.2
1.1
1.1
0.6
0.4
0.4
0.4
1.0
0.6
0.4
0.4
0.4
1.0
0.6
0.4
0.4
0.4
0.9
0.6
0.5
0.4
0.4
0.9
0.7
0.6
0.4
0.4
0.2
0.1
0.1
0.2
3.0
0.1
0.1
0.1
0.3
0.2
0.2
0.1
0.2
0.3
3.5
0.1
0.1
0.1
0.3
0.3
0.2
0.1
0.2
0.2
3.9
0.1
0.1
0.0
0.3
0.3
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.0
0.3
0.3
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.0
0.1
0.3
0.1
-
0.0
-
-
-
0.2
34.3
100.0
33.6
100.0
30.4
100.0
29.2
100.0
27.8
100.0
Table 7
Beauty and Personal Care Brand Shares 2009-2012
% retail value rsp
Brand
Oriflame
Avon
Gillette
Mary Kay
Colgate
Head & Shoulders
Chistaya Liniya
Blend-a-Med
Cherny Zhemchug
Wash & Go
Bic
Nivea for Men
Maybelline New York
Pantene Pro-V
Garnier Fructis
Garnier
Company
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Kalina Concern OAO
Kalina Concern OAO
Sté Bic SA
Beiersdorf AG
L'Oréal Groupe
L'Oréal Groupe
L'Oréal Groupe
2009
2010
2011
2012
8.7
5.1
10.4
6.0
9.5
6.0
9.0
6.6
3.9
3.3
2.4
2.0
1.1
1.6
0.8
1.3
1.3
0.9
0.7
1.1
1.1
1.0
3.9
3.3
2.4
2.1
1.3
1.5
0.8
1.3
1.3
1.0
0.8
1.1
1.2
1.1
3.8
3.4
2.4
2.1
1.6
1.5
1.3
1.3
1.3
1.1
1.0
1.2
1.2
1.1
3.7
3.4
2.3
2.2
1.7
1.6
1.3
1.3
1.2
1.2
1.2
1.2
1.2
1.1
5
L'Oréal Paris
Max Factor
Fa
Rexona
Nivea
Schick
Lumene
Garnier Color
Naturals
Johnson's Baby
Palette
Camay
Nivea Deodorant
Nivea Hair
Palmolive
Schauma
Taft
Pepsodent
Faberlic
Wellaton
Gliss/Gliss Kur
Nivea Visage
Safeguard
Avon Renew/Anew
Oral-B
Others
Total
Source:
Passport
L'Oréal Groupe
Henkel AG & Co KGaA
Unilever Group
Beiersdorf AG
Orion Oyj
L'Oréal Groupe
1.2
1.0
1.0
0.9
0.8
1.0
0.6
0.7
1.2
1.0
1.0
0.9
0.7
1.0
0.6
0.7
1.2
1.0
1.0
0.9
0.8
0.9
0.6
0.7
1.1
1.0
1.0
1.0
0.9
0.9
0.7
0.7
Henkel AG & Co KGaA
Beiersdorf AG
Beiersdorf AG
Henkel AG & Co KGaA
Henkel AG & Co KGaA
Unilever Group
Henkel AG & Co KGaA
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
0.7
0.6
0.5
0.6
0.5
0.5
0.6
0.3
0.6
0.4
0.5
0.5
0.4
0.4
0.5
0.7
0.6
0.5
0.6
0.6
0.6
0.6
0.3
0.6
0.4
0.5
0.5
0.5
0.4
0.5
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.4
0.6
0.5
0.5
0.5
0.5
0.4
0.4
0.7
0.7
0.7
0.7
0.6
0.6
0.6
0.6
0.6
0.6
0.6
0.5
0.5
0.4
0.4
0.4
48.5
100.0
0.4
45.4
100.0
0.4
44.6
100.0
0.4
43.3
100.0
Table 8
Sales of Beauty and Personal Care by Distribution Format: % Analysis 20072012
% retail value rsp
Store-Based Retailing
- Grocery Retailers
-- Modern Grocery
Retailers
--- Convenience Stores
--- Discounters
--- Forecourt Retailers
--- Hypermarkets
--- Supermarkets
-- Traditional Grocery
Retailers
--- Food/drink/tobacco
specialists
--- Independent Small
Grocers
--- Other Grocery
Retailers
- Non-Grocery Retailers
-- Apparel specialist
retailers
-- Electronics and
Appliance Specialist
2007
2008
2009
2010
2011
2012
79.4
37.9
18.0
78.1
37.9
19.8
78.5
38.4
21.2
75.5
37.3
22.2
76.3
37.4
23.6
76.2
37.5
24.2
0.3
17.8
19.8
0.4
19.4
18.1
0.6
20.5
17.2
0.8
21.5
15.1
0.9
22.7
13.9
1.0
23.2
13.3
-
-
-
-
-
-
19.8
18.1
17.2
15.1
13.9
13.3
-
-
-
-
-
-
41.5
-
40.2
-
40.1
-
38.2
-
38.9
-
38.7
-
-
-
-
-
-
-
6
Retailers
-- Health and Beauty
Retailers
--- Beauty Specialist
Retailers
--- Chemists/Pharmacies
--- Parapharmacies/
Drugstores
--- Other Health and
Beauty Retailers
-- Home and Garden
Specialist Retailers
--- Furniture and
Homewares Stores
-- Mixed Retailers
--- Department Stores
--- Mass Merchandisers
--- Variety Stores
--- Warehouse Clubs
-- Other Non-Grocery
Retailers
-- Outdoor Markets
--- Other Other NonGrocery Retailers
Non-Store Retailing
- Direct Selling
- Homeshopping
- Internet Retailing
- Vending
Non-retail channels
- Hair Salons
Total
Source:
Passport
16.1
17.0
18.0
18.3
19.0
19.8
13.7
14.6
15.4
15.6
16.3
17.1
2.4
-
2.5
-
2.6
-
2.6
-
2.7
-
2.7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25.4
23.2
22.1
20.0
19.9
19.0
25.4
-
23.2
-
22.1
-
20.0
-
19.9
-
19.0
-
20.0
20.0
0.6
0.6
100.0
21.4
21.4
0.5
0.5
100.0
21.1
21.1
0.3
0.3
100.0
24.2
24.2
0.3
0.3
100.0
23.4
23.4
0.3
0.3
100.0
23.5
23.5
0.2
0.2
100.0
Table 9
Sales of Beauty and Personal Care by Category and by Distribution Format:
% Analysis 2012
% retail value rsp
Grocery Retailers
Modern Grocery Retailers
Convenience Stores
Discounters
Forecourt Retailers
Hypermarkets
Supermarkets
Traditional Grocery
Retailers
Food/drink/tobacco
specialists
Independent Small Grocers
Other Grocery Retailers
Non-Grocery Retailers
Apparel specialist
retailers
Electronics and
BC
BS
CC
D
DP
F
91.8
53.8
31.8
0.0
0.0
0.0
1.1
30.6
22.0
72.4
42.9
27.4
0.0
0.0
0.0
0.9
26.5
15.5
68.3
16.0
11.0
0.0
0.0
0.0
1.1
9.9
5.0
81.5
49.0
30.0
0.0
0.0
0.0
1.0
29.0
19.0
85.6
65.5
29.0
0.0
0.0
0.0
1.5
27.5
36.5
50.4
8.1
6.9
0.0
0.0
0.0
0.8
6.1
1.3
0.0
0.0
0.0
0.0
0.0
0.0
22.0
0.0
38.0
0.0
15.5
0.0
29.5
0.0
5.0
0.0
52.2
0.0
19.0
0.0
32.5
0.0
36.5
0.0
20.1
0.0
1.3
0.0
42.3
0.0
-
-
-
-
-
-
7
Retailers
Health and Beauty
Retailers
Beauty Specialist
Retailers
Chemists/Pharmacies
Parapharmacies/Drugstores
Other Health and Beauty
Retailers
Home and Garden
Furniture and Homewares
Stores
Mixed Retailers
Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Other Non-Grocery
Retailers
Outdoor Markets
Other Other Non-Grocery
Retailers
Non-Store Retailing
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-retail channels
Hair Salons
Total
Grocery Retailers
Modern Grocery Retailers
Convenience Stores
Discounters
Forecourt Retailers
Hypermarkets
Supermarkets
Traditional Grocery
Retailers
Food/drink/tobacco
specialists
Independent Small Grocers
Other Grocery Retailers
Non-Grocery Retailers
Apparel specialist
retailers
Electronics and
Retailers
Health and Beauty
Retailers
Beauty Specialist
Retailers
Chemists/Pharmacies
Parapharmacies/Drugstores
Passport
11.0
9.0
37.2
10.5
10.5
32.8
4.5
5.5
37.2
7.1
7.8
32.8
6.5
0.0
0.0
3.5
0.0
0.0
0.0
0.0
0.0
3.4
0.0
0.0
2.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
27.0
0.0
0.0
0.0
0.0
0.0
20.5
0.0
0.0
0.0
0.0
0.0
15.0
0.0
0.0
0.0
0.0
0.0
22.0
0.0
0.0
0.0
0.0
0.0
9.6
0.0
0.0
0.0
0.0
0.0
9.5
27.0
0.0
20.5
0.0
15.0
0.0
22.0
0.0
9.6
0.0
9.5
0.0
8.2
8.2
0.0
0.0
0.0
100.0
27.6
27.6
0.0
0.0
0.0
100.0
31.7
31.7
0.0
0.0
0.0
100.0
18.5
18.5
0.0
0.0
0.0
100.0
14.4
14.4
0.0
0.0
0.0
100.0
49.6
49.6
0.0
0.0
0.0
100.0
HC
MG
OC
SC
SU
SK
93.4
57.1
37.3
0.0
0.0
0.0
0.8
36.6
19.7
91.7
59.2
30.1
0.0
0.0
0.0
1.0
29.1
29.1
96.3
60.7
37.4
0.0
0.0
0.0
1.9
35.5
23.3
65.2
31.2
25.6
0.0
0.0
0.0
1.1
24.5
5.5
63.7
40.4
29.1
0.0
0.0
0.0
1.1
28.0
11.3
78.1
41.0
32.8
0.0
0.0
0.0
1.3
31.5
8.3
0.0
0.0
0.0
0.0
0.0
0.0
19.7
0.0
36.4
0.0
29.1
0.0
32.5
0.0
23.3
0.0
35.6
0.0
5.5
0.0
34.0
0.0
11.3
0.0
23.4
0.0
8.3
0.0
37.1
0.0
-
-
0.0
-
-
-
11.4
9.3
5.4
21.8
9.0
10.5
6.7
6.0
1.3
17.0
4.3
10.5
4.7
0.0
3.3
0.0
4.2
0.0
4.8
0.0
4.7
0.0
0.0
0.0
8
Other Health and Beauty
Retailers
Home and Garden
Furniture and Homewares
Stores
Mixed Retailers
Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Other Non-Grocery
Retailers
Outdoor Markets
Other Other Non-Grocery
Retailers
Non-Store Retailing
Direct Selling
Homeshopping
Internet Retailing
Vending
Non-retail channels
Hair Salons
Total
Source:
Key:
Table 10
Passport
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
25.0
0.0
0.0
0.0
0.0
0.0
23.2
0.0
0.0
0.0
0.0
0.0
30.2
0.0
0.0
0.0
0.0
0.0
12.3
0.0
0.0
0.0
0.0
0.0
14.4
0.0
0.0
0.0
0.0
0.0
26.6
25.0
0.0
23.2
0.0
30.2
0.0
12.3
0.0
14.4
0.0
26.6
0.0
5.4
5.4
0.0
0.0
0.0
1.1
1.1
100.0
8.3
8.3
0.0
0.0
0.0
100.0
3.7
3.7
0.0
0.0
0.0
100.0
34.8
34.8
0.0
0.0
0.0
100.0
36.3
36.3
0.0
0.0
0.0
100.0
21.9
21.9
0.0
0.0
0.0
100.0
BC = baby and child-specific products; BS = bath and shower; CC = colour cosmetics; D = deodorants;
DP = depilatories; F = fragrances; HC = hair care; MG = men‘s grooming; OC = oral care; SC = skin
care; SU = sun care; SK = sets/kits
Forecast Sales of Beauty and Personal Care by Category: Value 2012-2017
KZT mn
Products
Bath and Shower
Colour Cosmetics
Deodorants
Depilatories
Fragrances
Hair Care
Men's Grooming
Oral Care
Oral Care Excl Power
Toothbrushes
Skin Care
Sun Care
Sets/Kits
Premium Cosmetics
Mass Cosmetics
Source:
Note 1:
Note 2:
2012
2013
2014
2015
2016
2017
5,380.9
5,527.0
5,633.2
5,735.3
5,835.4
5,952.0
11,357.8
25,241.9
7,311.2
988.1
23,442.9
29,387.3
16,390.9
8,610.2
8,551.3
11,790.1
25,570.3
7,315.4
1,002.9
24,514.2
30,283.6
16,455.1
8,672.7
8,610.9
12,382.1
26,148.7
7,335.6
1,029.8
25,611.1
31,709.6
16,728.9
8,743.5
8,679.4
13,196.5
26,766.7
7,332.1
1,067.1
27,037.8
33,424.7
17,078.5
8,802.5
8,735.8
14,030.0
27,414.1
7,374.8
1,100.6
28,765.0
35,161.6
17,444.7
8,899.2
8,829.5
14,768.2
28,141.4
7,449.2
1,136.6
30,071.1
36,934.2
18,292.5
9,020.5
8,948.6
15,623.1
411.4
4,184.6
9,483.0
112,858.1
142,275.8
16,189.8
411.4
4,279.3
9,729.8
116,151.4
145,870.0
16,786.1
416.7
4,425.7
10,134.0
120,314.9
150,609.7
17,337.4
420.8
4,645.3
10,557.4
125,339.2
156,208.5
17,953.9
425.7
4,909.2
11,132.9
130,736.8
162,421.1
18,610.0
428.3
5,167.9
11,764.7
135,757.5
168,382.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
in men‘s grooming as well as in deodorants, skin care, bath and shower and hair care.
9
Table 11
Passport
Forecast Sales of Beauty and Personal Care by Category: % Value Growth
2012-2017
% constant value growth
2012-17 CAGR
2012/17 TOTAL
2.0
5.4
2.2
0.4
2.8
5.1
4.7
2.2
0.9
0.9
3.6
0.8
4.3
4.4
3.8
3.4
10.6
30.0
11.5
1.9
15.0
28.3
25.7
11.6
4.8
4.6
19.1
4.1
23.5
24.1
20.3
18.3
Bath and Shower
Colour Cosmetics
Deodorants
Depilatories
Fragrances
Hair Care
Men's Grooming
Oral Care
Oral Care Excl Power Toothbrushes
Skin Care
Sun Care
Sets/Kits
Premium Cosmetics
Mass Cosmetics
Source:
Note 1:
Note 2:
Table 12
trade sources
in men‘s grooming as well as in deodorants, skin care, bath and shower and hair care.
Forecast Sales of Premium Cosmetics by Category: Value 2012-2017
KZT mn
Premium Baby and Childspecific Products
Premium Deodorants
Premium Fragrances
Premium Hair Care
Premium Skin Care
Premium Sun Care
Premium Sets/Kits
Premium Cosmetics
Source:
Note:
Table 13
2012
2013
2014
2015
2016
2017
134.5
138.2
157.7
160.6
175.1
178.6
283.9
2,612.5
182.8
4,600.2
362.8
977.9
14.4
313.8
9,483.0
294.8
2,684.9
197.5
4,722.2
342.6
1,014.3
14.4
320.9
9,729.8
309.6
2,837.1
198.1
4,880.6
326.7
1,055.5
14.6
354.1
10,134.0
329.9
2,957.7
198.0
5,093.2
314.7
1,091.6
16.8
394.8
10,557.4
350.8
3,152.6
199.1
5,357.8
311.9
1,126.8
17.0
441.8
11,132.9
369.2
3,362.9
201.1
5,681.0
305.4
1,158.3
17.1
490.9
11,764.7
trade sources
Forecast Sales of Premium Cosmetics by Category: % Value Growth 20122017
2012-17 CAGR
2012/17 TOTAL
10
Passport
Premium Baby and Child-specific Products
Premium Deodorants
Premium Fragrances
Premium Hair Care
Premium Skin Care
Premium Sun Care
Premium Sets/Kits
Premium Cosmetics
Source:
Note:
5.8
5.4
5.2
1.9
4.3
-3.4
3.4
3.5
9.4
4.4
trade sources
SOURCES
Sources used during the research included the following:
Summary 1
Research Sources
Official Sources
Statistics Agency
Trade Press
Inter Charm
Company Sources
Schwarzkopf & Henkel
Actavis Group
Akko
Avon Products Inc
Beiersdorf (Kazakhstan)
Beiersdorf AG
Other Sources
Source:
Euromonitor International
Apple City
32.7
30.0
28.7
10.0
23.5
-15.8
18.4
19.0
56.4
24.1
11
Passport
BEAUTY AND PERSONAL CARE IN
KAZAKHSTAN - COMPANY PROFILES
ADENNA TRADE TOO IN BEAUTY AND PERSONAL CARE
(KAZAKHSTAN)
Strategic Direction
 Expected plans of Adenna Trade TOO are expansion of the distribution through traditional
retailing channels. In this way, the company is going to retain as many as possible of its
customers and to increase the share of sales.
Key Facts
Summary 2
Adenna Trade TOO: Key Facts
Full name of company:
Adenna Trade TOO
Address:
2nd Bratskaya 48, office #304, 3rd floor,
Almati, Kakzakhstan, 050061
Tel:
+7 (727) 247-48-63
www:
http://www.adenna-trade.satu.kz
Activities:
Sales of beauty and personal care, home
care, wet towels
Source:
Euromonitor International from company reports, company research, trade sources
Company Background
 Adenna Trade TOO was established in 2006 as an independent private Kazakh company.
 Core businesses of the company - sales of beauty and personal care products Belita, Viteks
made in Belorussia, facial care under the Stopproblem, sun care under the Sun Power
brands, liquid soap under the Fabienne brand, firming/anti-cellulite body care under the
Orange Slim brand and home care.
 The company has regional coverage, concentrated in certain key cities. The company
employed 50 people at the end of the review period.
 Adenna Trade TOO constantly expands its brands‘ assortments range. However, the
advertising level is low.
Production
 Adenna Trade TOO imports and distributes all products.
 The strategic reasons for the company‘s presence are capitalising on the development of the
naturalness trend within beauty and personal care in Kazakhstan.
12
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Competitive Positioning
 Adenna Trade TOO targets consumers with awareness and appreciation of high content of
natural ingredients, who want to use reliable products made using natural additions.
 Despite the fact that sales of the company are limited to certain key cities of Kazakhstan, the
share of the company has been growing due to the achieving a wider distribution coverage.
 Adenna Trade TOO offers a wide product portfolio in beauty and personal care and all of its
products are mostly based on natural and organic ingredients.
 Adenna Trade TOO is not a leader. However, its products are positioned in the mid-priced
segment in beauty and personal care in Kazakhstan and all of its beauty and personal care
products are sold under mass brands which target health- and price-conscious consumers. In
addition, all of Adenna Trade TOO products represent an exceptionally good price-to-value
ratio.
AK ERKE TOO IN BEAUTY AND PERSONAL CARE (KAZAKHSTAN)
Strategic Direction
 Ak Erke TOO is planning to expand its distribution network throughout all of the regions of
Kazakhstan, launching new brands as well as extending its existing brands. The company
also seeks to increase its consumer base in order to boost its value shares in beauty and
personal care.
Key Facts
Summary 3
Ak Erke TOO: Key Facts
Ak Erke TOO
Address:
125, Karasai Batyr Street, fl. 5, Almaty,
Kazakhstan 050012
Tel:
+ 7 727 399-89-32
www:
http://www.akerke-group.kz
Activities:
Import and distribution of perfumery brands,
hygienic products and bakeries
Source:
Company Background
 Ak Erke TOO is a privately-owned, independent Kazakh company which was established in
1993.
 The company‘s core business direction is the distribution of toiletries and cosmetics, hygiene
products and bakery items.
 Ak Erke TOO has national coverage throughout Kazakhstan and distributes products under
brands such as L‘Oréal, L‘Oréal Professional, Mary Cohr, Garnier, Splat, Irida-Neva,
Maybelline, Kotex, Huggies and Kleenex.
13
 The company employs 500 people, many of whom are highly qualified. The company
operates through a network of branch offices in 14 regions of Kazakhstan.
Production
 All of the company‘s products are imported.
 The company does not have any other manufacturing capacity outside of beauty and personal
care and does not manufacture any brands for third parties, either under licence or for the
private label lines of large-scale retail groups.
 Ak Erke TOO‘s exists solely to import, distribute and market a wide range of consumer goods
and it provide these services in order to increase the availability of high-quality products for
Kazakh people in line with rising consumption standards with the ultimate aim of improving
the lifestyles of Kazakh people.
 The company continued to expand its value share in beauty and personal care in Kazakhstan
towards the end of review period, thanks mainly to the high popularity of the beauty and
personal care brands which it distributes, which stems from stable consumer demand and a
high degree of consumer loyalty.
 The company‘s value share in beauty and personal care continues increasing, albeit slowly.
The slow pace of the company‘s growth is mainly due to the competitive and fragmented
nature of beauty and personal care in Kazakhstan as well as the ongoing expansion of lowpriced and mid-priced beauty and personal care brands in the country, especially through
direct selling companies.
 The company is positioned in some of the most mature categories in beauty and personal
care in Kazakhstan.
 The company maintains a fairly broad product portfolio and is positioned at the higher end of
the beauty and personal care price spectrum.
 Ak Erke TOO is one of the leading players in beauty and personal care in terms of the
distribution of fragrances and colour cosmetics. The company prides itself in the high quality
of service it offers and its highly educated workforce, as well as its ability to distribute a wide
range of popular beauty and personal care brands at reasonable prices.
DUDAR TOO IN BEAUTY AND PERSONAL CARE (KAZAKHSTAN)
Strategic Direction
 Dudar TOO currently has plans to expand its distribution system to cover more areas of
Kazakhstan. However, as competition in beauty and personal care continues to intensify, the
company remains optimistic that it will be able to surmount the obstacles presented by rapidly
rising competition and extend its product range, making it more widely available through both
modern and traditional retail channels. This will allow Dudar TOO to maintain a high degree of
consumer loyalty and bolster its value sales in beauty and personal care in Kazakhstan.
Passport
14
Passport
Key Facts
Summary 4
Dudar TOO: Key Facts
Dudar TOO
Address:
Nemirova-Danchenko Street, 51B, Almaty,
Kazakhstan
Tel:
+ 7 727 247-9847
Fax:
+ 7 727 258-89-44
www:
www.dudar.kz
Activities:
Distributor of beauty and personal care
Source:
Company Background
 Dudar TOO is an independent, privately-owned Kazakh company which was founded in 1991.
 Dudar is one of the leading distribution companies in Kazakhstan and the core business of
Dudar TOO is the importation and distribution of a wide range of non-food products for daily
usage under globally known brands.
 The company has a national coverage throughout Kazakhstan and distributes brands such as
Schwarzkopf, Indola, Reckitt Benckiser, Varta, Paclan and Salamander.
 The company employs 400 people and has maintains offices and distribution centres in 14
regions of Kazakhstan.
 During 2011, the company launched a very successful range of products for various different
type of hair such as blonde hair.
Production
 All of the company‘s products are imported.
 The strategic reasons for the company‘s presence are increasing share by expanding its
product assortment and developing its distribution coverage.
 Dudar TOO is present in mature categories, although the company invests significant sums in
launching new products on an annual basis.
 The company‘s product portfolio is very wide and is also updated on a constant basis.
 The company has a mid-positioning in beauty and personal care.
 Dudar TOO is one of the leaders in terms of imports and distribution of beauty and personal
care. The company prides itself in its high quality of service along with reasonable prices.
MON AMIE TOO IN BEAUTY AND PERSONAL CARE
(KAZAKHSTAN)
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Strategic Direction
 Mon Amie TOO is one of the largest chained health and beauty specialist retailers in
Kazakhstan, operating in five of the major cities, namely Almaty, Astana, Atyrau, Karaganda
and Ust-Kamenogorsk. The company plans to expand its coverage and increase the number
of consultants active in its outlets, as well enlarge its range of mass and premium brands.
Key Facts
Summary 5
Mon Amie TOO : Key Facts
Mon Amie TOO
Address:
Al-Farabi Ave 95, Almaty, Kazakhstan
Tel:
+7 (727) 2455 223
Fax:
+7 (727) 2455 223
www:
www.mon-amie.kz
Channels of operation:
Health and beauty specialist retailers
Retailing brands:
Mon Amie
Source:
Company Background
 Mon Amie TOO is the operator of a health and beauty specialist retailer that has been present
in Kazakhstan since 2005, since which time it has become relatively successful and popular.
While it concentrates its activities in Almaty and Astana, the company is actively expanding
into the regions with the aim of covering the whole country. The company took the business
processes of Russian Arbat Prestige and French Sethora as a blueprint for its own
development.
 The company has plans to expand into new regions in Kazakhstan. At the end of the review
period, the key cities for Mon Amie were Almaty and Astana, although it does have branches
in Karaganda, Atyrau and Ust-Kamenogorsk. After securing a loan from Kaspi Bank, the
company plans to double its number of outlets from 15 in 2009 to 30 in 2015. In 2012,
company had 18 stores across the country.
Internet Strategy
 The company did not indicate any plans to launch an internet retailing platform at the end of
the review period, as growth plans are focused on outlet expansion.
Private Label
 Mon Amie does not offer private label products. All products presented in the company‘s
stores are of foreign origin. The company divides its products into mass brands and premium
brands.
16
 The company‘s overall value share of health and beauty specialist retailers was 2% in 2012
ranking it third, just under Beautymania brand, which was on the second position and MS
Help pharmacy brand. Its value share grew steadily since 2005; however, in terms of sales
area it lost marginal share in 2011 as a result of the intense competition in the category with
French House.
 Mon Amie stores are known for their locations in densely populated regions, which make
them highly visible to consumers and much discussed. Customer service includes ―guest
sessions‖, when experts from within the health and beauty product industry visit the store and
give free advice to customers. Loyalty schemes include membership cards and free gifts upon
the purchase of products to a certain value.
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17
BABY AND CHILD-SPECIFIC
PRODUCTS IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Baby and child-specific products grows by 11% in current value terms to reach KZT5 billion in
2012
 The baby boom, which has been observed since 2008, has a positive impact on baby care in
current value growth in 2012
 The average unit price in 2012 increases does not change in general
 Johnson & Johnson Inc leads sales of baby and child-specific products with value share of
18% in 2012
 Baby and child-specific care is expected to post a constant value CAGR of 2% during the
forecast period
TRENDS
 The growing baby population, the so called baby boom, as well as the increase of disposable
incomes of parents largely fuelled the growth of baby and child-specific products‘ sales in
2012. According to the official statistics, the birth rate in Kazakhstan grew by 4% in 2012.
Moreover, the average age of parents also increased. Older parents are considered to be
financially more stable and hence have more money to spend on their baby‘s care and
convenience. In addition, a growing number of women entering into the mainstream workforce
helped baby and child-specific products to grow, as the average disposable income of the
family has grown. Baby and child-specific products also witnessed a growing trend in baby
specific products, especially baby cosmetics, which are organic in terms of ingredients used
and pose no threat to babies‘ health. In general, baby and child-specific products enjoyed
positive development in 2012 due to the growing education of Kazakh parents in terms of
proper and comprehensive baby care.
 The current value growth of 11% in 2012 was lower than the review period CAGR of 14%.
This was due to the ongoing shift towards cheaper brands from Russian producers, such as
Kalina Concern and Nasha Mama. Custom Union signed by Kazakhstan with Russia resulted
in the increasing demand for cheaper products. In addition, the category is becoming more
saturated and is continuing to develop.
 Apart from baby wipes which are used in large quantities and are comparatively expensive,
which explains the largest increase in current value terms of 19%, baby and child-specific skin
care recorded the highest increase with 10% current value growth in 2012. The increasing
trend of using shower gel as a preferred bath product for babies is creating a positive future
outlook for this product.
 The penetration level of baby and child-specific products in general in Kazakhstan is rather
low, but the culture of using these products and the understanding of the necessity of such
products are developing annually. The major consumer group is comprised of mothers.
Kazakh parents do not save money on baby and child-specific products, but choose goods
Passport
18
according to their own budgetary limits. Every year, consumers have a greater variety of
different products to choose from, but the Kazakh population does so with care.
 Towards the end of the review period, the average unit price did not change much. Both
distributors and retailers were reluctant to increase unit prices, attempting to retain
consumers. On the other hand, due to the economic improvement, the purchasing power of
consumers managed to increase and stabilise.
 The mass segment dominated baby and child-specific products in Kazakhstan to account for
98% share of total value sales in 2012. However, the popularity of premium brands remained
stable, specifically among upper-income consumers who seek the highest quality in baby
care. The most popular brands in baby and child-specific products were those that were
positioned as standard and approachable for a majority of Kazakh consumers.
 Medicated baby and child-specific products is still in its developmental stage in Kazakhstan,
accounting for marginal share of value sales in 2012. Distribution of medicated products is
limited as chemists/pharmacies remained the core channel for such products. Being the
smallest product is due to the opinion among consumers that medicated products have to be
used only in serious cases, when paediatricians suggest that they are needed.
 Products with natural and organic ingredients were introduced to Kazakhstan mainly in big
cities, but the popularity of such products did not witness fast growth in 2012, remaining a
negligible niche.
 There are no cultural or traditional specifications in the country that would negatively affect
sales of baby and child-specific products in Kazakhstan. The application of herbs or oils for
babies is rare. Most baby products are used for newborns and toddlers up to three to four
years. After this age, parents continue to purchase the same products they originally bought
for their babies or start using the same beauty and personal care products for themselves and
their children.
COMPETITIVE LANDSCAPE
 Johnson & Johnson Inc led baby and child-specific products with value share of 18% in 2012.
The company has a long-standing presence in Kazakhstan and benefits from a strong, widelyrecognised brand name (Johnson‘s Baby), considerable brand loyalty, broad distribution and
comprehensive product portfolios. The company constantly supports its brands with mass
media advertising which helps sustain its position.
 Kimberly-Clark Corp and Procter & Gamble Central Asia witnessed the biggest increased in
value sales share in 2012, both gaining over half a percentage point. The companies are
gradually expanding their portfolios and are very famous among Kazakh consumers. They
support their products with regular promotional activities which help to sustain consumer
interest, as well as build brand loyalty for Huggies and Pampers, respectively. In addition,
their products are valued for their effectiveness and safety, which translates into growing
popularity.
 International players and their brands continued to lead in baby care in 2012 due to the
extremely limited presence of domestic companies. The sole domestic producer of baby and
child-specific products and other beauty products under Urker Cosmetic ceased operations in
2010.
 Despite considerably low saturation of baby and child-specific products, in 2012 there were no
significant new products or packaging launches in baby care, as the leading players decided
to focus on their existing products rather than develop new ones.
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19
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 Despite the economic recovery from the downturn in 2011, there was still a tendency in 2012
within baby and child-specific products to buy cheaper items offered by Russian
manufacturers. Standard and economy brands led the way, while the presence of premium
brands was stable, but not particularly growing in popularity.
PROSPECTS
 Baby and child-specific products is expected to register a CAGR of 2% in constant value
terms over the forecast period due to the rather low rate of penetration and variety of
products. However, the variety of products is growing and the culture of usage of baby care
products is developing with every passing year.
 As in the last few years, birth rates continued to increase, which will also have a significant
impact on positive expansion for the category over the forecast period. It is expected that
usage of all baby and child-specific products will grow, and retail value sales will increase
across the category.
 Overall, constant value sales of baby and child-specific products are predicted to post a lower
average growth rate compared to the CAGR of 5% registered during the review period. Such
a trend will stem from a gradual shift towards cheaper brands, especially from Russian
manufacturers.
 The potential forecast threats to growth will be the ongoing frequent use of adult beauty and
personal care by children.
 Baby wipes is expected to show the fastest growth with a constant value CAGR of 5%. Baby
wipes will be popular as a convenient and efficient way of cleansing babies‘ skin.
 Due to the lack of saturation in baby and child-specific products, new players and new
products will appear over the forecast period. This will result in more intense competition, with
Kazakh consumers being rather sensitive to price. Due to this, companies will be forced to
attract consumers with different discounting campaigns or special offers. Due to
implementation of the Customs Union between Russia, Kazakhstan and Belarus, customs fee
rates for imported products will increase. It is expected that unit prices will marginally increase
over the forecast period due to the dependence of the category on imports.
 New product launches will appear over the forecast period, due to the rather poor variety of
baby and child-specific products towards the end of the review period. Due to the promotion
of natural trends, products with such natural additives as camomile, aloe vera or other herbs
and herbal extracts will perform well over the forecast period.
 Over the forecast period, it is expected that all leading companies will maintain their positions
over the forecast period by expanding the range of their assortment, which will help to attract
new consumers to baby and child-specific products, as well as gain competitive advantage.
CATEGORY DATA
Table 14
Sales of Baby and Child-specific Products by Category: Value 2007-2012
KZT mn
Hair Care
2007
2008
2009
2010
2011
2012
500.9
556.1
610.3
664.8
717.0
772.5
889.0
986.9
1,093.7
1,214.9
1,344.5
1,473.5
20
Skin Care
Sun Care
Toiletries
Baby Wipes
Medicated Baby and
Child-specific Products
Nappy (Diaper) Rash
Treatments
Products
Source:
Passport
109.2
112.1
113.9
116.3
121.2
127.6
976.0
1,083.4
1,196.2
1,302.0
1,422.4
1,541.0
271.8
40.0
510.9
41.4
728.3
43.4
992.1
45.6
1,191.4
50.3
1,412.5
53.8
-
-
-
-
-
-
2,786.9
3,290.9
3,785.9
4,335.7
4,846.7
5,380.9
Table 15
Sales of Baby and Child-specific Products by Category: % Value Growth
2007-2012
Baby and Child-specific Hair Care
Baby and Child-specific Skin Care
Baby and Child-specific Sun Care
Baby and Child-specific Toiletries
Baby Wipes
Medicated Baby and Child-specific
Products
Nappy (Diaper) Rash Treatments
Source:
2011/12
2007-12 CAGR
2007/12 Total
7.8
9.6
5.2
8.3
18.6
6.9
9.1
10.6
3.2
9.6
39.0
6.1
54.2
65.8
16.8
57.9
419.7
34.5
11.0
14.1
93.1
Table 16
Baby and Child-specific Products Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
Table 17
Baby and Child-specific Products Company Shares 2008-2012
% retail value rsp
Company
Kalina Concern OAO
Kimberly-Clark Corp
Procter & Gamble
Central Asia
SCA Group
2008
2009
2010
2011
2012
22.5
7.5
4.9
4.3
19.0
12.3
6.1
5.4
18.3
11.4
7.1
6.4
18.2
11.2
7.5
7.1
18.1
11.0
8.2
7.8
2.4
3.2
3.8
4.3
4.8
21
Nasha Mama OOO
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Beiersdorf AG
Biokon ZAO
Nestlé SA
Urker Cosmetic AO
Others
Total
Source:
5.4
1.8
4.6
2.8
4.6
2.8
4.5
3.5
4.0
2.9
0.7
0.3
3.0
43.8
100.0
2.5
2.8
0.5
0.3
1.8
38.7
100.0
2.1
3.0
0.4
0.2
0.5
39.3
100.0
3.4
3.0
0.4
0.2
37.2
100.0
3.4
3.1
0.3
0.2
35.1
100.0
Baby and Child-specific Products Brand Shares 2009-2012
% retail value rsp
Brand
Johnson's Baby
Huggies
Pampers
Libero
Timka
Malenkaya Feya
Avon
Oriflame Baby Care
Florena Baby
Limpopo
Karapuz
Drakosha
Nasha Mama
Biokon
Nivea Sun
Bübchen
Utya Baby
Others
Total
Company
2009
2010
2011
2012
Kimberly-Clark Corp
Procter & Gamble
Central Asia
SCA Group
Nasha Mama OOO
Kalina Concern OAO
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Beiersdorf AG
Kalina Concern OAO
Kalina Concern OAO
Kalina Concern OAO
Nasha Mama OOO
Biokon ZAO
Beiersdorf AG
Nestlé SA
Urker Cosmetic AO
19.0
6.1
5.4
18.3
7.1
6.4
18.2
7.5
7.1
18.1
8.2
7.8
3.2
4.3
4.0
1.8
3.8
3.8
3.7
2.8
4.3
3.8
3.6
2.8
4.8
3.9
3.6
3.5
2.5
2.8
3.3
3.0
2.1
1.1
0.5
0.3
1.8
38.7
100.0
2.1
2.8
2.9
2.8
2.1
0.8
0.4
0.2
0.2
0.5
39.3
100.0
3.4
2.8
2.9
2.6
2.1
0.8
0.4
0.2
0.2
37.2
100.0
3.4
2.8
2.8
2.5
2.1
0.7
0.3
0.2
0.2
35.1
100.0
Table 19
Baby and Child-specific Sun Care Brand Shares 2009-2012
% retail value rsp
Brand
Nasha Mama Sun Care
Biokon
Avon
Nivea Baby Sun
Bübchen
Others
Total
Source:
3.5
0.3
Table 18
Source:
Passport
Company
2009
2010
2011
2012
Nasha Mama OOO
Biokon ZAO
Avon Cosmetics
Kazakhstan TOO
Beiersdorf AG
Nestlé SA
35.6
17.3
7.9
30.5
15.3
10.3
31.8
14.5
9.9
27.7
13.5
9.3
8.4
30.9
100.0
8.6
8.6
26.7
100.0
8.9
7.9
27.0
100.0
9.0
7.1
33.4
100.0
22
Table 20
Passport
Forecast Sales of Baby and Child-specific Products by Category: Value 20122017
KZT mn
Hair Care
Skin Care
Sun Care
Toiletries
Baby Wipes
Medicated Baby and
Child-specific Products
Nappy (Diaper) Rash
Treatments
Products
Source:
2012
2013
2014
2015
2016
2017
772.5
773.1
773.7
773.4
772.4
773.0
1,473.5
1,498.1
1,522.0
1,542.7
1,559.9
1,578.8
127.6
127.1
127.6
129.4
132.0
135.1
1,541.0
1,554.6
1,572.7
1,592.5
1,613.2
1,635.3
1,412.5
53.8
1,519.8
54.2
1,582.8
54.4
1,642.9
54.4
1,703.0
54.9
1,774.3
55.4
-
-
-
-
-
-
5,380.9
5,527.0
5,633.2
5,735.3
5,835.4
5,952.0
trade sources
Table 21
Forecast Sales of Baby and Child-specific Products by Category: % Value
Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
0.0
1.4
1.2
1.2
4.7
0.6
2.0
0.1
7.1
5.9
6.1
25.6
3.0
10.6
Baby and Child-specific Hair Care
Baby and Child-specific Skin Care
Baby and Child-specific Sun Care
Baby and Child-specific Toiletries
Baby Wipes
Medicated Baby and Child-specific Products
Nappy (Diaper) Rash Treatments
Source:
trade sources
Table 22
Forecast Baby and Child-specific Products Premium Vs Mass % Analysis
2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
2.5
97.5
100.0
2.5
97.5
100.0
2.8
97.2
100.0
2.8
97.2
100.0
3.0
97.0
100.0
3.0
97.0
100.0
trade sources
23
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24
BATH AND SHOWER IN KAZAKHSTAN
- CATEGORY ANALYSIS
HEADLINES
 Bath and shower grows by 10% in current value terms in 2012 to reach KZT11 billion
 Strong marketing and increased consumer spending drive higher quality and more expensive
products
 Intimate wipes records the highest growth rates in current value terms by 19%
 The average unit price remains stable in 2012
 Oriflame Kazakhstan leads sales in 2012 with 14% current value share
 Bath and shower is set to grow by a constant value CAGR of 5% over the forecast period
TRENDS
 Towards the end of the review period, growth rates in body wash/shower gel were largely due
to the increasing popularity of bath and shower not only in urban but also in rural areas. This
was due to the strong promotional campaigns by multinationals for their body wash/shower
gel brands. Manufacturers tried to reach a wide audience, with the products in all price
segments. Overall, demand remained strong as bath and shower is used on a regular basis
as part of daily hygiene in almost every household.
 2012‘s current value growth of 10% was slower than the review period CAGR of 12%. The
main reason was a shift towards cheaper brands, particularly amongst lower-income
consumers. Such ranges were becoming increasingly available and new extensions, such as
segmentation by skin type and gender, were also being introduced regularly; hence lowerpriced offerings proved increasingly appealing, and offering good value-for-money.
 Intimate wipes records the best performance in bath and shower in 2012, rising in value by
19%. This is largely due to the advanced interest in relatively new products and the relatively
low consumption level of intimate hygiene. This proves the fact that consumers have a great
interest in such novelties.
 Bath additives increased by 6% in retail value sales in 2012. Due to the recovery from the
economic downturn, consumers continued to pay greater attention to additional products such
as bath foam/gel, bath oil/pearls, bath salts/powder and other bath additives.
 Body wash/shower gel and bar soap grew by 11% in current value terms in 2012. These two
hold the largest value shares in bath and shower, accounting for combined sales of KZT8.4
billion. Consequently, their performances have a major influence over the dynamics of bath
and shower overall. The majority of Kazakh people now tend to have quick showers.
Manufacturers add new ingredients, new scents or modify with additional features such as
relaxation, energising or firming claims. Despite the rising popularity of liquid soap, its
increase of 8% in 2012, and appreciation for its convenience, current value sales of bar soap
continued to increase during 2012.
 Natural ingredients are popular in bath and shower, with many Kazakhs keen to use naturalbased products that are considered safe for the skin and which offer unique properties.
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 In 2012, exfoliators/scrubs continued to become popular within bath and shower, particularly
in body wash/shower gel as well as bar soap. Products that offer exfoliating properties are
gaining ground, being considered as a supplement to daily hygiene routines. For example,
shower gel under the Palmolive Thermal Spa Mineral Massage brand.
 There were no culturally-specific or traditional product alternatives or characteristic
preferences in Kazak bath and shower in 2012.
 Multinational companies were active in positioning their brands by active customer marketing
investments, which consequently gave good sales. Consumers started paying more attention
to bath additives such as bath foam/gel, bath oil/pearls, bath salts/powder and other bath
additives.
 Overall, the unit price increases were limited during 2012 by the fierce price competition in
bath and shower in Kazakhstan. Many local consumers turned to cheaper variants or waited
until temporary price discounts were applied before purchasing products in bulk.
 Premium products accounted for just 3% share of value sales in bath and shower in
Kazakhstan during 2012. The majority of Kazakhs are more than satisfied with the quality
offered by mass bath and shower brands, especially as the leading manufacturers in the
category have invested significant sums in innovation and advertising in order to make mass
bath and shower products more attractive for consumers in Kazakhstan.
 Oriflame Kazakhstan continued to lead bath and shower during 2012 with 14% value share.
Oriflame regularly expands its bath and shower product ranges, offering new ingredients and
new benefits, and successfully offers those products through consultants. Oriflame brands are
popular among a wide variety of Kazakh consumers, especially women and the company has
invested significant sums in targeting such a wide range of consumers through promotions
and colourful catalogues.
 Procter & Gamble recorded the largest increase in current value sales share, gaining1.5
percentage points in Kazakhstan during 2012. Procter & Gamble maintained its second
position in 2012 with 13% value share. The company was able to establish strong awareness
of its major brands, Camay and Safeguard which were perceived as being of high quality by
most consumers in Kazakhstan.
 Bath and shower in Kazakhstan continued to be dominated by multinational companies and
international brands. All international companies benefited the most from their strong brand
images and interest in higher quality products, as well as wider distribution not only in major
cities but also in rural areas.
 The most active advertising campaigns in bath and shower were for body wash/shower gel
and bar soap by multinational brands. Nivea, Palmolive, Fa, Dove and Camay were the most
supported brands by promotion in different media channels in 2012. The majority of
companies offered consumers additional product for a cheaper price and such products were
in big demand. The biggest part of such products was presented close to different
holidays/events such as Kazakh New Year and International Women‘s Day.
 In bar soap, a new player emerged called Alika‘s Handmade Soap offering natural handmade
bar soap. It successfully offered products in key channels, although it still had occupied
notable shelf-space in retailers at the end of the review period. The company has potential for
growth in natural handmade bar soap.
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26
 There were no significant innovations in the packaging of bath and shower in Kazakhstan
during 2012. The leading manufacturers in the category continued to launch products in large
400ml packaging in order to reduce the unit price and bolster demand among price-sensitive
consumers in Kazakhstan.
PROSPECTS
 Over the forecast period, companies will have to put more effort into attracting consumer
attention by offering different discounts and promotions underpinned by the existing pricesensitivity of consumers in Kazakhstan. It is likely that cheaper products from Russia will
appear, due to their increased popularity over the review period, because of their cheap price
and relatively good quality. Nevertheless, multinational brands will continue to promote their
brands and remain the leaders.
 The performance of bath and shower in Kazakhstan over the forecast period is expected to
represent an improvement on the growth recorded over the review period, with a predicted
constant value CAGR of 5% compared to a CAGR of 3%. The growth rates in the category
will be caused by consumers‘ choice to pay more for good quality, which will continue to
prevail over the forecast period. It is expected that this situation will change marginally close
to the end of the forecast period, when consumers will have more disposable income and
purchasing power will increase. It is expected that even consumers from rural areas will
become more active and will be able to afford to spend more on bath and shower towards the
end of the forecast period.
 The most significant threat to growth in bath and shower during the forecast period is the link
with economic improvement. If Kazakhstan faces falling income levels, this would inevitably
limit demand for bath and shower during the forecast period.
 Body wash/shower gel will record the highest growth rates over the forecast period with a
CAGR of 8% in constant value terms. The greatest support for body wash/shower gel retail
sales will come from rural areas and middle-aged customers who got used to such products
towards the end of the review period, and are not willing to change. Body wash/shower gel is
a product which is used daily in every household in Kazakhstan.
 The average unit price change of bath and shower is expected to be dependent on the fierce
price competition among the leading manufacturers; no significant unit price increases are
expected in bath and shower during 2012. The frequent discounts and the more conscientious
purchasing habits of Kazakh consumers will place limits on unit price increases in bath and
shower during the forecast period.
 Intimate hygiene will continue to record the lowest growth with a constant value CAGR of 4%.
It is expected will show positive growth and increases in retail value sales due to the
appearance of a greater variety of players and products.
 The leading manufacturers in bath and shower in Kazakhstan will continue to invest in new
product development during the forecast period and a wide range of promotional tools can be
expected to be fulfilled in order to approach consumers.
CATEGORY DATA
Table 23
Sales of Bath and Shower by Category: Value 2007-2012
KZT mn
Passport
27
Bar Soap
Bath Additives
- Bath Foam/Gel
- Bath Oil/Pearls
- Bath Salts/Powder
- Other Bath Additives
Body Wash/Shower Gel
Intimate Hygiene
- Intimate Washes
- Intimate Wipes
Liquid Soap
Talcum Powder
Bath and Shower
Source:
Passport
2007
2008
2009
2010
2011
2012
2,308.5
634.4
513.1
121.3
2,019.0
512.7
488.8
23.9
777.7
83.8
6,336.1
2,670.8
622.5
500.0
122.5
2,436.0
637.4
592.8
44.6
866.0
91.6
7,324.3
2,980.7
617.5
492.8
124.7
2,850.7
697.2
633.6
63.5
955.7
91.3
8,193.1
3,357.9
669.4
534.9
134.5
3,323.0
783.2
697.1
86.2
1,043.8
94.8
9,272.1
3,749.2
721.5
575.8
145.7
3,765.7
874.0
764.4
109.6
1,126.6
97.5
10,334.5
4,160.0
760.9
605.7
155.2
4,167.1
953.0
822.8
130.3
1,216.8
100.0
11,357.8
Table 24
Sales of Bath and Shower by Category: % Value Growth 2007-2012
2011/12
2007-12 CAGR
2007/12 Total
11.0
5.5
5.2
6.5
10.7
9.0
7.6
18.9
8.0
2.6
9.9
12.5
3.7
3.4
5.0
15.6
13.2
11.0
40.4
9.4
3.6
12.4
80.2
19.9
18.1
27.9
106.4
85.9
68.3
445.7
56.5
19.4
79.3
Bar Soap
Bath Additives
- Bath Foam/Gel
- Bath Oil/Pearls
- Bath Salts/Powder
Intimate Hygiene
- Intimate Washes
- Intimate Wipes
Liquid Soap
Talcum Powder
Bath and Shower
Source:
Table 25
Bath and Shower Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
2.0
98.0
100.0
2.0
98.0
100.0
2.0
98.0
100.0
2.0
98.0
100.0
2.0
98.0
100.0
2.5
97.5
100.0
2011
2012
Table 26
Bath and Shower Company Shares 2008-2012
% retail value rsp
Company
2008
2009
2010
28
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Henkel AG & Co KGaA
Kalina Concern OAO
Beiersdorf AG
Unilever Group
Evyap Sabun Yag
Laboratori di Chimica
Applicata srl
Others
Total
Source:
15.9
11.0
8.2
19.1
10.9
9.5
15.4
11.2
9.2
13.7
12.8
10.5
7.9
12.6
4.3
4.5
5.2
6.3
3.5
7.8
11.1
5.4
6.7
4.0
4.4
3.0
8.4
10.0
7.0
5.6
3.9
2.9
2.9
9.2
9.8
7.5
6.4
3.9
2.9
2.8
9.9
9.7
7.8
7.5
3.8
2.9
2.7
0.7
0.6
0.5
0.4
0.4
18.3
100.0
21.7
100.0
19.5
100.0
21.3
100.0
18.1
100.0
Bath and Shower Brand Shares 2009-2012
% retail value rsp
Brand
Oriflame
Avon
Fa
Palmolive
Camay
Nivea
Safeguard
Carefree
Protex
Dove
Fax
Duru
Antibakterin
Nezhenka
Johnson's
Chistaya Liniya
Bravo
Oriflame Men
Nivea for Men
Cliven Intimo
Arko
Others
Total
Table 28
18.6
11.2
7.0
Table 27
Source:
Passport
Company
2009
2010
2011
2012
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Henkel AG & Co KGaA
Beiersdorf AG
Unilever Group
Evyap Sabun Yag
Evyap Sabun Yag
Kalina Concern OAO
Kalina Concern OAO
Kalina Concern OAO
Kalina Concern OAO
Oriflame Kazakhstan
Beiersdorf AG
Laboratori di Chimica
Applicata srl
Evyap Sabun Yag
15.1
8.2
18.0
9.5
14.7
9.2
12.9
10.5
8.4
6.8
6.2
6.6
4.9
3.1
1.1
3.1
1.1
8.0
7.3
6.3
5.4
4.6
2.9
1.0
2.2
1.1
7.8
8.0
6.6
6.1
4.5
2.9
1.3
2.2
1.1
8.0
7.7
7.3
7.1
5.5
2.9
2.3
2.2
1.2
1.6
1.5
1.4
1.2
0.4
0.6
1.0
0.9
0.3
0.7
0.1
0.6
0.9
0.7
1.0
0.8
0.7
1.1
0.2
0.5
1.1
0.8
0.9
0.8
0.7
0.7
0.3
0.4
1.2
0.9
0.9
0.8
0.8
0.8
0.4
0.4
0.3
0.3
0.3
0.3
29.0
100.0
26.1
100.0
28.1
100.0
24.6
100.0
Forecast Sales of Bath and Shower by Category: Value 2012-2017
29
Passport
KZT mn
Bar Soap
Bath Additives
- Bath Foam/Gel
- Bath Oil/Pearls
- Bath Salts/Powder
Intimate Hygiene
- Intimate Washes
- Intimate Wipes
Liquid Soap
Talcum Powder
Bath and Shower
Source:
2012
2013
2014
2015
2016
2017
4,160.0
760.9
605.7
155.2
4,167.1
953.0
822.8
130.3
1,216.8
100.0
11,357.8
4,269.6
779.0
617.5
161.5
4,435.5
989.7
841.1
148.6
1,221.1
95.2
11,790.1
4,416.4
812.8
643.1
169.7
4,798.2
1,023.2
853.7
169.4
1,239.5
92.0
12,382.1
4,597.7
864.7
687.2
177.5
5,297.0
1,059.5
867.9
191.7
1,289.3
88.3
13,196.5
4,816.0
934.2
745.9
188.3
5,743.0
1,101.1
883.7
217.3
1,350.8
85.0
14,030.0
5,036.5
1,007.6
810.1
197.5
6,086.5
1,166.3
921.3
245.0
1,389.0
82.2
14,768.2
trade sources
Table 29
Forecast Sales of Bath and Shower by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
3.9
5.8
6.0
4.9
7.9
4.1
2.3
13.5
2.7
-3.9
5.4
21.1
32.4
33.7
27.3
46.1
22.4
12.0
88.1
14.2
-17.8
30.0
Bar Soap
Bath Additives
- Bath Foam/Gel
- Bath Oil/Pearls
- Bath Salts/Powder
Intimate Hygiene
- Intimate Washes
- Intimate Wipes
Liquid Soap
Talcum Powder
Bath and Shower
Source:
trade sources
Table 30
Forecast Bath and Shower Premium Vs Mass % Analysis 2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
trade sources
30
COLOUR COSMETICS IN
KAZAKHSTAN - CATEGORY
ANALYSIS
HEADLINES
 Sales of colour cosmetics grow by 8% in current value terms to reach KZT25 billion in 2012
 Increasing activity of women in the business environment and rising purchasing power impact
the category
 Eye make-up records the highest current value growth of 10% in colour cosmetics in 2012
 The prices for imported products marginally increase given the inflation for 2012
 L'Oréal Groupe maintains its leading position in colour cosmetics in 2012 with 13% value
share
 Colour cosmetics is expected to post a constant value CAGR of 2% during the forecast period
TRENDS
 Mineral-based colour cosmetics manufactured from natural ingredients, and various
sophisticated colour cosmetics which give additional and attractive features to the face, eye,
lips and nails (such as increasing volume of eye-lashes, for instance) began to attract higher
numbers of Kazakh females.
 In 2012, colour cosmetics in Kazakhstan demonstrated similar growth rates to the previous
two years. Consumers‘ confidence is rising in the country which had a positive impact on their
purchasing power. Compared to the review period current value CAGR of 7%, 2012‘s current
value sales demonstrated 8% growth.
 Eye make-up recorded the fastest growth in colour cosmetics in Kazakhstan in current value
terms during 2012, rising by 10%. Eye make-up accounts for 27% value share of all colour
cosmetics sales. Mascara plays a significant role in the everyday lives of all types of women
in different age groups and in different areas of living, which helped it to record 12% current
value growth in 2012.
 Over the review period, lip products was the most active and showed good results in 2012
with 9% current value growth. Lipstick is the most important product for Kazakh female
consumers among colour cosmetics. This is mostly due to the fact that they like to accentuate
their lips. In urban areas, consumers have higher disposable incomes and can afford to buy
more qualitative and expensive brands; while in rural areas consumers are more likely to buy
economy- and standard-priced brands.
 Facial make-up increased by 8% in current value terms in 2012. Every year the culture of
make-up is developing in Kazakhstan, with more articles appearing in different magazines
and women can find advice on how to accentuate their natural beauty. Manufacturers also
add specific benefits to their facial make-up, such as colour control ingredients, for instance.
Moreover, the vast majority of Kazakh women continue to aspire to facial beauty as this is
considered to be one of the most crucial factors determining one‘s physical appearance.
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31
 Due to Custom Union and inflation, the devaluation unit price grew for most products in colour
cosmetics. Almost all of the products in this category are imported and suppliers were forced
to increase prices. In line with this, companies presented to their customers more economy
and standard brands in order to maintain sales and cover positions. Lower than average unit
price growth was observed within the largest product areas, namely mascara, lipstick and nail
polish at 5%. Average unit price for other products grew between 15% and 20%.
 Although mass brands continued to dominate sales of colour cosmetics in Kazakhstan,
comprising 90% value share in 2012, sales of premium brands improved and growth in
premium colour cosmetics was further evident. This was due to rising economic confidence of
many Kazakh consumers. In addition, the proportion of women who would prefer to purchase
one premium product rather than many mass products increased marginally towards the end
of the review period. There are a few leaders of premium products that retained loyal
customers, including Chanel, Christian Dior and Guerlain.
 L‘Oréal Groupe maintained its leading position in colour cosmetics in 2012 with 13% value
share. This represents one percentage point increase from the 12% recorded by the company
in 2011, allowing it to strengthen its position. The company placed strong emphasis on new
product development in colour cosmetics in Kazakhstan during the review period. L‘Oréal has
been one of the strongest advertisers in beauty and personal care in Kazakhstan for some
time and makes full use of television, the internet and printed media to promote its colour
cosmetics brands and products in the country.
 The shares of leading direct sellers, Oriflame and Avon accounted for 21% combined value
share in 2012. Both of these companies specialise in beauty and personal care manufactured
from natural ingredients and established themselves in Kazakhstan through years of
operation with constant innovation in all areas of colour cosmetics. In 2012, Avon managed to
outperform Oriflame and for the first time became a leader within direct selling companies and
ranked second in colour cosmetics. Such a situation is explained mainly by development of
modern retailing not only in main cities, but also in regions and consumers do have more
possibilities to try other mass brands which are sold in retail stores. It caused mainly Oriflame
from all direct sellers due to the fact that this company operated the longest and had the
biggest number of consumers across the country.
 The category was led by international brands, due to the absence of domestic colour
cosmetics brands in Kazakhstan.
 During 2012, there were no significant packaging innovations noted in colour cosmetics in
Kazakhstan.
 Avon Kazakhstan, Mary Kay (Kazakhstan) Inc and Oriflame were rather active in support of
their brands in 2012. Companies promoted the most popular products in their portfolios –
which were mascara, lipstick and fragrances. Advertising campaigns were witnessed in
different printed media and on television. Avon Kazakhstan also tried something new and
launched the Avon brand advertising on the radio. This benefited the whole company‘s image
and brand awareness. Mary Kay conducted several beauty and personal care events like
KazInterBeauty exhibition for women in order to promote its new products and also introduce
women to new make-up techniques. L‘Oréal brand was widely seen in different media as well.
Passport
32
Passport
PROSPECTS
 Over the forecast period, colour cosmetics is set to continue increasing in value. Due to the
improvement of the economy, it is likely that more Kazakh women will be encouraged to
purchase higher amounts of colour cosmetics as the opportunity to maximise one‘s beauty
and youth is highly valued in Kazakhstan. Furthermore, colour cosmetics is unlikely to escape
unit price increases during the forecast period.
 Colour cosmetics is expected to record a constant value CAGR of 2% over the forecast
period. This represents a considerable improvement on the constant value CAGR of -2%
recorded over the review period, due to the traditional desire among Kazakh women to
accentuate their lips and eyes. In addition, a culture of wearing full make-up is developing in
the country. More women from rural areas will be affected by information about make-up and
due to this, sales are expected to increase.
 The main potential forecast threat to growth would be any economic crisis and its
consequences in subsequent years. Other barriers to growth are low disposable incomes
among a wider Kazakh audience, as well as a lack of awareness of some products and the
poor product choice in rural areas.
 The best performance is expected to be recorded by facial make-up with a constant value
CAGR of 4% over the forecast period. Continuous new product developments over the
forecast period and the increasing availability of products with various specific benefits are
likely to boost value growth in facial make-up throughout the forecast period.
 The average unit price of colour cosmetics in Kazakhstan is expected to increase during the
forecast period due to the growing importance of mineral cosmetics and other relatively
expensive products in the category. Nevertheless, heavy competition in the category and
price-sensitivity of Kazakhs is set to result in a certain level of price discounting. However, unit
price growth in the category as a whole will be underpinned by the dependence of colour
cosmetics on imports.
 There was no noteworthy new launch in colour cosmetics in Kazakhstan at the end of the
review period. However, the forecast period is expected to welcome new launches. Several
companies are set to introduce new and innovative products by copying and modifying
recently launched products. Companies are likely to place more emphasis on the introduction
of mineral cosmetics as well as offering entirely natural and organic products.
CATEGORY DATA
Table 31
Sales of Colour Cosmetics by Category: Value 2007-2012
KZT mn
Eye Make-Up
Facial Make-Up
Lip Products
Nail Products
Colour Cosmetics
Source:
Table 32
2007
2008
2009
2010
2011
2012
4,695.9
2,183.2
8,592.2
2,213.2
17,684.5
5,034.6
2,305.0
9,132.9
2,384.0
18,856.4
5,227.8
2,415.0
9,741.7
2,424.4
19,808.9
5,706.6
2,618.7
10,618.7
2,506.2
21,450.2
6,295.8
2,837.9
11,556.6
2,597.2
23,287.5
6,915.2
3,077.3
12,574.7
2,674.8
25,241.9
Sales of Colour Cosmetics by Category: % Value Growth 2007-2012
33
Passport
2011/12
2007-12 CAGR
2007/12 Total
9.8
8.4
8.8
3.0
8.4
8.0
7.1
7.9
3.9
7.4
47.3
41.0
46.4
20.9
42.7
Eye Make-Up
Facial Make-Up
Lip Products
Nail Products
Colour Cosmetics
Source:
Table 33
Colour Cosmetics Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
9.1
90.8
100.0
9.9
90.2
100.0
10.0
90.0
100.0
10.1
89.9
100.0
10.1
89.8
100.0
10.4
89.7
100.0
Table 34
Colour Cosmetics Company Shares 2008-2012
% retail value rsp
Company
L'Oréal Groupe
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Orion Oyj
Chanel SA
Christian Dior SA
Guerlain SA
Others
Total
Source:
2008
2009
2010
2011
2012
10.4
7.9
10.9
9.7
11.2
10.2
11.9
10.3
13.2
10.8
12.6
8.0
6.9
2.5
0.3
0.4
0.2
50.8
100.0
9.6
8.3
5.8
2.5
0.4
0.4
0.2
52.2
100.0
10.7
8.5
5.5
2.5
0.4
0.4
0.2
50.5
100.0
10.8
8.6
5.5
2.5
0.4
0.4
0.2
49.3
100.0
10.1
8.6
5.7
2.6
0.6
0.5
0.2
47.7
100.0
Table 35
Colour Cosmetics Brand Shares 2009-2012
% retail value rsp
Brand
Avon
Oriflame
Mary Kay
Maybelline New York
L'Oréal Paris
Max Factor
Company
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
L'Oréal Groupe
L'Oréal Groupe
2009
2010
2011
2012
9.7
10.2
10.3
10.8
9.6
8.3
3.9
6.6
5.8
10.7
8.5
4.3
6.5
5.5
10.8
8.6
5.3
6.2
5.5
10.1
8.6
6.7
6.0
5.7
34
Lumene
Chanel
Lancôme
Christian Dior
Guerlain
Others
Total
Source:
Orion Oyj
Chanel SA
L'Oréal Groupe
Christian Dior SA
Guerlain SA
2.5
0.4
0.3
0.4
0.2
52.2
100.0
2.5
0.4
0.3
0.4
0.2
50.5
100.0
2.5
0.4
0.4
0.4
0.2
49.3
100.0
2.6
0.6
0.5
0.5
0.2
47.7
100.0
Table 36
Colour Cosmetics Premium Brand Shares 2009-2012
% retail value rsp
Brand
Chanel
Lancôme
Christian Dior
Guerlain
Others
Total
Source:
Passport
Company
2009
2010
2011
2012
Chanel SA
L'Oréal Groupe
Christian Dior SA
Guerlain SA
3.5
3.0
4.0
2.0
87.4
100.0
3.5
3.1
4.3
2.1
87.0
100.0
3.9
3.8
4.2
1.7
86.3
100.0
5.8
4.8
4.5
1.5
83.3
100.0
Table 37
Forecast Sales of Colour Cosmetics by Category: Value 2012-2017
KZT mn
Eye Make-Up
Facial Make-Up
Lip Products
Nail Products
Colour Cosmetics
Source:
2012
2013
2014
2015
2016
2017
6,915.2
3,077.3
12,574.7
2,674.8
25,241.9
7,077.4
3,175.5
12,746.3
2,571.2
25,570.3
7,253.4
3,342.3
13,069.1
2,484.0
26,148.7
7,385.1
3,520.5
13,468.0
2,393.0
26,766.7
7,518.8
3,672.6
13,914.5
2,308.2
27,414.1
7,693.9
3,810.6
14,406.1
2,230.8
28,141.4
trade sources
Table 38
Forecast Sales of Colour Cosmetics by Category: % Value Growth 2012-2017
Eye Make-Up
Facial Make-Up
Lip Products
Nail Products
Colour Cosmetics
Source:
2012-17 CAGR
2012/17 TOTAL
2.2
4.4
2.8
-3.6
2.2
11.3
23.8
14.6
-16.6
11.5
trade sources
Table 39
Forecast Colour Cosmetics Premium Vs Mass % Analysis 2012-2017
% retail value rsp
35
Premium
Mass
Total
Source:
Passport
2012
2013
2014
2015
2016
2017
10.4
89.7
100.0
10.5
89.5
100.0
10.9
89.2
100.0
11.1
88.9
100.0
11.5
88.5
100.0
11.9
88.1
100.0
trade sources
36
DEODORANTS IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Deodorants grows in current value terms by 6% to reach KZT7.3 billion in 2012
 Innovation and promotional activity drive value growth in deodorants in 2012
 Deodorant sticks records the biggest rise in current value terms of 7% in 2012
 The average unit price marginally changes in 2012
 Unilever Group leads sales in 2012 with 27% value share
 Deodorants is expected to record a marginal constant value CAGR over the forecast period
TRENDS
 The main trend in deodorants was to purchase favourite and established brands, but some
consumers were ready to try novelty, regardless of price. However, although Kazakh
consumers are open to innovation in deodorants, on a wider basis, they are looking for price
discounts and, consequently, economy-priced products remained very popular in deodorants
in Kazakhstan during 2012.
Deodorants registered current value growth of 6% in 2012, which represents a marginally
higher growth rate than the review period average. Leading manufacturers in the category
invested large amounts in innovation and creative promotional tools during the previous years of
the review period. In 2012, this helped increase the demand for deodorants.
 Deodorant sticks recorded the highest current value growth in 2012 of 7%. There are wide
brand assortments of deodorant sticks available. These products are often advertised as dry,
and hence do not leave a stain the clothing, which is perceived as a considerable advantage.
 Unit prices marginally increased in 2012 as a result of the inflation rate. However, the leading
manufacturers in the category did not increase the unit prices of their products much in 2012
due to fierce levels of price competition in deodorants.
 Deodorant roll-ons recorded the second highest growth rate in 2012. Deodorant roll-ons
remained highly popular among Kazakh women. Deodorant roll-ons are highly visible on the
shelves of all relevant retail outlets in Kazakhstan and are characterised by a wide selection.
 The majority of Kazakh consumers use antiperspirant deodorants every day to prevent
unpleasant body odours from developing. If they would like to add a pleasant fragrance, the
majority of Kazakhs use perfume or eau de toilette in addition to antiperspirant deodorant.
 The key consumers of the products are young and middle-aged active males and females
who are mainly urban citizens, are aware of these products and pay attention to personal
hygiene.
 The most popular formats within deodorants are deodorant sprays accounting for KZT5.5
billion (75% value share). The main factor driving sales of deodorant sprays throughout the
review period was the numerous advertisements and promotions by manufacturers, which
created brand loyalty among consumers.
 Whichever innovations are on offer, the most important criteria are pleasant scents,
convenience and the fact that they do not leave marks on clothes.
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37
 The range of body sprays on offer in Kazakhstan remained relatively underdeveloped and
these products cannot be considered a significant threat to fragrances. It is generally only
direct selling companies which offer a wide variety of body sprays. The body spray brands
offered by Oriflame include Delight, Giordani Gold and Volare.
 Unilever Group led sales of deodorants in 2012 with 27% value share, gaining one
percentage point. Unilever offers deodorants under popular brands such as Rexona and Axe.
These brands have all been widely available in the country for years. In addition, the
company‘s leadership is also due to the strong promotion of its brands and its relentless focus
on extensions. Moreover, all of the deodorants offered in Kazakhstan by Unilever carry very
affordable prices.
 The biggest increase in value share of two percentage points was recorded by Beiersdorf AG.
The company supported existing brands, especially the Invisible Protection line under the
Nivea umbrella brand. This improvement can be largely attributed to the company‘s several
successful product launches in recent years.
 Deodorants completely depends on imports, with multinational companies, brands and
products dominating as domestic production is undeveloped.
 No significant packaging innovation was noted within deodorants in Kazakhstan during 2012.
 Key advertising campaigns were aired on television and followed a standard deodorant
advertising pattern, showing both males and females coping with all kinds of stressful
situations without worrying about perspiring. Television is the main form of advertising,
although deodorant advertisements are also present in billboards and magazines. There are
also numerous types of advertisements when consumers can interact with the company in
different competitions in order to win a special prize; this strategy worked for most of the
middle-class population as there was word-of-mouth confirming that the prizes from the
companies were genuine. This increased the popularity of such brands as Rexona and
Secret.
 No deodorant private label had entered Kazakhstan at the end of the review period.
Moreover, there are no indications of any private label due to appear over the forecast period.
PROSPECTS
 Over the forecast period, deodorants is expected to continue registering positive growth. The
economic stability will force consumers to increase further spending. This will have a positive
impact on the growth rate of deodorants in Kazakhstan. On the other hand, the improving
economic situation in the country will drive the performance of higher quality products. This
trend is also expected to be more intense. However, it is unlikely that there will be strong
development in the premium segment as these products will remain overpriced for the major
consumer groups.
 Deodorants is expected to increase only marginally in constant value terms over the forecast
period. However, it is an improvement compared to the constant value CAGR of -3% recorded
over the review period, as the higher numbers of Kazakh consumers now consider
deodorants to be an essential item for maintaining acceptable personal hygiene.
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38
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 One major threat to growth in deodorants which could arise during the forecast period is
saturation and price-sensitivity. Another threat might come from competition from other beauty
and personal care categories, such as fragrances.
 Deodorants in Kazakhstan are far from saturation and the culture of using such products is
still developing. As a result, new products are expected to enter, further broadening the
existing range and actively seeking new customers. Strong competition between
multinationals is expected, with an emphasis on proactive advertising.
 Deodorant sticks is set to continue registering the strongest growth in deodorants during the
forecast period, increasing in constant value terms by a CAGR of 1%. Leading manufacturers
will attract consumers with specific benefits. Companies are likely to continue developing
stain-preventing deodorants during the forecast period. Potential activities could be to
continue with their new product developments during the forecast period, especially in terms
of making products more skin-friendly and clothing-friendly. In addition, added benefits such
as skin care effects are set to become more common in deodorants during the forecast
period.
CATEGORY DATA
Table 40
Sales of Deodorants by Category: Value 2007-2012
KZT mn
Deodorant Creams
Deodorant Pumps
Deodorant Roll-Ons
Deodorant Sprays
Deodorant Sticks
Deodorant Wipes
Deodorants
Source:
2007
2008
2009
2010
2011
2012
512.3
4,207.9
787.8
5,507.9
555.7
4,564.7
870.7
5,991.1
570.0
4,676.4
921.8
6,168.2
604.7
4,908.8
972.7
6,486.2
653.4
5,185.1
1,041.1
6,879.7
696.2
5,502.5
1,112.5
7,311.2
Table 41
Sales of Deodorants by Category: % Value Growth 2007-2012
Deodorant Creams
Deodorant Pumps
Deodorant Roll-Ons
Deodorant Sprays
Deodorant Sticks
Deodorant Wipes
Deodorants
Source:
2011/12
2007-12 CAGR
2007/12 Total
6.5
6.1
6.9
6.3
6.3
5.5
7.1
5.8
35.9
30.8
41.2
32.7
Table 42
Deodorants Premium Vs Mass % Analysis 2007-2012
% retail value rsp
39
Premium
Mass
Total
Source:
Passport
2007
2008
2009
2010
2011
2012
2.0
98.0
100.0
2.0
98.0
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
2.5
97.5
100.0
Table 43
Deodorants Company Shares 2008-2012
% retail value rsp
Company
Unilever Group
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Henkel AG & Co KGaA
L'Oréal Groupe
Gillette Co, The
Others
Total
Source:
2009
2010
2011
2012
21.8
12.7
4.7
23.3
13.5
7.7
23.9
13.4
10.4
26.3
13.6
8.9
27.2
15.5
10.0
7.9
9.0
8.3
5.3
0.2
30.1
100.0
8.1
8.8
8.8
5.5
0.2
24.2
100.0
8.2
9.1
9.1
2.8
5.3
0.2
17.6
100.0
9.5
8.9
9.1
4.0
4.6
0.2
14.9
100.0
9.4
8.9
8.5
4.7
4.0
0.2
11.6
100.0
Table 44
Deodorants Brand Shares 2009-2012
% retail value rsp
Brand
Rexona
Nivea Deodorant
Avon
Fa
Oriflame
Secret
Garnier
Rexona for Men
Axe
Lady Speed Stick
Oriflame Men
Nivea for Men
Old Spice
Camay
Mennen
Garnier Men
Fa Men
Gillette
Others
Total
Source:
2008
Company
2009
2010
2011
2012
Unilever Group
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Henkel AG & Co KGaA
Oriflame Kazakhstan
L'Oréal Groupe
Unilever Group
Unilever Group
Oriflame Kazakhstan
Beiersdorf AG
L'Oréal Groupe
Henkel AG & Co KGaA
Gillette Co, The
15.5
10.9
7.7
15.8
10.8
10.4
17.3
10.9
8.9
18.8
12.7
10.0
7.3
6.2
5.5
3.4
4.4
5.3
2.6
2.6
2.6
0.2
0.2
0.2
25.4
100.0
7.4
6.0
5.6
2.5
3.4
4.6
5.1
3.1
2.6
2.6
0.2
0.2
0.3
0.2
19.1
100.0
7.3
5.7
5.5
3.7
3.8
5.2
4.5
3.2
2.7
2.6
1.4
0.2
0.3
0.3
0.2
16.4
100.0
6.8
6.0
5.4
4.4
4.4
4.0
3.5
2.9
2.8
2.6
1.4
0.4
0.3
0.3
0.2
13.1
100.0
40
Table 45
Passport
Forecast Sales of Deodorants by Category: Value 2012-2017
KZT mn
Deodorant Creams
Deodorant Pumps
Deodorant Roll-Ons
Deodorant Sprays
Deodorant Sticks
Deodorant Wipes
Deodorants
Source:
2012
2013
2014
2015
2016
2017
696.2
5,502.5
1,112.5
7,311.2
689.6
5,511.0
1,114.8
7,315.4
685.8
5,530.5
1,119.2
7,335.6
683.0
5,519.9
1,129.2
7,332.1
681.4
5,554.4
1,139.0
7,374.8
677.2
5,616.4
1,155.6
7,449.2
trade sources
Table 46
Forecast Sales of Deodorants by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
-0.6
0.4
0.8
0.4
-2.7
2.1
3.9
1.9
Deodorant Creams
Deodorant Pumps
Deodorant Roll-Ons
Deodorant Sprays
Deodorant Sticks
Deodorant Wipes
Deodorants
Source:
trade sources
Table 47
Forecast Deodorants Premium Vs Mass % Analysis 2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
2.5
97.5
100.0
2.7
97.3
100.0
2.7
97.3
100.0
2.7
97.3
100.0
2.7
97.3
100.0
2.7
97.3
100.0
trade sources
41
DEPILATORIES IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Current value sales of depilatories increase by 9% to reach KZT1 billion in 2012
 Depilatories remains complicated, with a very narrow consumer segment of urban women
with high incomes
 Women's pre-shave records higher growth rates in current value terms of 11% in 2012
 Inflation and new Customs regulations in 2012 have negative impact on unit prices of
imported products
 Procter & Gamble Co continues to lead with Gillette in 2012 with 43% value share
 Depilatories is expected to record a constant value CAGR of 3% during the forecast period
TRENDS
 Depilatories was one of the least-developed categories in beauty and personal care in 2012 in
Kazakhstan. Growth rates were slightly faster. Towards the end of the review period, sales of
depilatories increased due to the fact growing awareness of such products and increasing
variety of products in the market.
 Depilatories in Kazakhstan increased in current value terms by 9% in 2012. This growth was
higher than the CAGR of 7% recorded during the review period. In line with rising unit prices,
this stronger performance in 2012 was mainly due to rising disposable incomes levels.
Although much of it can be attributed to the rising popularity of smooth and depilated skin
among Kazakh women.
 Sales of depilatories in Kazakhstan have a seasonal character, with sales growing in the
spring and summer. A negligible proportion of the Kazakh female population uses depilatories
all year round. Usually, these are women of higher education, on higher-than-average
incomes and who live in the biggest cities. However, most women think of depilatories as
unnecessary products during the colder parts of the year.
 Women's pre-shave showed higher growth rates in current value terms of 11% in 2012. The
successful performance of women‘s pre-shave was defined by the rising interest in products
with long-term effects and skin-friendly ingredients.
 The culture of depilatory usage is underdeveloped in rural areas. It will take a significant
period of time until this situation changes. For this reason, depilatories has low penetration
levels in Kazakhstan and consumer education regarding the necessity of using these products
is needed, in order to stimulate sales.
 Due to inflation and Customs Union, unit prices of depilatories increased in 2012. This was
caused by a dependence on imported goods. Taking into consideration the decreasing
consumer purchasing power, unit prices were not greatly increased in order to retain
consumers
 Both hair removers/bleaches and women‘s razors and blades registered robust current value
increase in Kazakhstan during 2012, with respective growth rates of 10% and 8%. The growth
Passport
42
in each of these categories during 2012 was due to the demand for more advanced and,
hence, higher-priced depilatories.
 The leading producers of depilatories in Kazakhstan are constantly introducing innovations to
the existing brands during 2012. Products which are suitable for sensitive skin containing
natural and nutritious ingredients and featuring simple application remained the product
features most emphasised in depilatories during 2012.
 Kazakh women still prefer the tried-and-tested way of removing unwanted hair with razors
rather than hair removers/bleaches. With intensive work done to minimise irritation caused by
razors, such as special rubber pads, and oil-enhanced areas of the razor, the process of
removing unwanted hair is much more bearable now than it was in the past. Women‘s razors
and blades recorded 8% increase in current value terms in 2012.
 During 2012, disposable razors accounted for 50% share of women‘s razors and blades‘ retail
value sales in Kazakhstan, which is a four percentage point gain compared to 2011. This
format remains popular in Kazakhstan due to its affordability and convenience usage during
travelling.
 Procter & Gamble Co continued to lead with Gillette in 2012 holding 43% value share. Gillette
contributed strongly to the overall performance of Procter & Gamble, being widely available
and the most recognisable brand.
 Avon Cosmetics Kazakhstan TOO recorded the largest increase in current value share terms,
gaining half a percentage point. The company held 6% current value share in 2012. The
products of Avon are widely available through colourful catalogues at reasonable prices. Avon
remains one of the successful and famous direct selling companies operating in Kazakhstan.
 There is no great variety of depilatory brands and products in Kazakhstan and all brands are
from international companies. The most popular types are razors and blades, wax stripes and
creams. Pre-share is present in a very low variety of brands, which offers only limited choice.
 There were no significant new launches or packaging innovations in depilatories in
Kazakhstan in 2012.
 Standard brands maintained their domination position within depilatories in Kazakhstan during
2012 as the positions of the category‘s leading premium brands remained marginal
throughout the year.
PROSPECTS
 Depilatories is expected to record relatively strong growth in Kazakhstan over the forecast
period. During the review period, companies will continue developing existing umbrella brands
and will strive to improve distribution. Developments in rural and urban areas are expected to
remain disproportionate. In urban areas, women are expected to be more open towards
novelties; however in rural areas the cheaper option of disposable blades and refill blades is
expected to have significant growth.
 Depilatories is predicted to increase by a constant value at a CAGR of 3% over the forecast
period. This is set to represent a significantly superior performance to the -2% constant value
CAGR recorded by depilatories over the review period as sales were hit relatively hard by the
Passport
43
Passport
economic downturn. Higher penetration levels and the more traditional approach to depilation
will be the main drivers of the category over the forecast period.
 The potential forecast threats to growth might come from electronic depilatories, although
such a situation will only be evident in urban areas, where such products are affordable for
consumers due to their higher disposable incomes.
 Hair removers/bleaches and women's pre-shave are both expected to record the best
performances over the forecast period with constant value CAGRs of 4%. Skin-friendly hair
removers, new product development and higher levels of advertising which emphasise the
benefits of using pre-shave products to care for one‘s skin prior to shaving will help to
maintain growth.
 Consumers will remain sensitive to the price over the forecast period. As a result, companies
will have to find ways to make their products more affordable to consumers or suggest some
additional products for free to attract a wider range of potential customers. Nevertheless, the
unit price of depilatories is expected to grow over the forecast period due to the dependence
on imports.
 Over the forecast period, the leading companies in depilatories are expected to continue
engaging in a high level of product development by making their razors safer, more effective,
more sensitive and more convenient. New economy brands of depilatories will appear. The
usage of such products will grow due to the affordable prices for the majority of consumers as
well as the developing culture of use of depilatories among Kazakh women.
 Over the forecast period, companies are expected to put more efforts into promoting
depilation among women of different age groups. Furthermore, certain efforts are expected to
persuade women to depilate more often, so the marked seasonality of sales could be reduced
in the future.
CATEGORY DATA
Table 48
Sales of Depilatories by Category: Value 2007-2012
KZT mn
Hair Removers/Bleaches
Women's Pre-Shave
Women's Razors and Blades
Depilatories
Source:
Table 49
2007
2008
2009
2010
2011
2012
205.0
50.3
451.1
706.4
218.9
53.8
465.2
737.9
229.9
57.6
490.5
778.0
251.1
64.5
524.1
839.8
275.1
71.7
562.1
908.9
302.7
79.6
605.8
988.1
Sales of Depilatories by Category: % Value Growth 2007-2012
Women's Pre-Shave
Depilatories
Source:
2011/12
2007-12 CAGR
2007/12 Total
10.0
11.0
7.8
8.7
8.1
9.6
6.1
6.9
47.7
58.1
34.3
39.9
44
Table 50
Passport
Depilatories Company Shares 2008-2012
% retail value rsp
Company
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Henkel AG & Co KGaA
Pfizer Inc
Gillette Co, The
Others
Total
Source:
2010
2011
2012
40.2
8.1
12.2
8.5
1.6
42.4
9.9
12.1
8.9
1.2
43.0
10.6
9.6
10.4
1.5
42.8
11.9
9.5
7.7
5.7
42.7
11.8
9.2
7.8
6.4
0.7
28.6
100.0
0.6
25.0
100.0
1.0
23.8
100.0
1.2
21.2
100.0
1.2
21.0
100.0
Depilatories Brand Shares 2009-2012
% retail value rsp
Brand
Gillette
Schick
Veet
Oriflame
Avon
Opilca
Gillette Venus
Schick
Others
Total
Table 52
2009
Table 51
Source:
2008
Company
2009
2010
2011
2012
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Henkel AG & Co KGaA
Gillette Co, The
Pfizer Inc
42.4
9.9
12.1
8.9
1.2
43.0
10.6
9.6
10.4
1.5
42.8
11.9
9.5
7.7
5.7
42.7
11.8
9.2
7.8
6.4
0.6
25.0
100.0
1.0
23.8
100.0
1.2
21.2
100.0
1.2
21.0
100.0
Forecast Sales of Depilatories by Category: Value 2012-2017
KZT mn
Women's Pre-Shave
Depilatories
Source:
Table 53
2012
2013
2014
2015
2016
2017
302.7
79.6
605.8
988.1
310.3
82.2
610.4
1,002.9
322.7
86.0
621.1
1,029.8
339.4
90.6
637.0
1,067.1
354.1
94.7
651.8
1,100.6
374.2
98.4
664.0
1,136.6
trade sources
Forecast Sales of Depilatories by Category: % Value Growth 2012-2017
45
Passport
Women's Pre-Shave
Depilatories
Source:
2012-17 CAGR
2012/17 TOTAL
4.3
4.3
1.9
2.8
23.6
23.6
9.6
15.0
trade sources
46
FRAGRANCES IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Current value sales of fragrances grow by 12% to reach KZT23 billion in 2012
 Growing trend towards higher spending propensity, consumer urbanisation, and changing
lifestyle towards Westernisation are main drivers of the category
 Mass fragrances performs the best with 13% current value growth in 2012
 Inflation and Custom Union are the main factors impacting unit price movement in 2012
 Oriflame Kazakhstan continues to lead fragrances in 2012 with 20% value share
 Fragrances is expected to record a constant value CAGR of 5% during the forecast period
TRENDS
 Towards the end of the review period, the majority of average Kazakh consumers were
satisfied with fragrances which were widely available under well-known international brands,
although many of these products were not as high quality as their brand names might
suggest. A growing trend towards higher spending propensity, consumer urbanisation, and
changing lifestyles towards Westernisation were the main drivers of the category in 2012. The
most dynamic growth was witnessed by mass fragrances. Premium fragrances also recorded
growth, but mainly in the large cities.
 Fragrances recorded higher current value growth of 12% in 2012 compared to a CAGR of 9%
during the review period. Consumers reconsidered their purchasing power and personal
needs, which had a significant impact on growth of fragrances, in line with the unit price
increase.
 Mass fragrances witnessed the fastest current value growth of 13% in 2012. Mass women‘s
fragrances continued to hold the highest share due to offering affordable product prices to the
majority of consumers, as well as the greatest variety in the portfolio of such products.
 The average unit price in fragrances in Kazakhstan increased by 3% during 2012, which
boosted value growth. According to official data of the Agency on Statistics of the Republic of
Kazakhstan, the inflation in 2012 was 6%. The main reason for the increase in prices in 2012
was the growth of prices for services and entry into Custom Union.
 Within premium fragrances, premium women‘s fragrances accounted for the majority of sales,
accounting for KZT2.9 billion. However, these products are concentrated in larger cities,
where consumers have higher disposable incomes and there is stronger demand for them.
They are sold only in beauty specialist retailers, where trained members of staff act as
consultants. Young and middle-aged women comprise the main consumer group for premium
fragrances. The smallest share is held by unisex fragrances, which is available only in the
premium segment with a limited product range.
 The main consumers for premium brand fragrances are consumers on higher incomes, mainly
from urban areas, or customers with middle incomes purchasing such products for some
special occasion as a present. Mass fragrances is affordable for the majority of consumers in
Passport
47
different areas of the country. Nevertheless, some consumers, particularly from the older
generation and those in rural areas, consider fragrances to be an unnecessary luxury.
 There are no culturally-specific and traditional alternatives or characteristic consumer
preferences. However, a number of consumers might use deodorants, mostly for economising
reasons.
 Premium brands partially regained their loyal customers and after strengthening their
purchasing power in 2012, the current value sales of premium products increased by 10%,
accounting for 20% share of total value sales, although the popularity of mass fragrances
remained strong in 2012.
 The wide range of themes and choices enable consumers to choose fragrances that
complement respective personal and characteristic traits. Kazakh consumers are looking not
only for cheaper products, but also for some other benefits. The main influence for buyers is
free/additional gifts with the fragrances. Another very important issue in terms of consumer
preferences was promotional campaigns using celebrities.
 Oriflame Kazakhstan continued to lead fragrances in 2012 with 20% value share, despite
losing two percentage points. The strong position of this direct selling company is due to its
large catalogues, offering a wide choice of fragrances. It includes a range of different product
types, with different scents and is positioned in various price segments. However, the
company recorded a decline in share compared to 2011, largely due to the increasing mass
market brands through store-based retailers, which took some of the company‘s consumers
as they were willing to switch to something new. Oriflame is the oldest direct seller in the
country and has led sales for almost 10 years. Oriflame was the main brand for a large
proportion of Kazakh consumers in small towns and villages as Oriflame has a well developed
distribution system.
 Avon witnessed the biggest increase in value share in 2012, gaining one percentage point,
due to successful advertising campaigns and a growing number of consultants across the
whole country.
 Fragrances was led by international brands due to the absence of domestic fragrance
products. This is expected to continue over the forecast period. Direct sellers widely control
the share, and are demanded due to competitive prices, ease of ordering and convenience of
delivery. In addition, more people turned to direct sellers as a potential source of additional
incomes; hence increasing the overall number of consultants across the country and helping
to boost sales.
 The most popular direct selling companies in the country led the most significant new
launches and advertising campaigns. Avon Kazakhstan launched advertisements for several
lines of products, including fragrances via different media channels: various magazines and
television channels. Mary Kay organised several beauty care events for the whole of
Kazakhstani beauty and personal care which found huge success amongst women.
 In 2012, there were no significant packaging launches in fragrances, as the leading players
decided to focus on their existing products rather than develop new ones.
 Premium fragrances was mainly sold through beauty specialist retailers and perfume retailers.
The increase in the number of these retailers also had a significant impact on premium
fragrances' growth. Mass fragrances was sold through wider distribution channels and was
less reliant on the development of specialised retailing.
Passport
48
Passport
PROSPECTS
 Although women‘s fragrances continued to remain in the mainstream, men‘s fragrances is
going to grow rapidly, justifying today‘s ‗metrosexual‘ men‘s desire both to look and smell
good. Fragrances nowadays has become a ―feel good‖ factor, which complements the
consumer‘s need for expressing individuality, and personal style.
 Fragrances is expected to increase by a constant value CAGR of 5% over the forecast period.
This is set to be a far superior performance to the constant value marginal average growth of
the review period. Apart from rising unit prices for fragrances, the category is expected to be
driven by the increasing demand for youth-oriented fragrances and celebrity scents.
 A potential forecast threat to growth in fragrances over the forecast period could be low
disposable incomes among the Kazakh population, but this will mainly affect the premium
segment. As for mass brands, the main threat is the underdeveloped culture of wearing
fragrances in rural areas.
 Mass fragrances is expected to record a constant value CAGR of 5% during the forecast
period and to show the best performance in fragrances as a whole. This will be caused by the
increased number of Kazakh consumers who will not be able to afford premium fragrances,
but would still want to wear perfume and will therefore select cheaper alternatives. It is
expected that direct selling companies, widely specialising in mass market brands, will
reinforce their leading positions in fragrances over the forecast period due to their relatively
wide range of affordable and well-advertised products.
 Unit prices are expected to rise for all fragrance types over the forecast period. Price
discounting is expected in fragrances in Kazakhstan during the forecast period. Nevertheless,
many Kazakhs are set to be more interested in purchasing premium fragrances during the
forecast period and, as such, no major declines in the average unit price of fragrances is
expected during the forecast period.
 Over the forecast period, new extensions of the famous and exclusive fragrance brands, such
as Hugo Boss, Calvin Klein, Gucci, Gianni Versace, Elizabeth Arden, Nina Ricci, Kenzo,
Cacharel and Puma are likely to be envisaged as increasing numbers of Kazakhs can be
expected to be attracted to these strong brands.
 Potential company activity is expected to focus on improving the distribution of products.
Oriflame, Avon and Faberlic-Kazakhstan Ltd have strong networks of sales agents, while the
products of the other companies reach only consumers living in larger cities and tend not to
be well marketed. Furthermore, sales of fragrances through retail outlets may be improved by
establishing promotional stands in cooperation with other retailers. This could be a suitable
solution for smaller towns.
CATEGORY DATA
Table 54
Sales of Fragrances by Category: Value 2007-2012
KZT mn
Premium Fragrances
- Premium Men's
Fragrances
2007
2008
2009
2010
2011
2012
3,747.5
1,348.0
3,996.2
1,416.1
3,699.6
1,286.5
3,894.0
1,350.3
4,199.9
1,452.2
4,600.2
1,583.1
49
- Premium Women's
Fragrances
- Premium Unisex
Fragrances
Mass Fragrances
- Mass Men's Fragrances
- Mass Women's Fragrances
- Mass Unisex Fragrances
Fragrances
Source:
Passport
2,305.9
2,484.2
2,330.0
2,468.7
2,671.5
2,939.5
93.6
95.9
83.1
74.9
76.1
77.6
11,240.0
2,866.1
8,373.9
14,987.5
12,264.0
3,127.2
9,136.8
16,260.2
13,030.0
3,322.5
9,707.5
16,729.6
14,741.6
4,197.0
10,544.6
18,635.6
16,712.5
4,832.9
11,879.5
20,912.4
18,842.6
5,619.0
13,223.7
23,442.9
Table 55
Sales of Fragrances by Category: % Value Growth 2007-2012
Premium Fragrances
- Premium Men's Fragrances
- Premium Women's Fragrances
- Premium Unisex Fragrances
Mass Fragrances
Fragrances
Source:
2011/12
2007-12 CAGR
2007/12 Total
9.5
9.0
10.0
1.9
12.7
16.3
11.3
12.1
4.2
3.3
5.0
-3.7
10.9
14.4
9.6
9.4
22.8
17.4
27.5
-17.1
67.6
96.1
57.9
56.4
Table 56
Fragrances Company Shares 2008-2012
% retail value rsp
Company
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
L'Oréal Groupe
Christian Dior SA,
Parfums
Chanel SA
LVMH Moët Hennessy
Louis Vuitton SA
Puig SL
Paco Rabanne - Groupe
Puig SA
Hugo Boss AG
Inter Parfums Inc
Gianni Versace SpA
Nina Ricci SA
Hair & Body Co, The
Dolce & Gabbana Srl
Hermès Holding
Unilever Group
2008
2009
2010
2011
2012
21.1
11.1
19.4
14.1
25.3
16.8
22.0
16.5
20.4
18.2
6.8
2.5
5.9
1.3
2.2
7.6
2.6
5.7
1.9
2.4
7.6
2.9
4.1
2.2
2.3
7.8
3.2
3.6
2.1
2.2
7.9
3.5
3.1
2.0
2.0
1.9
2.0
1.9
1.7
1.8
1.7
1.7
1.6
1.6
1.4
0.4
1.5
0.6
1.3
0.6
1.3
0.6
1.2
0.6
0.4
0.3
0.3
0.1
0.3
0.3
0.2
0.1
0.1
0.1
0.1
0.0
0.4
0.4
0.3
0.2
0.1
0.1
0.1
0.0
0.4
0.3
0.3
0.2
0.1
0.1
0.1
0.0
0.4
0.3
0.3
0.2
0.1
0.1
0.1
0.0
50
Antonio Puig SA
Others
Total
Source:
1.8
42.0
100.0
39.4
100.0
31.7
100.0
35.8
100.0
36.5
100.0
Table 57
Fragrances Brand Shares 2009-2012
% retail value rsp
Brand
Oriflame
Avon
Mary Kay
Faberlic
Lancôme
Ange ou Démon
Coco Mademoiselle
Kenzo
Chance
Paco Rabanne Black XS
Acqua di Giò pour
Homme
J'adore
Dior Addict
Guerlain Samsara
Miss Dior Chérie
Pi Neo
Hugo Boss
Very Irresistible
Givenchy
212 for Men
212
Eclat D'Arpege
Acqua di Giò
Gianni Versace
Fahrenheit
Christian Dior Sport
Ricci Ricci
Gucci Flora
Pure Poison
Play
D&G Anthology
Hermès Concentre
D'orange Verte
ck one
212
212 for Men
Obsession
Others
Total
Source:
Passport
Company
2009
2010
2011
2012
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
L'Oréal Groupe
Chanel SA
LVMH Moët Hennessy
Louis Vuitton SA
Chanel SA
Puig SA
L'Oréal Groupe
19.4
14.1
25.3
16.8
22.0
16.5
20.4
18.2
7.6
2.6
2.1
1.0
1.2
1.1
7.6
2.9
1.8
1.2
1.1
1.1
7.8
3.2
1.5
1.1
1.1
1.0
7.9
3.5
1.3
1.1
1.0
0.9
0.7
0.6
0.7
0.6
0.7
0.6
0.6
0.6
0.8
0.7
0.6
0.5
Christian Dior SA, Parfums
LVMH Moët Hennessy
Louis Vuitton SA
Hugo Boss AG
0.5
0.5
0.6
0.5
0.5
0.6
0.5
0.5
0.5
0.5
0.5
0.5
0.6
0.3
0.3
0.5
0.5
0.4
0.4
0.5
0.5
0.4
0.4
0.4
0.5
0.5
0.4
0.4
Puig SL
Puig SL
Inter Parfums Inc
L'Oréal Groupe
Gianni Versace SpA
Nina Ricci SA
Hair & Body Co, The
Dolce & Gabbana Srl
Hermès Holding
0.5
0.5
0.3
1.0
0.2
0.3
0.1
0.1
0.1
0.3
0.1
0.1
0.1
0.4
0.4
0.4
0.5
0.3
0.3
0.2
0.2
0.1
0.2
0.1
0.1
0.1
0.4
0.3
0.3
0.4
0.3
0.2
0.2
0.2
0.1
0.2
0.1
0.1
0.1
0.3
0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.0
41.7
100.0
0.0
33.4
100.0
0.0
37.4
100.0
0.0
38.0
100.0
Unilever Group
Antonio Puig SA
Antonio Puig SA
Unilever Group
51
Table 58
Men's Premium Fragrances Brand Shares 2009-2012
% retail value rsp
Brand
Kenzo
Paco Rabanne Black XS
Acqua di Giò pour
Homme
Pi Neo
Hugo Boss
212 for Men
Lancôme
Gianni Versace
Fahrenheit
Christian Dior Sport
Play
Guerlain Homme
212 for Men
Others
Total
Source:
Company
2009
2010
2011
2012
LVMH Moët Hennessy
Louis Vuitton SA
Puig SA
L'Oréal Groupe
10.0
12.4
12.0
11.2
7.3
8.2
8.6
8.7
10.5
9.0
8.6
7.9
4.2
3.3
6.4
11.7
2.9
4.0
1.8
1.2
0.5
36.2
100.0
5.2
5.9
5.9
7.4
4.1
3.5
2.9
1.9
1.0
32.6
100.0
6.0
6.0
5.5
6.1
4.1
3.0
2.9
1.9
1.1
34.2
100.0
7.0
5.8
4.9
4.8
4.0
3.0
2.8
1.9
1.0
36.9
100.0
Hugo Boss AG
Puig SL
L'Oréal Groupe
Gianni Versace SpA
Guerlain SA
Antonio Puig SA
Table 59
Women's Premium Fragrances Brand Shares 2009-2012
% retail value rsp
Brand
Ange ou Démon
Lancôme
Coco Mademoiselle
Chance
J'adore
Dior Addict
Guerlain Samsara
Miss Dior Chérie
Very Irresistible
Givenchy
212
Eclat D'Arpege
Acqua di Giò
Ricci Ricci
Kenzo
Gucci Flora
Pure Poison
Obsession
212
Others
Total
Source:
Passport
Company
2009
2010
2011
2012
L'Oréal Groupe
Chanel SA
Chanel SA
LVMH Moët Hennessy
Louis Vuitton SA
7.3
8.9
8.6
5.2
3.9
3.7
4.2
8.9
9.3
8.6
5.3
4.1
4.1
4.2
8.9
8.6
8.3
5.2
4.2
4.1
4.1
8.6
7.6
7.6
5.0
4.1
4.0
3.9
4.3
3.4
4.2
3.5
4.0
3.2
3.8
2.8
Puig SL
Inter Parfums Inc
L'Oréal Groupe
Nina Ricci SA
LVMH Moët Hennessy
Louis Vuitton SA
Hair & Body Co, The
Unilever Group
Antonio Puig SA
3.4
2.4
6.9
1.0
2.1
2.8
2.8
3.6
1.6
1.6
2.7
2.7
3.0
1.6
1.5
2.5
2.5
2.3
1.5
1.4
0.9
2.1
0.2
31.4
100.0
1.1
1.6
32.8
100.0
1.1
1.3
35.4
100.0
1.1
1.1
40.1
100.0
52
Table 60
Passport
Forecast Sales of Fragrances by Category: Value 2012-2017
KZT mn
Premium Fragrances
- Premium Men's
Fragrances
- Premium Women's
Fragrances
- Premium Unisex
Fragrances
Mass Fragrances
Fragrances
Source:
2012
2013
2014
2015
2016
2017
4,600.2
1,583.1
4,722.2
1,633.4
4,880.6
1,683.5
5,093.2
1,758.9
5,357.8
1,824.8
5,681.0
1,904.2
2,939.5
3,014.8
3,126.4
3,266.5
3,468.2
3,714.7
77.6
74.0
70.7
67.8
64.8
62.1
18,842.6
5,619.0
13,223.7
23,442.9
19,792.0
5,969.8
13,822.2
24,514.2
20,730.5
6,228.3
14,502.2
25,611.1
21,944.6
6,478.9
15,465.7
27,037.8
23,407.2
6,719.6
16,687.6
28,765.0
24,390.1
7,001.8
17,388.3
30,071.1
trade sources
Table 61
Forecast Sales of Fragrances by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
4.3
3.8
4.8
-4.4
5.3
4.5
5.6
5.1
23.5
20.3
26.4
-20.0
29.4
24.6
31.5
28.3
Premium Fragrances
- Premium Men's Fragrances
- Premium Women's Fragrances
- Premium Unisex Fragrances
Mass Fragrances
Fragrances
Source:
trade sources
Table 62
Sales of Fragrances by Concentration: % Value Analysis 2007-2012
%
Eau de Parfum
Eau de Cologne
Eau de Toilette
Others
TOTAL
Source:
2007
2008
2009
2010
2011
2012
10
27
52
11
100.00
11
26
55
8
100.00
11
24
55
10
100.00
12
23
56
9
100.00
13
22
57
8
100.00
13.0
21.0
58.0
8.0
100.00
53
HAIR CARE IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Current value sales of hair care increase by 9% to reach KZT29.4 billion in 2012
 Colourants is the best performer in hair care in 2012, rising in value by 13%
 The average unit price increases in 2012
 Procter & Gamble Co leads hair care with 28% value share in 2012
 Hair care is expected to post a constant value CAGR of 5% during the forecast period
TRENDS
 The main trend in hair care during the review period was switching to more quality products
due to increasing incomes among consumers. However, total hair care sales grew by 9% in
current value terms as it is considered essential and consumers could not stop using them.
Another reason is that the increase in the range of products in hair care continued, which
encouraged consumers with average or high incomes to try new products.
 Hair care‘s 2012 current value growth rate was higher than the review period CAGR of 8%.
This was widely attributable to the unit price increase in line with the continuing demand to
maintain a well-groomed appearance and look good in Kazakhstan.
 Hair care is mainly imported. Prices of products therefore suffered from the difference in
currency exchange rates. Unit price is characterised by variations, being very affordable for
standard products from Russian or local manufacturers; however, specific products from
multinationals offering more premium functions commanded higher prices.
 Colourants continued to register the most dynamic value growth in hair care in Kazakhstan in
2012, rising by 13% in value terms. An increasing number of Kazakh women are using
colourants on a more frequent basis. Increasing numbers of Kazakhs opt for higher quality
colourants which offer additional benefits such as colourants which nourish their hair.
 Standard shampoos held the highest value share of 54%, accounting for KZT16 billion as it is
the most valid product for personal hygiene and care. It increased by 9% in current value
terms in 2012.
 Shampoos with anti-dandruff effects are available within both standard shampoos and
medicated shampoos in Kazakhstan. The leading anti-dandruff brand in standard shampoos
continued to be Procter & Gamble‘s Head & Shoulders.
 Other hair care recorded 9% current value growth to reach KZT13 billion in 2012. These
products historically were in demand among the younger and middle-age population and were
driven by the increased culture of using conditioners and 2-in-1 products in Kazakhstan.
 Styling agents is starting to be used more by the male population, in particular among
teenagers and younger men. Styling agents‘ sales continued to increase in 2012 by 6%. As
well as traditional hairspray/lacquers and gels, there were different mousses, foams, waxes
and other offerings available. Traditional hairspray/lacquers held the biggest share of 66% in
styling agents sales in 2012. Mousse remained almost unchanged with 21% share.
Multinational brands, which prevail in styling agents, continued to form trends, presenting
Passport
54
innovative products that appeal to local consumers. Heat protection spray appears to be a
fairly new product entry and gained one percentage point in share of styling agents.
 Salon hair care was the only area in hair care that showed a marginal decline in current retail
value sales. Even consumers with higher disposable incomes living in urban areas decided to
cut down their expenditure in salon hair care and to switch to cheaper hair care brands.
 The share of premium hair care accounted for just 1% of total retail value sales. Due to the
strong price-sensitivity of Kazakh consumers, mass brands continued to dominate hair care.
The greatest competition in hair care in 2012 was in the mid-priced and economy segments.
 The leading positions in hair care were held by multinational companies. Procter & Gamble
led sales in 2012 with 28% value share. It offers the very popular brands Head & Shoulders,
Wash & Go, and Pantene Pro-V. All of Procter & Gamble‘s hair care brands have been very
popular in Kazakhstan for some time due to the company‘s relentless focus on strong
promotion through television advertising and the widespread availability of Procter & Gamble
hair care products in retail outlets throughout Kazakhstan.
 The largest increase in current value sales share was recorded by Henkel AG & Co KGaA in
2012, rising by over one percentage point. Its popular brands Palette, Shauma, Gliss/Gliss
Kur, and Taft are also popular, widely-distributed, and responsible for the constant
innovations. In addition, the company‘s hair care products are relatively affordable.
 Hair care in Kazakhstan is dominated by multinational companies. Local companies, such as
Gladpharm TOO had a negligible share.
 There was no significant packaging innovation noted within hair care in Kazakhstan during
2012, and no key new launches were recorded.
 All multinational players promoted their brands via different media channels, but were not as
active as in previous periods due to reduced budgets for advertisements at these companies.
Procter & Gamble Co presented a new advertising campaign for its hair care brand Pantene
Pro-V. Local celebrities, artists and musicians promoted the products in shampoo advertising
campaigns. Such campaigns had a positive impact on sales of the whole company product
portfolio.
 Premium hair care brands continued to account for a relatively limited proportion of total retail
value sales in hair care in Kazakhstan during 2012, comprising only 1% of total hair care retail
value sales.
PROSPECTS
 Hair care is expected to post a constant value CAGR of 5% during the forecast period. With
the increasing inflow of a diversified variety of products and rather low saturation of hair care,
the demand will continue to remain high for hair care in Kazakhstan over the forecast period.
Due to the consequences of the economic downturn, demand for cheaper products will
remain rather strong and may have a negative impact on value sales growth over the forecast
period. As a result, players are expected to offer bigger packaging, which will allow a
reduction of price.
 The predicted performance of hair care over the forecast period, will represent a major
improvement on the constant value CAGR of -1% recorded over the review period, as unit
Passport
55
Passport
prices and prevalence for qualitative hair products, which are characterised by higher prices,
will be in high demand.
 The main threat to growth in hair care is constituted by Kazakhstan‘s economic slowdown and
changing attitudes towards spending.
 Colourants is predicted to record the best performance within hair care with a constant value
CAGR of 7% over the forecast period. Colourants offering additional benefits such as
colourants which nourish their scalp and hair will be demanded by consumers.
 Shampoos and other hair care products are expected to demonstrate CAGRs of 5% and 4%,
respectively. Both of these are expected to benefit from several new product launches and the
recovery of interest in more expensive products among Kazakh consumers. The culture of
usage of conditioners after shampoos will grow, which will help its sales to increase for other
hair care products. The sales of 2-in-1 products are expected to increase due to growing
popularity among consumers whose aim is to economise, because such products will allow
customers to enjoy a good-quality product without the need to spend on two different
products. It is expected that quality and convenience will be the decisive factors for the growth
of 2-in-1 products.
 Unit prices are still expected to grow over the forecast period, underpinned by hair care‘s
dependence on imports.
 Multinationals will continue to dominate hair care and dictate the trends. Popular existing
brands will remain the best sellers in hair care due to strong brand recognition and consumer
loyalty. All companies will continue to introduce new products, as well as aim to improve
distribution and marketing, which will become increasingly important. Advertising will play an
even greater role in increasing the population‘s knowledge of different types of hair care.
CATEGORY DATA
Table 63
Sales of Hair Care by Category: Value 2007-2012
KZT mn
2-in-1 Products
Colourants
Conditioners
Hair Loss Treatments
Perms and Relaxants
Salon Hair Care
Shampoos
- Medicated Shampoos
- Standard Shampoos
Styling Agents
Hair Care
Source:
2007
2008
2009
2010
2011
2012
2,166.4
3,021.1
1,200.1
30.0
588.2
10,986.4
217.5
10,768.8
2,344.1
20,336.2
2,397.1
3,290.2
1,290.8
31.1
480.7
11,731.5
225.4
11,506.1
2,460.5
21,682.0
2,505.1
3,490.5
1,369.4
32.7
360.0
12,748.9
237.3
12,511.5
2,610.3
23,116.9
2,703.5
3,800.2
1,456.5
34.5
341.2
13,644.1
250.0
13,394.1
2,815.6
24,795.6
3,004.9
4,232.0
1,533.7
41.1
334.5
14,789.0
275.6
14,513.4
3,021.6
26,956.8
3,257.2
4,784.7
1,613.6
40.5
333.7
16,147.1
294.1
15,853.0
3,210.5
29,387.3
Table 64
Sales of Hair Care by Category: % Value Growth 2007-2012
2-in-1 Products
2011/12
2007-12 CAGR
2007/12 Total
8.4
8.5
50.4
56
Passport
Colourants
Conditioners
Perms and Relaxants
Salon Hair Care
Shampoos
- Standard Shampoos
Styling Agents
Hair Care
Source:
13.1
5.2
-1.5
-0.2
9.2
6.7
9.2
6.3
9.0
9.6
6.1
6.2
-10.7
8.0
6.2
8.0
6.5
7.6
58.4
34.5
34.9
-43.3
47.0
35.2
47.2
37.0
44.5
Table 65
Hair Care Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
3.0
97.0
100.0
2.3
97.7
100.0
1.6
98.4
100.0
1.5
98.5
100.0
1.3
98.7
100.0
1.2
98.8
100.0
Table 66
Sales of Styling Agents by Type: % Value Breakdown 2007-2012
% retail value rsp
Gel
Hairspray/Lacquers
Heat protection Spray
Mousse
Others
Total
Source:
2007
2008
2009
2010
2011
2012
5.3
67.8
5.0
21.3
0.6
100.0
5.4
67.2
5.0
21.1
1.3
100.0
5.3
66.8
3.0
21.0
3.8
100.0
5.3
66.5
3.0
20.9
4.3
100.0
5.3
66.3
4.0
20.8
3.7
100.0
5.2
66.0
5.0
20.6
3.2
100.0
Table 67
Hair Care Company Shares 2008-2012
% retail value rsp
Company
L'Oréal Groupe
Henkel AG & Co KGaA
Kalina Concern OAO
Unilever Group
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Gladpharm TOO
2008
2009
2010
2011
2012
26.2
14.9
12.1
2.4
5.1
2.7
2.0
26.8
15.9
12.5
3.2
4.6
3.3
2.5
27.1
16.8
12.7
3.9
4.5
4.0
2.8
27.5
17.1
13.2
6.8
4.5
4.7
3.1
28.3
17.0
14.5
7.0
4.9
4.8
3.4
2.0
0.2
0.4
0.1
1.9
0.3
0.4
0.1
2.6
0.4
0.4
0.1
2.5
0.3
0.3
0.2
2.0
0.3
0.3
0.2
57
Schwarzkopf Professional
Wella AG
SpA
Cheminova Internacional
SA
Others
Total
Source:
0.3
0.2
0.4
0.2
0.2
0.3
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
30.9
100.0
27.9
100.0
24.2
100.0
19.5
100.0
17.0
100.0
Table 68
Hair Care Brand Shares 2009-2012
% retail value rsp
Brand
Head & Shoulders
Wash & Go
Pantene Pro-V
Garnier Fructis
Chistaya Liniya
Garnier
Garnier Color
Naturals
Palette
Nivea Hair
Schauma
Taft
Wellaton
Gliss/Gliss Kur
Sunsilk
Oriflame
Nivea for Men
Avon Advance
Techniques
Avon Naturals
Dove
Londacolor
Freederm
Nizoral
Wellaflex
Dermazole
Oriflame Men
Wella High Hair
bc bonacure
Wella System
Professional
Dikson
L'Oréal Majirel
Kérastase
Schwarzkopf Igora
Skin-Cap
Others
Total
Source:
Passport
Company
2009
2010
2011
2012
L'Oréal Groupe
Kalina Concern OAO
L'Oréal Groupe
L'Oréal Groupe
9.8
6.1
5.4
5.4
2.4
4.1
3.5
10.0
6.1
5.5
5.9
2.7
4.0
3.5
10.2
6.1
5.6
5.8
4.0
4.0
3.5
10.5
6.1
5.8
5.7
4.1
3.9
3.4
Henkel AG & Co KGaA
Beiersdorf AG
Henkel AG & Co KGaA
Henkel AG & Co KGaA
Henkel AG & Co KGaA
Unilever Group
Oriflame Kazakhstan
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Avon Cosmetics
Kazakhstan TOO
Unilever Group
Gladpharm TOO
Oriflame Kazakhstan
Wella AG
2.9
2.3
2.8
1.5
2.4
2.5
1.9
1.9
1.0
1.7
3.0
2.7
2.8
1.6
2.5
2.5
1.9
2.5
1.3
1.8
3.1
3.1
2.9
1.8
2.6
2.4
1.9
2.4
1.6
1.8
3.3
3.1
3.0
2.9
2.7
2.4
2.0
1.9
1.8
1.7
0.6
0.9
1.1
1.3
1.1
0.6
0.3
0.4
0.3
0.1
0.1
0.2
0.2
0.2
1.0
0.6
0.4
0.4
0.3
0.1
0.1
0.1
0.1
0.1
0.9
0.6
0.3
0.3
0.3
0.2
0.1
0.1
0.1
0.1
1.2
0.6
0.3
0.3
0.3
0.2
0.1
0.1
0.1
0.1
SpA
L'Oréal Groupe
L'Oréal Groupe
Henkel AG & Co KGaA
Cheminova Internacional SA
0.3
0.1
0.1
0.1
0.1
0.1
0.1
0.0
37.9
100.0
0.1
0.1
0.1
0.0
35.1
100.0
0.1
0.1
0.1
0.0
32.5
100.0
0.1
0.1
0.1
0.0
30.9
100.0
58
Table 69
Salon Hair Care Company Shares 2008-2012
% retail value rsp
Company
L'Oréal Groupe
Wella AG
SpA
Henkel AG & Co KGaA
Others
Total
Source:
2008
2009
2010
2011
2012
9.4
13.2
14.2
10.1
18.7
9.4
14.0
11.0
10.0
17.2
11.4
10.3
9.9
9.9
9.0
12.8
10.2
9.7
9.9
8.8
14.3
11.3
10.1
10.1
9.0
9.0
25.4
100.0
8.6
29.8
100.0
5.0
44.4
100.0
4.8
43.8
100.0
5.0
40.2
100.0
Table 70
Salon Hair Care Brand Shares 2009-2012
% retail value rsp
Brand
Wella High Hair
bc bonacure
Wella System
Professional
Dikson
L'Oréal Majirel
Kérastase
Schwarzkopf Igora
Royal
Others
Total
Source:
Passport
Company
2009
2010
2011
2012
Wella AG
14.0
11.0
10.0
10.3
9.9
9.9
10.2
9.7
9.9
11.3
10.1
10.1
SpA
L'Oréal Groupe
L'Oréal Groupe
Henkel AG & Co KGaA
17.2
9.0
8.8
9.0
4.6
4.7
8.6
5.8
5.6
5.0
6.6
6.3
4.8
7.3
7.1
5.0
29.8
100.0
44.4
100.0
43.8
100.0
40.2
100.0
Table 71
Hair Care Premium Brand Shares 2009-2012
% retail value rsp
Brand
Wella High Hair
bc bonacure
Wella System
Professional
Dikson
L'Oréal Majirel
Kérastase
Schwarzkopf Igora
Others
Total
Company
2009
2010
2011
2012
Wella AG
13.3
10.5
9.5
9.8
9.3
9.4
9.6
9.1
9.3
10.4
9.3
9.3
SpA
L'Oréal Groupe
L'Oréal Groupe
Henkel AG & Co KGaA
16.4
8.5
8.2
8.3
4.4
4.5
8.2
33.2
100.0
5.5
5.3
4.8
47.4
100.0
6.2
5.9
4.5
47.2
100.0
6.7
6.5
4.6
45.0
100.0
59
Source:
Passport
Table 72
Forecast Sales of Hair Care by Category: Value 2012-2017
KZT mn
2-in-1 Products
Colourants
Conditioners
Perms and Relaxants
Salon Hair Care
Shampoos
- Standard Shampoos
Styling Agents
Hair Care
Source:
2012
2013
2014
2015
2016
2017
3,257.2
4,784.7
1,613.6
40.5
333.7
16,147.1
294.1
15,853.0
3,210.5
29,387.3
3,354.1
5,114.2
1,574.5
40.6
312.6
16,673.6
295.2
16,378.4
3,213.9
30,283.6
3,539.8
5,421.5
1,556.1
41.1
295.3
17,589.1
295.5
17,293.6
3,266.8
31,709.6
3,728.7
5,821.2
1,552.4
41.5
281.6
18,688.1
295.8
18,392.2
3,311.1
33,424.7
3,916.9
6,292.3
1,562.3
41.9
270.0
19,687.5
299.1
19,388.5
3,390.7
35,161.6
4,093.6
6,738.0
1,577.6
41.6
261.4
20,787.9
302.0
20,485.9
3,434.0
36,934.2
trade sources
Table 73
Forecast Sales of Hair Care by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
4.7
7.1
-0.5
0.6
-4.8
5.2
0.5
5.3
1.4
4.7
25.7
40.8
-2.2
2.9
-21.7
28.7
2.7
29.2
7.0
25.7
2-in-1 Products
Colourants
Conditioners
Perms and Relaxants
Salon Hair Care
Shampoos
- Standard Shampoos
Styling Agents
Hair Care
Source:
trade sources
Table 74
Forecast Hair Care Premium Vs Mass % Analysis 2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
1.2
98.8
100.0
1.1
98.9
100.0
1.0
99.0
100.0
0.9
99.1
100.0
0.9
99.1
100.0
0.8
99.2
100.0
trade sources
60
MEN'S GROOMING IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Sales of men‘s grooming increase by 8% in current value terms to reach KZT16.4 billion in
2012
 Kazakh men change their attitude towards men‘s grooming and the expenditure on cosmetics
for men gradually increases
 Men‘s hair care records the fastest growth of 15% in current value terms in 2012
 Unit price growth is supported by national currency inflation in 2012 and entry into Custom
Union
 Procter & Gamble remains as the clear leader in 2012 with 34% value share
 Men‘s grooming is expected to record a constant value CAGR of 2% during the forecast
period
TRENDS
 There is a serious barrier in the minds of Kazakh men that does not allow them to buy eye
creams or skin creams, although use of deodorants, shaving gels and fragrances are
widespread. Kazakh men are showing more of an interest in men‘s grooming due to the socalled Westernisation in the last years of the review period. Intense advertising of men‘s
grooming and media coverage of beauty issues had a positive effect on demand for the
category.
 Compared to the current value CAGR of 6% recorded during the review period, the category
demonstrated 8% increase in current value terms in 2012. This was largely due to the unit
price increases and increasing demand for qualitative sophisticated products which in addition
to their assignments, also care for the skin.
 In overall men‘s grooming, men‘s hair care recorded the fastest current value growth of 15%
in current value terms in 2012. This is largely due to the appearance of recent innovations
from the leading manufacturers offering shampoos and other hair care products with specific
formulations against dandruff, hair loss and other scalp and hair problems.
 Men‘s deodorants sector within men‘s toiletries is the most popular category among Kazakh
male consumers accounting for KZT3.5 billion in 2012. This category showed 11% increase in
current value sales in 2012.
 Men‘s grooming products are mainly imported. As a result, after the inflation and entry into
Custom union in the unit prices increased. However, the leading manufacturers attempted to
keep unit price increases below inflation rates in order to maintain consumer interest.
 Men‘s shaving has always been very popular and in 2012 it recorded over 5% growth in
current value terms. These products are the necessities in men‘s daily lives.
 In general, the use of men‘s grooming products among majority of Kazakh men extends as far
as men‘s shaving, deodorants, shower gel and shampoo. The majority of Kazakh men remain
rather uninterested in more sophisticated men‘s grooming such as facial creams in men‘s skin
care. Some Kazakh men often use shower gel and shampoos which have a family positioning
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61
and few Kazakh men seek out beauty and personal care which has been developed
specifically for them. However, a slow shift can be observed in the younger generation of
Kazakhs, the majority of whom are more open to new products and are more willing take
better care of their appearance and grooming.
 In general, men‘s grooming in Kazakhstan has been undeveloped for long time. So the
category is expanding not only due to the emergence of new product offerings (facial creams
and eye creams) which is a manifestation of global trends, but also by domestic resources,
such as attracting a growing number of consumers to the traditional means of care:
deodorants, men‘s pre-shave and men‘s post-shave.
 Due to the cultural factors and national mentality, men usually do not purchase grooming
products themselves, but leave it to women. In the cities, the situation is slowly changing due
to the increasing influence of Western culture.
 Until very recently, the attitude towards men‘s grooming, other than shaving foams, razors
and deodorants, was quite sceptical and negative. Men‘s grooming, other than the necessary
products, was perceived as too feminine for a man to use, and was therefore unpopular. The
situation has changed due to the approach to Western standards and development of a new
culture of men.
 Women continued to be the main purchasers of men‘s grooming in Kazakhstan. Purchasing
male grooming products continues to be considered a sign of being effeminate in Kazakhstan,
in spite of the fact that men‘s grooming is targeted specifically towards men. This situation is
gradually changing, however, as Kazakhstan moves towards a more Westernised culture.
 Due to affordable price and convenient in usage, disposables was the most popular format of
men‘s razors and blades in Kazakhstan in 2012, accounting for 53% value share. Within
systems, razors accounted for 30% value share, gaining one percentage point, while refill
blades was marginally less popular, accounting for 17% value share.
 Procter & Gamble maintained its leadership of men‘s grooming in Kazakhstan during 2012,
accounting for 34% value share. Procter & Gamble‘s success is largely attributable to the
Gillette brand, which holds the leading position in men‘s shaving, and the world-famous
Gillette razors and blades. Fusion was launched in 2009, and every year has modifications.
 All the leading players among men‘s grooming lost marginal value share to other players.
Preference for economy- and standard-priced brands increased in Kazakhstan towards the
end of the review period, which resulted in the proportion of men‘s grooming retail value sales
accounted for by others increasing at the end of the review period by two percentage points.
 All products in men‘s grooming were from multinational companies and there was no
presence of domestic companies in 2012.
 Procter & Gamble was the key advertiser in men‘s razors and blades, performing a lot of
promotional activities, and trial campaigns to promote Gillette. Beiersdorf AG was quite active
in promoting its pre-shave and post-shave products under its Nivea for Men brand. Unilever
Group continued to promote its Axe and Rexona for Men deodorants.
 There were no significant changes in packaging in 2012.
 Men‘s grooming was represented mainly by mass products. The majority of the products
belong to the standard price segment, while specific variations with a premium function
belong to the high end of the standard priced segment. Mass brands continued to dominate
sales of men‘s grooming in Kazakhstan during 2012. As mass men‘s grooming are available
Passport
62
Passport
in many variants and are generally considered to be of satisfactory quality, the majority of
Kazakh consumers are satisfied with mass brands.
PROSPECTS
 Men‘s grooming in Kazakhstan is expected to increase steadily in value over the forecast
period as attitudes towards personal hygiene and personal grooming habits of Kazakh men
continue to change and economic conditions improve. Men in Kazakhstan, especially those
from younger generations, are expected to pay more attention to their personal hygiene and
personal grooming during the forecast period and this makes it increasingly likely that they will
seek to spend more money on men‘s grooming.
 The predicted 2% constant value CAGR in men‘s grooming in Kazakhstan over the forecast
period is expected to surpass the review period CAGR of -3%. This is largely due to growing
interest in men‘s grooming and the developing culture of usage of such products among
Kazakh consumers.
 Over the forecast period, men‘s grooming will grow primarily through two channels: purchases
by women, and men's magazines. The leading manufacturers are guided by women‘s
demand who would buy a new product for their partner. Secondly, towards the end of the
review period, there were a growing number of men's magazines that successfully promoted
toiletries for men and in principle - the concept of self-care, and adapting new behaviour.
Nevertheless, such a tendency is expected only in urban areas, while rural areas are unlikely
to see any changes in consumer preferences over the forecast period. Rural consumers are
unlikely to go beyond purchasing the necessary goods, such as shaving products.
 Men's bath and shower is expected to register the highest growth in men‘s grooming in
Kazakhstan over the forecast period and constant value sales are expected to increase by a
CAGR of 7%. It has an essential positioning and due to this, it is expected that it will show the
best growth rates over the forecast period.
 Fluctuations in the exchange rate will be a major threat. Price-based promotions could
intensify significantly over the forecast period and this could have a negative effect on value
sales performance.
 Unit prices are still expected to grow over the forecast period, underpinned by dependence of
men‘s grooming on imports.
 Over the forecast period, men‘s grooming is set to be subject to frequent innovation and this
is set to drive increasing demand for men‘s grooming in Kazakhstan.
 During the forecast period, companies are expected to increase their sales, extend their brand
ranges and might begin to educate consumers about the necessity for these products, such
as men‘s bath and shower, hair care, and newer products such as men‘s skin care. The
leading manufacturers of men‘s grooming in Kazakhstan will continue to benefit from their
investment in developing and launching new products during the forecast period as Kazakh
consumers remain focused on innovations.
CATEGORY DATA
Table 75
Sales of Men‘s Grooming by Category: Value 2007-2012
KZT mn
2007
2008
2009
2010
2011
2012
63
Men's Shaving
- Men's Post-Shave
- Men's Pre-Shave
- Men's Razors and Blades
Men's Toiletries
- Men's Bath and Shower
- Men's Deodorants
- Men's Hair Care
- Men's Skin Care
Men's Grooming
Source:
7,902.5
747.7
991.6
6,163.2
4,249.2
230.5
2,552.4
1,230.0
236.3
12,151.7
Passport
8,322.6
766.0
1,072.1
6,484.6
4,635.3
270.8
2,814.4
1,300.0
250.1
12,957.9
8,820.8
786.1
1,147.5
6,887.3
4,751.8
266.2
2,862.6
1,350.0
273.0
13,572.6
9,312.1
814.1
1,230.3
7,267.8
4,971.8
277.2
2,983.3
1,410.0
301.3
14,284.0
9,801.5
854.3
1,314.6
7,632.7
5,370.2
303.4
3,206.4
1,520.3
340.1
15,171.7
10,336.5
901.4
1,407.1
8,028.0
6,054.3
341.8
3,572.1
1,751.9
388.5
16,390.9
Sales of Men‘s Grooming by Category: % Value Growth 2007-2012
Table 76
2011/12
2007-12 CAGR
2007/12 Total
5.5
5.5
7.0
5.2
12.7
12.7
11.4
15.2
14.2
8.0
5.5
3.8
7.2
5.4
7.3
8.2
7.0
7.3
10.5
6.2
30.8
20.6
41.9
30.3
42.5
48.3
39.9
42.4
64.4
34.9
Men's Shaving
- Men's Post-Shave
- Men's Pre-Shave
Men's Toiletries
- Men's Deodorants
- Men's Hair Care
- Men's Skin Care
Men's Grooming
Source:
Table 77
Sales of Men's Razors and Blades by Type: % Value Breakdown 2008-2012
% retail value rsp
Disposables
Systems
Systems - Razors
Systems - Refill Blades
Other Razors and Blades
Total
Source:
2008
2009
2010
2011
2012
51.0
49.0
27.0
22.0
100.0
51.0
49.0
28.0
21.0
100.0
52.0
48.0
29.0
19.0
100.0
53.0
47.0
29.0
18.0
100.0
53.0
47.0
30.0
17.0
100.0
Table 78
Men‘s Grooming Company Shares 2008-2012
% retail value rsp
Company
2008
2009
2010
2011
2012
Sté Bic SA
Beiersdorf AG
33.4
10.0
5.4
8.1
33.8
10.4
6.6
7.8
34.1
10.6
7.2
7.7
34.2
10.8
8.3
7.2
33.6
10.7
9.0
6.7
64
Unilever Group
Oriflame Kazakhstan
Henkel AG & Co KGaA
Gillette Co, The
Evyap Sabun Yag
Avon Cosmetics
Kazakhstan TOO
Kalina Concern OAO
Others
Total
Source:
3.5
3.5
2.4
1.8
1.1
3.6
4.2
2.7
1.8
1.2
4.1
4.0
2.8
1.8
1.2
3.9
3.6
2.7
1.7
1.2
0.7
1.0
1.1
1.1
0.7
0.3
28.1
100.0
0.4
27.6
100.0
0.4
0.2
25.3
100.0
0.4
0.2
24.0
100.0
0.4
0.2
25.6
100.0
Men‘s Grooming Brand Shares 2009-2012
% retail value rsp
Brand
Gillette
Bic
Nivea for Men
Schick
Oriflame Men
Gillette Series
Fa Men
Axe
Gillette
Rexona for Men
Arko
Old Spice
Avon Men
Nord-Ost
Mennen
Gillette Series
Others
Total
Company
2009
2010
2011
2012
Sté Bic SA
Beiersdorf AG
Oriflame Kazakhstan
Henkel AG & Co KGaA
Unilever Group
Gillette Co, The
Unilever Group
Evyap Sabun Yag
Avon Cosmetics
Kazakhstan TOO
Kalina Concern OAO
Gillette Co, The
29.6
10.4
6.6
7.8
3.5
2.8
2.4
2.0
1.8
1.5
1.0
29.8
10.6
7.2
7.7
4.2
2.8
2.7
2.1
1.8
1.6
1.1
30.1
10.8
8.3
7.2
4.0
2.8
2.8
2.4
1.8
1.7
1.1
29.7
10.7
9.0
6.7
3.6
2.8
2.7
2.3
1.7
1.6
1.1
1.4
1.0
1.4
1.1
1.3
1.1
1.1
0.7
0.3
27.8
100.0
0.3
0.2
25.5
100.0
0.3
0.2
24.2
100.0
0.3
0.2
25.9
100.0
Table 80
Men's Razors and Blades Brand Shares 2009-2012
% retail value rsp
Brand
Gillette
Bic
Schick
Gillette
Others
Total
Source:
3.5
4.8
2.5
1.9
1.1
Table 79
Source:
Passport
Company
2009
2010
2011
2012
Sté Bic SA
Gillette Co, The
57.0
20.4
15.3
7.2
100.0
57.4
20.8
15.1
6.6
100.0
58.5
21.5
14.3
5.8
100.0
59.4
21.8
13.8
5.0
100.0
65
Table 81
Passport
Forecast Sales of Men‘s Grooming by Category: Value 2012-2017
KZT mn
Men's Shaving
- Men's Post-Shave
- Men's Pre-Shave
Men's Toiletries
- Men's Deodorants
- Men's Hair Care
- Men's Skin Care
Men's Grooming
Source:
Table 82
2012
2013
2014
2015
2016
2017
10,336.5
901.4
1,407.1
8,028.0
6,054.3
341.8
3,572.1
1,751.9
388.5
16,390.9
10,313.3
901.6
1,408.3
8,003.4
6,141.8
349.4
3,597.4
1,782.1
412.9
16,455.1
10,387.5
903.7
1,410.0
8,073.8
6,341.4
362.3
3,688.8
1,852.6
437.8
16,728.9
10,442.3
905.9
1,418.9
8,117.4
6,636.2
383.1
3,845.6
1,943.2
464.3
17,078.5
10,551.6
906.3
1,432.8
8,212.6
6,893.1
404.8
3,957.9
2,043.8
486.6
17,444.7
10,703.4
906.9
1,444.5
8,352.1
7,589.1
471.4
4,231.7
2,356.0
530.0
18,292.5
trade sources
Forecast Sales of Men‘s Grooming by Category: % Value Growth 2012-2017
Men's Shaving
- Men's Post-Shave
- Men's Pre-Shave
Men's Toiletries
- Men's Deodorants
- Men's Hair Care
- Men's Skin Care
Men's Grooming
Source:
2012-17 CAGR
2012/17 TOTAL
0.7
0.1
0.5
0.8
4.6
6.6
3.4
6.1
6.4
2.2
3.5
0.6
2.7
4.0
25.3
37.9
18.5
34.5
36.4
11.6
trade sources
66
ORAL CARE IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Current value sales of oral care grow by 6% to reach KZT9 billion in 2012
 Demand for more sophisticated oral care rises among health-conscious Kazakh consumers
 Mouthwashes/dental rinses records the most dynamic current value growth of 14% in 2012
 Unit price growth movement is supported by annual inflation of 6%
 Colgate-Palmolive Co continues to lead the category with 38% value share in 2012
 Oral care is expected to post a constant value CAGR of 1% over the forecast period
TRENDS
 The strong growth recorded in oral care in Kazakhstan during 2012 was determined by two
different trends. Demand for more sophisticated and expensive oral care increased among
Kazakhs, especially wealthier and more educated consumers, many of whom pay more
attention to their oral hygiene and visit the dentist very regularly. These more affluent Kazakhs
are more than willing to pay more for sophisticated oral care. On the other hand, more pricesensitive Kazakhs continued to turn to cheaper alternatives and more general oral care.
 Oral care registered 6% current value growth in Kazakhstan during 2012, which was
marginally higher than the 5% current value CAGR of the review period. More information
regarding oral hygiene became available to consumers through wide advertising campaigns
from the leading multinational players, which are Colgate-Palmolive Co and Procter &
Gamble.
 Toothpaste held the largest value share of oral care with 81% value share, accounting for
KZT7 billion, with a 4% increase in retail value sales in 2012. Toothpaste is positioned as an
essential product and necessary for all consumer groups. The increase in the range of
available toothpaste continued in 2012. Apart from classic toothpaste, a number of
toothpastes with herb additives were introduced, while the range of whitening toothpastes was
broadened as well. The attractiveness of new products as well as promotional campaigns by
multinational companies stimulated sales growth.
 The fastest growth was recorded by mouthwashes/dental rinses, with 14% current value
growth in 2012. The leading manufacturers offer a range of whitening, oral hygiene and teeth
care functions for mouthwashes/dental rinses, using various herbal and medicinal ingredients.
 Manual toothbrushes recorded a 12% increase in current retail value sales. Manual
toothbrushes was the target of much innovation over the review period and it seems that
Kazakh consumers are now changing their toothbrushes more frequently than they did in
previous years.
 Dental floss remained small in size, although it recorded 9% increase in current value sales at
the end of the review period. Comparatively higher unit prices, low sales and complicated
distribution meant that dental floss was only available in major cities and through certain retail
outlets.
Passport
67
 The average unit price was high for oral care. Some moderation of prices was observed within
dental floss and mouthwashes/dental rinses, as these are small in size, and retailers were
unable to achieve expected profits due to their low base and lack of consumer interest. The
most popular products, namely manual toothbrushes and toothpaste, however, witnessed an
increase in the average unit price. This was driven by growing demand for more expensive,
higher quality products, as well as an increase in prices in line with inflation, which was
possible due to the constant growth in demand for these products.
 Total care/complete care was the most important benefit consumers looked for in toothpaste
in Kazakhstan during 2012 and toothpaste with these benefits accounted for 50% share of
total toothpaste retail value sales. Fresh breath was the second most popular toothpaste in
2012, accounting for 22% value share, whilst toothpaste with whitening effect accounted for
15% value share. The sales share of sensitive toothpaste remained static in 2012 accounting
for 8% value share.
 The leaders in oral care remained the same in 2012. The top three players were multinational
companies with brands that are known widely among Kazakh consumers. Colgate-Palmolive
Co with 38% share in current value terms led the category in 2012. Ranked second was
Procter & Gamble with 33% value share, while Unilever Group, with 10% share ranked third.
Oriflame Kazakhstan ranked fourth with 4% value share. All four companies are widely
recognised as worldwide leading oral care manufacturers with a significant number of wellestablished brands, which have been present for a prolonged period of time and gained
consumer loyalty.
 The largest increase in current value sales share was recorded by Procter & Gamble, gaining
two percentage points. Its success in oral care in Kazakhstan was due to its increasingly
popular medicated oral care brands Blend-a-Med and Oral-B.
 Oral care was led by multinational brands and there was no domestic production of oral care
in Kazakhstan at the end of the review period. Some differentiation could be observed among
multinational brands such as Colgate Toothpaste or Blend-a-Med and products offered by
Russian producers, such as Kalina Concern OAO represented by the Lesnoy Balsam brand,
which is characterised by lower price compared to its multinational rivals.
 Advertising campaigns for oral care in Kazakhstan resembled those of neighbouring
countries, with companies stressing to customers their affiliation with professional dentist
associations. After highlighting how important it is to keep teeth and mouth cavities in a
decent condition, a dentist would advise on the use of a certain type of toothpaste/toothbrush
for achieving the necessary results.
 Companies educate relevant consumer groups through intensive advertising, which is often
supported by some statistical data on the effectiveness of the selected toothpaste/toothbrush
or some survey results, which prove that after using this particular product, consumers
experienced positive effects. In addition, advertisements featuring dentists are used to raise
awareness.
 Procter & Gamble was very active in the promotion of its toothpaste brand Blend-a-Med.
Colgate-Palmolive promoted toothpaste Colgate Pro-Relief via advertising on television and in
magazines.
 There were no premium brands in oral care 2012, although electric toothbrushes could be
considered premium products as they are not affordable to the majority of the population.
Passport
68
Passport
 Russian manufacturer Kalina Concern OAO offers low- and mid-priced oral care. Multinational
companies such as Procter & Gamble and Colgate-Palmolive operate in the higher end of
mid-priced oral care.
PROSPECTS
 Over the forecast period, oral care is expected to maintain a steady growth rate. The growing
health consciousness and economic development will be major factors for a positive
performance. A higher number of private dental clinics will have an impact on oral care over
the forecast period, which should positively impact consumption of less-developed products,
as they are expected to be more commonly used as a promotional tool by producers. Product
developments are expected in mouth fresheners, tooth whiteners and power toothbrushes.
 Oral care in Kazakhstan is expected to continue benefiting from the ongoing improvements in
the oral hygiene of the Kazakh population, with constant value sales set to increase by a
CAGR of 1% over the forecast period. This is an improvement compared to the review period
CAGR of -3%. Value growth in oral care is also set to be driven by rising household incomes
as many Kazakhs are likely to be able to afford more expensive and more sophisticated oral
care as the local economy is expected to improve further.
 All active products in oral care will show positive growth rates in constant value terms over the
forecast period. Toothpaste will increase by a constant value CAGR of 2%, as it is an
essential product and is purchased by all consumer groups across the country, which also
applies to some extent to manual toothbrushes, which will record a 2% constant value CAGR.
Mouthwashes/dental rinses is predicted to record a 4% constant value of CAGR over the
forecast period, helped by the growing interest in oral care and the low starting base of value
sales of mouthwashes/dental rinses.
 Given the constant and sufficient demand for oral care, there are no particular threats to the
growth of the category over the forecast period. The largest toothpaste and manual
toothbrushes were not yet saturated in 2012. The fluctuations in the foreign exchange rate
remains as the major threat to most beauty and personal care categories and oral care is no
exception, as it is comprised of imports.
 The average unit price of oral care is set to increase subordinate to the inflation rate for at
least the duration of the forecast period.
 New product launches with multiple functions and natural ingredients or whitening effect are
expected to perform well in the coming years. Customers want to try out something new in
search of a toothpaste that would suit them best, which would be the main factor ensuring a
strong performance by newly introduced products.
 Kazakhstan‘s leading oral care manufacturers are expected to continue launching new
products in toothpaste and toothbrushes during the forecast period. New product
development and innovation is also expected in smaller oral care products which have
significant growth potential.
CATEGORY DATA
Table 83
Sales of Oral Care by Category: Value 2007-2012
KZT mn
2007
2008
2009
2010
2011
2012
69
Dental Floss
Denture Care
Mouth Fresheners
Mouthwashes/Dental Rinses
Tooth Whiteners
Toothbrushes
Toothpaste
Oral Care
Source:
Note:
Passport
29.5
78.8
1,028.9
5,498.4
6,635.6
30.8
80.7
1,097.6
5,743.6
6,952.7
31.7
81.5
1,131.0
6,007.2
7,251.4
33.4
86.3
1,198.2
6,341.5
7,659.5
36.3
92.5
1,269.7
6,762.6
8,161.0
39.6
105.0
1,418.1
7,047.5
8,610.2
Oral Care total excludes the category total for manual and power toothbrushes
Table 84
Sales of Oral Care by Category: % Value Growth 2007-2012
Dental Floss
Denture Care
Mouth Fresheners
Tooth Whiteners
Toothbrushes
Toothpaste
Oral Care
Source:
Note:
Table 85
2011/12
2007-12 CAGR
2007/12 Total
9.0
13.6
11.7
4.2
5.5
6.0
5.9
6.6
5.1
5.3
34.1
33.2
37.8
28.2
29.8
Sales of Toothbrushes by Type: Value 2007-2012
KZT mn
Manual Toothbrushes
Power Toothbrushes
- Battery Toothbrushes
-- Battery Toothbrush
Replacement Heads
Units
- Electric Toothbrushes
-- Electric Toothbrush
Replacement Heads
Units
Toothbrushes
Source:
Table 86
2007
2008
2009
2010
2011
2012
983.8
45.0
3.6
1.2
1,046.5
51.1
3.2
1.4
1,078.0
53.0
3.1
1.5
1,150.1
48.2
2.3
1.2
1,217.3
52.4
2.5
1.3
1,359.2
58.9
2.7
1.4
2.4
1.9
1.6
1.2
1.2
1.4
41.4
3.5
47.8
4.0
50.0
4.3
45.8
4.1
49.9
4.4
56.2
4.8
38.0
43.9
45.6
41.7
45.5
51.4
1,028.9
1,097.6
1,131.0
1,198.2
1,269.7
1,418.1
Sales of Toothbrushes by Type: % Value Growth 2007-2012
2011/12
2007-12 CAGR
2007/12 Total
70
Passport
Manual Toothbrushes
Power Toothbrushes
-- Battery Toothbrush Replacement Heads
-- Battery Toothbrush Units
-- Electric Toothbrush Replacement Heads
-- Electric Toothbrush Units
Toothbrushes
Source:
11.7
12.4
8.2
6.9
9.5
12.7
8.6
13.0
11.7
6.7
5.5
-5.5
2.5
-10.7
6.3
6.6
6.3
6.6
38.1
30.8
-24.6
13.0
-43.4
35.6
37.6
35.5
37.8
Table 87
Sales of Toothpaste by Type: % Value Breakdown 2008-2012
% retail value rsp
Fresh Breath
Sensitive
Total Care/Complete Care
Traditional/Standard/
Basic
Whitening
Others
Total
Source:
2008
2009
2010
2011
2012
20.0
9.0
43.0
18.0
22.0
8.0
45.0
12.0
24.0
8.0
48.0
5.0
23.0
8.0
48.0
4.0
22.0
8.0
50.0
2.0
10.0
100.0
13.0
100.0
15.0
100.0
17.0
100.0
15.0
3.0
100.0
Table 88
Oral Care Company Shares 2008-2012
% retail value rsp
Company
2008
2009
2010
2011
2012
Unilever Group
Oriflame Kazakhstan
GlaxoSmithKline Plc
Kalina Concern OAO
Others
Total
35.7
29.7
8.5
2.1
3.3
2.1
18.6
100.0
36.3
30.0
8.7
2.1
4.4
2.4
16.1
100.0
37.4
30.2
9.0
2.9
2.9
2.6
15.0
100.0
38.3
30.9
9.2
3.3
2.9
2.6
12.7
100.0
37.6
32.6
9.7
3.6
2.8
2.8
10.9
100.0
Source:
Table 89
Oral Care Brand Shares 2009-2012
% retail value rsp
Brand
Company
2009
2010
2011
2012
Colgate Toothpaste
Blend-a-Med
Pepsodent
Colgate Toothbrush
Oral-B
Unilever Group
30.2
24.1
8.7
5.8
5.9
31.0
24.1
9.0
6.1
6.1
31.5
24.5
9.2
6.4
6.4
30.2
25.7
9.7
7.1
6.9
71
Oriflame
Lesnoy Balsam
Aquafresh
Plax
Others
Total
Source:
Table 90
Passport
Oriflame Kazakhstan
Kalina Concern OAO
GlaxoSmithKline Plc
2.1
2.4
3.7
0.3
16.8
100.0
2.9
2.6
2.5
0.3
15.4
100.0
3.3
2.6
2.6
0.3
13.1
100.0
3.6
2.8
2.6
0.4
11.1
100.0
Forecast Sales of Oral Care by Category: Value 2012-2017
KZT mn
Dental Floss
Denture Care
Mouth Fresheners
Tooth Whiteners
Toothbrushes
Toothpaste
Oral Care
Source:
Note:
Table 91
2012
2013
2014
2015
2016
2017
39.6
105.0
1,418.1
7,047.5
8,610.2
40.2
109.4
1,452.8
7,070.3
8,672.7
41.1
113.8
1,480.6
7,108.1
8,743.5
41.9
117.8
1,491.3
7,151.6
8,802.5
42.9
123.6
1,508.1
7,224.6
8,899.2
44.2
130.0
1,532.9
7,313.5
9,020.5
trade sources
Forecast Sales of Oral Care by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
2.2
4.3
1.6
0.7
0.9
11.7
23.7
8.1
3.8
4.8
Dental Floss
Denture Care
Mouth Fresheners
Tooth Whiteners
Toothbrushes
Toothpaste
Oral Care
Source:
Note:
Table 92
trade sources
Forecast Sales of Toothbrushes by Type: Value 2012-2017
KZT mn
Manual Toothbrushes
Power Toothbrushes
Replacement Heads
Units
2012
2013
2014
2015
2016
2017
1,359.2
58.9
2.7
1.4
1,391.1
61.8
2.8
1.4
1,416.4
64.2
2.8
1.4
1,424.5
66.7
2.9
1.4
1,438.4
69.6
2.9
1.4
1,460.9
72.0
2.9
1.4
1.4
1.4
1.4
1.5
1.5
1.5
72
Replacement Heads
Units
Toothbrushes
Source:
Table 93
Passport
56.2
4.8
59.0
4.8
61.3
4.9
63.9
5.0
66.8
5.1
69.1
5.2
51.4
54.2
56.4
58.9
61.7
63.9
1,418.1
1,452.8
1,480.6
1,491.3
1,508.1
1,532.9
trade sources
Forecast Sales of Toothbrushes by Type: % Value Growth 2012-2017
Manual Toothbrushes
Power Toothbrushes
-- Battery Toothbrush Replacement Heads
-- Battery Toothbrush Units
-- Electric Toothbrush Replacement Heads
-- Electric Toothbrush Units
Toothbrushes
Source:
2012-17 CAGR
2012/17 TOTAL
1.5
4.1
1.2
0.3
2.2
4.2
1.7
4.4
1.6
7.5
22.2
6.3
1.4
11.2
23.0
8.8
24.3
8.1
trade sources
73
SKIN CARE IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Skin care increases in current value terms by 10% in 2012, rising to KZT16 billion
 Consumers‘ worries about how they look and feel impacts both premium and mass segments
 Acne treatments records the best performance in skin care during 2012, increasing in value
by 19%
 Inflation and Custom Union are the main factors causing unit price increase
 Kalina Concern OAO maintains its leading position in skin care in 2012 with 25% value share
 Skin care is set to increase by a constant value CAGR of 4% over the forecast period
TRENDS
 Towards the end of the review period, with improvement of the economy and sensitivity of the
category from the viewpoint of Kazakh consumers‘ concerns in maintaining an attractive
appearance, consumers turned to economy, standard and premium skin care depending on
their income levels. To support sales, many Kazakh retailers were able to influence the
purchasing decisions of consumers through frequent price discounting.
 The 10% current value growth registered by skin care in Kazakhstan during 2012 was
commensurate with the 10% current value CAGR of the entire review period. This was mostly
due to the fact that demand for premium skin care remained almost stable with a static value
share as wealthier Kazakh consumers were more than willing to spend money on more
expensive high-quality skin care.
 Acne treatments recorded the best performance in skin care during 2012, increasing in value
terms by 19%. This was largely due to the wider availability of acne treatments and the
expanding consumer base for these products. The range of acne treatments continued to
expand despite relatively high prices in line with the growing number of teenagers—the core
target group for acne treatments.
 Average unit prices increased across skin care in Kazakhstan during 2012. However, these
unit price increases remained lower than the annual inflation rate in the majority of skin care
as the leading manufacturers of skin care made serious attempts to maintain current levels of
demand among consumers by engaging in frequent price discounting campaigns considering
price-sensitivity of the majority of Kazakhs.
 Body and hand care remained popular products in skin care as they are perceived as
indispensible by women because of the high visibility of these parts of the body all year round.
 Facial care continued to account for the majority share of total skin care value sales in
Kazakhstan in 2012, with KZT12 billion or 77% value share. Increasing numbers of Kazakh
consumers appreciate the benefits of using skin care which has been developed especially for
the skin on various areas of the body. The face is one part of the body which is particularly
prone to ageing, dryness and sagging.
 There are no significant culturally-specific or traditional product alternatives to manufactured
skin care in Kazakhstan. Sometimes fruit skin is used to make facial masks which make skin
Passport
74
feel fresher. In addition, herbal treatments produced from ingredients such as sour cream,
egg, banana, honey, oats, milk, yoghurt, lemon juice and flour are widely available in
Kazakhstan. However, this trend is observed among elderly and some middle-aged female
Kazakhs.
 Current value sales of premium skin care recorded KZT1 billion in Kazakhstan during 2012.
The largest share within premium skin care was held by premium facial care, with KZT0.8
billion, a product which remains popular due to the wide range of anti-agers and moisturisers
on offer. The most popular premium skin care brands in Kazakhstan are Clinique, Guerlain
and Lancôme.
 In the majority of facial care, separate products are available for those who suffer from acne
and those with sensitive skin as well as products targeted at more mature consumers. There
is also an increasing number of products which are suitable for people with dry, normal and
oily skin as well as skin care which is intended to be used during the day as well as at night.
 General purpose body care with self-tanning agents is available in Kazakhstan. Many Kazakh
consumers favour such products in combination with regular visits to solariums and tanning
salons as an alternative to self-tanning products.
 Therapeutically positioned/pharma skin care brands are still not popular in skin care in
Kazakhstan and there is no ‗pharma‘ skin care trend in the country. Kazakh consumers
continue to express an interest in skin care brands with a natural or organic positioning
offered by companies such as Oriflame Kazakhstan, Eveline Cosmetics and L‘Oréal Groupe.
 The majority of Kazakh women use general facial moisturisers in a bid to avoid dry skin.
When the first signs of wrinkles begin to appear, the majority of Kazakhs begin using antiwrinkle products, choosing variants according to their skin type from dry, normal, oily, mixed
or sensitive skin. Although many skin care manufacturers emphasise that there are three
essential steps in the ideal daily facial skin care routine—cleaning, toning and moisturising—
only a very limited number of Kazakh consumers follow these three steps religiously every
day.
 Kalina Concern OAO maintained its leading position in skin care during 2012 with 25% value
share. The company recorded the largest increase in current value sales share, gaining one
percentage point. Its Cherny Zhemchug and Chistaya Liniya brands are popular among pricesensitive low-income consumers. They remain quite loyal to Russian brands and products,
since they offer reasonably good quality for low prices. Intense advertising on Russian
television channels for Kalina Concern‘s main Chistaya Liniya brand and the high awareness
of this brand combined with frequent product extensions drove sales of Kalina Concern‘s skin
care in Kazakhstan.
 The leading companies in skin care in Kazakhstan are all international players as local
production of skin care is not developed and it is not expected that such a situation will
change over the forecast period due to several reasons. First of all it requires significant
investments, which are unlikely to make a return as consumers are more willing to trust the
quality of well-known brands and manufacturers rather than to domestic companies.
 At the end of the review period, the leading manufacturers focus mainly on mass media
campaigns which cover television and radio as well as the print media, outdoor advertising
formats and the internet.
 There was no significant packaging innovation in skin care in Kazakhstan during 2012.
Passport
75
Passport
 Despite recent improvements in premium skin care brands in Kazakhstan, mass brands
continued to dominate sales of skin care in the country. The proportion of Kazakhs who would
rather purchase high-quality premium skin care in smaller quantities than large quantities of
mass skin care products is gradually increasing.
PROSPECTS
 Skin care in Kazakhstan is set to continue making strong progress over the forecast period.
This will be mostly due to envisaged improvements in the living standards of many Kazakhs,
as well as the fact that there are expected to be many more Kazakhs willing and able to
spend higher amounts of money on skin care.
 Skin care in Kazakhstan is expected to grow by a constant value CAGR of 4% during the
forecast period. This is set to represent a far superior performance to the constant value
CAGR of 1% recorded over the review period. Many skin care with safer and more
sophisticated ingredients including products manufactured from natural and/or organic
ingredients are expected to be launched which are generally more expensive.
 Still, there are no specific threats to growth in skin care expected to occur during the forecast
period. As the importance of looking good continues to increase in Kazakhstan, an increasing
number of Kazakhs consider skin care to be essential. However, there is the possibility that a
serious threat to sales of skin care could arise due to the high levels of competition in other
beauty and personal care categories in which various products with skin care benefits are
expected to be launched during the forecast period, such as within colour cosmetics (facial
make-up with moisturising effect, for instance).
 Premium liquid/cream/gel/bar cleansers is set to be the most dynamic and best performing
product in skin care in Kazakhstan over the forecast period with a constant value CAGR of
6%. In addition to being from a premium-priced segment which is vulnerable to unit price
increases, maintaining an attractive appearance is set to become increasingly important for
younger Kazakhs, the majority of whom are very keen to maintain healthy and young-looking
skin.
 Price competition among multinational players is set to intensify during the forecast period, as
companies compete to attract increasingly price-sensitive consumers. However,
premiumisation and the inflation rate will be one of the main drivers for the unit price increase.
 Over the forecast period, the leading manufacturers and distributors of skin care in
Kazakhstan are all expected to continue investing in product development during the forecast
period in a bid to maintain consumer interest in the category. Much of this product
development is set to target the most rapidly developing products in terms of innovation such
as anti-agers, for instance.
 Over the forecast period, leading companies operating in the category are expected to
continue to commit significant resources to new product development in order to provide their
consumers with products which feature safer ingredients and higher quality.
CATEGORY DATA
Table 94
Sales of Skin Care by Category: Value 2007-2012
KZT mn
2007
2008
2009
2010
2011
2012
76
Body Care
- Firming/AntiCellulite Body Care
- General Purpose Body
Care
Facial Care
- Acne Treatments
- Face Masks
- Facial Cleansers
- Facial Moisturisers
- Lip Care
- Anti-Agers
- Toners
Hand Care
- Premium Hand Care
- Mass Hand Care
Skin Care
Source:
Passport
1,482.4
152.4
1,800.0
170.0
1,990.0
190.0
2,170.0
210.0
2,355.6
229.6
2,570.3
248.1
1,330.0
1,630.0
1,800.0
1,960.0
2,126.1
2,322.2
7,619.9
394.6
130.4
761.7
5,230.0
11.0
1,060.0
32.1
796.9
796.9
9,899.1
8,662.9
435.2
150.3
869.6
5,960.0
13.2
1,200.0
34.6
860.8
860.8
11,323.7
9,207.9
489.9
154.8
933.9
6,300.0
13.8
1,280.0
35.5
910.0
910.0
12,107.9
9,965.1
593.9
160.7
1,018.9
6,740.0
14.8
1,400.0
36.7
940.5
940.5
13,075.6
10,897.2
706.6
166.7
1,105.2
7,305.3
16.5
1,558.5
38.3
993.7
993.7
14,246.5
11,990.8
839.9
173.8
1,196.7
7,996.2
18.8
1,725.2
40.3
1,062.0
1,062.0
15,623.1
Table 95
Sales of Skin Care by Category: % Value Growth 2007-2012
Body Care
- Firming/Anti-Cellulite Body Care
- General Purpose Body Care
Facial Care
- Acne Treatments
- Face Masks
- Facial Cleansers
- Lip Care
- Anti-Agers
- Toners
Hand Care
- Premium Hand Care
- Mass Hand Care
Skin Care
Source:
2011/12
2007-12 CAGR
2007/12 Total
9.1
8.1
9.2
10.0
18.9
4.2
8.3
9.5
14.2
10.7
5.1
6.9
6.9
9.7
11.6
10.2
11.8
9.5
16.3
5.9
9.5
8.9
11.2
10.2
4.7
5.9
5.9
9.6
73.4
62.8
74.6
57.4
112.9
33.2
57.1
52.9
70.4
62.8
25.5
33.3
33.3
57.8
Table 96
Skin Care Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
5.7
94.3
100.0
6.0
94.0
100.0
6.1
93.9
100.0
6.2
93.8
100.0
6.2
93.8
100.0
6.3
93.7
100.0
77
Table 97
Skin Care Company Shares 2008-2012
% retail value rsp
Company
Kalina Concern OAO
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Beiersdorf AG
Orion Oyj
L'Oréal Groupe
Guerlain SA
Chanel SA
STADA Central Asia
Others
Total
Source:
Passport
2008
2009
2010
2011
2012
16.6
21.6
13.3
16.3
16.1
14.7
18.1
16.8
16.2
24.0
14.9
14.1
24.9
14.6
14.2
9.0
5.7
3.4
1.1
0.9
1.3
1.1
0.5
0.4
0.3
0.3
0.0
24.5
100.0
6.4
5.5
3.1
1.4
1.7
1.3
1.1
0.5
0.4
0.3
0.2
0.1
30.8
100.0
6.5
5.4
3.0
1.4
1.8
1.3
1.1
0.6
0.4
0.3
0.2
0.1
26.8
100.0
7.0
5.4
3.0
1.8
1.7
1.2
1.0
0.6
0.4
0.3
0.2
0.1
0.1
24.2
100.0
7.3
5.3
2.8
2.3
1.7
1.0
1.0
0.6
0.4
0.3
0.2
0.1
0.1
23.2
100.0
Table 98
Skin Care Brand Shares 2009-2012
% retail value rsp
Brand
Oriflame
Cherny Zhemchug
Chistaya Liniya
Mary Kay
Nivea Visage
Avon Renew/Anew
Neutrogena
Lumene
Nivea
Mia
Avon Care
Avon Solutions
Clinique
Skinoren
Garnier
Avon Clearskin
Avon Skin So Soft
Clearasil
Avon Naturals
Nivea for Men
Guerlain
Company
2009
2010
2011
2012
Oriflame Kazakhstan
Kalina Concern OAO
Kalina Concern OAO
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Orion Oyj
Beiersdorf AG
Kalina Concern OAO
Avon Cosmetics
Kazakhstan TOO
Avon Cosmetics
Kazakhstan TOO
L'Oréal Groupe
Avon Cosmetics
Kazakhstan TOO
Avon Cosmetics
Kazakhstan TOO
Avon Cosmetics
Kazakhstan TOO
Beiersdorf AG
Guerlain SA
15.9
7.6
5.0
5.5
4.1
4.5
16.6
7.5
5.9
5.4
4.1
4.5
14.7
12.1
6.8
5.4
4.4
3.9
14.5
12.2
7.7
5.3
4.3
4.0
2.9
1.4
1.9
1.1
0.9
2.8
1.4
1.8
1.8
1.2
2.7
1.8
2.0
2.1
1.1
2.5
2.3
2.3
2.0
1.1
1.5
1.4
1.1
1.0
1.3
1.1
0.9
0.8
1.3
1.1
1.0
1.4
1.2
1.0
0.9
1.1
1.0
1.0
0.9
0.8
0.8
0.8
0.7
0.8
0.5
0.5
0.6
0.5
0.6
0.5
0.6
0.6
0.2
0.4
0.3
0.4
0.4
0.4
0.5
0.4
78
Lancôme
L'Oréal Paris
Avon Planet Spa
Johnson & Johnson
Chanel
Givenchy
Nivea Hand
Camay
Oriflame Men
Erythromycini
Others
Total
Source:
L'Oréal Groupe
L'Oréal Groupe
Avon Cosmetics
Kazakhstan TOO
Chanel SA
Beiersdorf AG
Oriflame Kazakhstan
STADA Central Asia
0.2
0.5
0.2
0.3
0.5
0.3
0.3
0.4
0.3
0.4
0.4
0.3
0.2
0.3
0.2
0.3
0.2
0.1
39.2
100.0
0.2
0.3
0.2
0.2
0.2
0.1
35.7
100.0
0.3
0.3
0.2
0.2
0.1
0.2
0.1
32.6
100.0
0.3
0.3
0.2
0.2
0.1
0.1
0.1
31.8
100.0
Table 99
Skin Care Premium Brand Shares 2009-2012
% retail value rsp
Brand
Clinique
Guerlain
Lancôme
Chanel
Givenchy
Others
Total
Source:
Passport
Company
2009
2010
2011
2012
Guerlain SA
L'Oréal Groupe
Chanel SA
21.8
7.1
4.1
5.3
4.1
57.6
100.0
20.5
6.9
5.0
5.0
3.8
58.8
100.0
19.2
6.7
5.1
4.7
3.5
60.9
100.0
16.5
6.3
6.0
4.2
3.1
63.8
100.0
Table 100
Forecast Sales of Skin Care by Category: Value 2012-2017
KZT mn
Body Care
- Firming/AntiCellulite Body Care
- General Purpose Body
Care
Facial Care
- Acne Treatments
- Face Masks
- Facial Cleansers
- Lip Care
- Anti-Agers
- Toners
Hand Care
- Premium Hand Care
- Mass Hand Care
Skin Care
Source:
2012
2013
2014
2015
2016
2017
2,570.3
248.1
2,644.9
257.8
2,751.4
267.1
2,836.1
276.2
2,904.5
290.7
2,936.0
293.8
2,322.2
2,387.0
2,484.2
2,559.8
2,613.8
2,642.2
11,990.8
839.9
173.8
1,196.7
7,996.2
18.8
1,725.2
40.3
1,062.0
1,062.0
15,623.1
12,483.7
920.8
171.7
1,232.5
8,291.8
19.9
1,807.1
39.9
1,061.3
1,061.3
16,189.8
12,964.1
982.0
170.8
1,278.9
8,576.0
21.1
1,895.5
39.7
1,070.7
1,070.7
16,786.1
13,413.0
1,021.4
168.7
1,320.2
8,859.8
21.9
1,982.3
38.7
1,088.3
1,088.3
17,337.4
13,949.0
1,052.2
167.2
1,368.0
9,218.1
23.0
2,082.5
38.1
1,100.3
1,100.3
17,953.9
14,565.1
1,080.7
165.3
1,448.1
9,614.9
24.0
2,194.1
38.0
1,108.8
1,108.8
18,610.0
trade sources
79
Table 101
Passport
Forecast Sales of Skin Care by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
2.7
3.4
2.6
4.0
5.2
-1.0
3.9
3.8
5.0
4.9
-1.2
0.9
0.9
3.6
14.2
18.4
13.8
21.5
28.7
-4.8
21.0
20.2
27.7
27.2
-5.8
4.4
4.4
19.1
Body Care
- Firming/Anti-Cellulite Body Care
- General Purpose Body Care
Facial Care
- Acne Treatments
- Face Masks
- Facial Cleansers
- Lip Care
- Anti-Agers
- Toners
Hand Care
- Premium Hand Care
- Mass Hand Care
Skin Care
Source:
trade sources
Table 102
Forecast Skin Care Premium Vs Mass % Analysis 2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
6.3
93.7
100.0
6.3
93.7
100.0
6.3
93.7
100.0
6.3
93.7
100.0
6.3
93.7
100.0
6.2
93.8
100.0
trade sources
80
SUN CARE IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Sun care grows by 7% in current value terms in 2012, rising to KZT0.4 billion
 Kazakh consumers seek higher sun protection levels during 2012
 Self-tanning records the highest current value growth in 2012, rising by 20%
 The average unit price of sun care increases during 2012
 L‘Oréal Groupe leads sales with 28% value share in 2012
 Sun care is set to grow by a constant value CAGR of 1% over the forecast period
TRENDS
 Growth in sun care in Kazakhstan during 2012 was determined mostly by the positive effects
of the sales performance of sun-protection, which holds the largest value share in sun care of
75%, with 8% growth in current value terms. Sun protection is becoming an increasingly
important product for many Kazakhs as it is now well-known that the sun‘s harmful UV rays
have the potential to cause serious illnesses such as skin cancer. Therefore, many Kazakhs
are constantly searching for sun protection with higher SPF ratings in order to avoid
developing skin problems later in life. In response, the leading manufacturers of sun care in
Kazakhstan are launching a wider range of products with the highest SPF50+ protection.
 The 7% current value growth recorded by sun care during 2012 was a higher rate compared
to the review period CAGR of 6%. Value growth in sun care in Kazakhstan is strongly
dependent on the prevailing weather conditions in the country. Nevertheless, the growing
importance of sun protection in Kazakhstan had a positive influence on demand for sun care
during 2012.
 Self-tanning was by far the best performing product in sun care in Kazakhstan during 2012,
increasing in value by 20%. This was mostly due to the low development of sun care in
Kazakhstan, with value sales of just KZT0.4 million recorded in 2012. The main target group
for self-tanning consists of those consumers who wish to maintain a tanned appearance
throughout the year yet understand the damage that regular visits to solariums and tanning
salons can do to one‘s skin. The majority of products categorised under self-tanning are very
expensive, which drives value growth.
 During 2012, aftersun recorded 3% current value growth. Aftersun is used mainly by those
attempting to ease pain and discomfort following overexposure to the sun.
 The average unit price increases due to rising production and distribution costs as current
value growth was also underpinned by Kazakhstan‘s relatively high inflation rate. The leading
manufacturers of sun protection were unable to increase their unit prices more dramatically
during 2012 given the price-sensitivity of consumers in Kazakhstan.
 Sun care in Kazakhstan is dominated by mass products. Mass sun care is widely available in
all of the most important retail channels in the country, while premium sun care can usually be
purchased in special branded retail outlets or in larger parapharmacies/drugstores outlets.
Passport
81
Premium sun care accounted for 4% value share of sun care in 2012. The most popular
premium sun care brands in Kazakhstan in 2011 were Cliven and Vichy.
 The typical purchasers of sun care in Kazakhstan remained women, many of whom are also
responsible for purchasing sun care for their partners and/or children.
 There are no culturally-specific issues or traditional practices which limit sales of sun care in
Kazakhstan. Plain cream or sour milk drinks are often applied to sunburnt skin in lieu of
aftersun, even among urban consumers, as this has been shown to cool the skin and ease
the suffering of sunburnt people as well as accelerating the healing process.
 The leading brands in sun care in Kazakhstan are all available in several application formats.
The most popular of these are lotions and sprays. The leading manufacturers of sun care
sprays often colour their products with a bright colour ensuring that the product is evenly
applied.
 High level SPF protection, light textures, easy application and transparency are the most
important expectations that Kazakh consumers have when it comes to sun care. In light of
this, the category‘s leading manufacturers constantly introduce products‘ extensions which
respond to these expectations.
 L‘Oréal Groupe maintained its leadership of sun care in Kazakhstan in 2012 with 28% value
share, due to its very well-known Garnier Ambre Solaire brand which is characterised by
affordable prices and consumers‘ loyalty. The product is suitable for sensitive skin sun care.
 The largest increase in current value sales share was recorded by Oriflame Kazakhstan,
rising by four percentage points. Oriflame‘s products are famous and popular in Kazakhstan
for their quality, wider range, targeting also children at affordable prices with constant
discounting.
 Multinational companies dominate sun care in Kazakhstan. Multinationals occupied all niches
of the category leaving no chance for domestic players to enter.
 As sales of sun care remain highly seasonal in Kazakhstan, the leading manufacturers
generally intensify their promotional activities during the period immediately prior to the
summer holidays. Television advertising, press advertising and point-of-sale promotions
remain the most popular methods used to reach potential consumers among Kazakhstan‘s
leading sun care companies.
 There was no significant innovation in the packaging of sun care in Kazakhstan during 2012.
The only changes noted in the packaging of sun care in Kazakhstan were slight adjustments
to the design and size of packaging and there were no new packaging concepts introduced.
The main colours for sun care packaging in Kazakhstan are yellow, blue, white and brown.
The packaging of sun care is often very informative, providing consumers with detailed
product information such as ingredients lists, main product claims and application advice.
 The majority of Kazakh consumers are more than satisfied with the performance of mass sun
care products. Only affluent Kazakhs are prepared to spend extra money on premium sun
care products, which are not available in as many retail outlets as mass sun care.
PROSPECTS
Passport
82
Passport
 Although the performance of sun care in Kazakhstan is strongly dependent on the prevailing
weather conditions, Kazakh people are expected to become increasingly aware of the
dangerous effects of the sun‘s UV rays. Therefore, consumers in Kazakhstan are expected to
pay more attention to sun protection during the forecast period and products with high levels
of SPF protection can be expected to perform well.
 Sun care is predicted to record a constant value CAGR of 1% compared to a CAGR of -3%
registered during the review period. Sun protection is likely to become an increasingly
important product for increasing numbers of Kazakhs. The category‘s leading manufacturers
are likely to launch more specific and more sophisticated products which target different
groups of consumers during the forecast period.
 The main potential threat to growth in sun care over the forecast period still remains the low
disposable incomes of the majority of Kazakh consumers. The culture of using sun care still
has not developed strongly in Kazakhstan and the use of sun care remains highly dependent
on disposable income levels.
 Self-tanning is expected to demonstrate the better performance during the forecast period
with a CAGR of 4% in constant value terms. The demand will arise from its low base. The
main target group for self-tanning will continue to consist of those consumers who wish to
maintain a tanned appearance throughout the year.
 In current terms, the average unit price is set to increase, although well below the annual
inflation rate in Kazakhstan, leaving constant value growth in sun care dependent on volume
growth during the forecast period.
 During the forecast period, Kazakhstan‘s leading sun care manufacturers are all expected to
introduce new products in sun protection with high levels of SPF protection.
 Over the forecast period, demand for aftersun is set to benefit from the improving economic
conditions in Kazakhstan. The country‘s leading beauty and personal care companies are all
set to launch new sun care under their well-established skin care brand names, while it is also
anticipated that they will offer more sophisticated products which are enriched with sun
protection and anti-ageing formulas.
CATEGORY DATA
Table 103
Sales of Sun Care by Category: Value 2007-2012
KZT mn
Aftersun
Self-Tanning
Sun Protection
Sun Care
Source:
2007
2008
2009
2010
2011
2012
108.3
203.6
311.9
112.8
212.1
325.0
113.3
5.2
215.0
333.5
117.5
8.5
234.9
360.8
120.1
11.4
253.0
384.4
124.2
13.7
273.5
411.4
Table 104
Sales of Sun Care by Category: % Value Growth 2007-2012
Aftersun
2011/12
2007-12 CAGR
2007/12 Total
3.4
2.8
14.7
83
Passport
Self-Tanning
Sun Protection
Sun Care
Source:
20.0
8.1
7.0
6.1
5.7
34.4
31.9
Table 105
Sun Care Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
3.0
97.0
100.0
3.5
96.5
100.0
3.5
96.5
100.0
3.5
96.5
100.0
3.5
96.5
100.0
3.5
96.5
100.0
Table 106
Sun Care Company Shares 2008-2012
% retail value rsp
Company
L'Oréal Groupe
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Others
Total
Source:
2008
2009
2010
2011
2012
32.2
25.0
16.1
34.4
27.2
12.2
28.4
24.2
19.0
27.7
25.9
21.5
27.8
26.5
20.1
17.2
9.5
100.0
12.0
14.2
100.0
13.9
14.6
100.0
10.4
14.6
100.0
14.6
10.9
100.0
Table 107
Sun Care Brand Shares 2009-2012
% retail value rsp
Brand
Garnier Ambre Solaire
Nivea Sun
Avon Sun
Oriflame
Avon Bronze
Company
2009
2010
2011
2012
L'Oréal Groupe
Beiersdorf AG
Avon Cosmetics
Kazakhstan TOO
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
34.4
27.2
-
28.4
24.2
13.0
27.7
25.9
15.6
27.8
26.5
15.1
12.0
10.1
13.9
3.2
10.4
3.4
14.6
2.9
16.3
100.0
17.3
100.0
17.1
100.0
13.1
100.0
2016
2017
Others
Total
Source:
Table 108
Forecast Sales of Sun Care by Category: Value 2012-2017
KZT mn
2012
2013
2014
2015
84
Aftersun
Self-Tanning
Sun Protection
Sun Care
Source:
Passport
124.2
13.7
273.5
411.4
121.1
14.6
275.7
411.4
120.3
15.2
281.2
416.7
121.0
15.9
284.0
420.8
123.1
16.2
286.3
425.7
125.4
16.4
286.4
428.3
trade sources
Table 109
Forecast Sales of Sun Care by Category: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
0.2
3.8
0.9
0.8
1.0
20.4
4.7
4.1
Aftersun
Self-Tanning
Sun Protection
Sun Care
Source:
trade sources
Table 110
Forecast Sun Care Premium Vs Mass % Analysis 2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
3.5
96.5
100.0
3.5
96.5
100.0
3.5
96.5
100.0
4.0
96.0
100.0
4.0
96.0
100.0
4.0
96.0
100.0
trade sources
85
SETS/KITS IN KAZAKHSTAN CATEGORY ANALYSIS
HEADLINES
 Sets/kits increases in current value terms by 9% in 2012, rising to KZT4 billion
 Demand for sets/kits continues to rise as the category represents very good value-for-money
 The average unit price of sets/kits increases in 2012
 Oriflame Kazakhstan maintains its leading position in sets/kits in 2012 with 8% value share
 Sets/kits is expected to increase by a constant value CAGR of 4% over the forecast period
TRENDS
 The popularity of sets/kits continued to increase in Kazakhstan during 2012, especially during
occasions such as New Year and Women‘s Day. The leading manufacturers of beauty and
personal care offer a variety of different types of sets/kits ranging from very cheap options to
very expensive options in order to maintain consumer interest. The majority of sets/kits in
Kazakhstan contain two, three of four products, although it was the smallest kits which proved
the most popular during the review period as despite an improvement in the economy,
Kazakh consumers remained price-sensitive and limited spending on beauty and personal
care.
 The 9% value growth registered by sets/kits in Kazakhstan during 2012 was marginally higher
than the 8% current value CAGR recorded over the entire review period. In line with the
average unit price increase, the category was driven by the fact that many Kazakh consumers
purchase sets/kits not only as gifts but also for themselves for their own personal daily use.
 The average unit price increased towards the end of the review period, largely due to the
rising production and distribution costs which are subordinate with the inflation rate. However,
price competition remained particularly intense in sets/kits in Kazakhstan during 2012, since
many local consumers were on the lookout for cheaper variants and the majority of them
chose cheaper and smaller sets containing only two products.
 The majority of sets/kits on offer in Kazakhstan consist of the most common beauty and
personal care products under one particular brand. For instance, Unilever offers sets/kits
which contain shower gel and deodorant under the Dove brand.
 The most popular sets/kits in Kazakhstan are usually those which contain basic beauty and
personal care products, such as body wash/shower gel, body care, shampoos, deodorants
and bar soap. Sets/kits which are positioned according to product categories such as hair
care or skin care tend to contain more sophisticated products and are therefore more
expensive and less popular than simpler sets/kits.
 The unit price of any given set or kit is always cheaper than the total cost of purchasing all of
the products contained within individually.
 Demand for sets/kits is highly seasonal in Kazakhstan and volume sales are much higher in
the run-up to the special occasions on which gift-giving is common such as New Year,
Women‘s Day, St Valentine‘s Day, Army Day—which is held on 23 February—and various
other national holidays. During these events, expenditure on gifts increases generally.
Passport
86
 In Kazakhstan, sets/kits are usually segmented according to gender. The leading brands
generally include body wash/shower gel, shampoos, deodorants and bar soap within their
sets/kits, while more expensive variants often containing fragrances, body care, hand care
and men‘s shaving or women‘s razors and blades, depending on the gender to which the set
or kit is targeted.
 Premium sets/kits accounted for 8% share of total value sales in sets/kits in Kazakhstan
during 2012. Mass sets/kits are usually considered to offer high quality and only affluent
Kazakh consumers look for premium sets/kits.
 Oriflame Kazakhstan maintained its leading position in sets/kits in 2012 with 8% value share
and recorded the highest increase in current value sales share by over one percentage point.
Oriflame is a well-established beauty and personal care direct seller and its beauty and
personal care gift sets remained popular and in demand among Kazakh consumers
throughout the review period. It is popular also due to the wide selection of sets/kits which the
company offers at discounted prices in the run-up to the New Year and Women‘s Day
seasons.
 Sets/kits remains a beauty and personal care category which is dominated by multinational
companies and international brands. All of the leading players across beauty and personal
care in Kazakhstan are well represented in sets/kits.
 No specific advertising campaigns were still conducted for gift sets/kits in Kazakhstan.
Consumers tend to base their purchasing decisions on what they see before them on retail
shelves. Consumers are often attracted to specific sets/kits by eye-catching packaging, low
unit prices and/or attractive price promotions.
 The majority of sets/kits in Kazakhstan are packaged in attractive carton boxes or in cosmetic
bags or metal container, and this has been the case for several years. There was no
significant innovation in the packaging of sets/kits in Kazakhstan during 2012.
 The majority of Kazakh consumers are more than satisfied with the quality and variety offered
by mass sets/kits, while many others are simply unable to afford premium sets/kits.
PROSPECTS
 Sets/kits is expected to remain a very popular beauty and personal care category during the
forecast period offering a practical gift which comes in attractive packaging at reasonable unit
prices.
 Sets/kits is expected to record faster constant value growth with a CAGR of 4% over the
forecast period, compared to the review period constant value CAGR of 1%. In addition to the
rising demand for premiumisation in line with the economic improvement, the category is
expected to be driven faster also due to the unit price increases.
 One of the potential forecast threats to growth is dependent on the level of economic
improvement. If economic conditions in Kazakhstan improve further, many Kazakh people will
be able to purchase bigger and more expensive sets/kits, a situation which would boost
sets/kits value sales. However, if the economic problems are to intensify during the forecast
period, household income levels would decrease further and there would be little or no high
demand for sets/kits.
Passport
87
Passport
 Over the forecast period, manufacturers will direct their efforts to introducing travel sets, or
sets of premium fragrances in small amounts (5ml-15 ml) under the various brand names.
 Kazakhstan‘s leading beauty and personal care manufacturers are set to continue focusing on
offering sets/kits at competitive prices during the forecast period as local consumers can be
expected to continue turning to sets/kits in their search for cheaper beauty and personal care
products. The companies are likely to launch sets/kits which contain more expensive and
sophisticated products. In-store displays are set to continue to have a key role in influencing
consumers in sets/kits throughout the forecast period.
CATEGORY DATA
Table 111
Sales of Sets/Kits: Value 2007-2012
KZT mn
Sets/Kits
Source:
2007
2008
2009
2010
2011
2012
2,797.3
2,998.4
3,293.1
3,564.2
3,850.1
4,184.6
Table 112
Sales of Sets/Kits: % Value Growth 2007-2012
Sets/Kits
Source:
2011/12
2007-12 CAGR
2007/12 Total
8.7
8.4
49.6
Table 113
Sets/Kits Premium Vs Mass % Analysis 2007-2012
% retail value rsp
Premium
Mass
Total
Source:
2007
2008
2009
2010
2011
2012
7.5
92.5
100.0
8.0
92.0
100.0
7.0
93.0
100.0
7.0
93.0
100.0
7.5
92.5
100.0
7.5
92.5
100.0
Table 114
Sets/Kits Company Shares 2008-2012
% retail value rsp
Company
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Beiersdorf AG
Others
Total
2008
2009
2010
2011
2012
7.3
3.9
6.1
5.2
6.3
4.0
7.1
7.0
8.4
5.8
4.0
84.7
100.0
3.0
85.8
100.0
3.2
86.5
100.0
3.5
82.4
100.0
3.8
82.1
100.0
88
Source:
Table 115
Sets/Kits Brand Shares 2009-2012
% retail value rsp
Brand
Company
Oriflame
Avon
Oriflame Kazakhstan
Avon Cosmetics
Kazakhstan TOO
Beiersdorf AG
Nivea
Others
Total
Source:
Passport
2009
2010
2011
2012
6.1
5.2
6.3
4.0
7.1
7.0
8.4
5.8
3.0
85.8
100.0
3.2
86.5
100.0
3.5
82.4
100.0
3.8
82.1
100.0
Table 116
Forecast Sales of Sets/Kits: Value 2012-2017
KZT mn
Sets/Kits
Source:
2012
2013
2014
2015
2016
2017
4,184.6
4,279.3
4,425.7
4,645.3
4,909.2
5,167.9
trade sources
Table 117
Forecast Sales of Sets/Kits: % Value Growth 2012-2017
2012-17 CAGR
2012/17 TOTAL
4.3
23.5
Sets/Kits
Source:
trade sources
Table 118
Forecast Sets/Kits Premium Vs Mass % Analysis 2012-2017
% retail value rsp
Premium
Mass
Total
Source:
2012
2013
2014
2015
2016
2017
7.5
92.5
100.0
7.5
92.5
100.0
8.0
92.0
100.0
8.5
91.5
100.0
9.0
91.0
100.0
9.5
90.5
100.0
trade sources
89

Beauty and Personal Care in Kazakhstan

Transcription

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