Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Marketing report Market for cosmetics and personal care products Emirates May 2014 Contents M Statement 1 2 3 4 5 6 7 Introduction UAE exports UAE imports Re-export Egyptian exports to market Emirati The most important countries for several pain War UAE market Market data: The most important features of the market Market size Purchasing power Price levels Promotional tactics Customs treatment 1 Page Number 3 3 4 5 7 8 13 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Outlets 8 The most important specialized exhibitions that are 16 held in this area in the UAE 9 The contact details of companies importing the 16 UAE 10 Recommendations 16 Marketing report Market for cosmetics and personal care products in the UAE I. Introduction: The UAE ranked first in average per capita spending on cosmetic products which amounted to $ 156, and the total size of the cosmetics market in the state five billion dirhams in 2013, and is expected to reach more than 6.5 billion dirhams by 2018. This is due to the high entry retail as well as local consumption patterns linked to climatic factors of the area, such as high temperatures and salinity in the water, which makes individuals more spending on personal care products. 2: UAE exports: Next statement shows the volume of exports UAE of the next item: Value in thousand U.S. dollars Item number: customs Description 33071010 Creams and shaving foam Other Personal deodorants, sweat and sweating inhibitors Scented bath salts and 33071090 33072000 33073000 Value 2010 2011 Value JanuarySeptember 2011 JanuarySeptember 2012 26 49 45 17 332 8800 79 49 16000 12000 17 13000 6600 6600 16000 2 13000 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi other bath preparations Depilatories Paper bags are scented and perfumed Fragrances and Beauty Water Preparations Beauty A & Accessories preparations and skin care preparations Care nails of hands and feet Preparations Hair Care 33079010 33079020 3303 3304 3305 Total 1000 379 258 0122 371 56000 120000 92000 64000 31000 44000 31000 39000 21000 40000 26000 124 758 227 107 174 352 34000 166 405 Source: Customs Emirates + Ministry of Economy - Previous statement to increase the value of exports from the UAE cosmetics products, personal care during 2011, reaching about $ 227.1 million compared to $ 124.7 million during the year 2010 and an increase of about 82%, while the value of exports fell the UAE during the period January - September 2012 compared with the same period of 2011, reaching nearly 166.4 million compared to $ 174.3 million, a decline of about 4.7%. Third: UAE imports: The statement follows the volume of imports from the UAE The following items: Value in thousand U.S. dollars Item number: customs Description 33071010 Creams and 10310 shaving foam Other 2000 Personal 86000 deodorants, sweat and 33071090 33072000 Value 2010 3 2011 Value JanuarySeptember 2011 JanuarySeptember 2012 10874 7600 10149 4800 138000 4000 100000 3400 112000 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi sweating inhibitors Scented bath 22900 salts and other bath preparations Depilatories 20800 Paper bags 15700 are scented and perfumed Fragrances 537 300 and Beauty Water Preparations 505200 Beauty A& Accessories preparations and skin care preparations Care nails of hands and feet Preparations 182800 Hair Care 1300000 33073000 33079010 33079020 3303 3304 3305 Total 22900 28900 23900 26000 18200 19900 14000 22400 16300 587 200 432 300 410 800 677000 501 600 524 500 184000 137000 139000 1600000 1200000 1200000 Source: Customs Emirates + Ministry of Economy - The above table shows increase in the value of imports from the United Arab Emirates items mentioned in 2011, reaching nearly $ 1.6 billion in 2011 versus $ 1.3 billion in 2010 and an increase of about 23%, and worth during the period January-September 2012 about 1, 2 billion dollars unrealized value that achieved during the same period of 2011. - The most important items of imports, the UAE during the period January to September 2012 in the Customs item number 3304 (or preparations Accessories Beauty and skin care preparations and preparations Care nails of hands and feet) where valued at 4 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi approximately $ 524.5 million compared to $ 501.6 million during the same period of the year 2011 followed by the Customs item number 3303 (Perfume and beauty water), valued at about 410.8 million compared to $ 432.3 million in customs and then the item number 3305 (hair care preparations) where amounted to about 139 million dollars against 137 million dollars during the same period of 2011 Then the customs item number 33072000 ( Personal deodorants, sweat and sweating inhibitors) where valued at approximately $ 112 million compared to $ 100 million dollars during the same period of 2011. Fourth, re-export: As previously mentioned numbers do not mean the previous statement mentioned that these imports are consumed in the UAE market, but are re-export to other markets, and the following statement illustrates the size of the re-export of these items: Value in thousand U.S. dollars Item number: customs Description 33071010 Creams and shaving 1200 foam Other 236 Personal 28400 deodorants, sweat and sweating inhibitors Scented bath salts 4900 and other bath preparations Depilatories 959 Paper bags are 4400 scented and perfumed Fragrances and 223000 Beauty Water Preparations Beauty 123000 A & Accessories preparations and 33071090 33072000 33073000 33079010 33079020 3303 3304 Value 2010 5 2011 Value JanuarySeptember 2011 JanuarySeptember 2012 956 638 2700 513 26600 461 20000 594 28000 4900 5300 1900 1500 7300 866 4300 704 7500 240000 175000 199000 128000 96000 99000 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi skin care preparations Care nails of hands and feet Preparations Hair 38000 82000 Care 3305 56000 77000 Source: Customs Emirates + Ministry of Economy Fifth: Egyptian exports: The statement shows the next volume of Egyptian exports of the following items: Value in thousand U.S. dollars Item Description number:customs 33071010 33071090 33072000 33073000 33079020 3303 3304 Value 2010 Creams and shaving foam Other Personal 69 deodorants, sweat and sweating inhibitors Scented bath salts and other bath preparations Paper bags are scented and perfumed Fragrances 36 and Beauty Water Preparations 258 Beauty A& Accessories 6 2011 Value JanuarySeptember 2011 JanuarySeptember 2012 - - 1 191 141 0.19 174 991 888 3 0.98 0.98 - 36 0320 3 838 596 961 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi preparations and skin care preparations Care nails of hands and feet Preparations 3300 Hair Care 3663 3305 Total 5800 4000 6000 7856 5626 7142 Source: Customs Emirates + Ministry of Economy The value of Egyptian exports of this sector of the market through the United Arab Emirates in 2011 compared to 2010, reaching about $ 7.8 million compared to $ 3.6 million, As evidenced by the initial increase of Egyptian exports of products of this sector of the UAE market during the period January-September 2012 compared with the same period of 2011, an increase of about 26.7%, reaching values of about 7.1 million compared to $ 5.6 million. The most important export item, which achieved an increase during the period January to September 2012 in the Customs item number 3305 (hair care preparations) where valued at approximately $ 6 million compared to $ 4 million dollars during the same period of 2011, followed by the item number 3304 where the customs value of approximately 961 000 compared to $ 596 000 dollars during the same period of 2011. Sixth: The most important exporting countries of the Emirati market: Customs 33071090- other item: - The most important countries of the supplier of the item Customs 33071090 for the UAE market 7 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Value in thousand USD January-September 2012 State Value Germany France England United States Turkey Italy Spain China Switzerland 1300 887 426 183 113 92 69 65 48 Customs 3307200- item: - personal deodorants, sweat and sweating inhibitors The most important countries of the supplier of the item Customs 33072000 for the UAE market Value in thousand USD January-September 2012 State Value Germany Argentina Indonesia France United States Philippines England Turkey Of Poland Italy 33800 18500 11400 10300 8700 7100 3900 2800 2400 1900 Customs 3307200- item: - personal deodorants, sweat and sweating inhibitors The most important countries of the supplier of the item Customs 33072000 for the UAE market Value in thousand USD January-September 2012 State Value 8 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Germany Argentina Indonesia France United States Philippines England Turkey Of Poland Italy 33800 18500 11400 10300 8700 7100 3900 2800 2400 1900 Clearance item 33071010 pastes and shaving foam: The most important countries of the supplier of the item Customs 33071010 for the UAE market Value in thousand USD January-September 2012 State Value Germany England Turkey France Switzerland Of Poland India Bulgaria Thailand Belgium 3500 2800 1200 767 300 289 270 208 131 131 Clearance Item 33073000: scented bath salts and other bath preparations The most important countries of the supplier of the item Customs 33073000 for the UAE market Value in thousand USD January-September 2012 State Value Germany Italy 8600 5100 9 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Of England a China United States France Malaysia Thailand India Greece 3900 1800 1200 739 598 453 210 119 Clearance Item 33079010: Depilatories The most important countries of the supplier of the item Customs 33079010 for the UAE market Value in thousand USD January-September 2012 State Value France Pakistan Italian A England Spain United States Germany India Of Poland Saudi Arabia 17000 1300 839 711 586 333 283 275 226 174 Item 2 0 330 790 Customs: Depilatories The most important countries of the supplier of the item Customs 33079020 for the UAE market Value in thousand USD January-September 2012 State Value England Thailand China Of Poland 1700 382 268 233 10 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Ireland France United States Germany Italy Philippines 192 182 141 115 108 80 Clearance Item 3303: Perfume and Beauty Water The most important countries of the supplier of the item Customs 3303 for the UAE market Value in thousand USD January-September 2012 State Value France United States Italy England Spain Switzerland India Bahrain Saudi Arabia Indonesia 202000 52300 47600 39400 17200 15200 9200 5100 3000 2600 Clearance Item 3304: Preparations A & Accessories Beauty and skin care preparations and preparations Care nails of hands and feet The most important countries of the supplier of the item Customs 3304 for the UAE market Value in thousand USD January-September 2012 State Value India France United States Germany Italy Thailand England 97500 97100 51700 48200 27000 26400 25300 11 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Spain China Of Poland 25300 23600 18600 Clearance Item 3305: Preparations Hair Care The most important countries of the supplier of the item Customs 3305 for the UAE market Value in thousand USD January-September 2012 State Value United States Saudi Arabia Germany France Spain India Italy Egypt Belgium Philippines 16400 14000 12500 12300 11600 11000 8500 6100 4800 4100 Source: Ministry of Economy UAE Seventh: market data: The most important features of the market: Can monitor the most important features of the market the United Arab Emirates through a number of actors in this market and that is the most important of which are as follows: It is an open market deals with all countries without restrictions cash / no quota system or imported goods is restricted or prohibited (except What hurts health and security). Strategic geographical location of the UAE are located in the heart of the Gulf and the continuation of the role that was played by the past as a hub for trade between the East and the Indian sub-continent with the space of transactions to include countries and geographic areas sprawling. 12 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi Near Emirates area serve market population of over three billion people (and is intended to market Asian countries - Gulf region - Commonwealth of Independent States - countries of Africa) and the presence of the means of transmission quick and direct with major centers in this huge market helped the state to play a major role in the field of trade re-export. Composition of the population in the state, where the proportion of Emiratis representing not more than 11.5% of the total population and the largest percentage of the citizen Asian (Indian - Pakistani - Iranian .....) and controls many of these nationalities in the style of business in a large number of installations in the UAE, which definitely affect the orientations of these facilities. Consumer multiple slides according to the combination of income and consumption habits that are different concerns from one slide to another as a result of the multiplicity of races and nationalities within the UAE market. The multiplicity of factors driving the purchase of a slice Consumer to another while characterized by a large segment of consumers Emiratis and Europeans and some Arab nationalities purchasing power of high interest factor of quality and brand as a motive for buying There is also also slides consumer of Asians who represents the price factor biggest motivation, mostly when making a purchase . The continuous increase in the number of population is expected to increase as the population of the Gulf region (including the UAE) from 30 million in 2000 to 60 million in 2030. The size of the market: The size of the UAE consumer market about 8.2 million people, according to estimates by the National Center for Statistics, represents Emiratis (who called Citizens) is less than a million by 11.5%, while a foreign state employees (who are called non-citizens or residents) ratio 88.5%. Acquires the emirate of Abu Dhabi, the largest percentage of the UAE citizens account for about 42.6% of the total, followed by 13 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi citizens in the Emirate of Dubai rose 17.7%, then the Emirate of at a rate of about 16.2%, followed by the rest of the other Emirates, which means that these three UAE concentration of about 76.5% of the total UAE nationals, which must be taken into account when targeting marketing slide for UAE nationals when marketing any product . Constitute the overwhelming majority of foreign residents in the consumer market, where Emirati numbering about 7.3 million, a rate of 88.5% of the total UAE population. Purchasing power: Characterized by the purchasing power of citizens to rise severe as a result of rising incomes, which have the UAE the highest average per capita household expenditure at the level of Arab countries, and that about 59 dollars a day, but it should be noted that in spite of the large size of the foreign communities in the market the consumer Emirati However, it should be taking into account the different purchasing power in accordance with the slice to which they belong. According to unofficial estimates represent the Filipino community the largest percentage in the number of foreign residents, followed by slightly ahead of the Indian community and then Pakistan, then Iran, then Egypt and then Jordan and the Palestinians, and other communities, and it must be noted in this regard that the Asian community represents the largest census in the UAE market. Due to link the purchasing power of income levels, we Will display The following are estimates of monthly income for families in the UAE, according to the consumer segments: The origin of the family Average monthly income Emirati family European family Arab family Asian family 54 940 37548 22100 16892 This and levels vary monthly incomes within each slice with an increasing low-income families in Asian than in other 14 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi segments, it also should be noted that about 72.7% of Emirati families more than the average annual income of 240 thousand dirhams annually. Price levels in the United Arab Emirates: Prices vary depending on the sale of these products brand and origin. Promotional methods: - Constitute the most important advertising promotional methods followed in the UAE to promote various products and during the period January-August 2013 the UAE has maintained the first position at the level of the Arab states in ad spending, valued at 3.9 billion dirhams, compared with about 3.8 billion dirhams during the same period of 2012 The growth rate was about 3%, for the same period of 2012 and was the most important means of advertising during the period mentioned in the order are: newspapers and outdoor advertising and road and then magazines, then the announcement of television and cinema advertisements and then finally the announcement on the radio. The means used for advertising in the UAE are as follows in order: Means ad Spending Percentage 2.1 billion 59.33% ads dirhams Foreign ad 576.1 15% banners million dirhams Magazine 524.1 13% ads million dirhams TV ads 469 million 12% dirhams Radio ads 124 million 3% dirhams Ads Cinema 102 million 3% dirhams - Constitute advertising by printing brochures and guides the most important promotional methods followed in the UAE and sometimes advertising in newspapers to promote the UAE Of these products by the Newspaper 15 Embassy of the Arab Republic of Egypt Commercial Representation Office Abu Dhabi big hypermarket stores, as well as specialty shops in these products , As these stores are in the work offers a price from time to time. Tariff treatment: - Granted imports from Arab Republic of Egypt at this time and under an agreement to facilitate and develop trade exchange between Arab countries, As for other countries it applies customs duty of 5% - Vendors: - T represents the most important in hypermarkets and shops including: Lulu Hypermarket, Carrefour, Abu Dhabi Association, and in addition to specialty shops in the sale of such products. Eighth: the most important specialized exhibitions that are held in this area in the UAE: The name of the exhibition Website of the exhibition Beauty world Middle East http://www.beautyworldme.com/frankfurt/51/forexhibitors/welcome.aspx Ninth: The contact details of UAE companies operating in this area of the (attached): Tenth: Recommendations: - There is a good opportunity for Egyptian products in that market, where Egypt occupies an advanced position in the list of countries exporting these products to the UAE market: Taking into account the quality of the products and price competition or presentations from time to time because the market is open in the UAE market these products and has a large number of brands. Interest in participating in international exhibitions held in the United Arab Emirates in this area and the above-mentioned table above and in which we can promote our exports, not only in the UAE market, but the neighboring regional markets. Intensification of promotional efforts through various means of propaganda and to provide the Office of Commercial catalogs and adequate information on the Egyptian production in order to be used in a promotion with him among importers Sincerely yours, First secretary of the trade " Noha Mahrous Ali " 16