Super Premium Beauty and Personal Care in Russia

PROSPECTS

Increasing price sensitivity and longer promotional periods hinder sales

Both in 2017 and 2018, retail value sales growth in super premium beauty and personal care was limited by ongoing price sensitivity among middle class consumers, who tended to economise. The importance and duration of discounts increased as these were used more often by leading retailers and producers to attract price-sensitive consumers.

Polarisation becomes more prominent

Consumer demand continued to polarise in 2018. On the one hand, some middle class consumers continued to economise and searched increasingly for discounts and special offers.

Innovations drive growth in super premium skin care

In 2018, skin care continued to be an area of focus within super premium beauty products for consumers and companies operating in the category. In recent years, Russian consumers increasingly sought the most effective ways to protect their skin and became more interested in new product developments.

COMPETITIVE LANDSCAPE

Fragmentation increases

Considering increasing mix effect and the growing popularity of niche offers, fragmentation in super premium beauty continued to increase in 2018. Despite the ongoing leadership of well-established and recognised beauty brands such as Chanel, Christian Dior, Givenchy, Yves Saint Laurent and Giorgio Armani among others, consumers increasingly sought something new and unique, which notably improved the positions of niche beauty brands.

Digitalisation a key trend in advertising

In recent years, the digitalisation trend affected beauty and personal care, as consumers increasingly used online platforms for reference and advice on beauty products. In particular, this trend influenced super premium beauty products advertising online – leading companies collaborated with micro bloggers, beauty influencers and brand ambassadors to promote their latest products.

Files are delivered directly into your account within a few minutes of purchase.