According to the Russian Ministry of Industry and Trade, desire recent uncertainty around the rouble, Russia remains the largest beauty and personal care market in Eastern Europe, accounting for nearly 50% of the region’s retail value sales.
But market research giants Euromonitor International have noted that the sector is gradually maturing in Russia, and have stated that to stay ahead, cosmetics companies will have to start thinking outside the box.
“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,” analysts have noted.
L’Oreal is one brand pushing to find new opportunities in the region, having opened a dedicated research centre in the country in 2012, which recently published an overview of the market.
“As new populations are gaining access to cosmetic treatments every day, the almost infinite diversity of types of beauty is both a challenge and an asset,” the global beauty brand states in its ‘Heading to Russia’ study.
Anti-ageing is a key opportunity picked out, with L’Oréal’s report noting that youthful beauty is a form of social currency for Russian women, with make-up seen as an essential component of a perfect look.
“The wrinkles issue is the number one opportunity, with on average 63% of women being concerned (covering all age brackets: 16-65). 77% on average use at least one cosmetic solution to deal with this issue,” says the make-up manufacturer.
Confirming this brand confidence from L’Oreal in Russia, a report compiled by the Russia’s primary beauty industry trade show, InterCharm Moscow, recently predicted a stable or only slightly decreased pace of sales growth in Russia.
A shift towards more middle-market and mass-market products will make up for a slight drop in consumer enthusiasm for premium categories, the report observed.
It also suggested that the ever-lucrative naturals trend is set to offer an opportunity for cosmetics, with the report suggesting there will be a rise of the influence of those boutiques which specialise in natural cosmetics.