Premium Beauty and Personal Care in Russia

PRE-COVID-19 PERFORMANCE

Premium beauty and personal care outperform mass ranges, with discounts on products encouraging consumers not to trade down in 2019

Premium beauty and personal care posted notably stronger current value growth than mass products in 2019. This can be attributed to a smaller number of promotions and less discounting in premium beauty and personal care, although discounts did still attribute to sales.

Fragrances and premium skin care lead sales, while the set/kit versions of these items decline in growth during 2019

The strength of premium brands was particularly apparent in fragrances in 2019, with consumer brand loyalty and a growing interest in niche and luxury fragrances reinforcing this trend. The higher sales share of premium fragrances can also be attributed to the exclusivity and higher quality of premium products.

Shiseido OOO and Clarins OOO heavily invest in marketing activity, while new product developments from the leaders focus on skin care in 2019

Second-placed player Shiseido OOO and fifth player Clarins OOO were among the most active players in 2019, managing to strengthen their position during the year, investing the most in support activities for their products. In 2019, Shiseido Rus OOO launched Shiseido Future Solution LX Legendary Enmei Ultimate Luminance Serum, which claimed to make face skin radiant, resilient, moisturised and luminous.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 14% in 2020 in 2019 constant value terms in light of the impact of COVID-19. Despite premium beauty and personal care outperforming growth levels compared to mass beauty and personal care in 2019, COVID-19 in Russia will impact growth for premium products more than mass products, in 2020.

Affected products within premium beauty and personal care

Sales of premium beauty and personal care products will suffer in 2020, through lockdown being in place, consumers spending more time at home and less time socialising, partnered with growing economic concerns.

Recovery and opportunities

With growth of premium beauty and personal care products predicted to record a significant decline in 2020 as a result of the COVID-19 pandemic, growth will recover in 2021, recording a positive result as consumers begin to feel confident purchasing premium goods. However, growth will be slightly higher in 2021, before becoming steady for the rest of the forecast period.

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