HBA Russia Presentation

48
www.KlineGroup.com © 2009 Kline & Company September 17, 2009 A presentation at: RUSSIA: The Jewel of the European Personal Care Market RUSSIA: The Jewel of the European Personal Care Market

Transcript of HBA Russia Presentation

Page 1: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 1/48

www.KlineGroup.com

© 2009 Kline & Company

September 17, 2009

A presentation at: 

RUSSIA:The Jewel of the European Personal Care MarketRUSSIA:The Jewel of the European Personal Care Market

Page 2: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 2/48

© 2009 Kline & Company 1

Russian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

About Kline

Page 3: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 3/48

© 2009 Kline & Company 2

Russian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

About Kline

Page 4: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 4/48

© 2009 Kline & Company3

Global Headquarters

− Little Falls, NJ

Kline Europe− Brussels, Belgium

− Oxford, UK

− Milan, Italy

− Prague, Czech Republic

Kline Asia

− Shanghai, China

− Tokyo, Japan

New Delhi, India− Dubai, UAE

Kline Latin America

− São Paulo, Brazil

We serve clients around the globe

About Kline

Page 5: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 5/48

© 2009 Kline & Company

Kline has an extensive series of market research reports that covervarious markets

4

About Kline

Page 6: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 6/48

© 2009 Kline & Company 5

Indian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

Kline & Co.

Page 7: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 7/48

© 2009 Kline & Company 6

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008

US$ Billion retail

CAGR: 5.1%CAGR: 5.1%

The global personal care market surpassed US $280 billion at theretail level in 2008

Global Market Review

Page 8: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 8/48

© 2009 Kline & Company 7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2004 2005 2006 2007 2008 2009-a

Change, %

Growth has slowed considerably due to the economic crisis

Global Market Review

a- projected.

Page 9: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 9/48

© 2009 Kline & Company 8

Emerging markets are advancing at the fastest pace

Argentina

Brazil

China

Russia

DOUBLE-DIGIT

GROWTH

India

Mexico

Poland

South Korea

MODERATEGROWTH

Canada

France

Germany

Italy

Japan

Spain

United Kingdom

United States

BELOWAVERAGE

GROWTH

Global Market Review

Page 10: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 10/48

© 2009 Kline & Company 9

Russia has been moving up the ranks

2003 Rank 2008

United States 1 United States

Japan 2 Japan

France 3 China

Germany 4 Brazil

United Kingdom 5 FranceChina 6 Germany

Italy 7 United Kingdom

Brazil 8 Russia

South Korea 9 South Korea

Russia 10 Italy

Global Market Review

Page 11: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 11/48

© 2009 Kline & Company 10

The emerging markets have significant upside potential when it comes

to per capita spending

Country Per capita spending (US$)

France 245.31

Japan 232.67

Spain 215.79

United Kingdom 215.44

Germany 189.63

Italy 184.98

Canada 167.61

United States 163.39

South Korea 155.46

Brazil 98.05

Poland 92.58

Russia 88.83

Mexico 79.84

Argentina 41.25

WORLD 40.51

China 11.94

India 5.40

Global Market Review

Page 12: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 12/48

© 2009 Kline & Company 11

Russian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

Kline & Co.

Page 13: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 13/48

© 2009 Kline & Company 12

Macroeconomic developments

High growth in GDP and real disposableincome

− Russian consumers are now prepared topay good money for good products

− Rising inflation is starting to slow downgrowth and resulting in price hikes

Consumers have a higher purchasing powersince the majority own a house without the

burden of mortgage repayments, havinginherited housing from the state following thecollapse of communism

The wealth of the Russian population has

seen substantial growth in recent years− Salaries have increased by 15% in the

past two years and are forecast tocontinue double-digit growth for the nextseveral years

Russian Cosmetics & Toiletries Market

Page 14: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 14/48

© 2009 Kline & Company 13

Drivers of the Russian personal care market

Increasingprosperity

Consumerexpectation

Societal pressuresand increased

desire to look good

Aging population

Marketing effortsundertaken by

pharma companies

Highly effectivecosmetics

becoming moreaffordable

HIGHGROWTH IN

PERSONALCARE

Russian Cosmetics & Toiletries Market

Page 15: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 15/48

© 2009 Kline & Company 14

Russia’s C&T usage is similar to the world, but skews slightly stronger

toward basic toiletries and oral care

0%

10%20%

30%

40%

50%60%

70%

80%

90%100%

World Russia

Fragrances

Hair care

MakeupOral care

Skin care

Toiletries

Russian Cosmetics & Toiletries Market

Page 16: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 16/48

© 2009 Kline & Company 15

Russia’s unique usage patterns

Facial treatments

World proportion: 19.4%

Russia proportion: 8.1%

Facial treatments

World proportion: 19.4%

Russia proportion: 8.1%

Lipsticks and lip glosses

World proportion: 3.8%

Russia proportion: 7.8%

Lipsticks and lip glosses

World proportion: 3.8%Russia proportion: 7.8%

ToothpastesWorld proportion: 5.6%

Russia proportion: 10.3%

Toothpastes

World proportion: 5.6%

Russia proportion: 10.3%

Russian Cosmetics & Toiletries Market

Page 17: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 17/48

© 2009 Kline & Company 16

Consumer dynamics

Consumers are becoming less price sensitive, choosing qualityover price

− As regional centers develop, consumers are activelyswitching from low cost generic products to higher cost

branded products Consumers previously were drawn to colorful packaging but are

now more interested in the ingredients and functionalcharacteristics

Consumers consistently choose locally made skin care as theybelieve they are more natural and better suited to Russian skin.

This belief is slowly changing. Russian consumers can be characterized into two distinct

segments:

− The older generation believes natural ingredients are morehealthy, is skeptical of foreign-made products containingchemicals, and does not trust advertising or salespeople

− The younger generation tends to want the advice of retailstore staff, is heavily influenced by western advertisingcampaigns, and buys popular brands as a status symbol

There is increasing interest in health care, naturalness and newtechnologies

Russian Cosmetics & Toiletries Market

Page 18: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 18/48

© 2009 Kline & Company

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2003 2004 2005 2006 2007 2008

17

The Russian C&T market reached $8.5 billion at the manufacturers’ level

in 2008. Growth has been robust over the past five years

$US Billion Mfr.

CAGR: 13.2%CAGR: 13.2%

Russian Cosmetics & Toiletries Market

Page 19: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 19/48

© 2009 Kline & Company 18

Russia outpaces world growth in all categories by a substantial margin

Fragrances Hair care Skin care Makeup Other

toiletries

Oral care

Change, % 2007 vs 2008

Russia World

Percentage growth

Russian Cosmetics & Toiletries Market

Page 20: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 20/48

© 2009 Kline & Company 19

Hot product trends and key new launches

Products with natural ingredients are increasingly in demand

Beauty salons and spas are becoming an increasinglyimportant part of the market

Major shift toward unscented deodorants, as consumers cannow afford to also buy a luxury fragrance

Value-added products in demand (e.g., color cosmetics,men’s grooming products, baby care, anti-aging, and anti-cellulite products)

More sophisticated and niche products are gaining marketshare (e.g., shampoo and bath and shower products for men)

Baby fragrances from local manufacturers emerge as a newsegment

Lip balms containing a patented combination of ingredientsclaims to curb appetite and leads to weight loss

Cosmeceuticals and nutricosmetics both gaining ground

Russian Cosmetics & Toiletries Market

Page 21: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 21/48

© 2009 Kline & Company

Products with natural and organic ingredients are growing in popularity

20

Russian Cosmetics & Toiletries Market

Page 22: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 22/48

© 2009 Kline & Company 21

HAIR CARE PRODUCTS: Snapshot

0

2

4

6

8

10

12

Percentage

growth

Hair Coloring

Products

Hair styling

products andsprays

Conditioners Shampoos

Change, % 2007 vs 2008

Henkel Procter & Gamble Unilever L’Oréal Oriflame

Shampoos

Hair coloringproducts

Conditioners

LEADING PLAYERS

SALES GROWTH BY CATEGORY

SALES SHARE BY CATEGORY

Hair stylingproducts

and sprays

Russian Cosmetics & Toiletries Market

Page 23: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 23/48

© 2009 Kline & Company

Shampoos and hair coloring product represent 70% of sales in this

product category

Two-in-one products are declining in popularity and products addressing particular hairproblems, such as dandruff and hair loss are growing in strength in terms of sales

More than 50% of Russian women use colorants and have a preference for permanentcolors

Despite the fact that Russian consumers still consider imported to be of better qualitythan those produced locally, the hair coloring segment sees increased interest in localproducts due to new product launches, improvement in quality and increasedproduction volumes

The long Russian cold winters are an obstacle against the fast growth of the styling

products as people spend around 6 months of the year wearing hats to protectthemselves from cold

Russian consumers in the cities like to buy modern sophisticated products such asgels, wax, cream and balm, whereas sprays are more preferred outside big cities

There is little brand loyalty for hair care products among Russian consumers

22

Russian Cosmetics & Toiletries Market

Page 24: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 24/48

© 2009 Kline & Company 23

MAKEUP PRODUCTS: Snapshot

02

4

6

8

10

12

14

16

18

Percentage

growth

Face makeup Lipsticks & lip

glosses

Eye makeup Nail polishes

Change, % 2007 vs 2008

Avon

Oriflame L’Oréal Faberlic

Lipsticks andlip glosses

Eyemakeup

Facemakeup

Nailpolishes

LEADING PLAYERS

SALES GROWTH BY CATEGORY

SALES SHARE BY CATEGORY

Russian Cosmetics & Toiletries Market

Page 25: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 25/48

© 2009 Kline & Company

Makeup is the second leading category in Russia

Lipsticks and lip glosses account for more than 40% of category sales

Lipstick is considered by Russian women as the main feature of all makeup; it is themost popular makeup product

Russian women are becoming increasingly selective in choosing makeup products as

quality and reputation became the most important criteria when choosing a particularbrand of makeup products

Direct sales companies like Avon, Oriflame and Faberlic lead the makeup market inRussia

Growth is mainly fueled by the improvement in the income of the Russian consumers

24

Russian Cosmetics & Toiletries Market

Page 26: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 26/48

© 2009 Kline & Company 25

OTHER TOILETRIES: Snapshot

0

5

10

15

20

25

Percentage

growth

Shaving Products Personal CleansingProducts

Deodorants andantiperspirants

Change, % 2007 vs 2008

Evyap Procter & Gamble Unilever Beiersdorf

Personalcleansing products

Deodorantsand

antiperspirantsShaving

products

SALES SHARE BY CATEGORY

LEADING PLAYERS

SALES GROWTH BY CATEGORY

Russian Cosmetics & Toiletries Market

Page 27: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 27/48

© 2009 Kline & Company

Personal cleansing products is the leading product category while

shaving products are the fastest growing

Bar soaps are the most significant contributor to sales in the personal cleansingproducts category, however this market is already close to the saturation point and isgrowing at the slowest pace of all personal cleansing product segments

Russian women comprise the largest group of consumers of deodorants andantiperspirants

Aerosols, roll-ons, and solid sticks are the three product forms that are the most popularamong Russian consumers

Russia represents a large market for shaving products, as there are over 54 millionmales in Russia over the age of 15

26

Russian Cosmetics & Toiletries Market

Page 28: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 28/48

© 2009 Kline & Company 27

ORAL CARE PRODUCTS: Snapshot

Colgate-Palmolive

Procter & Gamble Kalina

0

2

4

6

8

10

1214

16

Percentage

growth

Toothpastes Mouthwashes Toothbrushes

Change, % 2007 vs 2008

Toothbrushes

Toothpastes

SALES GROWTH BY CATEGORY

SALES SHARE BY CATEGORY

Mouth-washes

LEADING PLAYERS

Russian Cosmetics & Toiletries Market

Page 29: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 29/48

© 2009 Kline & Company

The collaboration with dental experts and pharmacists in order to improve

the awareness of dental issues helped to grow sales within the product class

28

Russian Cosmetics & Toiletries Market

Page 30: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 30/48

© 2009 Kline & Company 29

SKIN CARE PRODUCTS: Snapshot

0

5

10

15

20

25

Percentage

growth

Men's skincare

Sun care Facialtreatments

Hand/bodylotions

Baby care

Change, % 2007 vs 2008

Kalina Johnson & Johnson L’Oréal Beiersdorf Mary Kay

Facial treatments

Baby careHand/bodylotions

Sun care LEADING PLAYERS

Men’sskin care

SALES GROWTH BY CATEGORY

SALES SHARE BY CATEGORY

Russian Cosmetics & Toiletries Market

Page 31: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 31/48

© 2009 Kline & Company

Growth in income, an increase in the Russian birth rate, and the aging

of the Russian population are the main factors of growth in this sector

30

Russian Cosmetics & Toiletries Market

Page 32: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 32/48

© 2009 Kline & Company 31

FRAGRANCES: Snapshot

12

12.5

13

13.5

14

14.5

Percentage

growth

Fragrances for Men Fragrances for Women

Change, % 2007 vs. 2008

LVMH

L’Oréal Procter & Gamble Chanel

Fragrances for men

Fragrances for women

SALES GROWTH BY CATEGORY

SALES SHARE BY CATEGORY

LEADING PLAYERS

Russian Cosmetics & Toiletries Market

R i C ti & T il t i M k t

Page 33: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 33/48

© 2009 Kline & Company

Fragrances account for more than 10% of market sales in Russia

Russian consumers purchase Western (particularly European) brands as a sign ofaffluence

The luxury trade class is the largest with more than 75% of market share.

Eau de toilette products are the most popular format among Russian consumers

There is a continuing shift in the sales channels for fragrances in favor ofspecialized shops that position themselves as boutiques

The markets in Moscow and St. Petersburg are the most important markets inRussia, although there is increasing development in other cities and regions

32

Russian Cosmetics & Toiletries Market

Page 34: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 34/48

© 2009 Kline & Company 33

Russian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

Kline & Co.

Competition

Page 35: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 35/48

© 2009 Kline & Company 34

On the competitive front

Multinationals are increasing their presence in Russia,including in-country manufacturing

− Foreign companies report larger sales than Russian

brands across all beauty segments, with the exceptionof skin care

Local Russian manufacturers are fighting back againstforeign companies

Direct sales has traditionally had a strong position in theless developed regions

As competition in both Moscow and Saint Petersburg

intensifies, both specialty retail networks andmanufacturers are seeing new growth opportunities openup over the coming five years in Russia’s vast and oftenuntapped regions

Competition

Competition

Page 36: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 36/48

© 2009 Kline & Company 35

Procter & Gamble is the leading player in the Russian market.Multinational companies account for more than 60% of industry sales

Procter &GambleAvonL’Oréal

SchwarzkopfHenkel

Oriflame

All other

Competition

Competition

Page 37: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 37/48

© 2009 Kline & Company 36

Local companies account for 38% of total market sales

TOP 10 LOCAL MARKETERS

Kalina

Faberlic

Svoboda

Nevskaya Kosmetika

Novaya Zarya

Krasnaya Linia

Fratti

Rokolor

Unicosmetic

Arnest

11

22

33

44

55

66

77

88

99

1010

Competition

Competition

Page 38: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 38/48

© 2009 Kline & Company

Local manufacturers compete in the mass market and middle market

segments

37

Compet t o

Page 39: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 39/48

© 2009 Kline & Company 38

Russian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

Kline & Co.

Retail Distribution

Page 40: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 40/48

© 2009 Kline & Company 39

Retail development

The Russian beauty retail market has been restructuringsince the nineties

Retails focus shifted to the regions as a new market toconquer, leading to fast expansion and many door openingespecially in the last three years.

Open markets are constantly losing their market share toother channels especially mass merchandisers

Department stores are facing tough times especially thelower end ones

Specialty stores channel reshuffles as giant Arbat Prestigeleft the market in 2008

New distribution channels for cosmetics and toiletries,such as the Internet and drogueries or drug stores, haveappeared and are growing in popularity

Pharmacies are increasing their focus onparapharmaceuticals, in particular skin care products, withnon medical products reaching as much as 40% in some

pharmaceutical chains.

Retail Distribution

Page 41: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 41/48

© 2009 Kline & Company 40

Direct marketing: the biggest winner

The bulk of sales is generated by person-to-person sales represented predominantlyby Avon and Oriflame.

Makeup is the leading product class in this channel followed by skin care.

The economic crisis has had a positive effect on the direct sales channel as many

manufacturers such as Avon and Faberlic have witnessed a significant increase inthe number of their consultants.

The boom in sales through the Internet as a way of direct marketing also played arole in the growth of the channel.

Retail Distribution

Page 42: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 42/48

© 2009 Kline & Company 41

Specialty stores: fast expansion through the regions

Second largest distribution channel forcosmetics and toiletries in Russia

The big expansion in the regions and theincrease in the income of the Russianconsumer were the main drivers for thechannel’s growth

Offer a special shopping experience aswell as in-store beauty treatment corners

and beauty institutes Professional aestheticians, consultants,

and makeup artists provide clients expertadvice on various products

Big focus on online sales and loyalty

programs Main channel for sale of prestige brands

Share of mass brands is growing

Retail Distribution

Page 43: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 43/48

© 2009 Kline & Company 42

Department stores: interesting format but losing popularity

Specialty department stores repositionedthemselves as luxury destinations

Traditional department stores are facing

many difficulties in Russia mainly thelack of interest among the Russianconsumers to such store formats as itreminds them of the “Univermags” of theSoviet era and the poor quality ofproducts that these were offering

Lower end department stores,“Univermags”, are facing increasingcompetition from shopping centers andmass merchandisers

Other toiletries and hair care productsare the dominating product categories inthis channel and they are sold mainly inlow end department stores

Page 44: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 44/48

© 2009 Kline & Company 43

Russian Cosmetics & Toiletries Market

Competition

Retail Distribution

Outlook

Global Market Overview

Agenda

Kline & Co.

Outlook

Page 45: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 45/48

© 2009 Kline & Company 44

Plenty of potential left

The increasing wealth and purchasing power of the Russian consumers will boost thesales of cosmetics and toiletries

Beauty retailers will continue expanding in the regions and differentiating themselves

Big opportunities in emerging channels of distribution such as drogueries and mass

merchandisers

Expansion of mass merchandisers and supermarkets in the regions will provideadditional opportunities and convenience for consumers to purchase products

More opportunities for private label, exclusive, and niche brands

Outlook

Page 46: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 46/48

© 2009 Kline & Company 45

Economic prosperity will drive further changes in buying patterns

The aging of the Russian population willfurther boost the demand for anti-agingproducts

Interest in niche brands will continueincreasing

Interest in natural and organic cosmetics willkeep on growing

Men’s products will continue to grow as animportant target segment across categories

Demand for added value products atcompetitive prices will further grow

With changes in the lifestyle, spa proceduresand professional hair care and skin careproducts will become even more popular

Page 47: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 47/48

© 2009 Kline & Company4646

Quest ions

& Answers

Page 48: HBA Russia Presentation

8/8/2019 HBA Russia Presentation

http://slidepdf.com/reader/full/hba-russia-presentation 48/48

Americas____________

Asia___________ 

Europe___________ 

Kline & Company, Inc.

Overlook at Great Notch150 Clove RoadLittle Falls, NJ 07424-0410Phone: +1-973-435-6262Fax: +1-973-435-6291

www.KlineGroup.com

If you require additional information about the contents of this document or theservices that Kline provides, please contact:

Kl ine is a worldwide consulting and research firm dedicated

to providing the kind of insight and knowledge that helpscompanies find a clear path to success. The firm has servedthe management consulting and market research needs oforganizations in the chemicals, materials, energy, lifesciences, and consumer products industries for nearly 50years. For more information, visit www.KlineGroup.com.

Carrie MellageDirector, Consumer ProductsPhone: +1-973-435-3412E-mail: [email protected]

Kristy AltenburgClient Relations Supervisor, North America

Phone: +1-973-435-3367E-mail: [email protected]