Russian regional cosmetics and perfume market on rise

Ilya Lomakin, Managing Director, Discovery Research Group

In 2012 almost all large retail store chains operating in the cosmetics and perfume sector lost market share to small and more local companies. However, none of them saw falls in sales volume. This trend also continued in the first six months of this year.

Among other trading formats last year, supermarkets registered the most significant slowdown in terms of store openings, while drug stores and "natural" cosmetics stores were among those with the most dynamic store count increases.

What is more, it was observed last year that nationally the total sales share in cosmetics and perfume shrank in the Central Federal District as a result of active development on the markets of the Volga, Northwestern and Southern federal districts. However, the clear leader in growth tempo was North-Caucasus Federal District, where the market grew by 157% year on year. The focal point for retailers in this region is Stavropol Territory.