The impressive growth of the perfumes and cosmetics market during the previous years (10-15% on average since the mid-1990s, and about 20-25% during the last decade) should slow down to more common rates. According to Russian market research company Symbol-Marketing Agency, a subsidiary of Symbol Communication Group, the growth of perfumes and cosmetics sales should not overcome 10% in 2009 and 2010.

Russian customs have recorded a strong decrease of the country’s imports of cosmetic products. In January 2009, imports have fallen by 30% compared to the same period last year. The Symbol-Marketing Agency also states that Procter & Gamble’s sales in Russia fell by 15%. The decrease of consumers’ spending mainly affect premium and luxury segments and are major cities such as Moscow and Saint Petersburg, which are the strongest areas for high-end sales.

According to the Symbol-Marketing Agency, these shifts in spending patterns may have a positive impact on the development of local manufacturers such as Kalina and Nevskaya Cosmetics, which may gain market shares

Kalina skincare cream