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Europe: Natural Cosmetic Brands on Expansion Spree
A growing number
of natural cosmetic companies are building a pan-European presence by
entering new country markets. Established companies such as Korres
Natural Products and Melvita are opening concept stores across Europe,
whilst new brands are expanding distribution.
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Madara
Cosmetics, the leading natural cosmetics company in Eastern Europe,
has entered a number of new countries this year. The Latvian company
opened its first concept store outside its home country in Moscow in
January.
It is also expanding distribution in Western Europe and Asia. Madara
Cosmetics is looking to build a new manufacturing plant as it plans
to double production levels to meet burgeoning demand. The company’s
products contain locally sourced organic herbal extracts and are
certified organic. |
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Another
Latvian natural cosmetics company, bio2you, has started marketing
its products in Lithuania. The natural cosmetics are based on sea
buckthorn and are available in Douglas and Sarma stores. It also
plans to enter the Estonian market.
Burt's Bees, a leading American brand of natural cosmetics, is also
building a European presence. The brand is well-established in the
UK but has made little inroads in mainland Europe. This could change
as it enters new distribution agreements. Burt's Bees has signed an
exclusive distribution deal with Sephora retailers in France. Its
product range comprises lip balm, face wash, body lotion and various
creams.
An important new entrant is the fashion retailer H&M. It launched a
line of certified organic skin care products under the H&M brand in
April. The range comprises shower gel, body lotion, body scrub, hand
cream, and lip balm. The Stockholm-based company is rolling out
these products in H&M stores across Europe.
Established brands are however leading the expansion race. Korres
continues to open concept stores across Europe. The Greek company’s
portion of export sales has expanded from 15% in 2007 to 37% in
2009. Melvita is also on an expansion spree since it received
investment from L’Occitane in summer 2008. The French organic
cosmetics firm is proposing to open concept stores in various cities
that include London, Karlsruhe and Prague.
New entrants and established brands are expanding across Europe to
meet burgeoning consumer demand for natural & organic products. A
recent study by Organic Monitor finds European natural cosmetic
sales will approach EUR 2 billion this year. Although growth rates
remain healthy, competitive stakes are rising. Organic Monitor
expects successful natural cosmetic companies to be those who can
gain consumers’ mindshares as well as market shares.
Related Report:#1081-60 The
European Market for Natural Cosmetics:
Briefing & Outlook
Posted: July 5th 2010
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