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In December 2022, the Government of the Russian Federation introduced until the end of 2023 a de facto protective duty of 35% for the import of perfumes and cosmetics from the USA, Canada, Great Britain, Australia, New Zealand and Poland - these countries accounted for 8-15% of the total imports of these products.

In addition, a number of Western brands decided to leave the Russian market themselves, which also freed up a part of the niche in the market. Such plans, in particular, were announced by Lancome, Redken, Kerastase.

At the same time, even after the departure of some Western brands, competition in the Russian market is still high, emphasizes Mr. Bobrovsky. – executive director of the Association of Manufacturers of Perfumes, Cosmetics, Household Chemicals and Hygiene Products.

According to him, many non-core companies are trying to gain a foothold in this market, despite the obvious difficulties in attracting the attention of buyers to the product. According to preliminary estimates by Infoline, the turnover of the cosmetics and perfumery market in the Russian Federation in 2022 decreased by 4-5% year-on-year, to about 800 billion rubles.

In 2022, more than 40 global cosmetic companies left the Russian market. The availability of goods of some of them is now the task of parallel imports. The volumes of such deliveries are difficult to compare with the official ones. Against this backdrop, major chains are reviewing their brand portfolio The portfolio of brands on the market has almost doubled in some categories over the past year. Brands appeared on the shelves, for example, from Korea, Iran and Turkey. We are talking about both care and decorative cosmetics and perfumes.

A quarter of the new brands, for example, in L'Etoile, are Russian, Kommersant FM was told in the retailer's press service:

“During the year, more than 800 new brands appeared in the network. Of these, 200 brands are Russian. About 100 new brands are for decorative cosmetics, more than 400 for face and body care products, and more than 80 for fragrances. In total, L'Etoile (one of the largest retail chains of perfumery and cosmetics) presents more than 3 thousand brands and more than 120 thousand products.

Their market share has reached approximately 20%. At the same time, not all chains are loyal to them and are not ready to sell and present such goods, said Sergei Kirsh, founder of the Russian Geltek brand:

“Networks take Russian brands very carefully and do not put them in all stores. That is, when retailers say that they have added 200 marks, this is partly true, partly a kind of slyness. "Geltek" was able to enter the "Rive Gauche", "L'Etoile", "Golden Apple". The best results are shown by "Yabloko" and "Rive Gauche", where "Geltek" got up in about 10% of the points. And only in April - after a test period of eight months - will they be ready to expand our presence. At the Golden Apple, we entered all the points where there were empty shelves on the shelves, and they also take us to all new stores.”

Cosmetics store shelves are also replenished with new brands from Turkey, Korea and Iran. About 170 of them have appeared over the past year. These products can cover the needs of the economy and middle segments. If we are talking about premium care or luxury decorative cosmetics, it is sometimes impossible to find analogues of familiar brands, says Irina Bulkhova, the author of the 1001 Mask Telegram channel:

“As for the gone brands, it has become really difficult to find them. People order things through buyers like Hourglass, Fenty Beauty and other similar makeup brands that we no longer have.”

“There are no analogues of the European “luxury” now. A lot of Korean brands came, but this is not the European premium that a certain part of Russian consumers are used to - this is not Chanel or Dior. There are not so many brands of Russian decorative cosmetics. There are no problems with skin care cosmetics, but, for example, there is practically nothing to replace the La Mer and Valmont niches, experts say.

100 brands of Korean cosmetics and perfumes are preparing to come to Russia at once. The strategy of South Korean brands in Russia, as the cosmetics market players explain, has been quite simple for many years: the emphasis was on affordable prices and variety. And, judging by the data of analysts, it worked: already in 2019, Seoul became the second largest exporter of cosmetics to Russia.

But now the brands of the middle price segment have decided to take advantage of the departure of European competitors and expand their market share. And, as the founder of the cosmetics store Hey, babes! Natalya Michkaeva, Korean manufacturers have something to offer: “Over the past two years, brands of the middle price category have come out ahead. In South Korea, the cult of the beauty industry, the competition there is simply huge. There is always something interesting in the compositions of cosmetics - innovations, formulas.

K-beauty products, however, may seem unusual to some consumers, and Korean skin care systems are significantly different from European ones, for example, in the East there is no concept of age-related products.

In South Korea, manufacturers successfully promote themselves through collaborations with local stars. For example, one of the brands increased its profits five and a half times after members of the K-pop group BTS became its ambassadors. But in Russia, retailers will have to promote Asian brands of the middle price segment, believes Petr Bobrovsky.

On the other hand, when it comes to replacing outgoing brands, retailers don't seem ready to bet only on South Korea. Soon, more exotic products may appear on the windows of large chains, says Anna Dycheva-Smirnova, member of the board of the Russian Perfume and Cosmetics Association: “Retail chains are actively negotiating to attract brands: these are China, and India, and Pakistan, and Turkey, and Iran . Even small French, German, Italian brands are looking at the Russian market with interest.”

At the same time, according to analysts, at least 20% of products on the Russian market are counterfeit. Most often, perfumes are counterfeited, and the most popular brands among scammers are Dior, Tom Ford, Chanel and Montale.

Source: https://www.kommersant.ru/doc/5873922?query=%D1%80%D1%8B%D0%BD%D0%BE%D0%BA%20%D0%BF%D0%B0%D1%80%D1%84%D1%8E%D0%BC%D0%B5%D1%80%D0%B8%D0%B8; https://www.kommersant.ru/doc/5899861?query=%D1%80%D1%8B%D0%BD%D0%BE%D0%BA%20%D0%BF%D0%B0%D1%80%D1%84%D1%8E%D0%BC%D0%B5%D1%80%D0%B8%D0%B8 ; https://www.vedomosti.ru/business/news/2023/03/27/968209-prodazhi-duhov-rossii-virosli?from=newsline ; https://www.kommersant.ru/doc/5503509?query=%D1%80%D1%8B%D0%BD%D0%BE%D0%BA%20%D0%BF%D0%B0%D1%80%D1%84%D1%8E%D0%BC%D0%B5%D1%80%D0%B8%D0%B8