The Cosmetics Sector Will Grow Through Exports

While mandatory and discretionary spending declined due to the Covid-19 pandemic, opportunities are emerging for Turkey's cosmetics sector in terms of production and export potential in the coming period. The 16th International Cosmetics, Beauty and Hairdressing Fair – BeautyEurasia, has rescheduled to 25-27 November 2020 and continues preparations to bring together domestic and foreign participants and visitors with sector representatives. While containment measures taken across the world and in Turkey to control the Covid-19 pandemic have forced all sectors of the economy to transform their business models, Turkey's cosmetics sector experienced growth in both exports and imports in the first quarter. First-quarter 2020 exports registered at USD 445.8 million with a 3.3 percent increase, while imports also grew. Compared to 2019, first-quarter imports increased by 11 percent, with Turkey spending USD 250.2 million. With increased demand during the Covid-19 pandemic, the cosmetics sector, which includes cleaning and hygiene products, generated TRY 2.91 billion in total purchases in the first three months. As the sector prepares for the "new normal" under Covid-19 containment measures, the 16th International Cosmetics, Beauty and Hairdressing Fair – BeautyEurasia, one of the sector's most important events this year, has set new dates for 25-27 November 2020. Hyve Group continues full-speed preparations for the fair to be held at IFM - Istanbul Expo Center. BeautyEurasia will welcome participants under "new normal" arrangements.

"Rising demand in cosmetics and personal care shifts to Turkey"

BeautyEurasia Fair Director Filiz Mehmedova, noting that figures and consumer spending will have mid-term returns for Turkey's cosmetics sector, stated: "Turkey is an important producer country in cosmetics and personal care products. Many countries are trying to meet their increased demand from Turkey during the Covid-19 period. In the coming period, Turkey's production and export potential will be valued more highly. The sector will benefit positively from supply chain changes in the medium term." Noting two distinct trends in the cosmetics and personal care sector, Mehmedova said strong demand growth was observed for cleaning and hygiene products: "While the sector tries to increase production capacity in these products, it is turning to increased input supply from domestic and foreign sources. We can say manufacturing companies were positively affected by the crisis. On the other hand, demand is declining especially for personal care products. As mandatory spending increases, discretionary spending decreases. These product groups are trying to maintain sales through campaigns and e-commerce." Mehmedova recalled that the retail sector and the cosmetics sector within it first lost store sales opportunities through actual closures, and noted that the reopening process would see a controlled shopping environment. Mehmedova added that normalization would occur gradually, reaching the second half of 2021.

"Digital sales in the cosmetics sector could reach 50 percent of total sales"

Mehmedova stated that they expect online sales to become the most important sales channel for the cosmetics sector, saying that 50 percent of sales could be realized online in 2020. Drawing attention to this ratio being only 8.0 percent in 2019, Mehmedova continued: "Additionally, the controlled easing of Covid-19 measures and the first steps taken by barber shops, hair salons and beauty salons toward the 'new normal' expected to take effect in the economy as of June were influential. #OneOnOneWithOurStakeholders In our Instagram broadcasts, in our interview with Istanbul Barbers Association Chairman Şükrü Akyüz, we were reminded that after the first week of returning to salons, discipline in following the rules is important for the continuation of sector activities. These rules are also reflected in consumption particularly in terms of hygiene products and cleaning materials." The creation of new business, partnership and procurement opportunities is the primary goal at BeautyEurasia, supported by the Ministry of Commerce, where domestic and foreign buyers will meet sector representatives and the sector's largest fair in Eurasia will open its doors. The fair provides a productive platform full of activities aimed at discussing global and regional development areas of the sector, facilitating information exchange, and promoting new ideas and products. In 2019, the fair welcomed 367 participating companies from 33 countries and 11,786 visitors from 130 countries, increasing the number of international visitors by 51 percent compared to 2018. In 2020, these figures are expected to increase depending on market movements in the domestic and foreign markets.