By Euromonitor estimation, Russian beauty market is far from saturation with at least 4% annual growth predictable for the next five years. Growing sector of contract manufacturing and industry rapid development triggered creation of Packaging. Ingredients. Contract manufacturing sector at InterCHARM – the largest in Russia, CIS and Eastern Europe 20th jubilee showcase of perfumery and cosmetics. Being the ideal platform to enter Russian growing market, discover new opportunities, find partners and enlarge business scope, the show promises to become the main meeting point for all industry professionals involved in the development of perfumery and cosmetics.
InterCHARM: Ideal place to find distributors in growing market and enlarge business scope
Polyphonic Russian perfumery and cosmetics industry occurred to be more resistant to the crisis impact than Western one. By 2012 the market demonstrated the highest growth by 21% since 2004, and reached USD 13,5bln. In 2012 its volume was estimated at USD 13,9bln. Gradually recovering after the crisis, which is associated with the strengthening of the Ruble, rising incomes and increasing consumer expectation index, this market is #5 in the world.
InterCHARM Moscow that takes place on November 27–30, 2013 for the 20th time is the place to observe trends and novelties from all industry sectors on the principle “all at once”. In the framework of InterCHARM-2013 exhibitors and visitors traditionally will meet to present new developments, share the experience, get up-to-date market overview, search of new partners and expand business.
The whole beauty industry in one meeting place
- Perfumery and cosmetics
- NEW FORMAT! Packaging. Raw materials. Contract manufacturing
- NEW! ECO-HOME
- BIO: natural and organic beauty products, and FARMA+BEAUTY: beauty and health products
- ZOOM: innovative and niche products
- Novelties gallery
- National Pavilions of international manufacturers
- Nail Service
- Beauty Salon and Institute
Farma+Beauty sector will present cosmetics treatment, dietary supplements and other products of pharmaceutical and cosmetics market. ZOOM will display innovative developments and niche products. Novelty Gallery traditionally exposes the novelties of local and international markets.
ECO-HOME will display various detergents and cleansers which are safe both for us and for the environment.
Packaging. Raw materials. Contract manufacturing area will come out on a new step of its development and will consolidate all those participating in the process of creation of perfumery and cosmetics. 15% out of over 62 000 InterCHARM visitors – manufacturers of perfumery & cosmetics, suppliers and manufacturers of raw materials, packaging and equipment, marketing and R&D people, production managers from all Russian regions and CIS (Ukraine, Belarus Republic, Kazakhstan, etc) – are exclusively targeted audience for the exhibitors in 2b2 environment of a new Hall 12, Crocus Expo. The sector will definitely catch attention of all those involved in “Private label in cosmetics industry” networking program, as well as participants of “Supplier meets the buyer” retail chains purchasing center at InterCHARM: potential clients for contract manufacturing in the regions (over 200 manufacturers and distributors of perfumery and cosmetics, top management and purchasing executives from 30 international, regional and local retail and pharmacy chains).
Over than 80% of business contacts in this geographical region are set at InterCHARM
Last year +20% professional and business visitors flocked into the show floor that the year before – 61 768 specialists, including perfumery and cosmetics retail chains’ executives, pharmacists, formulators, marketing and purchase managers, met with 930 companies from 24 countries and over 3500 beauty brands from the globe. 78% of exhibitors established new business contacts in 2012 and actively booked for 2013, check if there is some space left!
Learn more at www.intercharm.ru
- Russian market of professional cosmetics: steady growth in the next coming years;
- 451 exhibitors from 11 countries presented some 3000 beauty brands;
- 43 644 of professional and business visitors (+11% compared to 2012) attended;
- New formats of training and business program: ready solution for professional growth
Like no other event, INTERCHARM professional helps the staff of beauty salons, clinics and distributing companies to grow professionally. In fact, the event is not just an exhibition of products for health and beauty and a number of associated activities: the show has its own infrastructure, its own platform on which all the achievements of the industry are based.
This year 43 644 cosmetologists, dermatologists, nail service specialists, hairdressers, masseurs as well as representatives of cosmetic companies, salons and retail trade had a unique opportunity to plunge into the universe of innovations within the three days of spring INTERCHARM professional – the leading event of salon industry in Russia and the CIS, taking place in Crocus Expo, Moscow.
451 exhibitors (+11%) presented some 3000 brands of professional cosmetics, numerous free workshops, shows, presentations, and demonstrations of new procedures and techniques, providing all necessary information to the professional community.
International Congress of Applied Aesthetics, Nail Service School, Massage Technologies Forum, Spa Institute, Beauty Salon Management Conference, nail design championship InterNailCHARM, master-class of official Ellis Faas ambassadeur de beaute in Russia Savva Saveliev, Seminar on professional cosmetics in new market environment, new HELP-DESK area of professional support for newcomers to the industry – all 15 events of show program brought new knowledge, stimulated professional growth, gave rise to many ideas, and made everyone aspire to work even better!
For the first time INTERCHARM professional run concurrently with b2b GARDEROBE spring fashion accessories show, which gave an additional opportunity to representatives of beauty salons to expand their business.
Market of professional cosmetics
Moscow market of beauty salon services is immense, being amongst the largest consumer trade areas. As of November 2012, over 4,600 hairdressers and beauty salons with the total staff of 40 thousand operated in Moscow. According to the statistics, since 2000, the number of beauty salons and barber shops in the Russian capital has zoomed by 4 times. Over 2012, the volume of hairdressing services rendered to the public in Moscow topped three billion Rubles in terms of value. The market growth is primarily associated with people’s incomes getting back to pre-crisis level. Against the background of 10-13% inflation per year and the preserved level of average prices, the services of beauty salons are becoming more and more affordable. The next years the number of customers will go up as well.
Industry comments about INTERCHARM professional 2013
We are the first-time exhibitors, and very happy with the quantity and quality of visitors, especially regional ones at out stand. [Vladimir Ivanov, HIP France distributor in Russia]
What I would like to underline this year is great and convenient show segmentation. The event is more effective and profitable for us compared to 2012. [Sergey Zarembo, CIN, distributor of Cuccio, All season nails]
One of the main tasks of the organizer was to make the event as useful and convenient for exhibitors and visitors as possible. New mobile application INTERCHARM pro, online catalogue of seminars offered by exhibitors at their stands, as well as exhibitor directory were put on official website www.intercharm.ru in advance.
INTERCHARM professional was supported by Moscow Government.
In 2014 INTERCHARM professional will run on April 17-19, but all the beauty professionals and cosmetics companies are welcomed at XX Jubilee InterCHARM in autumn from November 27 till 30, 2013 to be involved in the largest in Russia, CIS and Eastern Europe showcase of the global beauty industry.
According to market experts, by 2012 Russian perfumery and cosmetics market demonstrated the highest growth by 21% since 2004, and reached USD 13,5bln. In 2012 cosmetics market volume is estimated at USD 13,9bln. It is gradually recovering after the crisis, which is associated with the strengthening of the Ruble, rising incomes and increasing consumer expectation index.
Training and business program of INTERCHARM professional: ready solution for professional growth
While the exhibition demonstrate new products and trends in the development of the Russian and international markets, the training program will start a direct professional dialogue as to how to interpret a given trend, especially when it comes to procedures to pay attention to, learning from mistakes, and suggesting ways to address organizational and professional problems.
International Congress of Applied Aesthetics, Nail Service School, Massage Technologies Forum, Spa Institute, Beauty Salon Management Conference, competition program of InterNailCHARM will bring many useful ideas, present new knowledge, stimulate professional growth, give rise to new ideas, and make everyone aspire to work even better! Register at www.intercharm.ru
According to statistics, an average woman spends three years over her life for personal care. However, almost half of the women surveyed believed that they had spent just a modest attention to their appearance. Most women spend on pampering half an hour per day, and nearly fifth of them don’t care about their appearance at all.
The beauty timeline is as follows: brushing-up before work – 40 minutes, makeup – 20 minutes, hair washing and styling – half an hour, manicure – a quarter of an hour, shower – 20 minutes, getting dressed – 7 minutes and cream application – 7 minutes.
Over 50% of Russian women dream of exclusive sessions of beautician, masseur, hairdresser, manicure or pedicure master or a visit to plastic surgeon. At the same time, nearly 40% of all respondents were prepared to endure pain or discomfort.
Men vs women
Men tend to devote to their “cosmetic” brush-up just 7 minutes less as compared to their girl friends; that say, 63% adore pampering themselves, while 72% believe that peers urge them to be more attentive to their appearance.
On average, in Russia men spend on cosmetics and personal care $121, women – $194, which is 1.5–2 times more than the American women. Every second Russian woman uses make-up everyday and every third chooses colour cosmetic.
The average representative of the stronger sex can easily name 11 brands of cosmetic products, and the average woman – 16.
Most often, men use hair care products, deodorant, shaving cream and toiletry, whereby they don’t see themselves as metrosexual. 93% of the respondents said that this word was invidious and would not be used in respect to them in any way.
Gums balm DiaDent from Avanta company has been developed to improve daily oral hygiene in diabetes cases: it protects against bacterial and fungal infection (gingivitis, periodontitis or candidiasis), effectively fights dryness of mucous membrane and eliminates bad breath.
Biosol® included in the product formula inhibits the development of parasitic bacterial and fungal microorganisms. Betaine moisturizes the oral cavity and normalizes salivation. Echinacea phytoconcentrate soothes sensitive gums; methyl salicylate and menthol render analgesic effect and deodorize the mouth.
This product is intended for people suffering from diabetes, especially those wearing dentures; it is free from antibacterial agents that inhibit normal microflora, ethyl alcohol and substances with local irritating effect on mucous membrane. Especially recommended for diabetics, but can be applied to improve the oral health of people with similar problems.
The body care articles segment has been showing a steady growth for several years running. Euromonitor experts note that the skin care cosmetics sector in Russia is demonstrating a continuous stable growth. In 2010 the situation was much more better than at the times of crises with a 8% growth in terms of value. Nevertheless, the growth indicators were 13% lower than in the average accounts period.
In the near future the increment of the Russian economy development rates is expected to increase consumer expenses for skin care products. According to the analysts’ forecasts, in 2012 the average yearly rate of segment growth will be 5%. The consumers, as experts expect, will return to more expensive premium skin care brands which they declined at the times of economic instability in the country. By late 2015 the segment volume, according to the experts’ forecasts, will amount to EUR 2.4 bln.
Proceeding from the 2010 sales data, one can conclude that the skin care articles buyers have considerably reduced their expenses for the products which they do not need for everyday and regular use. This is mainly refusal of body lifting and anticellulite articles that suffered the greatest defeat in the world cosmetic market. The European experts say that none of the products of this group has proved its efficiency in a lasting use.
According to the analysts’ estimates, the decrease in the skin care articles sales is owning to the fact that people became more conscious of products price and ceased buying very expensive articles. This especially relates to antiageing and skin-strengthening cosmetics that are only in demand in springtime and summertime. Of course, there is a group of goods which consumers cannot decline – these are the products with a ’24 hours moisturizing’ feature (the most popular in this group are aromatized products with a light and well absorbed texture).
According to Synovate Comcon data for 2011, 82% of women use body care articles. The most proactive are women at the age of 25 to 44 years. The most popular body care articles are Barkhatniye Ruchki (ОАО Kalina) – 34% (photo below), Avon – 24%, Chistaya Liniya (ОАО Kalina) – 19%, Oriflame – 18%, and Nivea – 16%.
According to Synovate Comcon data, in 2010 body cream and milk was used by 16.2% of Russian consumers, peeling products were used by 12.2%.
Milk and emulsions remain the main category in the segment – their share, according to Nielsen Russia data for 2010, covers 43.3% in terms of volume and 37.6% in terms of value. They are followed by body cream – 23.4% and 22.8% and scrub – 11.4% and 15.9% respectively. If the quantitative purchase indicator is considered, body gels and masks are actually bought in equal proportions while in respect of value these categories differ very much: the gel share is 8.6% and mask share is 1.9%. And this is not so much price difference as volume – masks are generally released in small sachets. The products being in the least demand of domestic consumers are body balsams – their share covers 2.5% and 1.7% respectively of the entire bode care articles segment. This is partially due to a low representation of balsams in the manufacturers’ range of products.
According to Synovate Comcon research, Russian buyers prefer to buy body care cosmetics at specialized stores (22%), from individual consulting distributors (16%), at supermarkets and hypermarkets (14%), pharmacies (7%), small self-service stores (7%), and general stores (3%).
As Nielsen Russia audit showed, the main share of body cosmetics sales in the period July 2010 to May 2011 was ensured by household stores – 73.1% in terms of value and 66.2% in terms of volume while hypermarkets and supermarkets covered 23.5% and 28% respectively. Small food stores with a wide range of goods procured 3.4% and 5.8% of the total sales. It should be noted that the latter’s share grew almost thrice as against the similar period of 2009–2010. This means that most Russian women continue buying body cream at odd moments even not wasting their time for going to a specialized cosmetic store.
The characteristic property of Russian consumption is also reflected in the body care articles segment: while all over the world supermarkets remain for buyers the most important channel of cosmetics purchase, for Russians these are pharmacies and specialized stores.
According to Euromonitor research, in 2010 transnational players continued dominating in the skin care articles segment, and Concern Kalina (now a member of Unilever ) that placed forth in the sales rating was their worthy competitor. The sales in Russia’s skin care articles segment are still headed by L'Oréal with its market share of 11%. The company derived benefit from a wide range of skin care articles both in the mass and premium segments as well as from the opportunely released new topical products, such as Vichy Essentielles, Lancôme Genifique, and Top Secrets by Yves Saint Laurent and a number of other products. The company showed very good results during 2010, its growth being 18%. Although a steady growth slowed down by the end of the year, the company noted the greatest increase in sales in 2010.
Among sales leaders there should be highlighted such transnational players as Beiersdorf (Nivea) and Unilever that strengthened its market positions by acquiring Concern ОАО Kalina.
According to Nielsen estimates, during 2010 in the hands and body care articles segment Unilever with its brand Dove had about 3% in terms of value. The marks Chistaya Liniya and Cherniy Zhemchug provided for Unilever the first place and a 32% share. The second major player in this category, a German company Beiersdorf, has only 10%.
As regards direct sales, the customary leaders in the body care articles segment are Avon, Oriflame, Mary Kay, and a Russian company Faberlic.
The Russian market players are successfully competing with foreign manufacturers in the mass and medium-price segments. The products of the national companies Pervoe Reshenie, Nevskaya Kosmetika, Krasnaya Liniya, Floresan, ОАО PKK Vesna, ОАО Avanta, ОАО Svoboda are in great demand of buyers thanks to an optimal quality-price ratio. The most domestic players stake on assortment renewal, introduction of new technologies or penetration into new markets.
An interesting example is given by a Russian company Pervoe Reshenie. It is curious that the company had no big marketing budgets but it found the way to become firmly established in the market. In 2009 this company was the first Russian manufacturer to deal with organic cosmetic under the mark Natura Siberica (photo below). Now it has 20% of sales (according to SPARK-Interfax). The company’s turnover in 2011 amounted to EUR 102.6 bln that is 30% more than a year before, while, according to SPARK-Interfax, in 2010 the receipts of ООО Pervoe Reshenie were EUR 33.3 mln. Pervoe Reshenie is one of the Russian 5 top manufacturers including Kalina (now owned by Unilever), Nevskaya Kosmetika (with its forecast receipts of EUR 69.2 mln for 2011), Faberlic, and Svoboda (with 2010 receipts of EUR 79.5 mln and 164.1 mln respectively).
R.O.C.S. has released a new toothpaste Coffee and Tobacco especially for lovers of coffee, red wine, tea and cigarettes.
This paste delicately whitens teeth removing plaque, stains and pigmentation of nicotinic tars. Special multicomponent fragrance neutralizes the smell of tobacco and freshens breath for a long time. Vitamin E included in the paste formula provides antioxidant protection. PVP joins together toxins and heavy metal ions, reducing tobacco harmful impact. The paste is free from fluoride, antiseptic agents or sodium lauryl sulfate. Moderate-abrasive content (RDA = 99) makes this toothpaste suitable for daily care.
• The ideal place to multiply business opportunities: share experience and find new partners!
• 930 exhibitors presented more than 3500 beauty brands from the globe
• New national pavilions of Greece and Canada
• The largest ever beauty show in Russia, CIS and Eastern Europe reports on +19.5% visitor growth compared to 2011!
• 20 business, educational and show events for all market specialists in the framework of the exhibition
• Supplier meets the Buyer trade forum and Retail chains buying center
• Debut at InterCHARM: World of creative perfumery program
InterCHARM-2012, the largest show for its 19 years of history, compelled attention of all cosmetic market players, industry specialists, experts and media on October 24–27 in Moscow, displaying all beauty trends and innovations which had appeared in Russian and international markets recently.
Russian consumers are among the most active ones in their expenditures on perfumery and cosmetics: 90% of them claim to buy cosmetics regularly and their number is growing. The market has reached almost $14 bln in 2011 and will annually grow at least 4% in the next 5 years. According to Euromonitor International, Russia remains one of the favorable destinations for cosmetic industry investments. With over 3500 brands represented InterCHARM is the largest in Russia, CIS and Eastern Europe showcase of the most innovative products and services, the ideal platform for cosmetic enterprises to enter Russian growing market, discover new opportunities, find distributors and enlarge business scope.
The exhibition segmentation covered up all sectors of perfumery and cosmetics industry:
• Perfumery and cosmetics
• Nail Service
• Beauty Salon and Institute
• BIO: natural and organic beauty products
• FARMA+BEAUTY: beauty and health products
• ZOOM: innovative and niche products
• Novelties gallery
• FormulAction: manufacturers and distributors of raw materials and ingredients
• InterCHARMpack: manufacturers and suppliers of packaging
Such a great result reflects the growing interest to the show and substantial organizers’ work on attracting highly professional audience to the show. All media channels employed for visitor promotion: direct mailings, e-shots and text messaging to over 215 000 of industry contacts; advertising and editorials in trade and glossy media, on the most popular web-portals; outdoor advertising, TV and radio ads; regular postings and ticket draws in social media – InterCHARM’s community reached some 36 000 of people! It was not an easy task to surprise such a sophisticated show audience, but InterCHARM again surpassed all the expectations!
Most of the exhibitors are satisfied with show results and actively rebook for 2013! Here are just some industry comments:
«It was our first InterCHARM, and a tremendous interest to our Derma-genetic innovation of Greek origin made in USA gave us a real hope to win Russian specialists as we already did in Ukraine». Sergey Kupov, MD, ABACOSM representative in Russia;
«Natura Siberica for the first time at InterCHARM had the honor to introduce our partners – Cosmos Standard and ICEA. We appreciated a festive show atmosphere and presented lots of novelties and presents to our stand guests». Eugenia Simakova, Natura Siberica brand manager;
«We plan to participate again in the event of such a large scale – our debut at InterCHARM resulted in high interest to our products!» Frosso Koutsoukou, export manager Froika (Greece);
«Participating in InterCHARM, we give to local consumers and potential clients an opportunity to evaluate high quality and naturalness of our cosmetics, which give extra value in such a severe climate. This is a great example of trade relationship between our countries!» Representatives of Delon Laboratories, Flash Beaute, IDC Skincare and Edan International (Canada).
■ New program and features on a larger scale in 2012!
930 exhibitors from 24 countries were displaying their star and new innovative cosmetic brands during four days on an area 19 950 sqm netto. China, France, Germany, Italy, Poland, South Korea, Spain, and Taiwan presented cosmetics novelties within national pavilions. We were happy to welcome on board new national pavilions of Canada and Greece! Among other countries were Byelorussia, Canada, China, France, Germany, Great Britain, Hungary, India, Israel, Italy, Kazakhstan, Latvia, Pakistan, Poland, Romania, Russia, Singapore, Spain, South Korea, Taiwan, Turkey, Ukraine, and USA.
An extensive exhibition program included educational events, trainings, master-classes and show-program.
The new program, organized by Perfumery and Cosmetics Association of Russia, World of creative perfumery welcomed experts from GIVAUDAN and SOLING companies, who gave a unique chance to learn more about the phenomena of niche perfumery, try exclusive fragrances and compositions as well as unveil specific feature of marketing of these masterpieces.
On October 25 for the second year InterCHARM shared stage with specialized Trade Forum “Competent supplier-2013” with a Supplier meets the Buyer Retail chains buying center, supported by Russian Association of pharmacy chains and Association of retail trade companies. The program of the conference session was carefully prepared in accordance with the results of detailed survey of market players. Main trends of beauty industry agenda in 2013 are drastically changing consumer behavior and e-commerce growth. These are the tendencies every competent supplier should take into account. Quite a few reports were focused on specific of interacting of suppliers with Internet shops. After conference session purchasing executives of 29 retail and pharmacy chains from different regions of Russia hold some 1400 negotiations with potential suppliers to broaden their assortment and found new partners at InterCHARM.
Every year exhibition organizers undertake the task of bringing together beauty professionals and increasing profitability for the exhibitors. Buyer Program, aimed at personal invitation of executives of wholesale and retail companies, perfumery and cosmetics retail chains and pharmacies gave its positive results. In 2012 some 40 VIP-buyers from Russian regions, Republic of Belarus and Kazakhstan attended InterCHARM.
Business laboratory Beauty in Internet for salons, clinics and distributors of cosmetics brands and equipment unveiled opportunities of promotion in Internet for small and medium-sized salons as well as ways out of problems related to presence in Russian Internet for distributors.
The first educational program for chiropodists, orthopedists and pedicure technicians as well as for all specialists interested in professional and modern approach to problems of feet was launched at last InterCHARM and gained even more popularity in 2012. II International Congress on podology welcomed best experts for exchange of knowledge and experience in one of the most quickstepping areas of cosmetology and the most profitable salon procedure of nowadays.
InterCHARM-2012 show program became a real festival of style and beauty, where hairdressers, makeup artists, stylists, nail specialists demonstrated professional skills to the visitors. Bright Style in the city/Young style show let every guest plunge into atmosphere and process of a fashion show and its baсkstage at the same time. Stylists, make-up artists and designers of M A C, Rouge Bunny Rouge, Keune and Rene Furterer worked together on the performance stage to create an image of a modern stylish woman. Professional models demonstrated clothes of well-known designer Elena Vasilieva.
Colibri Fest – II International Competition for eyelash extension welcomed professionals from Russian cities and presented splendid artworks in different nominations. Money raised through the Competition was donated to “Grant Life” Charity Foundation aimed at help to children with oncology diseases.
Among key educational and show events of InterCHARM were International SPA massage championship, All-Russian Conven-tion of Beauty Salons, Nail Service School, Independent Russian hairdressing championship, Russian nail sculpture championship InterNailCHARM.
Catalogues of exhibitors, their master-classes at stands, brands and novelties and show program were all placed on official show web-site www.intercharm.ru. Free mobile application in AppStore and Android Market helped to keep all one might need in the hands.
InterCHARM run under the auspice of the Moscow Government, supported by Chamber of Commerce and Industry of the Russian Federation and Perfumery and Cosmetics Association of Russia.
Next InterCHARM will run in Moscow on October 23–26, 2013.
More on www.intercharm.ru