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3 September 2003
"Russian Cosmetics and Perfume Market: The Sweet Smell of Success"
The Russian market for perfume and cosmetics is already one of the six biggest in Europe, and the retail chains are growing by 40-50% a year.
“I haven’t seen eyes as hungry and excited as those of Russian women looking at cosmetics in any other country in a long time,” Fred Langhammer, President and CEO of the Estee Lauder Group, told Expert in an interview. Thanks to Russian women’s lust for beauty (men’s products only make up 10% of the market), the Russian market for cosmetics and beauty products is growing by 30% a year and has already become one of the six biggest in Europe. The retail trade in cosmetics is developing even more rapidly than the market as a whole and today is expanding by 40-50% a year, second only to grocery retail (80-100% a year).
Currently in Russia, a new specialized cosmetics and perfume store, often with a French name and with at least 100 m3 in floor space, creative interior design, and huge shop windows displaying the newest in cosmetics and perfumes from around the world, opens every 3-4 months. This type of store has won over a fifth of the entire cosmetics market, estimated at $4.7 billion. According to market projections, in the nest two to three years the share of specialized retail stores will at least double.
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