Super Premium Beauty and Personal Care in Russia

PROSPECTS

Super premium fragrances remains largest value category, but important aspirational middle class consumers continue to search for greater affordability

Super premium beauty and personal care continued to record positive current value growth in 2019, driven by the largest category in value terms of super premium fragrances, with this trend predicted to continue into the forecast period. The greatest prevalence of super premium brands is also present in this category, with a growing interest in niche and luxury fragrances supported by the most affluent consumers, who continue to look to exclusivity and the higher quality linked to super premium products, while the trend for unisex fragrances was also evident.

Ongoing demand for super premium skin care despite highest unit price

The growing economic polarisation of Russian society continued to support demand for some super premium beauty and personal care products in 2019, as affluent local consumers are able to afford more expensive products and are willing to pay premium prices for luxury goods that they perceive to offer specific value. This trend supported positive current value growth for premium colour cosmetics, super premium body care and other super premium skin care products such as anti-agers.

Internet retailing holds highest share within super premium beauty and personal care, driven by demand for more affordable goods amongst middle class

With an increasing number of middle class aspirational consumers searching for more competitive prices in their desire to own super premium beauty and personal care, they continued to look to internet retailing in their endeavour to access affordable luxury goods. In addition, the trend amongst younger consumers to follow beauty influencers online through blogs and other social media platforms such as Instagram, makes it easy for them to click on an advertisement linked to the endorsement, taking them to a website where they can purchase the recommended product.

COMPETITIVE LANDSCAPE

Competitive landscape of super premium beauty and personal care becomes increasingly fragmented, driven by demand from affluent consumers for niche brands

Despite the long-standing reputations of established brands such as Chanel, Christian Dior, Givenchy, Yves Saint Laurent and Giorgio Armani super premium beauty and personal care became an increasingly fragmented competitive landscape, with leading players losing value share in 2018. While stronger performances were noted in terms of value share gain and strong current value growth amongst Givenchy, Guerlain, Burberry and Salvatore Ferragamo, affluent consumers are increasingly searching for more niche beauty brands that are less likely to be purchased by aspirational middle class Russians, as they look for products that offer them greater differentiation.

LOEWE collaborates with respected photographer to launch new advertising campaign

Spanish super premium fragrance brand LOEWE rebranded one of its collections, basing it on the relationship between nature and art. As a demonstration of this connection, the brand invited Finnish-American photographer Arno Rafael Minkkinen to convey the beauty of the illustrations produced by German artist Karl Blossfeldt using a new visual medium for its advertising campaigns.

Use of local celebrities from various mediums raises profile of colour cosmetics brands in Russia

Colour cosmetics witnessed some new developments in 2019, with Giorgio Armani releasing a set of miniatures, endorsed by actress Paulina Andreeva, who chose cosmetic products that she felt reflected her personal preferences. These included both best-selling products and new additions to the brand’s range for 2019 including Luminous Silk foundation, Eye Tint liquid eyeshadow in a number of shades, Lip Maestro lip gel in colour No.

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