A lot of perfume novelties are expected this spring, well, you already know it yourself. Anna Dycheva-Smirnova, expert of the cosmetics market, head of Reed Exhibitions Russia (organizer of international exhibitions InterCharm in Moscow and St.
Photo: DR
What are the main trends in perfume selection since the beginning of 2017?
First of all, it is the layering of aromas. Consumption itself is no longer so pleasing to the modern buyer. Experiences, sensations, the ability to create oneself, getting a unique effect as a result, are important for him. This is expressed in a new trend - the layering of several perfume products one on top of the other, which allows you to create your own unique and inimitable fragrance. In the Middle East, this tradition has existed for many years (which is understandable, because about 20% of the entire beauty industry in this region is occupied by perfumery), but it is increasingly captivating consumers in Europe and America. By the way, some niche brands have always had this concept: Jo Malone from the very moment of its launch in 1994 promoted the philosophy of combining aromas, Carolina Herrera has a line of 6 perfumes and 4 essential oils called Confidential, which allows you to play with different combinations and select a composition not only for taste, but also for your mood.
What, then, should be done by those who are bored with layering and have become cramped in the niche of what is permitted?
If you have already played the perfume constructor and mastered this skill, clearly defining what exactly you like, what notes make your heart beat, then you are ready for the next trend - personalization. Personalized perfumes have existed for centuries and were available to the elite, as it often cost several tens of thousands of euros to create a personal fragrance. However, now personal fragrances have become more accessible and, in addition, perfumers distinguish several levels of personalization. You can engrave both your name on the bottle, and in general, name the composition after yourself and, in fact, make this fragrance exceptionally unique.
This question may seem strange, but does the size of the bottle matter?
30, 50 or 100 ml? Two conflicting trends are actively developing in the market. Young people and millennials, driven by a thirst for new discoveries, a little windy and extremely frugal by nature, prefer bottles of no more than 30 ml, because they know that they will soon get tired of this fragrance and they will look for something new. A more mature audience, which has become no less prudent after all the economic troubles, on the contrary, does not want to be content with the usual 100 ml, but is ready to invest in a more profitable purchase of a larger volume, for example, 200 ml.
What about unisex fragrances? Are they really popular?
If in the 80s the trend for unisex perfumery did not particularly take root, now perfumery freed from gender is becoming a mega-trend. At the same time, they no longer want to call it unisex - it's too simple. No one needs only leveling anymore, everyone wants freedom and uniqueness. Therefore, they are trying to find a new definition and converge to the concept of gender free. Niche perfumery has been promoting this thesis for a long time, but it is becoming widespread right now - already in 2016, more than a third of all new perfumes appeared on the market without a clear positioning for “him” or “her”. For an introduction to this approach, check out Calvin Klein CK2 and the recent Hermes Le Jardin de Monsieur Li fragrances that both he and she can easily wear. Just imagine how carefully such fragrances are collected, because it is important for women to smell their favorite perfume every day, and men pay more attention to choosing a fragrance for a date, women are looking for a sexy scent, and men are looking for freshness. That is, gender free fragrances imply confidence that one bottle for both him and her can make them happy together.
You, as an industry insider, are probably laughing at those who order perfume online?
Well, why not. The Internet is playing a bigger and bigger role in the perfume industry. And if not so long ago it seemed that it was impossible to buy perfumes on the Web, since you need to feel the fragrance, wear it on yourself, now there are a lot of algorithms for choosing perfumes online: either by analogy with your previous addictions, or based on your favorite notes. The Internet makes it possible to personalize the fragrance, as well as to find something of your own, unknown, in a different geographical point. The Internet erases the boundaries, allows the imagination to open up, the consumer can feel like a person. So we need to get used to and tame this most important channel of information and sales.
And what about the fact that many fragrances really fade quickly?
It's you who brings me to the next trend. Some consumers are not satisfied with eau de parfum because the plume does not last long. Therefore, among them, an active search for a high concentration of the flavor they like is practiced. It should be noted that this group is still small in terms of consumption.
Concentration-Is this about aroma oils?
Yes, but aroma oils are not only about concentration. This component is gaining great popularity in the wake of the natural and organic trend. Europeans should take a closer look at bahurs, because the aromatization of spaces is now in trend. Bahur are pieces or slivers of natural flavored wood that are saturated with essential oils or extracts of various aromatic substances. Historically, in the East, rooms are fumigated with bahur. For example, sandalwood soaked in patchouli or natural musk extract added to the composition.
And how can a simple consumer make a choice from all of the above?
It must be remembered that perfumery has always been a very personal accessory. It is not so important what is written on the bottle - it is much more important that it should be your fragrance, clearly reflecting your mood, personality, season and environment.
A selection of trendy fragrances of 2017 from Anna Dycheva-Smirnova
woody
Powdery, which have a historical undertone of vintage and longing for the good old decadence of the 1920s
Aromas of food ingredients and spices (cocoa, vanilla, even whipped cream, saffron, black pepper)
Rose - an eternal rose in a new interpretation, emphasizing the spirit of a modern woman - independent, sexy, elegant, charming. Especially feminine fragrances combine rose, spices and a warm musky accord.
Flowers and greenery - youth and gusto are best expressed in the aromas of blooming flowers and green freshness with a slight fruity accord and hints of jasmine.
How the American PR agency Ketchum worked on the image of the Russian government for 8 years, officially spending $61.5 million
The American PR agency Ketchum, a division of the global corporation Omnicom, ended its cooperation with Gazprom and reduced the number of employees working with Russia from three dozen to ten. This was reported to The New York Times by Ketchum's partner in Washington, Katie Jevons. If the war of sanctions between the US and Russia does not end, American PR people will soon lose their main client in Russia - the Kremlin administration.
“Communication services are largely useless now,” presidential spokesman Dmitry Peskov tells Forbes. “When there is overt propaganda from the United States and NATO countries, the usual laws of communication and information do not work.” According to him, by the time the contract with Ketchum ends, the Kremlin should decide whether "we need to fully continue cooperation or pause."
For seven years now, American Ketchum and its Russian representative office Ketchum. Maslov is the main international mouthpiece of the Kremlin and Gazprom.
Creating a favorable image of Russia in the eyes of the West was not bad business: judging by the reports of the agency (under the American law on foreign agents, Ketchum reports to the US Department of Justice on activities in favor of foreign employers), from 2006 to mid-2014, Ketchum paid about $61.5 million for external PR: almost $29.5 million from the Russian government and $32 million from Gazprom.
These declared amounts may be only a tiny part of the financial iceberg that Russia spends on creating a favorable image, writes former Kremlin adviser Angus Roxborough in his book Iron Putin. But how did the American company find the entrance to the Kremlin?
“Ketchum is an absolutely lobbying story based on personal relationships,” the White House official assures.
Honest but small
The office of Mikhail Maslov, permanent Russian partner of Ketchum, is located a stone's throw from the Kremlin. We meet in a cafe on Volkhonka. Before starting a conversation on the record, Maslov patiently explains what he will not talk about: about customers, payments, projects and the number of employees involved in them. That is, about everything that is of interest to Forbes. “I would also like my name to appear less often in the press,” Maslov sighs, poking a salad tomato with a fork. "But it's in the name of the company, so there's nothing to complain about."
It wasn't always like that. In the spring of 1994, a student from Russia, Mikhail Maslov, appeared on the threshold of the New York headquarters of Ketchum. Then he, on the contrary, wanted to know as much as possible about him and his classmate at MGIMO Dmitry Sokura. Young people opened the Maslov, Sokur and Partners PR agency, but the beginning PR specialists had neither serious experience nor large orders.
At Ketchum, Maslov was received by Ketchum's senior vice president, John Paluzhek, who had long been interested in Russia: in 1988, he represented PRSA in the first Soviet-American talks in Moscow. “We had a nice chat, but it was a meeting without obligations,” recalls Maslov. Returning from the USA to Russia, Maslov sent a fax to Paluzhek: he said that they had opened an office, and sent contacts. A few days later, an unexpected answer came from New York: Ketchum offered Maslov and Sokur to become a Russian partner.
“This is extremely atypical: after all, they did not see any of the partners, and we did not have a serious business,” Maslov admits. “But, apparently, John liked me, aroused his confidence.” The agreement was signed quickly, since January 1995, the partners began work. “We became a partner of the Ketchum agency, but we didn’t have the rights to the brand, the partnership didn’t bring us money,” Maslov recalls. "-" They helped us technologically: how to write presentations, how to work with clients.
One of the first major customers was Alfa-Bank. “The guys - Maslov and Sokur - I liked from the first meeting. They did not have much experience, but they had serious ambitions,” recalls Alexander Gafin, a former member of the board of directors of Alfa-Bank. According to him, the task of the PR people was to cover "Alfa-Bank's contacts in the West."
After Alfa-Bank, VimpelCom, Fedex, Three M appeared. "Maslov, Sokur and Partners" was engaged only in PR. “We had clear guidelines: we don't work in elections, we don't pay journalists,” Sokur assures. “Maybe our colleagues in the market thought we were crazy fools, but for a long time we were the only agency that behaved like that,” Maslov adds to the former partner.
“They were honest, right guys, but very small,” recalls Yuliana Slashcheva, general director of STS-media (formerly president of the Mikhailov and Partners PR agency). “They worked on contracts worth $10-12,000 a month, while Mikhailov & Partners worked on contracts of $20,000 or more.” Sokur recalls that the revenue was about 30 million rubles a year: "A small company with a ridiculous budget, we barely scraped together money for trips to conferences."
At the end of 2005, the joint business of Maslov and Sokur came to an end.
“We spent more time arguing and finding compromises than working,” Maslov recalls. “We made a decision to separate the business - we parted ways and did it very correctly.” Revenue and customers were divided into shares. “Ketchum stayed with me because I was the person under whose name this contact came,” explains Maslov. The agency was divided into Sokur and Partners and Maslov PR. Within two to three months after the division of the business, Maslov recalls, Google and Boeing came to him. "Pure luck," he smiles. But real luck was yet to come - contracts with the Kremlin and Gazprom.
Under the Kremlin star
“It was a crazy trip - in four days we visited New York, Washington, San Francisco, Los Angeles, and if it weren’t for Ketchum, we wouldn’t have done anything,” Oleg Mitvol, former deputy head of Rosprirodnadzor, recalls his American tour in 2006.
In every city, at the airport, a neat young man appeared in front of Russian officials, held out a business card with the inscription Ketchum and helped organize meetings and interviews. In a couple of hours, they quite spontaneously agreed to meet at the New York Times, Mitvol is surprised. According to him, the business trip of Russian officials was not financed from the state budget - Alfa-Bank paid for tickets and hotels.
Ketchum secured a contract with the Kremlin in April 2006. A nine-month contract with a pool of PR agencies Ketchum, Gavin Anderson and GPlus was signed on the eve of the G8 summit in St. Petersburg - the PR specialists were tasked with media support for the Russian G8 presidency. “Then we came to the conclusion that we need to do the same thing that a huge number of countries do - use special consultants for international communications,” Peskov says.
Cooperation began like this: in the spring of 2006, representatives of the management of Ketchum and its European partner GPlus flew to Moscow, met with Putin's press secretary Alexei Gromov and his deputy Dmitry Peskov. There was no tender, and Ketchum got through personal connections, writes Angus Roxborough, a former GPlus employee, in Iron Putin.
The main mediator between the Kremlin and Ketchum was Alexander Smirnov, deputy head of the Press Service and Information Office of the President of Russia, several sources told Forbes. Smirnov studied with Maslov at MGIMO, then served in the Russian embassy in Mexico and the Latin American Department of the Russian Foreign Ministry. Since 2000, he came to the presidential press service. “An important link was the friendship of Smirnov with Maslov, and it led to an agreement,” the source of Forbes assures.
The Kremlin explains the choice of American PR specialists as follows: we took the top five from the world ranking and asked them for proposals. “Ketchum gave the best deals,” Peskov says. The problem, according to Peskov, was that no budget money was supposed to be used for external PR. “Yes, they are still not provided for in the budget,” the presidential press secretary notes. They got out of the situation gracefully: financial agreements were concluded not directly with the Kremlin, but with one of the commercial banks ( sources call Evrofinance Mosnarbank, but the bank does not officially confirm this. - Forbes), so the money was not spent under the state budget.
What amounts are we talking about? For the preparation and coverage of the G8 summit in St. Petersburg, the American agency, according to the report, received more than $1.2 million. The Kremlin was pleased: the contract with Ketchum was extended. In 2007, Ketchum was already paid $3.9 million. In total, from 2006 to mid-2014, Ketchum declared about $29.5 million received from the Russian Federation.
cover face
In December 2007, the face of Vladimir Putin appeared on the cover of Time Magazine with the caption: "Tsar of new Russia" - he was chosen as the person of the year. Ketchum has not lobbied with Time to make Putin Person of the Year, a person familiar with the matter says. “During a conference call, Peskov said that Putin was shortlisted for the award, and I remember how Ketchum employees were surprised by this news and even doubted that this would happen, although they later attributed this merit to themselves.”
Vladimir Putin not only appeared on the cover of Time magazine, but also topped the American Forbes list of influential people on the planet, his column on Syria was published by the NYT - all this in the West after the murder of Anna Politkovskaya, the death of Alexander Litvinenko and the war with Georgia could not even imagine. How is this possible?
“It’s not their merit, it’s Putin’s merit,” remarks Dmitry Peskov, press secretary of the president, pointedly. In his opinion, the creation of the country's image is a monotonous everyday work. "This is to ensure the most effective communications in bringing our point of view and counteracting information attacks."
In September 2012, the New York-based investigative journalism portal ProPublica revealed Ketchum's technology: the agency placed on the websites of the CNBC TV channel and the Huffington Post online publication columns praising Russia, written by "allegedly independent columnists" on his order.
Moscow was satisfied with the results.
“Until 2006, the doctrine of external PR was scattered, and only with the beginning of cooperation with Ketchum did it begin to gather into a single fist,” a source in the Russian government assures. “The state began to speak with one voice.” The tone was set by two people - Alexei Gromov and Dmitry Peskov. “Smirnov, although he held teleconferences, tried to be in the shadows,” says Forbes' interlocutor.
What did Maslov do? “It was a little strange that a person who had 15 years of some other experience behind him hit the image of the country,” Sokur says of his former partner. “Besides, Ketchum was hardly known in Russia before, they were not connected either with big business or with the presidential administration.”
Maslov himself evaluates his role modestly. In an interview, he noted that at the G8 in 2006, his company did rear work for Ketchum - 5% of the entire project. A former PR man who worked with Maslov recalls that his job consisted of organizing meetings with officials and logistics: Ketchum employees came to Moscow, “Maslov gave us informational feedback from Smirnov.”
“All the real editorial work was done by GPlus and Ketchum, who grumbled about how much they had to pay Maslov for his “backdoor work.” But they knew that he needed to be sweetened - he was the key to getting and renewing the contract, ”a Forbes source assures.
Everyone did a great job with this role. Contracts were renewed annually, and in 2010 Ketchum acquired 51% of MaslovPR and became known as Ketchum Maslov. Yes, and the career of Alexander Smirnov went uphill. In May 2008, he headed the Department of the Press Service and Information of the Government of the Russian Federation, during the G8 he was the head of the protocol, in 2012 he headed the specially created department of public relations and communications.
In the same year, his wife Anna Dycheva-Smirnova entered the Forbes list of the wealthiest Kremlin wives - she earned twice as much as her husband, whose income was 4.4 million rubles. “Because she has such a job, this is her income from her main place of work,” Smirnov explained then to Forbes ( Anna Dycheva-Smirnova-Member of the Board of the Russian Perfume and Cosmetic Association, Development Director of Reed Elsilver, which organizes perfume and cosmetic exhibitions. - Forbes).
Full throttle
Ketchum managed to get a contract with Gazprom through the same Kremlin offices, Forbes source assures, the necessary recommendations worked. “Contacts were created by Peskov, Smirnov, together with Kupriyanov (Gazprom press secretary), then all the work was done independently. There were separate teams that worked for the Kremlin and Gazprom.
Peskov recalls that representatives of Gazprom really consulted on the issue of working with Ketchum and shared such information with them: “When it came to creating a favorable investment climate, our interests intersected.”
The contract with Ketchum, Gavin Anderson and GPlus was signed by Gazpromexport (a 100% subsidiary of Gazprom) in early 2007. The PR people were tasked with improving the image of Gazprom in the European Union after the gas conflict with Ukraine. Judging by the Ketchum reports in the Ministry of Justice, from 2007 to mid-2014, the agency received about $32 million from Gazprom. Sergey Kupriyanov refused to comment on the relationship with Ketchum, briefly remarking: “We worked, we are satisfied with the work.” In 2009, Gazprom Deputy Chairman Alexander Medvedev, for example, became the only Russian representative to be included in the list of 100 influential people according to Time magazine.
Curiously, according to Ketchum's reports to the Ministry of Justice, in some periods Gazprom paid the PR agency more than the government. So, from August to December 2007, through affiliated companies, Gazprom transferred $1.97 million to Ketchum, and Rossiya (so in the report) - $1.85 million. In the second half of 2011, $2.7 million was received from the concern, and $1.8 million from Rossiya. Forbes sources do not exclude that Gazprom's contract includes part of the budget for work for the Kremlin. “Perhaps there was insufficient funding for the big (Kremlin) contract. So Gazprom can pay half or two thirds for the Kremlin,” Forbes source does not exclude.
A former employee of the company emphasizes that the Kremlin and Gazprom paid more for their positive PR than Ketchum indicates in US Justice Department reports.
“These statements show only a portion of the payments that remained with Ketchum while the same amount was allocated to partners. The mechanism was as follows: The Kremlin paid Ketchum through its banks; of this amount, Ketchum paid the partner its share (usually half of the total). So Ketchum's reported earnings represent only half of the payment."
PR on "bloody mode"
“Ketchum will no longer promote Russia” - with such a headline in September 2012, the Izvestia newspaper came out. It was reported that the contract with the American agency would not be renewed and the Kremlin was looking for new PR people. “We stood at the starting point, the government confirmed to us: there will be a tender,” says one of the participants in the Russian PR market. “We had a big, serious bid to beat the tender and get this contract.” But no battle happened - in October, Dmitry Peskov, through the same Izvestia, announced that the contract had been renegotiated. What was it? “It was just a process of discussion,” Maslov shrugs, refusing to comment further.
The company itself explains the attack on Ketchum by the intrigues of competitors: “The market is full of competitors, the contract is interesting. This is how everyone says: “Fu, bloody regime”, and when the opportunity arises to enter, there are more than enough people who want to.” In addition to the financial issue, there is a political issue.
A contract with the Kremlin was already hanging in the balance during Georgia's 2008 peace enforcement, when Ketchum's New York office was considering cutting off cooperation with Russia, a former Ketchum employee told The New York Times. Now the situation has become more serious.
The cooperation between the PR agency and Gazprom has already ended. According to Kathy Jevons, a partner at Ketchum in Washington, the Russian energy giant has shifted its focus from the US to the European market. It was not possible to get a prompt comment from the representative of Gazprom - Sergey Kupriyanov's phone was disconnected.
So far, writes The New York Times, citing unnamed former and current employees of the agency, Ketchum is working with Vladimir Putin's closest advisers as usual: processing requests from journalists, monitoring the media and preparing daily analysis of publications about Russia from Washington, Brussels and New York.
But in Moscow they notice that the work of Ketchum no longer brings the same results.
“In order to create a positive image in the conditions of the information war, propaganda and counter-propaganda, Russia needs not one Ketchum, but dozens of our guys from state corporations,” the official from the White House believes. Those who want to compete for the money of the Kremlin and Gazprom are more than enough, the market participant confirms.
To this, Peskov notes that Russian companies cannot yet compete with Ketchum - they are lagging behind in terms of opportunities, connections and influence. And there is no point in exchanging Ketchum for other foreigners - someone smaller and cheaper, the presidential press secretary notes. “There were two attempts to attract other foreign companies, but they did not suit us,” he explained.
With the participation of Ivan Vasiliev
Pavel Sedakov
Anna Dycheva-Smirnova is the CEO of Reed Exhibitions Russia, the Russian division of the world leader in organizing exhibitions. On the eve of the opening of InterCHARM, the largest perfumery and cosmetics exhibition in Eastern Europe, organized by the company, Anna told Elena Vyshinsky about new trends in the global beauty market, the specifics of exhibition work and the emotional component of the success of cosmetics and perfumery.
Anna, as CEO, are you opening your first InterCHARM?
Yes. My appointment 10 months ago coincided with a move to a new office and an increase in the number of employees. Before that, I was a deputy manager for many years, and I started working in a team 18 years ago. Now we have 15 exhibitions of different directions, and I have to fight with myself all the time. On the one hand, I have a penchant for "micromanagement" - when you control everything - from a speck on the carpet to the publication of a booklet for the exhibition. On the other hand, InterCHARM is my longest and favorite story, and we need to learn how to give equal time to all our projects.
It turns out?
Badly! Tomorrow I will stand at the entrance before the opening and wait for something extraordinary, like New Year or the First of September. I will see how people come - participants and visitors, who also associate their professional plans and expectations with the exhibition. During the days of the exhibition, 70 thousand people will visit it.
Anna, many functions are now available in the virtual space, does the interest in exhibitions fall in connection with this?
Vice versa. This year we have the most representative exhibition - 1150 companies from 40 countries. Geographically - from the Republic of Sakha to Mexico. Thematically - from handmade soap to laser devices. The status and trust that we have earned over the years guarantees our members reliable partnerships and quality products.
As for the possibilities of the Internet, we use them successfully and in various ways. For example, we made a platform where, thanks to special filters, business speed dating takes place - manufacturers find customers and vice versa, clarify conditions, make appointments and effectively use exhibition time and space.
But live communication, which has become a real luxury, is still a priority for our participants. Sympathy, trust, responsibility, quality - for such a high-tech, but very personal business as the beauty industry - all this is of particular value. Only from the outside it may seem that we are promoting things that are not the most serious - perfume, lipstick, cream. But we know that among our participants there are sellers of toothpaste and manufacturers of serious medical equipment - we are talking about people's health.
For this exhibition, we have prepared many conferences, competitions, presentation of professional awards... The life of the cosmetic community without InterCHARM is unimaginable!
For many of our regular guests and exhibitors, the time of the exhibition is the starting point in their diary. They plan all the most important things for these few days of October - launches, professional achievements and even vacations ... Do you understand how valuable and responsible this is?
Certainly! I don't understand how you, Anna, live with such responsibility.
It's hard, but I love my job. People rarely get into the exhibition business on purpose - they accidentally enter. But if a person works for a year, he begins to understand the meaning of what is happening, appreciate his skills and eagerly learn from the experience of colleagues. Exhibition work is not taught anywhere in Russia. And few people understand about it: when my son at school tells that I organize exhibitions, teachers think that I am ... a gallery owner and do art!
We have created our own academy, where our employees, at their request, enrolled in the cadets, comprehend exhibition wisdom without interrupting their work. Each top manager of the company is obliged to spend a certain number of hours on their training. We also hire third-party specialists, but many have already grown on our own. In turn, a large influx of young people allows the elders to keep abreast of changes and remain curious about the rapidly changing reality.
It seems to me that your business, and InterCHARM in particular, is aimed at combating age-related chauvinism?
You're right. You don't have to be young to be beautiful, and you don't always need experience to show talent. Everyone has their own concept of beauty, the number of proposals is huge, new companies and products appear non-stop. I stuck the motto of one Korean company in my diary, because. I completely agree with him: "To strive for the happiness of mankind through our products and the development of new technologies." Only our "technology" is aimed at connecting like-minded people and getting to know new achievements. A wonderful bonus of my work is to always be aware of the latest trends, to see how microtrends become macrotrends and turn into a paradigm. - Tell us what will be special at this exhibition?
The scientific program will discuss, among other things, algae. It would seem that there is nothing ancient, but exploring their properties for water purification and the creation of bio-fuel, scientists "at the same time" discovered many properties that are always in demand in cosmetology - healing, regeneration. Will be presented ... cosmetics for figure skaters, for example. And the most massive will be the participation at the exhibition of companies from the Republic of Korea, where 15 years ago a decision was made at the state level to invest in the creation of the cosmetics industry, which has become a world leader.
What is the Korean phenomenon?
It seems to me - in the combination of naivety and technology. They release new products with such speed that they do not even waste time on long and painful thinking over new products - everything is as simple as possible. But on the one hand, Korean manufacturers use natural elements that are understandable to the consumer - pearls or snail mucus, and on the other hand, the most advanced technologies that command the respect of experts.
InterCHARM is an insert for specialists, but how many people come out of curiosity?
There are usually 10% of non-specialists at the exhibition, but these are real fans who are well versed in what interests them.
Anna, what did you personally "discover" from the InterCHARM assortment?
I love skin care products and most of all masks, long before they were fashionable. I love when there is an element of magic - oil turns into foam, black becomes white. I do not actively use decorative cosmetics, mascara suits me, which is washed off only with warm water, and if you accidentally rub your eyes, there are no problems. I have a special relationship with smells - if suddenly a familiar scent smells from somewhere - I immediately recall the emotions and situations associated with it ...
By the way, now many corporations are buying old brands and resuming production - both perfumes and cosmetics. It seems to me that this speaks of the importance of traditions and the continuity of generations, that is dear to all people, wherever they live and whatever they do.
The CEO of Reed Exhibitions Russia (the organizer of Russian exhibitions InterCHARM) spoke about the trends in the beauty market of RBC + Anna Dycheva-Smirnova.
— How is the perfumery and cosmetics market developing in Russia, what stimulates its development?
— The idea of the beauty market as a single industry began to take shape quite recently. Today, the industry includes the sphere of personal services, chemical production and the actual perfumery and cosmetic companies. Unfortunately, there is no unified objective statistics for the industry: some studies, for example, take into account perfumes or personal care products, while others do not take into account these segments.
Compared to the beginning of the 2000s, when the dynamics of market growth was 18-20% per year, today the growth rate of the cosmetics market in the country has slowed down. There has been some saturation of the market, the consumer has ceased to be spontaneous, now he is more prudent and more thoughtful about the choice of cosmetics and services. On the other hand, the statistics do not take into account the contribution to the development of the industry of indie brands, which are now actively developing in Russia - independent niche cosmetic brands, because they, as a rule, do not have their own production facilities. Given this segment and online sales, the growth figures could have been higher.
At the end of last year, the Russian market grew by an average of 6.5% and reached about 650-700 million rubles. taking into account perfumery, but excluding the market of professional cosmetics and services. For comparison, the global beauty market achieved 5% growth in 2017. In Europe, the average per capita consumption of perfumes and cosmetics is 18 units, while in Russia this figure is 25 units. And in 2022 there will be 30. This is explained by the invariable desire of Russian women to look good, this is our cultural code.
The Asian market has also shown development in recent years. If we talk about the K-beauty phenomenon, then this is the result of systematic work on the implementation of the state program, including attracting investments, implementing marketing programs, creating clusters, as well as customs and tax benefits, so it cannot be denied that a similar phenomenon can occur with goods from Russian manufacturers.
— What is the phenomenon of indie brands, is this trend as pronounced in our country as in the West?
- Indie brands (from the English independent - "independent." - RBC +), like technological startups, are now capturing the global market of the perfumery and cosmetics industry in the USA, Europe and Russia. Let's explain this phenomenon. The industry as a whole today gravitates towards the personalization of products - this is the requirement of the time. The lifestyle of the consumer is becoming increasingly important, products are created for a certain lifestyle.
Initially, indie-brand products are developed according to the needs of the brand creator, based on his personal experience in finding care products suitable for individual characteristics - allergies, for example, or problem skin. Personal history, the similarity of the problem and the experience of the brand creator in solving it, as a rule, attract the buyer.
Prominent representatives of Russian indie brands are the project of Sergey Naumov, Romanovamakeup, 2211 Cosmetics, international ones include Nudestix, Milk, Ouai, Drunk Elephant.
The secret of their development is that today specialized retail is an important, but not the only channel of access to the consumer, and television advertising is not the only sales channel. The manufacturer has become much less dependent on the retailer, as digital technologies have greatly simplified entry to the market, being at the heart of new product promotion channels. Another clearly visible trend is the desire to create a unified marketing communication so that communication with the consumer is continuous and two-way.
The person who usually stands behind such a brand speaks openly with the consumer through social media. Building trusting relationships with the audience is one of the main tasks of manufacturers in conditions of maximum transparency. The lack of large promotional budgets in the case of small independent teams of indie brands increases the importance of creative marketing ideas.
- How do you see the development of the industry in the next three to five years, taking into account these trends?
- Large global companies such as Unilever and Estee Lauder are already buying local niche brands to enter new geographic markets and expand their audience by attracting new consumer groups (age, ethnicity). Russia is also waiting for the growing interest of major market players in Russian brands and indie brands. Our manufacturers may soon become the object of interest of large transnational companies. This will give the giants of the market more individuality and will allow international brands to become closer to the Russian consumer.
In addition, the salon industry will experience a certain rebirth due to the changing lifestyles of different categories of the population - new services will be introduced for certain, and sometimes even unique consumer needs. Of the surviving trends, one can note the creation of barbershops and salons that specialize in providing only one service.
I repeat: the desire to look good remains the driver of market growth. Russian women are brought up in a culture of self-care, although men have also become more attentive to their appearance.
Is the growth of the male audience a sustainable trend?
— The male audience is growing at the fastest pace. It is worth noting that before the promotion of men's cosmetics took place through a female audience. Now men have become more active in matters of personal care - they go to beauty salons for manicures, use the services of cosmetologists and are not afraid of injections. The difference between the male and female audience in the industry is no longer so big: 41% of consumers are men, 59% are women. Also, the male audience is attracted by the developing e-commerce: men are more actively purchasing care products in online channels.
— How do the requests of the InterCHARM exhibition audience change? What worries the professional community today?
— For several years in a row, we have seen the need of industry representatives to increase the level of knowledge and develop business competencies. One of the most popular topics of the business program of the exhibition, for example, was a forum on creating your own beauty brand. Therefore, this year, practical sessions will be held within the framework of the exhibition, where it will be possible to learn the latest global trends in the industry, in which direction the market will develop and what is worth investing in, get acquainted with new technologies and consumer behavior.
Another strong trend is the desire to gain knowledge on specific topics in order to be ready to adapt products and services to the specific lifestyle of the client. If a person, for example, is a believer, he should not feel the need to compromise between the fulfillment of the canons and the receipt of salon services. On this topic, InterCHARM will host the conference "Halal Cosmetics and Care" this year.
Natural cosmetics remain invariably popular. At the exhibition, the section "Green Valley" will be devoted to it, where visitors can get acquainted with the latest in organic and natural cosmetics and household chemicals. Moreover, for the first time, Eco-Day will be held, where professionals will be able to learn the most up-to-date information from competent experts.
It should also be noted that every year the interest in the exhibition from foreign participants is growing. This year InterCHARM will feature companies from 38 countries. This is a record number for the exhibition. Many Korean companies have been announced to look for partners in Russia, and the national pavilion of Brazil will be presented for the first time.
- Did the devaluation affect the purchases of raw materials by Russian producers? What will ensure our business stability?
- The difference in the exchange rate, of course, has an impact on the cost of raw materials and packaging and, accordingly, on the cost of the final product. Perhaps we will see some price increases closer to the New Year.
In Russia, of course, it is also possible to create a unique raw material base in order to minimize currency risks, but at the same time, it is imperative to stimulate the development of brands and an entrepreneurial culture so that this raw material finds its consumer. In my opinion, it is necessary to focus on the development of technological potential, for this we have all the resources, including human resources.
To date, the potential for the development of the domestic perfumery and cosmetics industry remains in the development of exports. When a company has 15-30% of its turnover in foreign currency, this minimizes risks and provides an opportunity for production growth. Access to the end consumer today has become easier, the state has now begun to support export-oriented enterprises. This gives our manufacturers every chance to repeat the success story of Korean cosmetics - K-beauty - and create the R-beauty phenomenon.