netrashetty
Netra Shetty
XPAC, formerly Export Packaging Company, is a provider of packaging services. XPAC offers five core services: sub-assembly, painting, kitting, packaging, and order fulfillment. XPAC also offers custom software development, expediting, and other value-added supply chain services. Founded in 1974, and headquartered in Milan, Illinois, XPAC has grown to approximately 2,000 employees[1] across 14 U.S. facilities
Market Demand
Italy is a large producer of fragrances and cosmetics, which includes several multinational cosmetic companies selling their products. Italy is also a large exporter of cosmetic and toiletry products. It exports mainly to France, Germany, United Kingdom, Germany, United States and Spain. Russia is also one of the most important emerging markets for cosmetics produced in Italy. The Italian Association of Cosmetic Industry (UNIPRO) reports that although exports are still significant, there has been a revival in the domestic market, which has had a positive impact on the growth of sales volumes as a whole. Italians still prefer to buy the best quality products they can afford, while possessing a more cautious attitude towards spending money on luxury items. While the Italian cosmetic market is highly competitive, it is open to new products, particularly those that are natural or contain natural active ingredients derived from plants and vegetable extracts.
Good potential exists for innovative products directed to problem areas (eg. facial creams for wrinkles, cellulite treatments, sun block and related protection from the environment, enriched lipsticks, etc.). Similar potential exists for cosmetic products aimed at non-traditional consumers such as men, children, and the elderly. Since Italy imports almost all its raw materials, it is possible to supply Italian manufacturers with ingredients such as aloe vera, lavender, and essential oils. There is an increasing market for men’s products as men have discovered the pleasure and the benefits of dedicating more to their well being. There are also good prospects for products that distinguish themselves from what is already available on the Italian market, e.g. tea-tree and eucalyptus-based products. An important factor is also the packing of the product. It must be of high quality and good design as Italians prefer products that are nicely packaged and creative.
Market Data
The Italian cosmetic market has registered a continued increase in sales reaching 9 billion euros in 2007. According to recent estimates provided by UNIPRO, exports of Italy’s cosmetics grew by 5.3 percent reaching a total of 2.25 billion euro, while imports increased by 4.5 percent totaling 1.43 billion euro with respect to 2006. Italy exports approximately 28 percent of its total turnover.
Hair and body care products continue to dominate the cosmetic industry. These two products make up 32 percent of the total marketplace. Facial care, make-up, and body hygiene products are the best prospect products for U.S. companies and 43 percent of the total cosmetics market is directly made up of these three different product areas.
Italian consumers seem to prefer more specialized channels for purchasing cosmetic products. The pharmacy channel for purchasing cosmetic continues to be the most lively as it increased 8.5 percent from the previous year. The pharmacy channel offers sophisticated products at a more affordable price to most consumers. However, the perfumery channel still remains an important aspect to the concept of beauty, although there has been a change in consumption to other channels due to the expensive nature of the products. The herbalist shop market is another major potential participant in the marketplace, registering an increase of 4 percent with respect to previous years. Consumers remain enthusiastic about the herbalist market due to its perceived value for money.
Suppliers
The following companies are distributing Italian and French cosmetic products in Italy:
Door and Channel - Top sellers in women’s fragrances
Armani - Number one in men’s fragrances
L’Oreal Italia Spa. - strongest in color cosmetics
Coty Lancaster Italia S.p.a.
Deborah Italia S.p.a.
Euroitalia S.r.l.
Eurocosmesi S.p.a.
Schiapparelli Pikenz S.p.a.
Market Issues and Obstacles
In order to be competitive in the Italian market companies should be prepared to heavily invest in promoting their products and brands. U.S. companies will need to be able to effectively promote their image and appeal to Italian tastes and fashion preferences. Packaging is also a key component. Products should be packaged in a well-presented, eye-catching fashion. In addition, to sell cosmetic products in Italy a U.S. company must have an Italian representative (either a subsidiary/representative office/agent/distributor/or importer) whose company is properly registered in Italy.
All ingredients used in cosmetic products are subject to stringent European and Italian regulations guaranteeing consumer protection. The Italian consolidated text of laws of the EU directive n. 2002/34 pertains to production and commercial distribution of cosmetics products in Italy. The decree laws are important, as they provide not only a new set of rules regarding production and distribution, but also a new definition of cosmetics. This definition allows for the recognition that cosmetics can have a role in the “protection and maintenance of the well being of the skin and related areas.” It is mandatory for a company importing U.S. cosmetic products to maintain a file or dossier containing all the information needed to evaluate the safety of the cosmetic product and prove its effectiveness.
Market Demand
Italy is a large producer of fragrances and cosmetics, which includes several multinational cosmetic companies selling their products. Italy is also a large exporter of cosmetic and toiletry products. It exports mainly to France, Germany, United Kingdom, Germany, United States and Spain. Russia is also one of the most important emerging markets for cosmetics produced in Italy. The Italian Association of Cosmetic Industry (UNIPRO) reports that although exports are still significant, there has been a revival in the domestic market, which has had a positive impact on the growth of sales volumes as a whole. Italians still prefer to buy the best quality products they can afford, while possessing a more cautious attitude towards spending money on luxury items. While the Italian cosmetic market is highly competitive, it is open to new products, particularly those that are natural or contain natural active ingredients derived from plants and vegetable extracts.
Good potential exists for innovative products directed to problem areas (eg. facial creams for wrinkles, cellulite treatments, sun block and related protection from the environment, enriched lipsticks, etc.). Similar potential exists for cosmetic products aimed at non-traditional consumers such as men, children, and the elderly. Since Italy imports almost all its raw materials, it is possible to supply Italian manufacturers with ingredients such as aloe vera, lavender, and essential oils. There is an increasing market for men’s products as men have discovered the pleasure and the benefits of dedicating more to their well being. There are also good prospects for products that distinguish themselves from what is already available on the Italian market, e.g. tea-tree and eucalyptus-based products. An important factor is also the packing of the product. It must be of high quality and good design as Italians prefer products that are nicely packaged and creative.
Market Data
The Italian cosmetic market has registered a continued increase in sales reaching 9 billion euros in 2007. According to recent estimates provided by UNIPRO, exports of Italy’s cosmetics grew by 5.3 percent reaching a total of 2.25 billion euro, while imports increased by 4.5 percent totaling 1.43 billion euro with respect to 2006. Italy exports approximately 28 percent of its total turnover.
Hair and body care products continue to dominate the cosmetic industry. These two products make up 32 percent of the total marketplace. Facial care, make-up, and body hygiene products are the best prospect products for U.S. companies and 43 percent of the total cosmetics market is directly made up of these three different product areas.
Italian consumers seem to prefer more specialized channels for purchasing cosmetic products. The pharmacy channel for purchasing cosmetic continues to be the most lively as it increased 8.5 percent from the previous year. The pharmacy channel offers sophisticated products at a more affordable price to most consumers. However, the perfumery channel still remains an important aspect to the concept of beauty, although there has been a change in consumption to other channels due to the expensive nature of the products. The herbalist shop market is another major potential participant in the marketplace, registering an increase of 4 percent with respect to previous years. Consumers remain enthusiastic about the herbalist market due to its perceived value for money.
Suppliers
The following companies are distributing Italian and French cosmetic products in Italy:
Door and Channel - Top sellers in women’s fragrances
Armani - Number one in men’s fragrances
L’Oreal Italia Spa. - strongest in color cosmetics
Coty Lancaster Italia S.p.a.
Deborah Italia S.p.a.
Euroitalia S.r.l.
Eurocosmesi S.p.a.
Schiapparelli Pikenz S.p.a.
Market Issues and Obstacles
In order to be competitive in the Italian market companies should be prepared to heavily invest in promoting their products and brands. U.S. companies will need to be able to effectively promote their image and appeal to Italian tastes and fashion preferences. Packaging is also a key component. Products should be packaged in a well-presented, eye-catching fashion. In addition, to sell cosmetic products in Italy a U.S. company must have an Italian representative (either a subsidiary/representative office/agent/distributor/or importer) whose company is properly registered in Italy.
All ingredients used in cosmetic products are subject to stringent European and Italian regulations guaranteeing consumer protection. The Italian consolidated text of laws of the EU directive n. 2002/34 pertains to production and commercial distribution of cosmetics products in Italy. The decree laws are important, as they provide not only a new set of rules regarding production and distribution, but also a new definition of cosmetics. This definition allows for the recognition that cosmetics can have a role in the “protection and maintenance of the well being of the skin and related areas.” It is mandatory for a company importing U.S. cosmetic products to maintain a file or dossier containing all the information needed to evaluate the safety of the cosmetic product and prove its effectiveness.
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