Данные

Про Россию

Real GDP rose by 4.3% in 2010, but gains would have been even greater were it not for the severe drought experienced during the year. Moreover, there was a decreased unemployment rate in the country to 7.3% in 2010. Inflation is expected rise to around 7.4% in 2011. Unemployment is expected to ease to around 7.3%, down

from 7.5% in 2010. The economy is becoming more consumption-driven as the recovery gains strength. This

reflects a cumulative 45% rise in pensions and other policy support. Investment has recovered, but it is state-owned enterprises that are driving the economy while private business lags behind. The government is aiming to increase the disposable income of not only urban consumers, but also rural residents. To this end it is introducing various programmes aiming to improve social conditions and reduce poverty on a wider scale.

Общая информация о рынке\Тенденции

The Russian beauty and personal care market experienced healthy growth during 2010 (The Russian beauty and personal care market experienced healthy growth during 2010). On one hand, strong growth was underpinned by the vast number of new added-value launches. On the other, with increased purchasing power and returning confidence in the job market and the stability of personalfinances, consumers were willing to pamper themselves, purchasing products they could not afford during the

crisis.

With the recovery of spending power, consumers were shifting back to more expensive brands, which they gave up during the period of economic hardship. 2010 saw the introduction of new advanced and sophisticated products, leading to a wave of premiumisation. The premiumisation trend is expected to increase average unit prices.

The Russian beauty and personal care market is far from saturated, and expected to see a 4% constant value

CAGR over the forecast period. Sun care, baby care and fragrances are predicted to see the greatest increases over 2011-2015. The Consumer Confidence index demonstrated positive dynamics at the beginning of 2010.

The beauty and personal care environment is predicted to see a steady 4% constant value CAGR over 2011-2015, leading to sales worth approaching RUB469 billion in the latter year.

The highest increase in sales of premium products was registered in fragrances. Both men’s and women’s fragrances

enjoyed high demand, while premium skin care products and colour cosmetics, although increasing, have not

yet returned to pre-crisis volume levels at the time of writing. Leading premium brands such as Christian Dior,

Estée Lauder and Chanel increased their share of the beauty and personal care market in 2010.

The fierce competition between retailers will accelerate the development of beauty and personal care

market in the regions.

New direct players are expected to enter in the short term. One of the largest

German companies specialising in direct sales, LR Health & Beauty Systems, will enter Russian market in the

middle of 2011. The company registered its Russian subsidiary company, LR Rus OOO, which is expected to

generate sales of around RUB3 billion per annum by the third year. The company will offer a wide range of

fragrances, colour cosmetics and skin care products, making the competition among direct sellers even tougher.

The abnormal heat encouraged Russians to increase consumption of personal care products, with the highest growth demonstrated by bath and shower products and deodorants. Both categories saw current value terms increases of 11% in 2010. To some extent the summer weather also added value to skin care, which enjoyed growing demand for body and facial moisturisers and hand care products. As when faced with high temperatures and smog, consumers tend to use less foundation, powder and lip products.

The personal care market in Russia is gradually approaching saturation. Without heat waves deodorants and

bath and shower products are expected to demonstrate moderate volume growth rates averaging 1-3% annually