In Russia colour cosmetics consumption rate is the largest in Europe (80% of women apply make-up every day and 10% use colour cosmetics 4-5 times a week).
However, the profession of make-up artist is a rare one. Their background roots from various spheres, from visage to painting. If a company hires an art-director, the person is supposed to be responsible for texture selection, colour creation, new collection development, novelty concept elaboration and product advertising. Five years ago a foreigner coming to Russia could notice, that a lot of local women wear bright lipstick. At present specialists say about shift in consumption habits, for the majority of Russian women prefer to make accent on eyes, while lips remain in discreet colors. Lipstick, however, remains the most popular make-up product. 75.2% of Russian women prefer lipstick most of all. 57.7% of consumers choose mascara. Women also can not do without nail polish (51.7%), eye shadows (44%) and eye pencil (38.7%). Cream powder and compact powder are still not very popular with 9% and 10.8% consumption share correspondently. 12.6% of women claim to use various kinds of foundation (Comcon Pharma). What factors influence people while choosing make-up products? Personal experience plays the major role. Though colour cosmetics industry thrives on innovation, 81% of Russian women claim to choose trademarks, which they have tried before. Product quality takes the second place in the rating of factors. 65.7% of women rely on a manufacturer statement underlining high quality. Thus over half of make-up consumers are extremely susceptible to advertisement.
Russian women say to use colour cosmetics for correcting actual or strained drawbacks, playing and creating new images, gaining more self-confidence. According to recent poll, a young girl starts to use make-up products regularly when they are 16-17 years old. People living in Southern region form an exception and start to use colour cosmetics at 14-15 years old. Thirty years ago research showed Russian women bought their first make-up set at 18-20 years old. Thus at present the target group of colour cosmetics manufacturers includes more teenagers and young people.
Russian women at 16-25 years old are the most active consumers of make-up products. They love experimenting and eagerly try novelties. Women at 26-45 years old prove to be more conservative, though they also buy colour cosmetics more often, as compared to women at 46-55 years old and older.
Remarkably, a woman usually buys only one item of one type product, while the total amount of make-up items in a basket reaches 2-3 items at 300 rubles ($10-12) averagely per one purchase. The sum spent on colour cosmetics exceeds hair care spending twice and insignificantly surpasses the sum spent on skin care.
Russian women love natural shades in make-up. The majority of women in a wide age range of 16-55 years old prefer brown and beige colors. 66% of Russian women use naturally-colored eye shades and 40% choose brown or beige lipstick. 36% of women prefer natural red tint in lipstick and 36% share of respondents wear brightly colored lip make-up. Gray/blue and violet eye shades are demanded by 28% and 26% of women correspondently.
The most popular promotion techniques of national make-up manufacturers are discounts and novelties. For example in the summer 2006 Aime company, a producer of colour cosmetics for eyes, lips and nails, announced a campaign under the banner “Summer price fall”. In retail prices lipstick cost about $1.8, lipgloss was sold at $2.5, nail polish cost $1.4, while mascara offered at $2.9. T the same time Aime launched a new lipstick collection L’ideal des levres Chic perle (15 tones) and eyeliner L’ideal liner (10 tones). Retail prices for the products are about $1.8 and $2.9 correspondently. The products are distributed Russia-wide as well as exported in Belarus and Lithuania. Another example is Novelty Cosmetic launched caring wear-resistant lipstick. The product formula was developed in cooperation with Italcosmetici. Lipstick is retailed in department stores at about $2.5 per item. In-store based promotion includes installation of testing stands.
The assortment of Russian colour cosmetics Innovation was enlarged with two types of mascara. Manufacturer emphasized improved formula of volume building mascara and lengthening mascara. Product formula was enriched with preserving components. Packaging design was also renovated. The launch is supported with in-store promotion and press advertisement.
In 2006 Mirra Lux, specializing in skin care manufacturing, issued a colour cosmetics line. The line includes 15 make-up products for face, eyes, lips, nails and as underlined by the developers, it is an optimal supplement to Mirra Lux skin care line products. Natural biologically active ingredients traditionally used in Mirra Lux care products are included in the formula of make-up: antioxidants, marine products, oils and extracts of various medicinal plants. Due to that the products are claimed to have care properties. The novelty is said to be especially good for Russian climate. Mirra lux line contains products that have become traditional for Russian customers, for instance the lipstick, eyeshadows, make-up foundation. They are accompanied by products built upon the latest achievements of cosmetics industry, for instance double-effect powder, cover-up stick, firm eyeliner with an applicator. “We tried to diversify the range offering different textures of the products and a wide tint spectrum including 5 colors of the compact powder, 20 colors of the lipstick, 16 colors of the nail polish and 9 colors of the eyeshadows”, - Mirra Lux representatives said. Mirra lux decorative cosmetics are made of Italian, German and French raw materials. The package design is realized in silver and gray color. The series is distributed mainly through consultants (a handheld show-case was designed specifically for the collection presentation), and also through Arbat-Prestige store chain. The cost of Mirra Lux products varies between 100 and 500 rubles (nail polish - 113 rubles, eyeshadow stick- 120 rubles, lipstick - 165 rubles, double-effect powder - 510 rubles).
Art-Visage, one of the most recognizable Russian colour cosmetics companies and the only Russian manufacturer of professional make-up under the trademark Veno, conducted a redesign of the product in 2006. The redesign aimed at improving of consumer interest, awareness and consumption rate. New visual image was realized in Veno design, advertising materials and points of sales decoration. Art Visage company manufacturers colour cosmetics under trademarks Art Visage, Veno and Ruta in cooperation with Faber-Castell, Intercos, Fiabila, Camacho, Italcosmetichi. All the products are manufactured at production site near Moscow using Vertraco and Faber-Castel equipment. Art-Visage develops both own trademarks and products for other companies on contract basis.
Experts recognize a good quality of colour cosmetics made by local manufacturers. However nationally-made trademarks cede to international brands in popularity. The reason is limited advertising budgets of local companies.
Foreign cosmetics companies were the first to demand local service, and Russian companies fuelled further development. Many national operators imported raw cosmetics materials from abroad and ordered production at local facilities. This method of production is still popular, although companies start thinking about cost reduction (transportation expenditure and custom formalities). Outsourcing allows cost reductions of 25-30%. Gamma Cosmetic, Art-Visage and SM-Michele have the best equipped colour cosmetics manufacturing facilities in Russia. All of them manufacture both products by contract and their own trademarks. Art-Visage focuses mainly on production of its own trademarks, though contract manufacturing takes a substantial part of facilities load. The company’s history started with a small manufacturing in Zelenograd city near Moscow. At present Art-Visage has a large production site, equipped with Italian and Check machines with own laboratory. In 2006 Art-Visage entered European market with a make-up line. The slogan of the trademark is “Urban chic! Make-up in sticks!” In winter 2006 the brand was registered in EU and in summer the sales of eye-shadows and lipsticks in Kristalnyi blesk (Crystal Glitter) and mechanical stick for eyes and lips, Barkhat (Velvet) were started. The target audience of the brand is women at 16-35. Art-Visage is positioned in the upper segment of the massive market, its competitive environment are L`Oreal, Bourjois, BiYu.
Next year colour cosmetics are expected to see a moderate increase in value terms. Premium products will enjoy a more dynamic performance throughout the colour cosmetics environment. Lip products are expected to see the most dynamic development. Growth will be underpinned by fashionable lip gloss. In 2010 sales of lip products are expected to reach an impressive $508 mln (Euromonitor estimation). Lipstick is expected to remain the most frequently worn make-up product, used by females in all age segments. Eye make-up growth will be driven by mascara sales, which is almost as popular as lipstick. Eye make-up sales are expected to be worth $361 mln by 2010. The slowest to increase is likely to be demonstrated by nail products. The presence of unbranded products, that are widely available via outdoor distribution channels, and the low importance attached to branding by consumers, will prevent faster growth. However, beauty parlors will be seeking to increase their purchases of nail polish and other cosmetics products either from a wholesaler, or from retail stores at discount prices. Industry observers also expect to see the entry of new colour trademarks from the US, South Korea, Japan and Australia, among other countries.
