Cosmetic market – the Russian way 2019
In 2019 Russia still remains a region with consumer’s cosmetic expenses below average global level. Pressure of commonly low income keeps forcing customers to cut beauty budgets, however, the market of Russia as a whole, following the global trend, performs gradual growth. No blow-out bursts in sales, just stable step by step, percent by percent increase in sales of different kinds of cosmetic and beauty products. Does this mean Russian segment of cosmetic manufacturers seems to be a not so attractive direction to scope marketing and sales effort? Nothing can be more wrong!
Global dominants VS local players
Just like any other part of the world, cosmetic market of Russia is dominated by global Goliaths L’Oreal and Maybelline offering tons of moderately priced mass market products. Pretty much the same can we say about Nivea and MLM brands like Revlon, Mary Kay and Avon. Even though the lion’s share of demand goes to cheaper multinational products, there’s still a huge stake of masstige and middle+ class segment to compete for – and that’s what motherland originating brands are actually doing since the very beginning of the XXI century.
How local brands take over the market and what does packaging have to do with it?
To fly the level and earn bigger fan communities among local consumers, Russian brands have nothing else but offer distinguishing forward-thinking beauty care concepts. There appear brands placing quality of formula before average pricing, and this way winning their piece of market pie quite successfully. “Eco” is now a literally word of mouth, whether we’re talking about cosmetic products themselves or their packaging. All kinds of natural self-care products with formulas based on herbs, honey, barley, coal and berries authentically developed by local brands are gaining on popularity rapidly.
Consumers’ eco awareness in 2019 is closer to its apex as never before, so it’s not only natural composition of ingredients that matters, but equally the eco-friendliness of the packaging. We can say by our own newsletters and banners click rate, how dramatically the patterns of demand for packaging changed within the last 8-9 month turning away form design sophistication towards sustainability.
Want to be part of the market – reach towards middle class
In 2018 half of cosmetic industry turnover went for middle market sector represented by products with high percentage of natural components. Moreover in 2019 a 15% growth of the whole industry sales is expected. This way, a potentially perfect packaging offer for the Russian market is a reasonably priced, moderately designed packaging ecologically friendly to as much an extend as your technology can provide. What has yet made a buzz is sugar cane and recycled PE tubes by Witoplast and bio PET bottles Polipack. Additionally, cosmetics and care products for children and men, and a new generation of deodorants are coming in trendy this year, and distinguishing eco-friendly packaging for these kinds of products are going to be on top this year.