The Cosmetics Retail Industry in Lillesand: Current Status and Future Prospects

The cosmetics retail industry in Lillesand is a small but active sector with 6 registered companies. One of these, Iris Parfymeri AS, is the only one with operating results and employees. The industry has been marked by variations in sales and number of employees over time, with a decline in 2024 that was partially offset in 2025. This analysis provides an overview of the industry's structure, economic performance, and future opportunities.

Economic Trends

• Sales: Industry sales reached their highest level in 2021 at NOK 3.9 million, but fell to NOK 3.1 million in 2024 before a mild increase to NOK 3.2 million in 2025. Annual variations have been significant, with a decline of 17.7% from 2023 to 2024.
• Employees: The number of employees has varied between 4 and 5 over time, with a decline of 20% from 2021 to 2022. In 2023, there was a 25% increase, but no further development has occurred since.
• EBITDA Margin: The industry has a very low EBITDA margin of 1%, indicating thin profits and high operating costs relative to revenue.

Registered Companies

Lillesand has 6 registered companies in the cosmetics retail industry, distributed as follows:

Legal Form: Only one AS (Iris Parfymeri AS) is active with employees and operating results. The remaining 5 companies are ENK (sole proprietorships) without operating results or employees.

Geographic Distribution

All 6 companies are registered in Lillesand, but activity is concentrated in certain areas:

• Iris Parfymeri AS (AS) is located on Strandgata 13, a main street in Lillesand.
• The remaining ENK companies are distributed across addresses such as Kongleveien 10, Tingsakermoen 1, Birkelandsveien 661, and Engekjerr 36/18. These addresses are located in different parts of the municipality, but none of the ENK companies have reported operating results or employees.

Operational Dynamics and Bankruptcy Statistics

• Bankruptcy: None of the 6 companies are registered as bankrupt, indicating that the industry is not currently marked by economic crises.
• Company Dynamics: There is a high degree of company formation (5 ENK companies established after 2021), but also a low degree of stability. Only one AS has been active for several years, while the ENK companies were recently established and have no operating results.
• Development: Sales and number of employees have been unstable, with large variations from year to year. This may indicate an industry with high competitiveness and uncertain market adaptations.

Future Perspectives

• Stability: The only stable actor in the industry is Iris Parfymeri AS, which has been active since 1988. This may provide an advantage for new actors wishing to utilize existing infrastructure and market knowledge.
• Market Development: Sales declined by 17.7% from 2023 to 2024, but increased by 3.6% in 2025. This may indicate a gradual stabilization, but the industry still has low margins (1%) and high operating costs.
• Opportunities: With 6 registered companies and a small market size, there may be opportunities to develop in a competitive industry. SmartGrunder can help entrepreneurs analyze potential addresses in Lillesand for this industry, with a focus on natural distributions and market prospects.

The cosmetics retail industry in Lillesand is a small but active sector with a single stable actor (Iris Parfymeri AS) and several recently established ENK companies. The industry has been marked by variations in sales and number of employees, with a low EBITDA margin of 1%. Future development may depend on the ability to improve operational efficiency and utilize existing market structures. SmartGrunder can help entrepreneurs explore opportunities in the municipality.