Last week I presented at the HBA Global Expo in New York City at two sessions covering the BRIC markets. My first presentation took an in-depth look at the Russian personal care market, assessing the market size and segmentation, product trends, competitive landscape, and future outlook.
The cosmetics and toiletries market in Russia has changed tremendously over the last decade. It is one of the fastest growing countries in Europe and has skyrocketed ahead of both Italy and Spain to become the fourth largest market in the region (behind France, Germany, and UK), ranking 8th globally. High growth in GDP and real disposable income are key drivers behind this growth. Consumers have a higher purchasing power and are becoming increasingly savvy. They are becoming less price sensitive, choosing quality over price. Previously drawn to colorful packaging, Russians are now more interested in product ingredients and functionality. Products with natural and organic ingredients are growing in popularity.
We expect the market to continue to be dynamic in the years to come. If Russia continues on this growth trajectory, it will become the largest market for personal care products in Europe by 2013. The increasing wealth and purchasing power of the Russian consumers will boost sales of cosmetics and toiletries. Beauty retailers will continue to expand outside of the cities. Newly emerging channels like drogueries and mass merchandisers will gain ground. There are also many opportunities for private label, exclusive, and niche brands.
Stay tuned for the next blog entry on my second presentation, “Beauty Retailing in the BRIC Markets”.
Thank you for sharing!