The Opportunity of Doing Cosmetic Business

According to latest statistics, the steak of e-commerce transfer within the beauty market in Russia has by now been growing on the level of 4-5% of general value. Google and Yandex, the expansion rate of search queries involved with cosmetics performs a median determine of 25% yearly, which suggests over 7 million queries month-to-month. The hottest keywords used are: Chanel, Yves Rocher, L'Oréal, Lancôme and Clinique. On-line store bestsellers are largely cosmetics coming from Germany, France and Poland.

There are presently two primary causes to on-line promoting rapid growth in Russia. The first one is numerous faux brands operating on Russian market tampering or imitating popular international manufacturers, sold at lower prices. The second one is properly-built logistics infrastructure which permits for individuals from outlying districts an easier entry to well-known manufacturers often unavailable in local stores.

According to a typical specialists' opinion, the Russian on-line beauty market is about to realize a value similar European throughout the next 5-6 years.

Cosmetic market segmentation

The variety of new cosmetic products appearing on the shelves of Russian stores every year is about 47 thousand. Leading positions are traditionally held by identified mass-marked brands, such as Eveline, Avon, Faberlic and Ruby Rose. So called center-market manufacturers like Revlon, L'Oréal, Mary Kay, also are likely to steadily show an excellent perfomance, in addition to luxury manufacturers like Chanel, Dior, Clinique or Givenchy.

As for international locations, France has historically been an undisputable leader in cosmetic export to Russia when goes to premium class cosmetics, skincare products and perfumes. Second largest exporter is Germany, particularly in hair and physique care and eco industries. Poland holds the seventh place exporting primarily make-up and wash substances. Within the last few years, beauty goods originating from the US and Italy have additionally gained great reputation in Russia, mainly because of aggressive marketing and promotional campaigns

Russia's largest epicenters of beauty market exercise are, after all, Moscow and St. Petersburg. This is the place the biggest manufacturers arrange their new stores in the first place. The most related market positions here belong to L'Oréal, Procter&Gamble and Unilever Group, holding together a 30% stake in widespread market worth.

The direct gross sales market of cosmetics has lately confronted a noticeable lower, aside from Avon, whose gross sales keep on performing outrageous numbers. The primary cause to this situations roots in a speedy development of newly arrange chemist shops popping up right here and there.

Cosmetics demand

Russia's most distinguished section of beauty market is hand&face care branch, pursued by make-up industry, which is claimed to be of day by day use for more than 90% of girls aged above 18 years old. Hair dyes and styling substances are utilized by fifty five% and 43% of female inhabitants correspondingly. Eyelid and around the eyes care product gross sales have recently carried out a promising growth by 9%. There's also been noted a model new development of constant exertion in men and children cosmetic business rivalry.

Domestic Russian cosmetic manufacturers have additionally performed quite a lot of competitors in opposition to western producers, attracting increasingly more clients by providing original merchandise and artistic packaging design. At the same time a notable a part of Russian producers tend to copy or inherit western finest practices to be able to persuade the home customer to purchase their merchandise. For now, the market's biggest players are: Faberlic, Pervoe Reshenie, Kalina (taken over by Unilever in 2011), Svoboda. According to latest market analysis Russian customers incline to choose home manufacturers increasingly more usually, even though the quality requirements are still below European ones.

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Marketing and advertising

Within the final three years, there have been solely the biggest gamers, corresponding to L'Oréal, P&G or Unilever, who could afford related advertising budgets to continually enlarge their market stake. Those three brands mixed generate roughly 50% of common promoting expanses in Russian beauty industry.

As for promotion channels, television still remains the preferred promoting medium, which generates about eleven% of frequent advertising revenue across the country.

Recently, the more and more cosmetic manufacturers have a tendency to increase energize their promotional push, noticeably rising their advertising budgets. The most distinguished progress has been carried out by GlaxoSmithKline (+93%), Biersdorf (+sixty eight%) and Avon (+38%). Other brands are additionally in search of new ways to enhance their influence in the marketplace. For instance, in 2012 L'Oréal set up a Research & Development heart, the place it not only tests its new products, but additionally supplies common market and competition surveys in seek for new possibilities for advertising and promotion. is the proper answer for small enterprise proprietor in cosmetic business.


Fyodor Dostoyevsky as soon as said: Beauty will save the world. And it seems that the feminine a part of Russian population has taken these words to heart, what can be mentioned after observing the sum of money they spend on cosmetics, especially when in comparison with European shoppers.

The crisis of 2014 barely brought any impact on the cosmetic trade. Moving into 2017 and past, and observing the newest trends showing within the Russian market of the sweetness industry, we can say for positive that there nonetheless is loads of space for brand new European brands to present their products, that are all the time welcome by the Russian population due to the assumption of western products' high quality and status.