Strategic Move in Cosmetics Could Open the Way for Domestic Brands Worldwide

KUAD International Cosmetics Congress President Fuat Arslan stated that recognizing cosmetics as a strategic sector and providing incentives will strengthen domestic brands in international markets.

Fuat Arslan, President of the Cosmetics Manufacturers and Research Association (KUAD) International Cosmetics Congress, discussed developments in the Turkish cosmetics sector and the sector's objectives, providing information about the 9th International Cosmetics Congress to be held in Antalya on 15-17 December.

Arslan noted that the cosmetics sector market size in Turkey has reached USD 3.7 billion, with a target of USD 5 billion, and stated that the sector shows annual growth of 8-10 percent.

Arslan noted that they expect exports to reach approximately USD 2 billion by year-end, drawing attention to the fact that cosmetics is among the sectors that do not present a foreign trade deficit.

"Domestic brands have reached significant global market share"
Arslan said that Turkey exports to approximately 190 countries, explaining that domestic brands dominate the Middle East, Gulf countries, European and African markets.

Emphasizing that manufacturers have begun establishing a presence in the Russian market, Arslan stated, "We have begun entering the South American market, which we have been distant from. We believe this export potential will increase in the coming period."

Describing how global brands have increased their production volumes in Turkey and domestic brands have achieved significant global market share, Arslan noted that consumer expectations for cosmetics have changed in recent years.

Stating that products combining skincare and cosmetics are successful, environmental awareness in products is increasing, and consumers are particularly drawn to products free of chemicals and with clean ingredients, Arslan said, "Additionally, products formulated with natural ingredients derived from endemic plants, certified organic, are seeing strong demand."

"Discount campaigns should be balanced"
Evaluating the impact of consumer preferences on discount campaigns, Arslan stated that these campaigns keep the market dynamic but abnormal increases in campaign rates bring various risks.

Arslan emphasized that campaigns should be balanced, noting the following:
"It is very important that the perception of 'quality' is not damaged here. One of the areas consumers need to be careful about in campaigns is the product's ingredients. Consumer literacy on ingredients needs to develop. It is critical that consumers choose products suitable for their own skin type and expectations. Focusing only on campaigns can lead to purchasing products that are unsuitable for the skin or unnecessary."

Pointing out significant growth among domestic brands in the sector, Arslan explained that domestic manufacturers create volumes comparable to global brands. Noting that these brands have particularly developed in marketing, Arslan emphasized the importance of government support in international competition.

Arslan stated that companies in Turkey receive various support from trade fairs to personnel in many areas, using the following expressions:
"However, there is a serious tax burden. When we look at international markets, we encounter tax advantages. Recognizing cosmetics as a strategic sector and providing incentives in this direction will strengthen domestic brands in international markets. Turkey is in an advantageous position in terms of its young population, high production potential and qualified facilities. University-industry cooperation has developed recently and academics' interest in the cosmetics sector has increased. This enables good R&D work and the introduction of high-quality products to the market."

"The congress will bring together participants from many countries"
Arslan also addressed the topics that will be highlighted at the International Cosmetics Congress to be held in Antalya on 15-17 December.

Stating that participants from many countries are invited to the congress, Arslan said that consumer expectations will be addressed as a priority, as in every year.

Arslan reported that the congress was attended by approximately 1,000 people last year and stated that the event is recorded as the largest internationally organized congress in the world in this respect.

Noting that this is a development of pride for Turkey, Arslan recorded the following:
"This year's theme has been set as 'Holistic Cosmetics'. We are organizing a congress attended by academics, researchers, manufacturers and brands wanting to develop new projects, with education and presentations containing much information. Cosmetics is no longer a sector that can be managed solely from an aesthetic perspective. Beyond this, we need to develop different and holistic perspectives such as healthy nutrition, sports, genetics and psychological factors. If we can introduce the Turkish cosmetics sector to the world with a multi-faceted perspective, we will see that the sector becomes much more competitive in international markets in the coming periods. Additionally, we will discuss sustainability, which is common in our culture, more. When we can combine the sustainability practices of the past with today's technology, we can take steps that will put us at the forefront in the sector."

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