Cosmetics from PolandWhy Poland became the 6th exporter of cosmetics in EuropeWhy Poland became the 6 exporter of cosmetics in Europe

SPC House of Media

Warsaw, 25th September 2014

Who we are?Who we are?

SPC House of Media is the Polish advertisingagency We do PR media planning and buyingagency. We do PR, media planning and buying.

We run the Programme to Promote PolishgCosmetics Industry on Foreign Markets for thePolish Ministry of Economy.

Aleksandra Kretkowska – project manager ofAleksandra Kretkowska project manager ofthe Programme

History of the Polish industryHistory of the Polish industry

Did you know…

Helena RubinsteinHelena Rubinstein,

Max Factor,

dr Oscar Troplowitz (founder of Beiersdorf)

were all born in Poland (in: Krakow, Lodz, Silesia)?

History of the Polish industryHistory of the Polish industry

After the I World War • Blooming of the Polish industry• New cosmetic companies established (some are stillNew cosmetic companies established (some are still

operating today, e.g.: Miraculum, Loton)

After the II World War e e o d a• Nacionalisation of the industry• Pollena national “corporation” established• Poland became „beauty centre” for Central and Eastern y

Europe, exporting luxury brands to all neighbouring socialist countries

After the 1989 • Privatisation• New Polish companies established• Foreign corporations built or renovate their cosmetic factories

in Poland

Cosmetic branch todayCosmetic branch today

SIZE

• More than 3 000 cosmetic producers,

• Mixture of global cosmetic concerns, big & medium Polish producers and hundreds of small producers and boutique brands,

• Producers of all kinds of cosmetics (skin care make up and hair; mass market andProducers of all kinds of cosmetics (skin care, make up and hair; mass market and professional, luxury and affordable etc.)

• Additionally, also hundreds of R&D facilities: laboratories, research, chemical and biotechnological companies and finally packaging and container producersbiotechnological companies and, finally, packaging and container producers.

• Polish companies can base the whole production process in Poland – from the very first concept, through tests and research, to production and packaging right until the final productuntil the final product.

• 50% of the Polish market (38 mln consumers) of body and face-care cosmetics belongs to local Polish brands.

Cosmetic branch todayCosmetic branch today

KNOW HOW

• 100 years of experience, know how,

• Cosmetology and cosmetics chemistry taught on

different levels at 54 academic centres,

• Advanced R&D 25% of employees of cosmeticAdvanced R&D, 25% of employees of cosmetic

companies works in R&D departments,

• European Union standards.

FLEXIBILITY• Central location of Poland in Europe: creating a geographic and cultural bridge between the

markets of Western and those of Central-East Europe; very advantageous for the chain ofmarkets of Western and those of Central-East Europe; very advantageous for the chain ofsupplies, facilitating access both to clients and to the raw products used in cosmeticproduction.

• Employment costs in Poland still belong to the lowest in Europe.p y g p

Cosmetic branch todayCosmetic branch today

Top qualityTop quality,

competitive pricesp p

Export growth 2001 2011Export growth 2001-2011

*Source: Euromonitor, 2012

Export growth 2010 2013Export growth 2010-2013Steady growth of ~5% a year

*Source: GUS, Polish Central Statistical Office, 2014

Export positionExport position

Poland is the 6th cosmetic exporter in the EU:

1. France2. Germany2. Germany3. Italy4 Great Britain4. Great Britain5. Spain6. Poland

*Source: Cosmetic Europe Association, Eurostat, 2012

Export by regionsExport by regions

*Source: GUS, Polish Central Statistical Office, 2014

Export by countriesExport by countriesRussia 287 715 397 EUR

Top 20 t i

Germany 260 950 663 EUR Great Britain 244 533 983 EUR Ukraine 114 355 596 EUR Italy 101 358 255 EUR

countries in 2013

ySpain 98 925 579 EUR Hungary 96 557 245 EUR Czech Republic 90 524 130 EUR France 79 659 053 EUR a ce 9 659 053 UTurkey 78 515 087 EUR Holland 73 915 945 EUR Romania 62 027 657 EUR Lithuania 41 949 976 EURLithuania 41 949 976 EUR South Africa 32 595 292 EUR Slovakia 32 166 754 EUR Kazachstan 32 058 775 EUR Latvia 28 173 399 EUR

*Source: GUS, PolishCentral Statistical

Office, 2014

Latvia 28 173 399 EUR Belgium 23 367 282 EUR Greece 21 965 585 EUR Denmark 21 132 061 EUR

,

The Promotion ProgrammeThe Promotion Programme

• Cosmetic industry was chosen one of 15 champion industries topromote Polish industry abroad by the Polish Ministry of Economy. Aspecial Promotion Programme for it was being established.

• The aim of the Promotion Programme is to promote abroad cosmeticproducers from Poland. The first edition takes place in 2012-2015. Morethan 50 companies takes part in it.Th bl h P li h N i l P ili h• The programme enables the Polish National Pavilion to appear at themost important world cosmetics fairs, such as: Cosmoprof, CosmoprofAsia, Beauty World Middle East, Intercharm, Beauty Eurasia…

• Polish companies also go on numerous foreign trade missions and to• Polish companies also go on numerous foreign trade missions and toseminars, as well as host foreign contractors and journalists in Poland(study tours).

• We also organize an international PR & advertising campaign for theWe also organize an international PR & advertising campaign for theindustry, and a portal: http://www.polishcosmetics.pl/en/ and manyothers.

Polish National PavilionPolish National Pavilion

Polish National PavilionPolish National Pavilion

Polish National PavilionPolish National Pavilion

Polish National PavilionPolish National Pavilion

Polish National PavilionPolish National Pavilion

Advertising campaingAdvertising campaing

www polishcosmetics plwww.polishcosmetics.pl

THANK YOU!

If you have any questions,

please do not hesitate to contact us!

Aleksandra KretkowskaProject Manager e mail: a kretkowska@spchouseofmedia pl

SPC House of Media 02 513 Warszawae-mail: a.kretkowska@spchouseofmedia.pl

tel.: 22 646 42 66 fax: 22 646 50 72 www.polishcosmetics.pl

02-513 Warszawaul. Madalińskiego 20/1Awww.spchouseofmedia.pl