In this interview, Mr Adnan Imamović, CEO of VM2 COSMETICS, shares insights into the company’s successful expansion across Southeast Europe, its partnership with Cosnova, and the driving forces behind the popularity of brands like Essence and Catrice.
What is the background and core business of VM2 COSMETICS?
VM2 COSMETICS is a specialised company engaged in the distribution and promotion of makeup products, with a focus on affordable, high-quality brands such as Essence and Catrice. It was established as a joint venture with the German company Cosnova, a leader in the decorative cosmetics industry, ensuring a solid market position and a continuous focus on innovation in the beauty world. The growth and success of the Cosnova group are also impressive. Cosnova, a family-owned business entering its third decade, has seen significant growth. Their net sales reached €817 million in 2023. “The key to conquering new markets and achieving top sales results is understanding each market and having partners who have been in those markets for many years, as well as recognising new opportunities, applying Cosnova’s German business model,” says Imamović.
How does VM2 COSMETICS distribute the makeup brands essence and Catrice?
VM2 COSMETICS uses an extensive distribution network, including retail chains, drugstores, specialised beauty stores, and online platforms. Interestingly, all distribution for the countries we operate in is handled from Zagreb, enabling centralised and efficient logistics.
In which markets does VM2 COSMETICS operate, and what are their primary focuses?
VM2 COSMETICS currently operates in 10 countries: Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, North Macedonia, Albania, Kosovo, Bulgaria, and Romania. Our primary focus is on the countries of Southeast Europe, where we successfully offer innovative and affordable makeup products, with a special emphasis on a youthful audience seeking trendy and quality products.
What is the company’s approach to expanding into new markets, and what is their working philosophy?
Our approach to expansion is based on thorough market research and understanding consumer needs. We nurture a philosophy of close cooperation with local partners to adapt our products and marketing strategies to the specificities of each market. Flexibility and adaptability are key to our success. Employees are VM2 COSMETICS’ most valuable resource, and continuous investment in their development is the foundation of long-term success. The company is committed to creating a stimulating work environment and providing opportunities for the personal and professional growth of all employees. As I often emphasise: “If you’re not getting better every day, you’re becoming average.” This motto motivates us daily to develop, learn, and strive for excellence.
What are the key success factors for VM2 COSMETICS in selling the Essence and Catrice brands in regional markets?
Our success rests on product quality, affordable prices, and the ability to follow global trends in cosmetics. Additionally, continuous presence on social media and communication with our audience is key to building brand loyalty. Moreover, operating in 10 countries allows us to gain insight into different regional consumer needs and preferences, while centralised distribution from Zagreb ensures optimised logistics and fast delivery.
How popular are Essence and Catrice makeup brands in the markets where VM2 COSMETICS operates?
Essence and Catrice are trendy brands, especially among young people. Their combination of quality products and affordable prices provides them with a stable market position. In contrast, the regular release of new collections and products keeps consumer interest both globally and in the countries where we operate.
What challenges and opportunities does VM2 COSMETICS face in different markets?
Challenges include increasing global instability and changes in consumer preferences, but opportunities lie in expanding the range and introducing new, innovative products that appeal even to the most demanding consumers. Furthermore, the growing demand for sustainable and environmentally friendly products presents additional growth opportunities in the Southeast European markets.
What role do sustainable initiatives play in the company’s strategy and its brands?
Sustainable initiatives play a key role in our strategy. VM2 COSMETICS, along with the brands essence and Catrice, continuously works on reducing its environmental footprint by using eco-friendly materials in packaging and supporting cruelty-free policies. Our consumers in the region appreciate our commitment to sustainability, contributing to long-term brand loyalty.
