BW Confidential - Issue #8 - October/December 2011 - (Page 94)

Market watch: Russia Industry viewpoint Better days Three industry players talk about consumer habits, retailing, the risks and the potential of Russia’s beauty market by Yana Krupenina How is the market performing and what is your forecast for the rest of the year? Parfums Christian Dior Russia general manager Paul-Henri Duillet Coty Russia general manger Roman T erekhov PHD: In 2010, sales were very sound, both in terms of consumption and our cooperation with retailers. In general, we saw a double-digit growth in sales. In 2009 we saw a rather good performance because we were very aggressive in the market and this year we expect to advance further. RT: Consumption is slowing down, and the mass-market is growing faster than prestige. The largest gain is in the categories of cosmetics and skincare, and the weakest growth is in fragrances and toiletries. The overall growth in all price and product categories in 2011 will be around 5 to 8% compared to 2010. Fragrance may stay at the same level as the previous year, whereas color cosmetics and skincare could show doubledigit growth. EO: There are several key trends. For example, deodorant sprays are seeing an upturn for both men and women, while liquid soap and liquid shower items are progressing strongly; these products are slowly but surely taking market share from bar soap, although the latter still remains dominant. There are two trends in haircare. On one hand, more massmarket brands are launching salon-quality products. The key industry players are seeing this trend and are responding by rolling out relevant new products. In terms of our product range in Russia, Unilever is represented with the Sunsilk line, which is doing rather well. On the other hand, we see a growing interest in value-for-money products and an intense drive towards natural products. Men’s cosmetics is also growing in all categories of personal care. Last year we launched a new men’s skincare line for Dove and we are already seeing a positive market response. How has consumers’ buying behavior changed? Unilever manager for external communications Russia, Ukraine, Belarus Ekaterina Odintsova PHD: Consumption in the luxury segment is growing, and the business is expanding. The particularity in Russia is that you have a lot of younger consumers—20-25-year-old men and women who have money and want to spend it. I also think there is a different attitude from women in their fifties—in the past consumers may have seen 50 and over as being old, whereas now it is just another stage of life. RT: Consumer behavior has changed with more demand for October-December 2011 - N°8 - BW Confidential 94

Table of Contents for the Digital Edition of BW Confidential - Issue #8 - October/December 2011

- Brand & retail news recap
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- Estée Lauder Companies group president international Cédric Prouvé
Insight: Fragrance
- Category overview
- Retailer roundtable
- Retailing strategies
- Rare fragrance brands
- Launch roundup
- Spa chains
- Spa case studies
- E-commerce
- Store concepts
Travel retail
- Sector analysis
- Hainan & China Duty Free Group
- Retail concepts
- Passenger habits
- Industry experts on harnassing the power of social networks
- Six up-and-coming beauty brands
Market watch: Russia
- Country overview
- Prestige retailing
- Industry viewpoint
- Market outlook
- Sustainabilty
- Trends
Last word
- Buyology Inc president & co-founder Donna Sturgess

BW Confidential - Issue #8 - October/December 2011