Natura Siberica conquers the south – Kommersant FM
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Natura Siberica entered the African market. It became the first Russian cosmetics company to begin supplying products to this continent. Now we are talking about stores in Morocco and Tunisia. In addition, the company is negotiating with local partners in Egypt and Madagascar, Vedomosti reports.
According to a company representative, shipments to new regions are made through local distributors, after which the cosmetics are supplied to retail chains. In particular, in Tunisia, Natura Siberica products can be purchased in pharmacies. In 2024, the manufacturer plans to enter the South American market.
However, in these regions, the Russian brand may face strong competition, warns the head of the Infoline-Analytics company, Mikhail Burmistrov:
“Russian companies, which were forced to lose a number of markets in so-called unfriendly countries, are very actively considering the possibilities of strengthening their positions in Latin American countries.
Because there are a large number of women who actively care about their appearance, skin condition, and so on. These are sunny, hot countries, and the consumption of certain types of protective cosmetics there is quite high. The situation is similar in the MENA region; Russian companies are already widely represented in the market of the United Arab Emirates and neighboring countries. The UAE can be a logistics hub from where supplies will be made to the countries of North Africa and the Middle East.
Of course, there are certain nuances. This market is very competitive, and positions really need to be won. If we are talking about Latin American countries, then there is a high level of dependence on brands. We will have to compete with those international players who have now left the Russian market, but are not only represented in MENA and South America, but are also actively investing.”
In 2022, sales of Natura Siberica on the global market exceeded €20 million, and in 2023, revenue from foreign trade increased by a third, a brand representative said. Success in new regions will depend on correct positioning, says Alexander Sirovatsky, vice president of strategy at Media Instinct Group: “Now there is a preliminary phase when the company, through various distributors, checks how well the product reaches the local audience.
The question is how they will be able to position the feature that they have and operates in Russia, without their own retail and advertising support. How far will the local audience come in and be able to explain something about the strength and quality of products from Siberia.
I don’t think things are any different in other countries in terms of media. It is unlikely that the consumer there chooses based on the principle of whether a product is from Russia or not. He looks more rationally, correlates price, quality and only thirdly positioning. Judging by the fact that logistics are not close, and we are not talking about production in these countries, the product will be quite expensive and premium. Therefore, the main question is how work will be carried out with consultants in stores.”
Last year, Natura Siberica entered the Middle Eastern market – the brand’s products can be purchased in Saudi Arabia, Bahrain, Jordan and the United Arab Emirates. In addition, the Russian company’s cosmetics are represented in Vietnam, Taiwan, Hong Kong and Malaysia.
In 2023, Natura Siberica appeared in Central America; its products began to be sold in Costa Rica. According to a brand representative, about 100 items are supplied to this market, which can be purchased in more than 150 local chain stores and pharmacies.
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