Growth is expected in the Russian market for make-up and cosmetics in the medium and mass market price ranges; skin and hair care products are projected to maintain their leading positions. Although Russia has experienced a difficult road rebuilding their economy and government following the collapse of the Soviet Union, the economy now stands as the 7th largest economy in the world. The Russian Government has made a conscious effort to create policies that favor foreign investment, encouraging foreign investors to assist in the growing globalization of Russia. The recent political and economic stability of the economy has brought a large amount of foreign investment to the country.
3. Internal Strategies
Historically, cosmetics have always enthralled the women of Russia. They are always looking to achieve the “perfect look”, making it one of the first goods they will invest in, and the last goods they are willing to sacrifice. Due to the recent decline in the Russian economy, a tendency for consumers to cut back on non-essential products has recently shown a decrease in profit for major cosmetic manufacturers. Market experts predict the future market increases to be less dramatic, with skin care, hair care, make-up, and perfumery showing the highest potential for growth. Experts also believe that there will be an upward trend in the purchasing of expensive premium cosmetic brands, showing favorable circumstances for our luxury brands of L’Oréal.
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