Market analysis. Perfume Market in Russia: Record Production Growth

26.09.2019

The Russian perfumery and cosmetics market is one of the largest consumer markets in Europe and continues to develop dynamically. The volume of the European market for perfumery and cosmetics in 2004 was approximately 76.4 billion dollars. The Russian market occupies 8% of the European market and is in sixth place in terms of sales of perfumery and cosmetic products after such countries as France, Germany, Great Britain, Spain and Italy (Based on materials from RBC. Market Research and Symbol-Marketing agency, http://marketing.rbc.ru/news/index.shtml?2006/02/26/7126830 and http://www.sostav.ru/news /2004/11/17/ko2/)

In the last few years, the volumes of the Russian market have been growing, but the growth rates have been declining. Thus, in 2005 the market growth was 12.9%, in 2004 -19%, in 2003 - 20.3% (diagram 1). The volume of the market in 2005 reached 7 billion dollars, which is comparable to the volumes of European countries. According to Staraya Krepost, in 2006 the market amounted to about 7.9 billion dollars, and by 2009, according to experts, the market will grow by 40%.

Diagram 1. Dynamics of the volumes of the Russian perfumery and cosmetics market in 2000 - 2006, billion dollars *

http://www.salespro.ru/market/325 The perfumery segment of the perfumery and cosmetics market is the second largest and one of the most promising (diagram 2). Currently, the perfumery industry is one of the fastest growing in Russia, demonstrating growth of at least 20% per year.

Diagram 2. The structure of the perfumery and cosmetics market in Russia**.

The modern stage of development of the perfume industry began in the 90s, when French and Polish perfumes, mostly inexpensive, as well as toilet waters and colognes, were imported into Russia. Later, distributors moved production to Russia and created their own brands.
The growth of the population's solvency and the development of infrastructure contribute to the development of the market. In addition, Russians are the most active consumers of perfumes and cosmetics compared to Western consumers, in contrast to whom they are willing to spend a large share of their income on such products. Currently, domestic companies own about a third of the Russian perfumery market. At the same time, they are present mainly in the mass segment of the market, even pushing imports into it, and foreign manufacturers dominate in higher price segments.

The most dynamically developing Russian perfume manufacturers are Faberlik, C El Perfume, Triumph, Novaya Zarya, and others. These companies involve Western perfumers and designers in cooperation, use modern equipment and technologies.
At the same time, there is a tendency for domestic companies, which previously specialized mainly in the production of cheap perfumes (from $5 to $30 per unit), to move into the middle segment of the perfume market (from $30 to $50 per unit).
Experts expect strengthening positions of our perfume companies, which could try to compete not only in the mass segment, but also in the segment of selective perfumery (based on the article by Lilia Moskalenko “Perfume is not vodka”, Expert magazine, June 07, 2006, http://www .intercharm.ru/tendencies/index.phtm?id=846&anons=0&PHPSESSID=6fd78d4b). The Russian perfume market has several peculiarities. Thus, an important direction in the development of the market in our country is the promotion of "named" perfumes from the stars of show business, television and politicians. The annual growth of the market of "nominal" perfume brands in the Russian Federation is 20%, while the industry-wide index is 15%. The development of the "personalized" perfumery segment is facilitated by an increase in consumer demand for new products. Novelties in the perfume industry account for about half of the retail turnover, and this situation in the world is also typical for Russia.

The first "named" perfume brand in Russia was the perfume "Alla" from the singer Alla Pugacheva, released by the French company Sogo. Later, the brands Anzhelika Varum, Marussia by V. Zaitsev, Larisa Dolina, Mayor cologne by Y. Luzhkov, Valentin Yudashkin, Maria Sharapova eau de toilette, de Leri by the singer appeared in the segment Valeria and others.
One of the largest manufacturers of nominal perfumes in Russia is Kalina Concern OJSC, which produces Anzhelika Varum eau de toilette. Among foreign manufacturers of nominal perfume brands, Coty, Elizabet Arden stand out, supplying their products to Russia through a network of distributors (based on materials RBC, http://www.intercharm.net/tendencies/index.phtm?id=391&anons=0 and Elit-Galand LLC, http://www.informarket.ru/index.php?id_o=352).

In addition, the segment of elite products is gradually expanding in the Russian perfumery and cosmetics market. Now the share of this segment in the total turnover is, according to various estimates, about 15-30%, and in a few years it can reach 45% of the total volume of the perfumery and cosmetics market.
The peculiarity of consumption in Russia is that Russians are not inclined to save on beauty. Russian consumers actively use luxury brands, and the cost of expensive perfumes and cosmetics often does not match their income level. The growth of this market segment is achieved not only thanks to consumers with a high level of income, but also to those whose salary is at the average or even below the average level. Research shows that even those who cannot afford to wear such products every day often have a bottle of selective perfumes for special occasions.

At the same time, the rising standard of living of the population and the increase in the share of the middle class further contribute to the transformation of luxury brands into a product of mass consumption. The availability of luxury goods is also increased by retail chains that use discount systems that allow regular customers to save from 5 to 25% of the cost of goods (based on the materials of the Symbol-Marketing agency, http://www.sostav.ru/news/2004/11/17/ ko2, http://www.atlant.ru/opt/stati_2430.htm and http://www.atlant.ru/opt/stati_2308.htm).
Perfumery and cosmetic retail is developing most actively compared to the indicators for the market as a whole. Like the market as a whole, one of the most dynamic retail segments is also perfumery. Perfume distribution channels are currently being redistributed in favor of department stores, specialty stores, and convenience stores (drogerie) by withdrawing these products from open markets.

According to the Staraya Krepost EMG, department stores and specialized stores account for the largest share in the number of sales of perfumes and cosmetics (30% and 24%, respectively, Chart 3). These distributors actively fight for the buyer, using advertising and PR, as well as customer acquisition and retention programs.

Diagram 3. Shares of distribution channels in the Russian perfumery and cosmetics market*

*Source: article by Arkady Zarubin "Distribution of cosmetics and retail chains", ABARUS Market Research agency, http://www.salespro.ru/market/325.

The advantage of department stores for the consumer is the opportunity to buy everything you need in one place: food, cosmetics, household chemicals, clothes.
The share of open markets is declining: in 2003 they accounted for 20.4% of all sales, in 2004 - 16%, and in 2005 their share was 15%. Experts believe that the share of open markets will continue to decrease. This may lead to a drop in sales of Russian manufacturers who do not have enough funds for civilized retail.

With the advent of Western companies in our country, about 80% of the specialized retail sale of cosmetics and perfumery in Russia is controlled by its main magnates - Arbat Prestige, L'Etoile, ILE DE BEAUTE. Major market players are also: Douglas-Rivoli, Rive Goche (owned by the St. Petersburg company Perfume-Standard), Brocard (owned by the German Brocard Group Ltd.), Mak-Dak, Yuzhny Dvor.
The rest of the Russian perfumery and cosmetic retail belongs to non-chain players, among which there are large ones, such as Articoli, TSUM (Moscow) and Kalinka-Stockman (based on materials from Elit-Galand LLC, http://www.informarket.ru /index.php?id_o=352 http://www.salespro.ru/market/325).

The Arbat Prestige network consists of 28 stores, 20 of which are in Moscow, 6 in St. Petersburg, and 2 in the regions. This is the only chain in Russia that opens perfume hypermarkets with an area of ​​over 1,000 sq. m. m. Arbat Prestige has the largest selection of cosmetic and perfume brands - about 350 (diagram 4).

The network of perfumery and cosmetic stores "LEtoile" has 250 stores in 52 regions. The network brings together small stores with a more expensive range of products, but fewer brands: now 150 brands are represented in L'Etoile (Diagram 4).

"ILE DE BEAUTE" has 53 stores, 40 of them in the regions, 13 in Moscow. All major brands (260 brands) are represented in the network. In 2005, "ILE DE BEAUTE" showed the same high dynamics as "LEtoile"

Diagram 4. Number of brands represented in major retail chains of perfumery and cosmetics, pcs.*

* Source: article by Arkady Zarubin “Distribution of cosmetics and retail chains”, ABARUS Market Research agency, http://www.salespro.ru/market/325

According to the results of a study conducted by ROMIR Monitoring, these chains not only control a large market share, but are also the most popular among Muscovites (Diagram 5).

Diagram 5. Brand awareness of perfume chains in Moscow ***

http://www.sostav.ru/news/2006/08/24/1romir

Thus, 73% of Muscovites know Arbat Prestige, 58% know L'Etoile, and 13% know ILE DE BEAUTE. The shares of other network market participants do not exceed 10%. Most often, Muscovites make purchases at Arbat Prestige - 26% of respondents, L'Etoile - 8%, ILE DE BEAUTE and Ol! Good - 1% each (Diagram 6). Non-chain stores account for about 7%.

Diagram 6. Preferences for shopping in perfume chains in Moscow ***

*** Source: review "Perfume networks: Muscovites' preferences", research holding ROMIR Monitoring, http://www.sostav.ru/news/2006/08/24/1romir

51% of respondents answered that they had not used the services of perfume shops at all in the last three months, and 44% did not name the perfume chain they visited most frequently.
According to the results of a study conducted by ROMIR Monitoring, the main criteria for choosing a perfume chain are the quality of the goods - 41%, reasonable prices - 34%, convenience of the location of chain stores - 31% (diagram 7).

Diagram 7. Criteria for choosing perfume chains in Moscow ***

*** Source: review "Perfume networks: Muscovites' preferences", research holding ROMIR Monitoring, http://www.sostav.ru/news/2006/08/24/1romir

In addition, important criteria are: a wide range of goods (28%), the availability of goods that suit the consumer (25%), the professionalism of sellers (22%), as well as discounts, sales, convenience of locating goods on the shelves, previous purchase experience, availability discount cards, cozy, comfortable rooms, “brand name”/image of the store, recommendations from friends/acquaintances.

The third most important distribution channel for cosmetics and perfumery in the Russian market is direct sales, whose share among other distribution channels is 21.6%. (see diagram 3). This segment of the Russian perfumery and cosmetics market is dominated by four players: the Swedish company Oriflame, the American Avon and Mary Kay, and the Russian company Faberlic.

The creation and development of network companies is becoming a serious alternative to the classic distribution of goods through retail stores, especially since direct sales are traditionally stronger in the regions of Russia, where it is quite difficult to get high-quality cosmetics. The last year and plans for 2007 reveal a trend of promotion of perfume and cosmetic chains to the regions, so the consumer has a choice: to purchase products through catalogs of chain distributors or in stores (based on http://www.unikcom.ru/branding_261.html and articles Arkady Zarubin "Distribution of cosmetics and retail chains", ABARUS Market Research agency, http://www.salespro.ru/market/325).

Electronic sales of perfumery is a dynamically developing distribution channel. According to the National Association of E-Commerce Participants, growth in online sales in 2005 increased by 1,000% (from $0.8 million to $8 million). The Internet is not only a new distribution channel, it also provides an opportunity for quick communication with consumers, as a means of developing public relations and receiving product feedback.

The advantage of this distribution channel is the ability of manufacturers to offer large discounts by selling perfumes on-line, thereby increasing customer loyalty to the brand.
The downside is that a person purchases perfumes via the Internet only when he knows exactly what brand of perfume he wants. Purchases of novelties, as well as impulse purchases, are made in regular stores.
Currently, the problem of combining different assortment areas is relevant in retail. The most popular was the drugstore: a combination of perfumery and pharmaceutical business in one space. In large Russian cities, about 50% of sales in pharmacies today account for related products, and 4% of purchases of perfumes and cosmetics are made in pharmacies.

According to experts, despite the variety of distribution channels, the Russian buyer is not yet familiar with such stores that would fully meet his expectations. The factors of effective management should be the selection and training of personnel, the use of space, interior, ways of organizing goods, the policy of forming an assortment, as well as sales promotion at the point of sale (based on materials http://www.sostav.ru/news/2004/11/17 /ko2 and articles by Arkady Zarubin “Distribution of cosmetics and retail chains”, ABARUS Market Research agency, http://www.salespro.ru/market/325).

The dynamic development of the market and the growth of household incomes have a positive effect on the level and pattern of perfume consumption in Russia. A culture of consumption is being formed, certain priorities and preferences in smells are formed. According to research results, the target group is young people under 30, non-conservative, prone to novelty, following fashion trends. Many buyers actively get acquainted with the novelties of the market through electronic and print media, consult with specialists, visit specialized Internet resources and beauty salons. For effective promotion in the perfumery market, it is necessary to take into account the following factors that are important for the modern buyer of perfumery products:

1. Regular appearance of new products. So, at present, the House of Gucci is very popular, and all the smells of this brand that come out immediately fall into bestsellers.
2. Packing. The packaging of elite and luxury perfumes should be quite bright, elegant, and a gift option is also popular - packaging made of high-quality cardboard, on which beautiful, for example, gold, inscriptions are placed.
3. Advertising. Not only advertising in the Russian press is important, but also world advertising. Since representatives of the target segment travel a lot, they often read foreign magazines Voque, Elle, Marie Claire in the original.
4. Packing volume. In the initial period of sales, bottles of small volumes are sold much faster than large ones. In men's perfumery at the beginning of sales, the most popular position is 50 ml, in women's - 30 ml. After one or two months, when the smell becomes "accepted", the share of sales of bottles of large volumes increases, when the buyer wins in price.
In addition, such indicators as the fame and importance of the trademark, the quality of product design, which help the buyer to distinguish products from a number of competing brands, become important (based on the materials of Elit-Galand LLC, http://www.informarket.ru/index.php ?id_o=352).

According to the Russian Perfume and Cosmetic Association, by 2010 the average market growth rate will be 9.8%, and in 2011-2017. drop to 6%. By 2016–2017, the potential capacity of the Russian market will reach $15–18 billion. This growth is possible due to the increase in the welfare of the poor and their entry into the middle class. It is expected that the level of consumption in Russia will converge with the European one: an increase in living standards in the next 3-5 years will lead to an increase in the share of perfumes and cosmetics in the consumer basket, and this trend will go beyond large cities and will be noticeable in the regions as well. As a result, according to forecasts, the level of spending on perfumes and cosmetics in 2014 will approach $100 per person per year.

In addition, in the coming years, experts predict a gradual “blurring” of the division of the mass market into low, medium and high levels, the segment of mass cosmetics and luxury will remain. Some consumers will switch to the luxury segment, ensuring its steady development. Thus, the consumption of luxury cosmetics in Russia will also grow, but the annual growth rate will decrease with a change in the attitude towards perfumery and cosmetic products as status and impulsive purchases. The development of regional distribution networks is extremely important for the growth of the market. Drogerie-type stores, as well as the drugstore format, when perfumes and cosmetics are sold through pharmacy chains, are considered a promising sales format. New formats are gradually taking away a part of consumers from specialized mass-market stores. Every year, sales through open markets are becoming less and less important in the perfumery market. All this testifies to the formation of civilized trade formats in Russia, the approximation of the domestic market to world standards (based on http://www.business.dp.ua/cons/data/20060302.htm and the article by Arkady Zarubin "Distribution of cosmetics and retail chains" , ABARUS Market Research agency, http://www.salespro.ru/market/325).

Main conclusions:

At present, the overall perfumery and cosmetics market is quite large, and experts assess its development as very promising. The Russian market is extremely attractive for foreign players.
The development of the market of perfumery and cosmetic products is facilitated by the growth of the population's solvency and the development of infrastructure. In addition, Russians are the most active consumers of perfumes and cosmetics compared to Western consumers, they are ready to spend a large share of their income on such products. In particular, as a result of rising living standards of the population and an increase in the share of the middle class, there is a tendency for the gradual transformation of luxury brands into a product of mass consumption.
In the past few years, there has been a process of redistribution of perfume distribution channels in favor of department stores, specialty stores and convenience stores (drogerie) and a reduction in the share of open markets. The most intense competition for the buyer is among specialty stores and department stores, which is accompanied by high growth rates of advertising and PR spending, programs to attract and retain customers.
The main players in the retail sale of perfumes and cosmetics are Arbat Prestige, L'Etoile, ILE DE BEAUTE". According to research results, these companies are leading among buyers both in terms of recognition and in terms of the number of purchases made.
Gradually, Russian buyers are forming a culture of consumption. The market structure is becoming similar to Western and world standards. In this regard, distributors should pay attention to a clearer positioning and well-thought-out assortment policy, improving the quality of work with the consumer, recruiting and training staff, rational use of space, interior, ways of organizing goods, as well as sales promotion at the point of sale.

In search of fragrances in France, people walk through boutiques where perfume brands appear in all their glory. In Italy, the format of a face-to-face conversation with the seller is popular. In tiny shops somewhere in Florence, except for the buyer and the seller, no one can fit anymore, and on the shelves you can sometimes find rare niche or long-discontinued fragrances. Muscovites are too busy to choose perfumes, and we have almost no such stores. We are looking for places where there would be as much as possible and at once, so as not to run around a huge city and not waste time, which is already constantly going somewhere. Our format is perfume supermarkets.

TSUM

The main perfume showcase of the country

Photo: press materials

There is a lot of space here, which is why TSUM often hosts perfume presentations. No matter how you come in, someone treats you to champagne, and lovely young ladies distribute scented ribbons. TSUM has probably the most qualified consultants if you need their help. Often, limited editions of fragrances like Muguet Guerlain, which is released once a year on May 1st. Here are the fragrances of one of the oldest perfume brands Houbigant and young perky Ex Nihilo, beautiful stand amouage and of course corners Guerlain And caron. Of the minuses - prices. The discount program is interesting only for those who dress in TSUM.

GUM

Perfume "mass grave"


Photo: press materials

The first niche brands appeared in this store a long time ago. Since then, in GUM, a lot of interesting things are hidden in the corners, shelves and cabinets, and consultants can not always find everything themselves. GUM presents exclusive flavors Chanel And Cartier, colognes Dior, spacious shelf diptyque and a cozy couch Jo Malone. If you try really hard, you can find romantic scents. Jul and Mad, elegant bottles Majda Bekkali and heavy bottles Franck Boclet. Articoli is expensive if you don’t get there on the client day, but it is here that new items are brought before everyone else.

Rivoli

Young perfume chain in Italian style


Photo: press materials

Rivoli is the youngest perfume chain of two places: a democratic store in Tsvetnoy and a cozy salon in the Fashion Season shopping gallery. Here you can feel the Italian tradition, when the choice of brands is not accidental and depends on the taste of the owner. It may not match your taste, but it is there. There is nothing superfluous in the interiors, but everything is necessary and practical, spacious and full of air. There are discount cards. Perfumers often come to Rivoli to answer questions and sign autographs. hipster fragrances roads, provocative Nasomatto, respectable Xerjoff, unique candles Tiziana Terenzi search here.

Aromatheka

Sometimes an open closed club of perfume connoisseurs


Photo: press materials

Aromatheka could be called a perfume bar: after half an hour of conversation with a consultant or shop owner, you want to sit down, relax and drink coffee. There are brands in Aromathek that will never appear in big stores, because this is the real ideological niche perfumery. All the strangest, most complex, non-commercial appears right here - the work of the most talented modern perfumers, realized by the brand Parfums MDCI, unusual fragrant combinations from Provence Au Pays de la Fleur d'Oranger, the endless quest of the perfume inventor Pierre Guillaume Parfumerie Generale. At times, Aromatheka really turns into a bar when a private perfume club gathers in it. To get into it, you need to love spirits.

And six more places

Shops that are far from a tiny patch in the center are usually targeted. Aromas of the sorceress Nila Vermeer and crazy and yet unknown rocker Room 1015 you can only try in the boutique "May Fair" on Vorontsovskaya street, 26. Last year's sensation Russian Tea And Tango Masque Fragranze are now looking for Leform in Dmitrovsky lane or in "Afimolle". For an exclusive collection Serge Lutens, which is only in Moscow and Paris, built a store on Neglinnaya. Behind a very personal and layered perfume Mendittorosa Odori d "Anima you need to make a big detour to the side TDC "Novinsky". Natural perfumery from Russia Anna Zworykina Perfumes, the work of the famous American craftswoman Mandy Aftel Aftelier Perfumes and Canadian Ayala Moriel Ayala Moriel Parfums can be found in the store Asmodeus on Sokolnicheskaya Square. And it is most profitable to buy perfumes when they get to democratic perfume chains. "Ile de Beaute" And "Rive Gauche", although the most interesting is not found there.

The marketing research of the perfumery market reflects the market conditions prevailing in 2014-1 quarter. 2015

The report analyzes the competitive environment in the perfumery market. Based on a retrospective analysis of the development of the perfume market, trends in the development of consumer sectors and expert survey data, a forecast was made for the development of the perfume market until 2020.

Research content

Brief conclusions

Research Methodology

Description and classification

Section I. Perfume market: supply and demand

1. Characteristics of the Russian perfumery market in 2008-1 quarter. 2015 Forecast for 2015-2020

1.1. The volume and dynamics of the perfumery market in 2008-1 sq. 2015 Forecast for 2015-2020

1.2. The structure of the perfumery market (production, import, export, aggregate supply) in 2008-1 quarter. 2015 Forecast for 2015-2020

1.3. The volume and structure of the perfumery market by type/segment in 2010-1 sq. 2015 Forecast for 2015-2020

1.4. characteristics of competition in the market. Market shares of leading players

1.5. Significant events

1.6. Characteristics of the Russian cologne market in 2010-1 quarter 2015 Forecast for 2015-2020

1.6.1. The volume and dynamics of the Russian market of colognes in 2010-1 quarter. 2015 Forecast for 2015-2020

1.6.2. Cologne market structure (production, import, export, supply in 2010-Q1 2015. Forecast for 2015-2020

1.6.3. Key players, their volumes and shares

1.7. Characteristics of the Russian market of deodorants in 2010-1 quarter. 2015 Forecast for 2015-2020

1.7.1. The volume and dynamics of the Russian market of deodorants in 2010-1 quarter. 2015 Forecast for 2015-2020

1.7.2. Deodorant market structure (production, import, export, supply in 2010-Q1 2015. Forecast for 2015-2020

1.7.3. Key players, their volumes and shares

1.8. Characteristics of the Russian market of toilet and fragrant waters in 2010-1 quarter. 2015 Forecast for 2015-2020

1.8.1. The volume and dynamics of the Russian market of toilet and fragrant waters in 2010-1 sq. 2015 Forecast for 2015-2020

1.8.2. Structure of the toilet and fragrant water market (production, import, export, supply in 2010-1 quarter of 2015. Forecast for 2015-2020

1.8.3. Key players, their volumes and shares

1.9. Characteristics of the Russian perfume market in 2010-1 quarter. 2015 Forecast for 2015-2020

1.9.1. The volume and dynamics of the Russian perfume market in 2010-1 sq. 2015 Forecast for 2015-2020

1.9.2. Perfume market structure (production, import, export, supply in 2010-Q1 2015. Forecast for 2015-2020

1.9.3. Key players, their volumes and shares

2. Characteristics of perfumery consumption in 2008-1 quarter. 2015 Forecast for 2015-2020

2.1. The volume and dynamics of shipment of perfumery by Russian manufacturers in 2008-1 quarter. 2015

2.2. The volume and dynamics of consumption in 2008-1 quarter. 2015 Forecast for 2015-2020

2.3. The volume and dynamics of consumption by types and segments in 2010-1 sq. 2015

2.4. Balance of supply and demand

Section II. Perfume market: characteristics of domestic production in 2008-1 quarter. 2015 Characteristics of key manufacturers

1. Characteristics of the domestic production of perfumes in 2005-1 quarter. 2015

1.1. Characteristics of the domestic production of perfumery

1.1.1. Main manufacturers, their shares and production volumes

1.1.2. Volume and dynamics of production

1.1.3. Structure of production by regions of the Russian Federation

1.2. Characteristics of domestic production of colognes

1.2.1. Main manufacturers, their shares and production volumes

1.2.2. Volume and dynamics of production

1.2.3. Structure of production by regions of the Russian Federation

1.3. Characteristics of the domestic production of deodorants

1.3.1. Main manufacturers, their shares and production volumes

1.3.2. Volume and dynamics of production

1.3.3. Structure of production by regions of the Russian Federation

1.4. Characteristics of the domestic production of toilet and fragrant waters

1.4.1. Main manufacturers, their shares and production volumes

1.4.2. Volume and dynamics of production

1.4.3. Structure of production by regions of the Russian Federation

1.5. Characteristics of domestic perfume production

1.5.1. Main manufacturers, their shares and production volumes

1.5.2. Volume and dynamics of production

1.5.3. Structure of production by regions of the Russian Federation

1.6. Average annual capacity and level of its utilization

2. Characteristics of key manufacturers

Section III. Perfume Market: Factors Affecting Development

1. Macroeconomic factors

1.1. General economic situation in the Russian Federation

1.2. The level of well-being of the population

2. Industry factors, development of related and consuming industries, substitute goods

Section IV. Perfume market: characteristics of foreign trade operations in 2008-1 quarter. 2015

1. Volume and structure of imports and exports of perfumery by types

2. Characteristics of imports of perfumes to the Russian market in 2012-1 quarter. 2015

2.1. Characteristics of imports from the CU countries (Belarus and Kazakhstan)

2.2. The volume and dynamics of imports in 2008-1 quarter. 2015

2.3. Producing countries, leading supplies to the territory of the Russian Federation

2.4. The volume and structure of imports by manufacturing companies

2.5. Volume and structure of imports by brands

2.6. The volume and structure of imports by recipient companies

2.7. The volume and structure of imports by regions of the Russian Federation

3. Characteristics of imports of deodorants in 2008-1 quarter. 2015

3.1. The volume and dynamics of imports in 2008-1 quarter. 2015

3.2. Producing countries, leading supplies to the territory of the Russian Federation

3.3. The volume and structure of imports by manufacturing companies

3.4. Volume and structure of imports by brands

3.5. The volume and structure of imports by recipient companies

3.6. The volume and structure of imports by regions of the Russian Federation

4. Characteristics of imports of colognes in 2008-1 quarter. 2015

4.1. The volume and dynamics of imports in 2008-1 quarter. 2015

4.2. Producing countries, leading supplies to the territory of the Russian Federation

4.3. The volume and structure of imports by manufacturing companies

4.4. Volume and structure of imports by brands

4.5. The volume and structure of imports by recipient companies

4.6. The volume and structure of imports by regions of the Russian Federation

5. Characteristics of imports of perfumes in 2008-1 quarter. 2015

5.1. The volume and dynamics of imports in 2008-1 quarter. 2015

5.2. Producing countries, leading supplies to the territory of the Russian Federation

5.3. The volume and structure of imports by manufacturing companies

5.4. Volume and structure of imports by brands

5.5. The volume and structure of imports by recipient companies

5.6. The volume and structure of imports by regions of the Russian Federation

6. Characteristics of imports of toilet and fragrant waters in 2008-1 quarter. 2015

6.1. The volume and dynamics of imports in 2008-1 quarter. 2015

6.2. Producing countries, leading supplies to the territory of the Russian Federation

6.3. The volume and structure of imports by manufacturing companies

6.4. Volume and structure of imports by brands

6.5. The volume and structure of imports by recipient companies

6.6. The volume and structure of imports by regions of the Russian Federation

7. Characteristics of Russian exports of perfumery in 2012-1 quarter. 2015

7.1. Characteristics of Russian exports to the CU countries (Belarus and Kazakhstan)

7.2. The volume and dynamics of exports in 2008-1 quarter. 2015

7.3. Recipient countries of Russian exports

7.4. Manufacturing companies supplying perfumes for export

7.5. Foreign recipients of Russian exports

7.6. Regions of departure of Russian exports

Section V. Perfumery Market: Characteristics of Prices. Average producer, import and export prices

1. Average producer prices in 2010-1 sq. 2015

2. Average contract prices for imports and exports

Section VI. Perfume market: results and conclusions

Annex 1. Profiles of leading manufacturers

Annex 2. Financial and economic indicators of the industry

Information about the perfumery market

Domestic production of colognes in January-June 2013 increased by 6% compared to the same period in 2012.


Figure 1. Perfume market: production volume and dynamics

Perfume imports in 2012 increased by 11% compared to 2011. The increase in imports in value terms amounted to 8% compared to 2011.

Among the key supplier countries, leading perfumery imports to the Russian market in 2012 (in physical terms), the largest share fell on France (41.7%). The share of Poland was 13.8%, Sweden accounted for 7.3%, about 6% fell on Spain.


Figure 2. Perfume market: structure of imports by countries of origin in physical terms

In value terms, France accounted for the largest share in 2012, with a share of 57.2%. The UK share was 8.7%, Italy accounted for 6.9%, Poland's share was 5.6%.


Figure 3. Perfume market: structure of imports by country of origin in value terms

Product groups/segments:

  • deodorants
  • colognes
  • perfume
  • toilet and fragrant waters

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Perfumery and cosmetics market in Russia

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The Russian perfumery and cosmetics market is one of the most developing in the world. Its growth rates average 10-15%. It is one of the largest consumer markets in Europe . However, despite the rapid development of the perfumery and cosmetics market in Russia, there are certain difficulties in obtaining any information on the state of affairs in this area. We offer at your discretion an article reflecting our view on the state of the perfumery and cosmetics market in Russia today, as well as the success of Russian manufacturers in this area.

B The rapid growth of the perfumery and cosmetics market in Russia in the first 10 years of the beginning of the 21st century is justified primarily by the fact that in the 90s. of the last century, this market area experienced a deep decline in Russia. Once a journalist Andrey Dushyy in the article "" (magazine " Consumer"No. 7" 2001) wrote: "Alas, the Russian market today resembles a half-empty theater, where "actors" - both domestic and foreign firms - play a good play that there is no one to watch. In other words, no matter how our producers try to reduce prices, the vast majority of the Russian population cannot afford to buy high-quality cosmetics, perfumes and even hygiene products. Today, times have changed, but despite the fact that the market is quickly saturated with supply, the prospect for its development will remain for a long time. Anna Dycheva-Smirnova, Vice-President of the Staraya Krepost EMG, said in an interview with a representative of the daily information publication Ros-Business-Consulting (RBC) that the situation on the market of perfumery and cosmetic products in large cities is generally similar . Higher, in comparison with small towns, the solvency of the population and developed infrastructure create a favorable market situation, however, the potential of small towns is largely underestimated. According to Anna D.-Smirnova, the market is quite large and the development of this direction is very promising. The development of the market is also facilitated by the fact that the Russians are the most active consumers of perfumes and cosmetics, they are more than Western consumers, they are ready to spend a large share of their income on such products. Many analysts point out that today the Russian perfumery and cosmetics market is extremely attractive to foreigners. Moscow is becoming a "window to Russia" for Western companies. According to Anna D.-Smirnova's forecast, already in 2006 the growth of the perfumery and cosmetics market amounted to at least 10% (for comparison, the established European markets are growing by 2-4% per year), and the entire potential market volume in a few years can reach 14- 16 billion US dollars.

According to analysts, one of the promising The trends in the development of the perfumery and cosmetics market in Russia today are elite and luxury cosmetics, including selective cosmetics, children's cosmetics, cosmetics for men, anti-age cosmetics, SPA cosmetics and SPF cosmetics. Only in 2004 the selective cosmetics market grew by more than 19% and amounted to 1 billion 240 million dollars, in 2005 - by another 18%. The market of men's cosmetics, depending on the class of cosmetics, is growing annually in Russia by 7-19%. The segment of children's cosmetics in 2004 grew by 8-9% and amounted to $117 million compared to 2003, and in 2005 it was already $127.5 million. The market of anti-aging cosmetics is still small in volume and, according to analysts, is the most promising. In 2004, this market has already grown by 17.7% - up to 43.2 million dollars, and in 2005 its growth was more than 15%. The market of "our" cosmetics has also been developing quite successfully over the past few years. Great success has been achieved in the sale of cosmetics for skin care and hygiene products, including the bath line, through pharmacy chains. According to analysts' forecasts, in the future, pharmacy chains will outpace the growth of other distribution channels. At the moment, the share of specialized pharmacy chains, such as "Pharmacy Chain 36" 6 °, amounted to more than 25% of the Russian market and more than a third of the Moscow one.

another direction development of the perfumery and cosmetics market in Russia, according to experts, is the promotion to the market of "named" perfumery from well-known politicians, television and show business stars. So, for example, the volume of sales of toilet water "Zhirinovsky" in the season 2010-2011. estimated by analysts at $4-5 million. The first personalized perfume brands appeared in Russia in the mid-1990s, when the French company Sogo began producing Alla perfumes by singer Alla Pugacheva. Currently, in the segment of nominal perfume brands of Russian and joint production, there are such brands as Anzhelika Varum, Marussia by V. Zaitsev, Larisa Dolina, Mayor cologne by Y. Luzhkov, Valentin Yudashkin , eau de toilette "Maria Sharapova" (2005 release), "de Leri" from the singer Valeria and others. All over the world, personalized brands are now developing in all areas of the consumer market. Today, the annual growth of the market for nominal perfume brands in the Russian Federation is 20%, outperforming the industry-wide index of 15%. According to analysts, in 2005-2006. the turnover of this segment can reach USD 100-200 mln. High success rate development of a "named", branded direction in decorative cosmetics and fashion (clothes, watches, accessories).

The development of "named" (branded) cosmetics and perfumery is becoming even more relevant due to the increase in consumer demand for new products. Now the turnover of stores is half done precisely due to new products - this is the situation all over the world. Fashion trends in the world of fragrances, as well as in clothing, are now very different. At the same time, our customers have certain priorities in smells. More often these are young people under 30 who do not have aristocratic habits, and they prefer new, dynamic fresh scents, stylish and fashionable. For example, the House of Gucci is now very popular, and all the smells of this brand that come out immediately fall into bestsellers. An important factor for today's buyer is the packaging. For example, sample samples of Casual Friday, the fragrance itself is very good, but the packaging is made of tubular cardboard and looks like slide boxes. Today, this is an oversimplified concept. Elite perfumes and luxury perfumes should be a gift option - packaging made of high-quality cardboard, it should have beautiful, for example, gold, inscriptions. For today's buyer, advertising is also important, not only advertising in the Russian press, but also world advertising. As they travel, many people read foreign magazines Voque, Elle, Marie Claire and others in the original. The reality of our time - the fragrance comes to us in Russia earlier than in other countries. Now it already happens that new items appear first on the Russian market, and then on the French market, for example, Oblique from Givenchy. These are, as a rule, experimental fragrances, which are first of all launched on the American market or in Asia, and now in Russia, to see how they perceive not only the smell itself, but also its advertising image. Companies are testing new products so that they do not make mistakes in France.

There was another feature of sales - small volume vials sell much faster than the big ones. In men's perfumery, 50 ml eau de toilette is bought either a little better, or on a par with 30 ml. In the female volume of 30 ml, this is the most popular position in the initial period of sales. The bath line with a standard order takes no more than 20%. First, they buy a small volume and do not buy a bath line, not because they do not like the aroma, but out of a desire to "analyze" the aroma. When one or two months pass and the smell becomes "accepted", the share of sales of bottles of large volumes increases, when the price gain is visible. The period of acceptance of a smell is called the socialization of a scent, and under current conditions, for a novelty, it takes about two months. Although this period is often shortened in our country, because the fragrance has already passed in the West, and by the time it enters the Russian market, these smells are already known to our customers. Gradually, "our" buyers have a "culture" of consumption. The vast majority of buyers actively use electronic and to get acquainted with the latest market, consult with experts, visit specialized Internet resources and beauty salons.

Particular attention of the consumer is growing to the quality of products. Perhaps this is due to the fact that the problem of counterfeit goods on the Russian market has not been fully resolved. There are various expert opinions as to how serious this is. Thus, according to the EMG "Staraya Krepost", "gray" products in 2004 amounted to about $0.62 billion, i.e., approximately 10% of the total volume of the cosmetics and perfumery market. According to Rosbalt estimates, this figure is close to $3 billion, a large proportion of which falls on perfumery. According to the study "Analysis of the cosmetics and perfumery market in Russia", there is a steady trend towards a reduction in the share of counterfeit and "gray" products. Since 1997, the share of the "grey" market has been reduced from 80% to 30%. In 2004 it was already 10%, in 2008 - less than 5%.

I would like to clarify that the presence of an allergy to a particular cosmetic product does not at all indicate that the product is fake. There are several ways to protect yourself from "surprises" as much as possible.

    First, buy goods only in well-established stores.

    Thirdly, you should not blindly “lead” to a sharp decrease in the price of a product, which may indirectly indicate that the store simply needs to urgently sell it, because the product’s shelf life is coming to an end, and the expired product is fraught with less danger than a fake one.

Many buyers completely refuse Western cosmetics, believing that they will not fake domestic ones. Alas, this is a delusion. Recently, Russian manufacturers, as we have already said, have begun to "gain momentum" and their products can also be faked.

Among the successful manufacturers of "our" cosmetics and perfumes, including "named" perfume, we can distinguish:

    Concern "Kalina", which is engaged in the production of Anzhelika Varum toilet water, Black Pearl skin care cosmetics, Pure Line anti-aging cosmetics, and Little Fairy children's cosmetics;

    "NIZAR", a Russian company, a pioneer and recognized leader in the field of scientific development and production of the widest range of cosmetic products, SPA cosmetics, liposomal cosmetics (series " helix”), cosmetics using silver ions, as well as high-tech products for cosmetics. Using our own scientific developments, we have created a wide range of unique cosmetic products - from the famous cosmetic series based on perfluorocarbons of the "Blue Blood" line to elite lines of cosmetics (in particular, deCAROline), which have already earned high recognition in the world. The company has developed unique cosmetic semi-products, such as nizaspheres® and nizasilk®, which are widely used both in the production of cosmetics. The latest development is the anti-aging cosmetics "DeCAROline" based on aquamineral thermal water from the Karlovy Vary geyser springs.

    (2003) trade and production holding. Main directions: contract manufacturing of cosmetic products, mainly developments of Nizar Laboratories and creation of conditions for distribution in the regions.

    "NNIKOFF"(2004) is engaged in the creation and promotion of personal brands, fragrances from "stars". The company's portfolio includes such brands as Zhirinovsky, Rifle, Fujiyama, Monty, Darwin and others. market share of 17-18%.

    "Art Visage"(1997), the company is engaged in the development and production of Russian decorative professional cosmetics, distinguished by high durability, pigment intensity and versatility. Cosmetics "Art-Visage tm" is produced on the basis of technologies and raw materials supplied by the leaders of the world cosmetic market, technical equipment from the Italian company "Ve. Tra. Co. Srl."

The strengthening of the positions of these manufacturers has certainly been achieved through the implementation of the results scientific developments and product quality. The companies are a regular participant of the prestigious specialized exhibitions of cosmetics and perfumes "InterCHARM", "InterCHARM professional", "WorldParfum", "Consumexpo" and others. There is a growing trend in consumer preferences for domestic cosmetic products. However, the strengthening of these positions in the future may depend both on the quality of the design of the products offered, and simply on advertising support, carried out taking into account the preferences of potential consumers. As the marketing researches of EMG "Old Fortress" show, the situation on the market has already begun to change not in favor of the Russian manufacturer. This is due to the fact that prices for products of Russian enterprises are growing, while prices for products of Western production, on the contrary, are declining. The volume of sales of large stores has increased so much that it allows companies to directly enter into contracts with foreign manufacturing companies. The absence of intermediaries and distributors has significantly reduced the purchase cost of products. In addition, the intensification of competition between domestic and foreign firms resulted in the opening of large Western companies of their own production facilities (for example, Frenchi cosmetics) or representative offices in our country. At the same time, their number has increased significantly due to the arrival of new players, among them the well-known French chain Sephora, which opened a chain of stores in Moscow and St. Petersburg. Pharmacies are also claiming the title of market leaders, gaining more and more popularity in terms of the distribution of cosmetics for care and hygiene products. In the future, Staraya Krepost experts predict, they will outpace the growth of other distribution channels, increasing this figure by 20-25% annually. The competition between domestic and western producers of perfumery and cosmetics is intensifying. One of the main events of the past year was the launch of the Avon plant near Moscow. And even the traditional advantage of Russian cosmetics - low price - is beginning to be lost. Such indicators as the importance of the trademark (from the English - trade mark ™), the quality of product design, the popularity of the brand itself (brand-name) began to come to the fore, helping the buyer to distinguish the product from the row of equally competitive -ruyuschie brands. Now companies have to ensure that their name is a logical identification of the direction of the proposed products. A few years ago, few of us thought about the fact that brands can fight for the right to identify the concept of the proposed product. Today, such battles are not surprising, especially in those industries that are saturated with competing companies. And when an industry or some kind of production is just getting on its feet, brand promotion in such conditions automatically implies the “promotion” of the market segment itself.

Among the main trends in the development of the market, one can single out not only an increase in the number of niche brands, but also a change in marketing strategies and attitudes towards customers. One gets the impression that cosmetics manufacturers have set themselves the goal of wooing clients from dermatologists and beauty salons. Civilized retail continues to strengthen its positions. According to the results of 2010-2011. the number of sales of perfumes and cosmetics in Russia fell on the share of large department stores - 29% of the total volume and specialized networks - 23.7%. About 80% of the specialized retail sale of cosmetics and perfumery in Russia is controlled by its main magnates - L'Etoile, Ile De Beaute, Douglas-Rivoli, Rive Gauche, Podruzhka, Ol! Good ", Arbor Mundi. According to the DISCOVERY Research Group, as reported by the largest information holding of the beauty industry EMG " old fortress”, in the first half of 2012, the growth of the perfumery and cosmetics market was approximately 16% compared to the same period in 2011, thus, the market volume amounted to $5.69 billion. 18% of the perfumery and cosmetics market is perfumery. According to experts, in the first half of 2012 the volume of the Russian perfume market amounted to $1.024 billion. The volume of the perfume market in the first half of 2012 increased by 5% compared to the same period in 2011. Three foreign companies remain the leaders in terms of sales: L "Oreal, LVMH and Procter & Gamble. The top ten leaders in terms of sales in value terms traditionally include foreign companies: Estee Lauder Companies, COTY, Puig Beauty & Fashion Group, Shiseido, Chanel, Avon , Oriflame, Mary Kay Popular domestic manufacturers are Novaya Zarya, Faberlic Direct sales are the main sales channel for perfumes and cosmetics in the first half of 2012 Internet sales are growing rapidly The growth rate of the largest chains is not so high anymore .

These, in our opinion, are the main trends in the development of the perfumery and cosmetics market in Russia.

Review prepared by Natalia Lukyanova
based on materials from electronic and printed publications

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