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Beauty and Personal care industry in Russia
All regions which suffered a decline in sales of premium cosmetics in 2009, managed to recover last year. Eastern Europe almost returned to pre-recession levels of growth, as Russia’s economy improved and consumer spending recovered.
Non-store beauty sales outperformed any other retail channel on the back of strong direct sales and rapid internet growth. Internet retailing alone grew by 16% in 2010 adding a further US$ 2billion to total industry value.
Aleksandra Zacharova, Research Analyst at Euromonitor, discusses corporate strategies in the beauty and personal care industry in Russia. The Russian beauty and personal care market developed rapidly during the past decade. The premiumisation trend caused rapid growth, but that growth slowed down to almost nothing during the recession. With the increase of consumer confidence, beauty and personal care sales are on the rise and are close to reach pre-crisis levels
The Russian market has mainly recovered the impact of the Crisis in 2010 and will fully recover in 2011.
The Russian Beauty and Personal Care market is far to be saturated and is expected to increase a 4% value annual growth rate in the upcoming 5 years.
Niches category that will have the highest increasement forcast in the next following 5 years (2011 / 2015)
The Baby Care and the Sun Care categories are the two niches which increased the most in 2010.
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