Farmec bets on "cosmaceuticals"

The general manager of the Cluj-based cosmetics manufacturer Farmec, Liviu Turdean, says Romanians” cosmetics consumption habits will see dramatic changes over the coming years.

The Farmec official says once living standards increase, there will be an expansion of the market segment made up of cosmetics consumers with above-average incomes, for whom quality will be the most important factor when purchasing products.

“The market for products known on the European market as “cosmaceuticals” (cosmetic-pharmaceutical products), sold only through pharmacies, is also expected to develop considerably,” Turdean believes.

He added that, in addition, cosmetics consumers are set to shift towards sophisticated products offering supplementary benefits.

“We will witness market segmentation along complexion types, regions of the body, age categories, and anti-ageing, anti-cellulite and slimming products will see considerable growth,” Farmec manager also said.

Last year, the Cluj-based company derived turnover worth 16 million euros, and for this year the company”s officials expect this indicator to increase by 15%.

In order to successfully cope with changes in consumer behaviour and with market modifications to occur once Romania joins the European Union, Farmec will carry out a massive investment programme, which will exceed 20 million euros. To be implemented over four years, the programme is related to the development of production facilities and the opening of an administrative and production headquarters that will be entirely in line with European Union standards. The new industrial platform will be located in Dezmir, where the environmentally friendly deodorant plant currently operates.

More than two million euros will be earmarked this year for the modernisation and retooling of facilities and production space, for the purchase of new machinery and equipment, which should bring the company in line with European norms in the domain.

“In the same fields of quality and environmental protection, Farmec included in its short-term policy the construction of a cleaning and treatment plant for industrial and household wastewater, to become operational by yearend,” said Turdean.

According to him, the company will this month be evaluated by European environmental protection commissioners, who will inspect the deodorant bottling factory in Dezmir, the raw materials warehouse and the unit manufacturing cream, lotions and shampoos.

The results of the assessment will be included in the country report on Romania. The modernisation of the facilities will allow the company to launch new products onto the market.