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 but have not reached pre-crisis levels.
With the recovery of the economy, companies have put forth much effort towards unique strategies to succeed in the post-recessionary market. For example:
- L’Oreal managed to increase its share on the Russian deodorant market and strengthen its position on the men’s toiletries market with the launch of Garnier Mineral for Men.
- Amway, which earlier was operating only in the upper-mass price range market, introduced its more affordable cosmetics line Beutycyle, which helped the company to expand its business to the middle-price range market.