Make up from Serbia reaches Middle East – Nis-based Aura plans on penetrating new markets, 2014 might see first cosmetics line for men

(Photo: aura.co.rs)

Women in Serbia lead with the slogan “buy domestic” know that the quality of our cosmetics is not lagging behind the world trends. More beautiful sex abroad who tried cosmetics made in Serbia is also convinced of the same fact. In order to satisfy the nuances of taste from USA to Asia, some hundred staff of Aura, a company which has been producing cosmetics for already 18 years in Serbia.

Part from conquering markets of Montenegro, Bosnia and Herzegovina, Albania, Macedonia, Bulgaria, the Netherlands, Ukraine and Croatia, products of the Serbian company reached Asia in the east and USA in the west. But, this is not where it ends.

As Mila Litvinjenko says for eKapija, director of Aura, increase in export and new markets will be the priority in the upcoming period.

- Next year we are planning to show up as an exhibitor at the world’s largest cosmetics fair, Cosmoprof, and I am sure we will enter new markets. First of all, I am referring to Africa and Middle East, and perhaps India – Litvinjenko, who has recently been awarded “A flower of success for women-dragon 2013” for a breakthrough to new markets.

Aura for men

The annual production of Aura totals 500 units of cosmetics. "Surprise every time” is the company slogan. Therefore, year in year out, their loyal customers are always surprised with new products. During 2012, 12 new products were placed at the market and 15 out of 16 these new products planned for 2013, has already been at the market. This year, the company has generated a turnover growth of more than 10%.

- In 2013, Aura generated profit as planned so we will end the year with a production of some 6 million units, with a turnover growth of over 10%. We expect profit increase as well and in early 2014, which will be full of Aura’s surprises, we will know the exact figures.

One of them could be the first line of cosmetics for men. Apart from decorative cosmetics, Aura’s portfolio includes hair treatment products, baby creams and personal hygiene products and the reason why they have not started the production of cosmetics for man was, as Litvinjenko says, the fact that according to Aura’s criteria, the Serbian market was not ready for that kind of cosmetics.

- We were considering a line for man a decade ago but during these years we only figured out which products we would offer to men. If the analysis show the market in Serbia is ready, it is highly likely that in 2014 we will start the pilot program.

Keeping up with the world

Thanks to the acquired knowledge and adopted technologies, the company provides services to other cosmetics companies as well making private label products. Simply said, foreign companies only pre-pack products made in Aura under their private label name. It is mainly west Europe market where Aura is planning to position itself during the next year.

(Photo: aura.co.rs)

At the markets which already offer products of the Nis-based company, Aura is positioned together with the most famous world brands: Loreal, Max Factor, Maybeline, Deborah, Rimmel, companies whose marketing budgets are higher than the Nis-based possibilities.

When asked how they handle the competition, Litvinjenko answers:

- We manage it via innovation, flexibility and fast decision-making. Big systems are much slower and they need three times more than us to react.

Although it has significantly smaller marketing budget, when it comes to quality, Aura products do not leg behind the main products of large world companies. Raw materials for production of cosmetics arrive to Nis from Italy, France and Germany. They monitor technological innovations and color trends, formulations and overall design of cosmetics products can keep up with the world competitors.

- Our advantage compared to competition is that “all of our products work”, as we say jokingly. We keep up with trends and in our displays you can find everything that is current in Europe at this moment.

The company has had the ISO 9001:2003 certificate as of 2003 and they are expecting the formal implementation of the ISO 2276. This way, Aura will become the first cosmetics business in the region of ex Yugoslavia with this standard which has been valid as of June this year at the EU level.

High objectives

(Photo: aura.co.rs)

Up till now, Aura exported 15% which did not satisfy the company. Compared to 2012, they generated export increase of 25% this year through constant quality improvement and their best sellers were nail polish products, lipsticks, eye shadows, blushes and hair colors.

All section capacities are fully employed so Aura is planning production expansion. Their business space with a production section and a lab occupies 2.000 m2 and they are also planning to buy neighboring land.

- The idea of expansion has existed for a long time because our objective is to export 80% of our production. We are planning five years ahead so we hope that already in 2014 we will buy land and depending on our result, construction of a new section will start.

Aura has been building the leading market position since 1196. Together with branch offices in Macedonia and Bosnia and Herzegovina, it employs 80 people and already the second generation of the staff (children of employees) work in Nis-based cosmetics factory.

I.B.