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Russian beauty industry overview
“Russia was in 2008 the fourth fastest growing cosmetic and toiletries market in the world.”
“With booming value sales set to continue, Russia is the market to watch for international cosmetics and toiletries manufacturers.”
As Russia's economic situation becomes ever more stabilized, native Russians have found themselves with better paid jobs and higher disposable income. Luckily for the beauty industry, they have chosen to spend a healthy portion of it in the personal care market, accounting for 45% of beauty sales in Eastern Europe.
Retail and luxury goods, among others, have become key drivers of the country’s booming economy. Citizen’s real incomes have doubled over the past six years and consumer demand is thriving. Not only is Russia’s per-capita income, at purchasing power parity (PPP), well above that of Mexico, Romania and Bulgaria (EU members), Brazil, Turkey and China, but also 70% of Russians' income is disposable, vs. around 40% for a typical Western consumer, making it a very attractive market for retail, including cosmetics.
At the moment, cosmetics is the second fastest developing retail sector, with growth of about 40% per year and industry analysts forecast that it could triple to $18 billion by 2010.
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