Каналы распространения

despite the ambitious goals direct selling did not meet expectations, and saw only 5% growth in current value terms.

Over the review period health and beauty retailers increased their distribution share to 33%, with chained

players dominating in the largest towns. Rive Gauche, L’Etoile, Ile de Beaute and Douglas maintained their

leading positions in beauty specialist retailing. Three top direct players – Avon Products ZAO, Oriflame Cosmetics ZAO and Amway OOO –saw value sales increases of 5%, 5% and 1% respectively in 2010. It is estimated that the share held by direct sellers will decline slightly over the forecast period.

Due to rapid economic development the lifestyles of Muscovites are becoming more hectic and, as a result,

they are increasingly looking for convenience. In Moscow Internet retailing is developing rapidly, up to

40% value growth annually, according to industry sources. Distribution via the Internet in Moscow

accounts for a major proportion of total Internet distribution of beauty and personal care in the country. In

2010 Internet retailing enjoyed growing demand, with an increasing number of Muscovites opting to use the

Internet to purchase fragrances, colour cosmetics and skin care products.

Потребители

Russian women consider beauty products as necessities. The beauty and personal care consumer base

will grow as an increasing number of people start using niche products, such as anti-agers, medicated skin care

and men’s grooming products. Growing hygiene awareness and consumer education will drive sales of sun

protection and niche oral care products, such as dental floss and mouthwashes.

Consumers were more willing to visit beauty specialist retailers, attracted by glossy stands, various promotions and the possibility to obtain professional advice from the beauty shop consultants.

Consumers living in large cities often visited beauty specialist retailers with the purpose of spotting new

launches or, in general, as a way to spend some free time.

Consumers living in the largest city of the country are more open to innovations than their counterparts

living elsewhere in the country. The number of people using iPhones and smart phones in the capital

increased significantly during the year, for example. Beauty companies are trying to take advantage of this

and use mobile technologies to reach their target customers.

Будущие тенденции

With the improvement of consumers’ living standards, further premiumisation will be the most important trend,

which no company can afford to neglect over the forecast period. Consumers will become more demanding and

seek better quality products, greater sophistication and product cross-benefits. Manufacturers are likely to

increase investment in new product developments and product innovations.

Low-end domestic players will face increasing pressure to survive the tough competition posed by the

multinationals. Being unable to compete with multinationals, which hold advantages in terms of core

technologies and financial power, smaller local companies will focus on segments where domestic brands have

an advantage thanks to a longstanding reputation, such as baby care and skin care.