2023-05-31 08:54:18
The cosmetics industry has faced a drastic change over the past 10 years. Like the fashion and luxury industry, the emergence of social networks (and other types of digital innovations) is transforming the way consumers discover and buy cosmetic products, forcing marketing professionals to innovate in developing their strategies.
From the indisputable power of beauty vloggers to celebrities on social networks, the cosmetics industry is a unique landscape and marketing managers must master all aspects of it in order to succeed in boosting the visibility of their brand, increasing sales and build customer loyalty.
Cosmetics is a very dynamic, cosmopolitan industry with strong growth potential. Its high demand is linked not only to consumption, but also to the supply provided by national companies. A national offer that is increasingly asserting itself and gaining significant market share. But the market is still dominated by major foreign brands that are highly sought following by Tunisian consumers.
The fabric of stakeholders in the sector is expanding more and more, particularly with the establishment of new players, the modernization of industries and the possibility for laboratories to offer a Tunisian product with much more technicality in the active ingredients or formulations.
A turnover of 1.77 billion dinars
According to indicators, the cosmetics sector generates 1.77 billion dinars in turnover, or 1.6% of Tunisian GDP. It contributes to the creation of approximately 20,000 direct and indirect jobs.
The sector also generates export sales, but the coverage rate remains around 60% only.
Internationally, the global cosmetics market is expected to reach $863 billion by 2024, according to figures from analyst firm Zion Market Research. In 2020, online beauty revenue grew by 73% compared to 2019.
It is also a sector that suffers from an informal market, worth between 600 and 800 million dinars and heavy tax pressure. This is why professionals believe that the components of this sector must be developed, as well as know-how, innovation, manpower, raw materials, the many opportunities that organic products can offer. … It is also a matter of ensuring the improvement of the regulatory and normative framework, in addition to strengthening product controls.
The experts also call for a structuring of the companies, and this, by reinforcing the integration and the innovation of the latter. As well as other equally capital axes such as the development of exports, the strengthening of the support system.
These measures and many others will make it possible to promote the sector, its operators, its products and its added value and to achieve annual growth estimated at between 8 and 12% over the next ten years. Exports might record a 10% increase each year, as well as jobs by 7,000 to 10,000 within 10 years.
In addition, this sector faces some problems and risks that must be counteracted, such as ephemeral brand image, market saturation, overtaxation of inputs and outputs, etc.
Tunisia is increasingly monitoring the development of this sector. To this end, it has established partnerships with French companies and is committed to subcontracting and production work under license promoting the transfer of know-how between the two shores of the Mediterranean.
Constraints
It must be remembered that in 2020, operators have sounded the alarm regarding this sector, which is under heavy tax pressure. Indeed, and in addition to customs duty and VAT, a consumption duty of 25% affects both imported products and those produced locally and makes their prices inaccessible to ordinary citizens.
In addition, and without any convincing reason, perfume and cosmetics manufacturers are excluded from the benefit of the provisions of article 14 of law 2003-80 of 27/7/2003 which grants exemption from customs duty on imported raw materials.
Small businesses and craftsmen claim that they do not have the financial and logistical means to import the raw materials they need by themselves and resort to traders. The latter are subject to the highest taxation and the harshest procedures (technical controls), this affects the cost and affects the competitiveness of small operators who are, like other operators in the sector, faced with tough competition from the informal sector. and counterfeiting.
To this end, all the operators in the sector have requested the intervention of the public authorities to save the perfumery and cosmetics sector.
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