Imports of imported perfumes increased by almost half in the three quarters of 2023

The share of imported perfumes on the Russian market, which decreased in 2022, is growing again. Based on the results of January-September 2023, the import of perfume into the country increased by 47.6% year-on-year, to 45.5 million bottles, which is 41% of the market. Demand for products is growing, but some consumers may be affected by the rise in prices of part of the range, experts say.

Imports of perfume products to Russia in the three quarters of 2023 increased by 47.6% year-on-year, to 45.5 million bottles, according to a study by the labeling system operator CRPT and NNCC. During this period, the share of imported perfume in the supply structure increased by 3.1 percentage points, to 41%. Domestic production for the three quarters increased by 28.2%, to 62.9 million bottles.

In 2022, in the context of the military actions of the Russian Federation in Ukraine and foreign trade restrictions on the Russian market, the share of local perfumery, as well as perfumes from Poland, grew, while the share of suppliers from France, Spain, and Germany decreased, said the Center for Trade and Trade (see “Kommersant” on January 19 ). The geographical structure of imports for the nine months of 2023 is not provided by the CRPT and NNSC.

Executive Director of the Association of Manufacturers of Perfumery, Cosmetics, Household Chemicals and Hygiene Products Petr Bobrovsky points out that in the last year large retail chains have developed direct imports, which is why many new perfume and cosmetic brands have entered the Russian market, including from Greece and Spain. Also, at the end of the third quarter, retailers began to increase supplies to ensure increased demand on the eve of the New Year holidays, as well as the following on February 23 and March 8, adds Mr. Bobrovsky. According to his estimates, import growth may continue in the fourth quarter of 2023 due to the depreciation of the dollar.

President of the Direct Sales Association Tamara Shokareva connects the growth in imports with the building of new logistics chains and the emergence of suppliers in Asian countries. The owner of Ile de Beaute, Evgeny Drozdov, said in a recent interview with RBC that the chain has increased the share of supplies of perfume brands from the Middle East. In the first months of 2023, there was also an increase in the import of perfumes from the EAEU countries, which Kommersant’s interlocutors associated with the development of parallel imports (see Kommersant on May 31). The list of brands allowed for parallel import includes Lancome, Yves Saint Laurent, Giorgio Armani. Ile de Beaute, Golden Apple, Letual and Rive Gauche did not answer Kommersant’s questions.

The head of the Ministry of Industry and Trade Denis Manturov noted in October of this year that niches have become vacant in non-food markets, including perfumes and cosmetics, after the reduction in the presence of foreign brands. But, he said, local suppliers may require retail preferences. Petr Bobrovsky notes that due to a significant reduction in advertising and marketing activity of some global brands, local players already have the opportunity to increase recognition. According to Ms. Shokareva, in Russia there are mainly small manufacturers of budget perfumes, which may have difficulties purchasing ingredients that are usually supplied in large quantities. The executive director of the Russian Perfumery and Cosmetic Association, Alexandra Skorobogatova, did not answer Kommersant.

Sales of perfumes in Russia for the three quarters of 2023, according to the Center for Trade and Technology and the National Research and Production Center, at retail increased by 15.92% year-on-year. As noted by the CRPT and NNSC, the demand for most key items in the perfume market remains price elastic. If average prices for perfumes and eau de toilette in the third quarter were lower than last year, then the cost of the most expensive eau de parfum increased on average by 10.5% year-on-year, to 2.54 thousand rubles. per unit of goods.

Tamara Shokareva connects the increase in average prices with the rise in logistics costs, the appearance on the shelves of imported perfume purchased at a high exchange rate, as well as the dependence of local suppliers on imported components and materials. Managing partner of Vanchugov and Partners Alexey Vanchugov says that the increase in average prices will affect the mass segment, where buyers can switch to more affordable products.

Alina Savitskaya