Go East: Good prospects for natural personal care

With the demand for natural cosmetics increasing in Hungary, the most important sales channels are the German drug store chains dm-Drogerie Markt and Müller. At dm, the private label Alverde and at Müller, the brand Annemarie Börlind is very strong. Rossmann also carries some natural cosmetic lines. In Hungary, Dr. Hauschka, Weleda and Logocos successfully sell their products there too, and the Latvian company Bio2You is also present on the Hungarian market. MediLine and Presto-Pilot in Hungary specialise in the distribution and promotion of natural cosmetics. 
(Picture: Presto Pilot presents natural cosmetics at Mueller)
 

So far, there are no organic food chains in Hungary, so suppliers have to look for different sales channels. Some conventional supermarkets and hypermarkets are starting to introduce natural cosmetics. Pharmacies are the main distribution channel for Dr. Hauschka. Where they are available is in small or medium specialised shops like the organic shop Bio Sétány at Mammut I and at the Élethaz Bio-Centre, both in Budapest. The health food store Nap-Ra Bio Bolt in Budapest (picture) and the vegetarian restaurant and shop Napos Oldal are further outlets for natural cosmetics; and http://www.provitamin.hu/ or http://www.biofamilia.hu, http://www.egeszsegbolt.hu/ and http://bolt.biopiac.info are examples of web-shops offering natural cosmetics.

MediLine Üzletház (see picture below) is the biggest organic and healthcare wholesaler in Eastern Europe. The company runs a cash and carry wholesale warehouse of close to 3,000 m² that stocks about 20,000 articles. This wholesale business supplies around 10,000 customers, with a few of them buying natural cosmetics. Most of those customers are located in Budapest. MediLine Üzletház Kft supplies about 4,000 organic products, of which most are foodstuffs. A few hundred certified natural cosmetics products are offered there - basically everything that can be found in Hungary except for the private label brands of the German drugstore chains dm, Rossmann and Müller and their direct imports - some of them supplied by Presto-Pilot Ltd.

Some of the lines offered by MediLine Üzletház are Agronatura, Alva, Bentley Organic, Coslys, Lavera, Urtekram, Weleda, Annemarie Börlind and Yalia. MediLine Üzletház Kft also imports and distributes some natural cosmetic brands besides being an important wholesaler. Their main import brand is the Dutch HennaPlus, which has not yet been certified organic. However, their Ecocert certification for shampoos is on the way and some of HennaPlus Hairwonder shampoos and the new hair colours already contain a large percentage of organic ingredients. MediLine Üzletház is also the distributor of Töpfer baby care and has just signed an agreement to distribute Dr. Scheller.

Presto-Pilot is a Hungarian trading company that was founded in 1990. In 2004/2005 they opened an organic product sales department. The organic and natural offer consists of foods, cosmetics and detergents. Presto-Pilot has been working as an exclusive producer for Davert Mühle for example since 2004 and has designed an own food brand called Glück. Products from Granovita, Primavita, Suncocret, Martin Evers, Eden and others are available too.

Since 2010, the company’s has focused on natural cosmetics and they have been making a big effort to sell their brands like Annemarie Börlind, Dado Sens, Logona, Sante, Farfalla and Dr. Organic. Sales of natural cosmetics started with Müller Naturkonzept and Douglas in 2010. The company is now the biggest player in the import and distribution of natural cosmetics in Hungary as they hold not only the Logocos brands (Sante, Logona, Fitne) but also Annemarie Börlind, Tautropfen, Dado Sens and Farfalla.

There is growing interest in natural cosmetics in Hungary, according to Presto-Pilot, and Presto-Pilot also generates interest by, for example, contacting lifestyle/glossy women’s magazines in order to increase their target groups. The content of the magazines is wide-ranging and here the company presents its products. Full support is given for each brand in the form, for example, of training, customer service, marketing and promotion in stores. Presto-pilot also informs and convinces consumers about natural cosmetics and explains the prices. (Picture: Organic shop Biocsemege in Szeged)

Conventional international chains sometimes consider companies supplying natural cosmetics as to be just another supplier and their conditions are tough, like listing fees, logistical issues, etc. Contacts with Müller, however, are excellent, which is very important, since they are pioneers in the distribution of natural cosmetics in Hungary, according to Presto-Pilot. 34 Müller stores have been supplied. A four-metre organic cosmetics corner was developed in 15 Müller stores in 2010. Having started in 2010, 18 Douglas stores are supplied with Börlind lines, and Auchan has been supplied in 12 hypermarkets since 2011 with Dr. Organic, Logona and Sante. Auchan bought the French hypermarket chain Cora, so the lines listed in Auchan will appear soon also in the seven Cora shops. In addition, Presto also supplies organic wholesalers as well as organic shops and web-shops.

Another producer in Eastern Europe that sells cosmetics in Hungary is Bio2You. This Latvian company, which is involved in the development and production of natural cosmetics, launched its organic cosmetics products in the summer of 2010 and received the eco-bio certificate issued by ICEA at the end of that year. All their products are certified, and as well as being on sale in Latvia and Hungary, the products are available in Poland, Bulgaria, Greece, Germany, France, Finland, Denmark, USA, UK and Taiwan. (Picture: Giving advise on the products is very important to the staff)

Bio2You’s products utilize the power of sea buckthorn. Bio2You offers a wide range of certified organic cosmetics, including organic sea buckthorn anti-ageing facial cream, eye contour, body yogurt, facial cleanser, skin toner, omega 3-6 skin antidepressant serum and much more besides. Apart from its organic skincare for adults aged 18-35, its anti-ageing line and super healthy sea buckthorn juice, Bio2You has recently launched organic sea buckthorn cosmetics for babies and toddlers (picture) that provide a care complex for children’s skin and hair. In September 2011, Bio2You was invited to include its products as a part of the “Everyone Wins” gift bags given to the EMMY non-winning nominees. The Everyone Wins gift bags were received by a number of celebrities at the event.

The Swiss company Weleda successfully sells its products to Hungary and other European countries. They supply the Czech Republic, Slovenia, Slovakia, Poland, Croatia, Romania, Bulgaria, Russia, Ukraine, Bosnia, Greece and Israel. Slovenia, Israel, Russia and Ukraine are especially strong partners. The company informs that growth in 2011 was about 10 % to 11 % for these countries. The products sold very well in drugstores and pharmacies in particular. In Hungary, turnover increased against a background of recession. About 60 % of turnover was achieved at dm, Müller, and Rossmann, where products are present in about 400 drugstores. In addition to these, 500 pharmacies and 50 organic shops carry Weleda’s products. The company is currently focusing on increasing its offer in drug stores and pharmacies.

The Czech Republic is also considered to be a good place to sell in Eastern Europe for Weleda. Despite difficult market conditions, turnover has been increased. Natural personal care products and organic cosmetics are sold in about 300 drugstores and 500 pharmacies and specialised stores (mainly organic shops) in the Czech Republic. With products selling well in drugstores and pharmacies, the company is focusing on them and also larger organic shops. (Picture: Production of argan oil for Weleda)

The German natural cosmetics company Logocos products are available in Hungary, Bulgaria, Czech Republic, Poland, Slovakia, Romania, Serbia, Macedonia and Slovenia. The most important partners among these countries are Romania, Hungary and Slovenia. The company noticed a clear trend in those countries for natural cosmetics, which is reflected in the rising sales figures. As people became more aware of natural cosmetics, demand was on the increase in 2011, according to company information. (Picture: Logona presentation at Harmónia in Budapest)

Logocos distributes its products through wholesalers who are also market leaders in the various countries. Logona, Neobio and Aquabio, for example, can be found in Hungary in Müller stores and therefore they reach a broad target group. Altogether, growth - especially in Hungary - is encouragingly positive. Sante has recently been introduced in Auchan stores in Hungary and, at the same time, in a pharmacy chain with about 45 branches in Romania. In the Czech Republic, a partner is opening a brand store.

Biokontroll Hungária deals with the certification of organic cosmetics in Hungary: it inspects and certifies Biola Biokozmetikai Kft. as the only Hungarian company with certified organic cosmetics products. The reason why Biola is the only organic cosmetics company is that Hungarian standards are very strict – at least 95 % of ingredients in organic cosmetics must be of organic origin to obtain certification by Biokontroll.

Biola was founded in 1990 as Biomed and spezialised in research and development for other companies. Later it started producing its own brands as Biola Naturcosmetics, and after the launch of a fully certified organic range it changed the company name in 2011 to Biola Organic Cosmetics. Biola offers a full range of natural products for professionals in the cosmetics sector (picture) and for end consumers (Naturissimo Professional/Naturissimo), certified organic articles (Biola Professional/Biola) and a biodynamic, Demeter-certified complex care range (Orgalys) for retail customers (see picture below). Its products mainly contain vegetables, fruit and herbs of Hungarian origin, are based on Hungarian research and development and are manufactured in their plant in Hungary. The ingredients are sourced locally whenever possible but they also come from Western Europe and, in the case of more exotic ingredients, from organic and biodynamic farms abroad.

Biola’s cosmetics are sold via several channels for different needs. The professional products require training and are supplied directly to cosmeticians, both in Hungary and internationally. The home care ranges are supplied to organic stores and some to traditional shops. Products are also offered via their online store. As of this year, the company is focusing on the international market, aiming for a mixture of wholesalers and, if necessary, direct supply to professional establishments. The company has started exporting its brands and is looking to develop the international market in the coming years.

Biola attends fairs in Hungary where it holds awareness-raising presentations that focus more on the whole idea of organic rather than on its products in particular. This year, the company attended Vivaness for the third time – its most frequent participation in an international fair. The company is also going to attend Natural Products Scandinavia, Beyond Beauty Munich, Beauty Wien and SPATEC this year. Next year Biola will again attend Vivaness/Biofach, and several other options are being looked as well.