Russian Domestic Cosmetic Business Opportunity

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According to recent statistics, the steak of e-commerce transfer within the beauty market in Russia has by now been growing at the degree of 4-5% of general value. Google and Yandex, the expansion rate of search queries involved with cosmetics performs a mean determine of 25% annually, which means 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 principally cosmetics coming from Germany, France and Poland.

There are presently two major causes to on-line selling speedy development in Russia. The first one is numerous fake manufacturers working on Russian market tampering or imitating in style international brands, bought at lower costs. The second one is nicely-built logistics infrastructure which enables for folks from outlying districts a neater entry to well-identified manufacturers typically unavailable in native stores.

According to a common specialists' opinion, the Russian on-line cosmetic market is about to realize a price similar European throughout the subsequent 5-6 years.

Cosmetic market segmentation

The number of new beauty products showing on the shelves of Russian stores yearly is about forty seven thousand. Leading positions are traditionally held by known mass-marked manufacturers, such as Eveline, Avon, Faberlic and Ruby Rose. So known as middle-market manufacturers like Revlon, L'Oréal, Mary Kay, also are likely to steadily show a good perfomance, as well as luxury manufacturers like Chanel, Dior, Clinique or Givenchy.

As for international locations, France has traditionally been an undisputable chief in cosmetic export to Russia when goes to premium class cosmetics, skin care merchandise and perfumes. Second largest exporter is Germany, particularly in hair and body care and eco industries. Poland holds the seventh position exporting primarily make-up and wash substances. Within the previous few years, beauty goods originating from the US and Italy have also gained nice recognition in Russia, mainly as a result of aggressive advertising and promotional campaigns

Russia's largest epicenters of beauty market activity are, after all, Moscow and St. Petersburg. This is the place the biggest brands set up their new stores within the first place. The most relevant market positions here belong to L'Oréal, Procter&Gamble and Unilever Group, holding together a 30% stake in widespread market worth.
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The direct sales market of cosmetics has lately faced a noticeable decrease, aside from Avon, whose gross sales carry on performing outrageous numbers. The main cause to this conditions roots in a speedy development of newly set up chemist shops popping up here and there.

Cosmetics demand

Russia's most prominent segment of beauty market is hand&face care branch, pursued by make-up industry, which is alleged to be of day by day use for more than 90% of women aged above 18 years old. Hair dyes and styling substances are utilized by 55% and 43% of feminine population correspondingly. Eyelid and around the eyes care product gross sales have lately performed a promising growth by 9%. There's additionally been famous a brand new pattern of fixed exertion in males and youngsters cosmetic industry rivalry.

Domestic Russian cosmetic brands have also performed quite a lot of competitors against western producers, attracting increasingly clients by offering authentic products and artistic packaging design. At the same time a notable a part of Russian producers have a tendency to copy or inherit western greatest practices in order to persuade the domestic buyer to buy their products. For now, the market's biggest players are: Faberlic, Pervoe Reshenie, Kalina (taken over by Unilever in 2011), Svoboda. According to newest market research Russian prospects incline to decide on house manufacturers increasingly typically, even though the quality standards are nonetheless below European ones.        

private label cosmetics manufacturers in china like Olehana can also be offering many home beauty manufacturers to symbolize their very own product and canopy market requirement. Many small scale cosmetic business owner prefers private label cosmetic

Marketing and promoting

Within the final three years, there were solely the biggest players, such as L'Oréal, P&G or Unilever, who might afford related advertising budgets to continuously enlarge their market stake. Those three manufacturers combined generate roughly 50% of widespread advertising expanses in Russian beauty business.

As for promotion channels, television nonetheless stays the most well-liked advertising medium, which generates about 11% of common advertising revenue throughout the nation.

Recently, the more and more cosmetic manufacturers tend to extend energize their promotional push, noticeably growing their advertising budgets. The most prominent progress has been carried out by GlaxoSmithKline (+93%), Biersdorf (+68%) and Avon (+38%). Other brands are also looking for new methods to boost their impression available on the market. For instance, in 2012 L'Oréal arrange a Research & Development middle, where it not only exams its new products, but additionally offers common market and competition surveys in search for new potentialities for marketing and promotion. https://www.olehanarussia.com/ is the best answer for small enterprise proprietor in cosmetic trade.

Conclusion

Fyodor Dostoyevsky as soon as said: Beauty will save the world. And it seems that the female a part of Russian inhabitants has taken those phrases to coronary heart, what may be said after observing the sum of money they spend on cosmetics, particularly when in comparison with European consumers.

The disaster of 2014 barely introduced any impact on the cosmetic industry. Moving into 2017 and beyond, and observing the most recent developments appearing inside the Russian market of the sweetness business, we are able to say for positive that there nonetheless is loads of space for brand new European brands to present their merchandise, which are at all times welcome by the Russian inhabitants due to the assumption of western merchandise' prime quality and prestige.

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