The competitiveness of Russian perfumes has increased in the market
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Perfumes have become more accessible to Russians. In 2023, a bottle of perfume cost on average about 1.5 thousand rubles, which is a quarter less than in 2022, according to a report by the Center for the Development of Advanced Technologies. The trend of analysts of the national system “Honest Sign” is associated with an increase in demand for domestic goods, and they are cheaper than imported ones.
According to the Russian Perfume and Cosmetic Association, the price of a bottle of imported perfume in the economy segment ranged from 1 thousand rubles. up to 4.5 thousand rubles, in the premium segment – up to 9 thousand rubles, and luxury cost 9-27 thousand rubles. At the same time, a bottle of Russian perfume in all segments cost from 800 rubles. up to 1.5 thousand rubles.
What is the reason for this trend? Co-founder of the Fragrance Library brand, Alexander Lushin, points out that after the outbreak of hostilities in Ukraine, imports of foreign perfumes decreased significantly: “Our customers began to look for alternatives among local manufacturers, and it is also cheaper. We saw an increase in interest in us.
Sales increased by almost 60%, which was very noticeable, especially on marketplaces. I consider Russian quality to be absolutely competitive. In many respects, production uses imported equipment – this is normal. As for raw materials, they are local, but there are also imported ones. Large suppliers of raw materials are Belgium and France, but this is difficult and expensive. We have to use parallel imports, primarily from the CIS and China.
Over the past two years, the price increase for perfumes has been within 5%. We see interest in the price category up to 500 rubles, in connection with this we have small formats: 3 ml, 6 ml and 10 ml, that is, a person receives a high-quality product, but in a smaller volume and for reasonable money.”
Should we expect an increase in prices for domestic perfume? The head of the Aroma-obraz company, Veronika Brukhovetskaya, notes that a rise in price is inevitable, since manufacturers depend on the supply of imported raw materials: “More domestic manufacturers have indeed appeared on the market, but you need to understand that prices will be higher, because Russia does not have its own production of ingredients and bottles. And these are two important components for creating a presentable and high-quality product.
Therefore, of course, the cost may vary significantly due to logistics processes. I think the growth will be 30-40%.
Recently, more and more conventional brands have appeared that are not engaged in creating fragrances, but in counterfeiting ready-made, most popular and well-known ones. With the development of Wildberries, Ozon and other marketplaces, some Russian manufacturers are not above taking ready-made fragrances, pouring them into their own containers, sticking some kind of label and passing it off as their own production.”
The turnover of the market for counterfeit cosmetics and perfumes from mid-2019 to the first half of 2020 was estimated at 10 billion rubles. Because of this, from October 2023, mandatory labeling was introduced for perfume manufacturers and importers. Its goal is to “whiten” the market and improve the economy; this rule also applies to parallel imports. Thanks to this, buyers have the opportunity to check the legality of the purchased products. This can be done through the “Honest Sign” application.
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