Beauty and personal care continues towards saturation
Russian beauty and personal care continued with positive dynamics in 2013; however, the category graduated towards maturity. A large number of international companies already had a strong presence within Russian beauty and personal care and were developing mainly due to the expansion of modern retailing. The slowdown in the Russian economy towards the end of the review period had an impact on the wellbeing of the beauty and personal care industry. Consumers were becoming more discerning in their choices of cosmetics. Russian beauty and personal care recorded qualitative rather than quantitative development in 2013.
Premium beauty and personal care remains the most promising within a gradual slowdown
In 2013, there was a slowdown in growth of annual incomes in Russia. Such a situation, however, did not hold back the development of premiumisation within Russian beauty and personal care. Industry players that concentrated on the development of premium brands benefited from increasing demand from Russians for high-value goods. Such items are perceived to be more effective and prestigious. These brands were supported by the rapid expansion of modern retailing channels, which allowed greater accessibility to such products in terms of both affordability and availability. Increasing knowledge about specific products and quicker information exchanges led to a greater desire for premium brands in the country.
Increasing concerns over appearance and personal hygiene support sales of cosmetics
Along with the development of modern technologies, there was increasing availability of electronic devices and a larger range of mass-media products, Russian consumers gained access to a greater amount of information regarding various subject matters. This led to greater education about the importance of personal hygiene for general health maintenance. This resulted in increased penetration of product types such as oral care, bath and shower, and deodorants, among others. With a willingness to follow beauty standards set by society, Russian women reacted quickly to changing trends and offers within colour cosmetics, hair care and skin care. These trends were most noticeable within major cities, where appearance has become a way of portraying a particular social status.
Direct sellers suffer from the expansion of modern retailing
Direct sellers continue to lose value share in 2013 under the pressure of a changing retail environment. The year 2013 was another of rapid expansion of modern retailing formats, where both mass and premium cosmetics could be found. This situation led to constant price promotions and thus a lower capability of direct sellers to compete with the partnerships of major retailers and manufacturers. The accessibility and convenience that direct sellers benefited from became less notable due to modern retailing formats making beauty and personal care products available in every store, even in remote areas of Russia.
Novelties will drive sales of Russian beauty and personal care products
Beauty and personal care is gradually maturing in Russia and thus companies will be forced to find additional marketing activities and develop more launches in order to attract consumers that are already knowledgeable about the products available. More developments within sophisticated aromas and ingredients are set to take place over the forecast period. The willingness for more convenience in the use of products will also result in greater challenges for the packaging industry. Premium brands will concentrate on promising greater efficiency, while mass-sales brands will switch to higher segmentation and constant revisions of the range of products. available.
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Discover the latest market trends and uncover sources of future market growth for the Beauty and Personal Care industry in Russia with research from Euromonitor's team of in-country analysts.
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The Beauty and Personal Care in Russia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Beauty and Personal Care in Russia?
- What are the major brands in Russia?
- How are sales of mass versus premium beauty products evolving?
- What are the key shifts in retail channel distribution?
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This industry report originates from Passport, our Beauty and Personal Care market research database.