Spain in deep economic crisis
2009 represented a turning point in Spain’s healthy economic performance, with unemployment rising and growth deteriorating rapidly over the year. The Spanish government has responded to the economic slowdown with direct stimulus measures.
As a result of the downturn, spending on non-essential goods has dropped, hampering the performance of some beauty and personal care products sectors. Sales of higher priced items, such as fragrances, dropped in 2009, while growth in other major sectors, like colour cosmetics, slowed down significantly. At the same time, the crisis aided economy brands and private label, which recorded positive performances as a result of consumers trading down.
At-home treatments grow
According to Barometro Cosmobelleza 2009, almost 80% of beauty professionals did not expected their average service price or their business to suffer during the recession; however, most industry sources consulted showed that this was unrealistic, and most beauty and personal care product sectors recorded a poor performance, with the exception of oral care. Spaniards are struggling to maintain a balanced budget, applying many different compensation measures, such as changing the way and place where beauty therapies take place, with at-home treatments, which are usually cheaper, growing to the detriment of beauty salons.
L’Oréal retains its crown
L’Oréal España SA kept its leading position in the Spanish beauty and personal care market in 2009. However, the growing importance of private label resulted in the company losing some ground on the previous year. Its substantial investment in TV advertising campaigns, along with new product launches ranging from hair care to men’s grooming products prevented the company losing more share. Procter & Gamble España SA remained second in the ranking.
Spanish shopping habits
Traditionally, Spanish consumers have ranked value for money as