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make money is getting ever more deeply embedded in the Russian mind, and is leading to an increased readi- ness to invest. Exhibitions promote natural cosmetics Some Russian exhibitions, such as KI Expo and Interkosmetika, have al- ready more than once held natural cos- metics trade conferences and put a clear focus on green matters. Inter- Charm*, the leading cosmetics exhibi- tion, is planning to expand the subject of natural cosmetics in October 2014, and will allocate a special area for the natural cosmetics sector – the Green Valley. Within InterCharm there will also be awards presented for the best natu- ral cosmetics in various categories. The competition – last year for the first time the event was organised with Bio.Rus, the Russian natural cosmetics certification body – was very cordially received by visitors to the Moscow exhibition. The rest of the InterCharm – loud, shrill and focussed always on the latest beauty trends – has its own halls de- voted to nail care, hair care and profes- sional cosmetics, and has apparently achieved the balancing act between the conventional beauty market and natural cosmetics. At this exhibition in 2013 there were already more than 35 genuine natural cosmetics brands on show. This event is still the leading attraction for visi- tors, as shown by the numbers, and has a high level of visitors from outside the region. Stimulation from St. Petersburg As part of the new St. Petersburg InterCharm Professionell at the begin- ning of June the first big natural cos- metics trade conference took place in the northern Russian metropolis. ECO BEAUTY FORUM was set up and run by Ekokosmetika.ru, the Russian lan- The share of natural cosmetics in the Russian market is still less than 1 percent guage natural cosmetics portal. The at- tendance was very mixed and was com- posed of 60 representatives of beauty salons, perfumery outlets, cosmetics shops, Internet dealers and shops, manufacturers, “bio” shops and natural cosmetics distributors. The level of interest in the talks and, at times very lively, podium discus- sions, showed that the whole topic is also becoming of current interest out- side of Moscow. Initial impacts It is still not quite clear how the year will develop in terms of natural cos- metics. Some of the importers in- volved in this sector have already in- creased their retail prices. Because the price level for conven- tional cosmetics will also increase the problem will not be restricted to the natural cosmetic brands. In the past comparable Rouble devaluation en- sured that the consumer was forced to buy cheaper home-produced brands. Thus these companies profited from the crisis and grew out proportion. This particular economic situation impact- ed in a positive way mainly on the brands in the lower and middle price sectors. Whilst in particular some nat- ural cosmetics importers complained about loss in business of some 20% others are happy enough with the re- sults of the first half-year. Hence the current picture is far from consistent. Take a chance, or wait? It is possible already to sense the uncertainty experienced by interna- tional brands who only recently were considering an entry into the Russian market. It is a reasonable question to ask whether in times of a diplomatic MARKETS FOCUS: NATURAL COSMETICS COSSMA 7-8I2014 11 chill they should go into Russia, or per- haps to put off the commitment for a while. Because it can be long term and costly to establish a successful Rus- sian business this decision is basically being reconsidered in the face of possi- ble deeper sanctions. And yet if the matter does not require a huge invest- ment it is still true to say that the Rus- sian cosmetics market is, and contin- ues to be, attractive – even in times of crisis. It has to be assumed that the trend towards an increased demand for cosmetics will continue to grow. This means that it can only make sense, de- spite the negative situation, to seek out a suitable Russian partner. The po- tential of the Russian market has not changed with the current political situ- ation in terms of natural cosmetics brands and contract manufacturers, in- gredients dealers, and in particular professional help in the areas of certi- fication, formulation and consultancy. *www.intercharm.ru Further information can be found on the Internet (see Internet panel) Dr. Kirsten Hüttner expert consultant in Russian matters, Rus Expert Stuttgart, Germany rus-expert@t-online.de www.ekokosmetika.ru photo:Amalia19,Shutterstock.com www.naturkosmetik-branchenkongress.de The German market for natural & organic cosmetics • Quarterly reports • Best market coverage • All distribution channels • Trends, forecasts, consumer insights BRANCHENMONITOR NATURKOSMETIK [ Berlin, Germany October 7-8 2014[ www.naturkosmetik-verlag.de Additional information at: Available in English Additional information can be found at www.health-and-beauty.com/ qr00280 or you can just scan the QR code! 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