Consumers in 2014 purchased more natural hair care products because they believe that it will affect better. The Russians think of the hair health and realize the need to invest in a complex and effective care. As a result product that designed to improve the health of hair showed strong growth in 2014.
According to Euromonitor, sales of hair care in terms of value increased by 3% in 2014 year – slightly lower than for the previous period (5%). This is due to the slowdown of the Russian economy and the ruble devaluation. These factors along with the development of modern retail have led to the expansion of customer loyalty programs and more rational behavior consumers while they were choosing brands. The biggest rise in the category of hair care products in Russia have shown hair loss treatment – the dynamics was 17 % in 2014.
Due to the growing consumer loyalty to natural products and natural look the sales of hair styling declined slightly but continued to show dynamics – +4 % in 2014. Hair spray is still the largest group in the category of styling products – 45 % in 2014. Mousse and gel also demonstrate a significant share of the market – 37 % and 15% respectively.
The growth rate of the segment is expected to decline by an average of 1 % in retail prices of 2014. Saturation of the category as well as the impact of the economic slowdown will affect the segment. In addition, consumers are expected to be looking for the best offer and discounts.
Hair loss treatment products will show the best results, sales will grow by an average of 6 % in constant prices in 2014 .
According to Synovate Comcon data, the proportion of consumers of shampoos, conditioners and hair masks in 2014 increased. The most actively growing category was hair masks: it share increased by 6%. Top-demand hair care products are shampoos – 94% of Russians use them; balms – 41% and hair masks – 21%.
The most popular brands of shampoos and conditioners for hair in 2013 were Head & Shoulders – 19 %, Schauma – 16%, "Chistaya Linia" – 14 %, Nivea - 13%, and Pantene Pro-V- 11%.
The proportion of women using hair dye in 2014 was reduced by 5%. The majority of them (70%) dye their hair at home, 29% of Russian women visited beauty salons. In 2014 the women has continued to use resistant hair dyes. But shading and highlighting products are used less. In 2013, the proportion of women preferring to dye their hair significantly increased: 35-44 years (5%), 55-64 years (4%) and older than 55 years (8%). In 2013, the share of dye users significantly increased among women with below average financial standing (by 5% versus 2012).
The most popular hair dye brands in 2014 were Palette – 25 %, Garnier – 19 %, Estel – 17 %. Last year, the proportion of women using hair dye aged 25-34 years and 35-44 years decreased 6% and 9%.
The leading local hair care manufacturers are "Narodnye Promysly", "Pervoye Reshenie", "Yunikosmetik" and "Svoboda". Last year Russia produced 95 million units of hair dyes and most of them were launched at "Yunikosmetik". Today it is one of the largest manufacturers of hair coloring agents in Russia. The distribution network includes more than 150 representatives in Russia, the Baltic states, Ukraine, Belarus, Kazakhstan, Moldova, Armenia and other CIS countries. The main brand of the company is Estel. The assortment includes more than 550 SKU for both the retail and beauty salons – the full list of products under the brand of Estel Professional.
Currently, the market of hair care products is observed rebranding - producers seek to position their products as "professional" or "salon". Growing competition, new brands, manufacturers from other countries are the segment landscape. The market is seen growing categories such as "medicated shampoo", "hair styling" and "hair conditioners." The main distribution channels for hair care in Russia are in super and hypermarkets, and specialized perfumery and cosmetics chains. The premium segment share is 5% (according to Discovery Research Group).
In addition to the overall promotion of healthy lifestyles the major trend in hair care is increasing interest in natural products. The consumer pays more attention to the ingredients and the quality.
The current economic situation affects the consumer who tends to choose a quality product at an attractive price. Therefore the product quality and price are the main criteria of the consumer.
Russian manufacturers are using unique natural remedies for hair care. The most bright example is the leading Russian manufacture “Pervoe Reshenie”. The company produces innovative products in the mass market and presented in the high end of the segment with the brand Natura Siberica. Last year the company started sale in the South Korea in record volumes. Exports of Natura Siberica, launched three years ago in Europe, now covers more than 30 countries in different parts of the world.
Exports account for about 10% of total revenues, which in the meantime has doubled from 2 billion ruble in 2012 to 4 billion in 2014.
"Recepty of babushka Agafia – 5 juices" by “Pervoye Reshenie” is a new line of hair and body care products. In order to survive in severe nature conditions Siberian plants accumulate a lot of minerals, vitamins and antioxidants, so their juices have unique properties and powerful effects.
Each product is based on 100% natural fresh juices and oils of Siberian plants. The company used traditional remedies from Buryatia, Khakassia, Altai and the Far East. Juices and oils are obtained only from fresh berries and nuts of the Siberian wild plants. All products enriched with vitamins. All formulae were developed and approved by the Russian Association of herbalists and traditional medicine. Some products contain gold peptides and silver ions. The wide range includes products for hair and body. Specially designed bright packaging will attract customer attention.
The company “Narodnye Promysly” launched a series of express conditioners "Vitamins for hair. Golden silk". Products moisturize and condition, smooth, restore hair structure and enrich with vitamins. Express conditioner for hair loss effectively strengthens the weakened structure of the hair, making them firm. The product prevents hair loss, easily penetrates into the hair structure, nourishing with essential vitamins. Performs instant conditioning effect on the hair cuticle, smoothen the hair surface, making it easy to comb. Pro-Vitamin B5 restores the hair structure, strengthens the cuticle. Wheat proteins penetrate into cuticle and restore damaged areas of hair. Extracts of aloe vera, elderberry and linden supply hair with necessary vitamins and microelements.
(c) InterCHARM Moscow, 2015