Dermocosmetics distribution channels become more diversified in Poland

10 Jan 2013


According to the latest report published by PMR, buy cialis ?Dermocosmetics market in Poland 2012. Development forecasts for 2012-2014?, in 2014 sales of dermocosmetics at pharmacies in Poland will be worth almost PLN 1bn (?245m). In 2012, in the wake of an increase in sales at the end of the year, the market could be worth as much as PLN 895m.


Difficulties on the pharmacy market in 2012

In 2010-2011 the economic crisis had a particularly adverse effect on the market covered by our analysis. According to industry representatives, asked specifically for the purposes of this report, we are experiencing gradual market saturation ? a wide range of products is duplicating formulas already existing on the market. Furthermore, the complicated legislative procedure (in comparison with those of other countries, rather than other kinds of products, e.g., drugs) does not make life for manufacturers and distributors easier. What is meant here is mainly the contradictory decisions issued by different institutions. Products available on foreign markets, in Scandinavia for example, can, as a result, be held up at the registration stage in Poland.

?In 2012 market growth was adversely affected by the provisions of the new Reimbursement Act, discussed at the beginning of this section. After 1 January 2012 the most significant change for the market subgroup in question was the ban on pharmacy advertising. As a result, at the beginning of the year some marketing tools such as promotional magazines and the offer of dermatological consultations disappeared from pharmacies. In addition, in the wake of the turmoil on the pharmacy market and a reduction in revenue from reimbursed drugs, many pharmacies are in a poor financial situation: for example, some have declared themselves bankrupt or refrained from implementing expansion plans. At present Poles are also spending more on drugs, reducing the amounts spent on dermocosmetics or choosing cheaper brands.? Monika Stefanczyk, Head Pharmaceutical Market Analyst at PMR, explained.

In summary, PMR estimates that for 2012 as a whole the growth rate will be negative, with a figure of approximately 2%, given an increase in dermocosmetics sales at the end of the year caused, in part, by Christmas gift purchases. In our opinion, in subsequent years, the market will adapt to the new legal situation, and more pharmacy owners may be interested in adding dermocosmetics to their product portfolios. The margins of these products could be 20-30%, and this could mitigate the negative effects of the Reimbursement Act. This optimistic approach might have been confirmed by the launch of new brands and products even in 2012, which was a difficult year.


12-13% annual increase expected in 2012-2013 online dermocosmetics sales

At the same time, the legislative chaos and lack of suitable support for pharmacy sales (in comparison with that described before) has caused manufacturers to prefer the online and beauty supply distribution channels. The vast majority of our respondents believe that there will be an increase in the value of the online dermocosmetics distribution market in Poland in 2012 and 2013.

Given the results of our survey, PMR forecasts that there will be a year-on-year increase of between 10% and 20% in online sales over the next few years, i.e. about 2.5 times the figure for sales at conventional pharmacies.

The latest PMR report, Dermocosmetics market in Poland 2012. Development forecasts for 2012-2014 was published by in December 2012?.




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