Russian market will always be attractive to the perfumery brands, because Russia is a country with enormous resources, and the priority of most perfumers is to conquer the Russian market. The crisis has not affected this phenomenon in any way. currently, the shoppers are seeking more exclusive fragrances, as every consumer is striving for individuality; therefore, the niche perfumery is progressing most actively.
Three overseas players, i.e. L'Oréal, LVMH and Procter & Gamble lead the sales in volume terms; in value terms, Estée Lauder Companies, Coty, Puig Beauty & Fashion Group, Shiseido, Chanel are in the vanguard. Leader domestic producers is Novaya Zarya – Nouvelle Etoile.
According to Synovate Comcon 2014 survey, 38.3% of Russian girls and women aged over 16 years use perfume (2013 – 37%); their share in Moscow is 45.1%; the figure in Saint Petersburg increased either – from 34% in 2013 to 35.6 in 2014. Eau de Toilette is a more affordable product and thus has significantly more users – 58.4% (2013 – 57%) in Russia in general.
The most popular channels of distribution have not changed for the last decade. Consumers buy perfumery in specialized stores (20.7%), or super/hypermarkets (14.6%); this trade channel is becoming increasingly popular, and for the past ten years, the proportion of perfumery buyers has nearly doubled. Department stores sell 7.3% of perfumery while individual distributors/consultants slightly lost their share – 6.8% in 2014. Shopping at kiosks or in the market is only 1.1%.
Perfume buy girls 16 – 24 years and mature women aged 45 to 54 years. Eau de toilette is more popular among women aged 25 - 44 years. Representatives of these groups are qualified professionals with higher education. Those who prefer eau de toilette are married mostly and among the users of perfume are single. Their income is higher than Eau de toilette consumers.
Users of toilet water more cautious than perfume consumers - they plan their actions, they like to be organized and follow a certain order. As lovers of perfume and eau de toilette lovers aspire to leadership and career development. For those who prefer perfume, is not peculiar to pay attention to the price and is characterized by focus on the brand and quality. They are more likely to buy imported products. They are less likely than toilet water users plan their purchase.
These groups are characterized by the following fashion and pay great importance to their appearance, but the toilet water users are focused on fashion less.
About five years ago, Russian consumers passionately rushed to niche fragrances. Many Russian fashionistas are crazy about Kilian Hennessy and Geza Schönau, creators of Kilian and Escentric Molecules brands. Some stores don’t even offer testers of these fragrances since they fly away in seconds.
Over the past 10 years there has been a significant increase in the proportion of people in Russia who buy perfumery in super / hypermarket (from 8.2% to 14.6%). The share consumers who buy in a department store or a small self-service shop dropped from 14.6% to 7.3% as well as in kiosk/open market (from 7.1% to 1.1% ). But online sales are gradually increasing. In 2014, according to Synovate Comcon, they accounted for 1.3%. Online stores first to respond to the launches of new products and limited collections.
The market for selective perfumery is in sight with a mass of perfume situation is a little different. Manufacturer often sends it to the "free floating". In the absence of advertising and consultants consumer decides its fate, guided only by their taste. Mass perfumery has its advantages, due to which it has successfully developed and popular. The first is a huge range, which is constantly updated. If luxury brands launch 2-3 new products every year, the manufacturer of mass-market perfumery can release 10, 20, 30 new products per year with different directions in different packaging and notes.
Experts say the mass market goes towards higher prices. Of course, in absolute value, low-cost products are sold more, but the upward trend on demand for expensive luxury products is obvious. Another strong trend for Russia – extreme popularity of new launches. If 10 years ago the novelty could hold 10% in turnover, today this figure reaches 25%.
The leaders of the mass segment are direct sales companies - Avon, Oriflame, Mary Kay, of the Russian players took the leading position Novaya Zarya – Nouvelle Etoile, Faberlic and CiEl Perfume. They regularly update a wide range of both women's and men's fragrances. "Thanks to the innovations of the past two years, our company has doubled its turnover," - said Alexey Nechaev, CEO of Faberlic. Since 2012, as part of the Russian version of “Perfumery Oscar” FIFI Russian Fragrance Awards 2014 in coordination with The Fragrance Foudation was introduced a special nomination for local perfume companies developing creative projects in the field of fragrance and design - Local Premium. In this category the main prizes were awarded fragrance Faberlic Intemporel and male CIEL parfum, Alter Ego.
Russian production of perfumery started to develop rapidly since 2000, replacing the imported products primarily in the mass segment. By the beginning of 2011 in this sector of the Russian FMCG market were achieved one of the most impressive results in the domestic economy - more than 80% of import substitution. In the mass market leading position occupied by the company Novaya Zarya – Nouvelle Etoile, Triumph, Parade of Stars, Klas Holding, CiEl Perfume, Aroma, Perfumery of the XXI century, Perfume Prestige M.
The company Parade of Stars released more than 300 units of products - perfumes, eau de toilette, colognes, toilet perfume, eau de parfum, gift sets, including brands named after popular Russian monies like "Brigade", "Ranetki” and celebrities brands "Lube", "The Time Machine", "Christina Aguilera".
The company held the rebranding of favorite products, as a series of toilet water “Boomer X5”, “Cleopatra”, “Bon Jour”, “Angel Eyes”. New packaging for “Boomer X5” is more vibrant and dynamic, as well as change the shape of bottles and line of fragrances that correspond to the most demanding taste. A vision for women's fragrances packaging “Cleopatra”, “Bon Jour” and “Angel Eyes” has remained the same, but the bottles have become sleeker, more feminine and match fashion urban trends.
One of the interesting new products last years - eau de toilette Beatles. The name speaks for itself. The embodiment of good taste in all things, including music - this fragrance will catch music lovers and lovers of English style. Top note - bergamot, mandarin. Heart note - coriander, pepper, tonka bean . Final note - vetiver and sandalwood.
The company "Perfumery of the XXI Century" in the market for over 10 years and is firmly among the largest Russian manufacturers of perfumery mass and middle market. The company's products have repeatedly awarded with medals and diplomas of the trade shows, specialized forums and three times awarded the prize "Best fragrance of the Year" – in 2004 for the toilet water Phantom, in 2007 - for toilet water Aviator, and in 2010 at the FIFI Russian Fragrance Awards for the brand Patron Silver.
The product range includes over 200 fragrances. "Perfumery of the XXI century" was the first Russian company launched toilet water in a metallic cases. A varied assortment of bottles made from exclusive glass from Spain and Poland. Among the launches worth noting a series of "Matryoshka”, “Ladymatic”, “Goddess of Love”, "Capital trick”, Grandiose, Perfect Men.
Production plant Guy Alary was founded in 2000. One of the most famous brands is line mono fragrances "Bouquet of Russia". Among the new products is to provide fragrance dedicated passion noble men - horses and money: “White Horse”, “Black Horse”, “Red Horse”, “Silver ruble”, “Silver Dollar”.
Mass perfumery has a wide audience. It is in great demand in the Russian regions, especially in small towns. Russian manufacturers rely on affordable price, the most popular versions of well-known fragrances and bright catching eyes packaging.
Russian mass market brands are sold in all supermarkets and chains of drogerie "Ol! Gud", "Yuzny Dvor" "Perfume Paradise", "Goodwin", as well as many one-door retail outlets. The main segments, where domestic perfumery dominate are low and medium mass market, but many players actively started development of upper price segments. There is no mass perfumery aggressive advertising, nevertheless customer loyalty based on its quality and originality. Manufacturers of mass fragrances found their niche and their customers.
Prepared specially for Cosmetics Business Markets