Israel’s Cosmetics and Toiletries Industry The Israel Export & International Cooperation Institute – Consumer Goods Division The Israel Export & International Cooperation Institute (IEICI) IEICI is your key to the unique benefits of the Israeli industry and market. We offer assistance in forging corporate alliances and joint ventures We advise on trade in a world of borderless markets. The Israel Export & International Cooperation Institute (IEICI) We will assist you in establishing connections with Israeli companies via: • international exhibitions •trade missions •one-on-one matching •similar initiatives IEICI – Why us? Primary organization facilitating trade ties, joint ventures and strategic alliances between overseas businesses and Israeli companies Experience – the institution was founded in 1958 Representing and serving virtually the entire industrial community in Israel. Board of directors representing Israel’s leading exporters and economic organizations Background – What’s behind the masks The Israeli cosmetics industry owes its uniqueness and success to: Israel’s Natural resources – an abundance of sun and minerals Hi Tech beauty - advanced R&D combined with sophisticated manufacturing capabilities allow the local industry to offer diverse products for differentiated markets A Growing Industry Over 60 Israeli cosmetics and toiletries companies export to the world’s most demanding markets The majority of cosmetics exports: skin care products Another rapidly growing market in recent years: sun care products Dead sea – A Living Industry World wide acknowledged - The lowest point on the planet is home to one of the most therapeutic places known to man since Roman times Unique ingredients - Salts, Black mud and other rich minerals are some of the reasons for the success of the Israeli Cosmetics industry Scientific Research- from the minerals taken from the dead sea gave birth to nearly 50 cosmetic companies that base their products on these resources. Black mud- is know for its deep cleansing and skin stimulation effects. Refined and combined with additional ingredients, the mud has become one of the most popular product lines. salts Minerals extracted from the dead sea salts- including magnesium, calcium, chloride, bromide and potassium. These materials improve cell metabolism, stimulate circulation and repair cells naturally. Toiletries products Product lines range from diapers, toilette, and facial tissues Significant presence in the feminine hygiene market, dental care and shaving products. private labels and participation in international trade show account for the success of Israeli toiletries manufacturers. Toiletries – cause of success Israeli innovations paper- based products have had great success around the world R&D- Israeli companies invest significant budgets in R&D in this field Sun Sun Sun - care and skin protection. The sunny climate in the country gave birth to one of the most dominant driving force behind the Cosmetic industry R&D- Israeli companies invest significant budgets for R&D in this field. Customs? What customs?! Free trade – Israel has free trade agreements with the US, EU and EFTA. Duty Free entry- allows Israeli products to be more attractive to international manufacturers. Why Israel? Strategic location: Geographic proximity to Europe is a significant marketing advantage Low cost manufacturing: salary levels in Israel are lower than in Europe or in the U.S Why Israel? Creativity and flexibility: Israeli industry is known for its creativity, flexibility and capability to respond quickly to changes in customer needs. These capabilities make it a reliable partner for retail chains worldwide Maximum Effectiveness Israeli manufacturers- have maximized these properties to produce families of body care products aimed to the international market focusing on consumer’s demand for these exclusive benefits. Maximum Effectiveness Availability.- In addition to marketing via overseas offices and distributors, many cosmetic products can be purchased over the internet. Private labels – strict quality control and meeting production deadlines allow Israeli manufacturers to work successfully in the private label market. Thank You! Time for your questions and comments!