Consumer and Market Insights: Skincare Market in Russia

CT0022IS

Sample Pages

December 2014

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Example table of contents

Introduction

Category classifications

Demographic definitions

Summary methodology

Market overview

Macro-economic analysis: GDP Per Capita, Population, Consumer Price Index, and Age Profile

Overall market value, (US$ millions), 2008-2018

Overall market growth rate, in value and volume, 2008-2018

Global country comparison of market volume and growth, (millions of KG), 2008-2018

Components of change analysis of market value growth, 2013

Market volume, (millions of KG), 2013-2018, by category

Category value growth, 2008-2018

Change in category value share, 2013-2018

Change in segment value share, 2013-2018

Leading company analysis

Leading brand analysis

Retailer and packaging

Identification of key retailers

Channel analysis: sector and industry distribution, 2010-2013

Channel analysis by category, 2013

Private Label penetration by category, 2013

Brand and Private Label growth, 2010-2013

Packaging Material and Type analysis, sector and category, 2013

Packaging Closure and Outer analysis, sector and category, 2013

Growth in Packaging Material, Type, Closure, and Outer, 2013-2018

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Example table of contents - continued

Demographic cohort consumption patterns

Breakdown of overall consumption occasions 2013, by age and gender

Breakdown of Private Label consumption occasions 2013, by age and gender

Over/under consumption compared to the proportion of society represented

Breakdown of consumption frequency 2013, by gender

Breakdown of consumption frequency 2013, by age group

Private label consumption by age group compared to overall market consumption by age, 2013

Consumer trend analysis

Trend framework

Level of influence each trend has on overall consumption, by volume, 2013

Level of influence each trend has on overall consumption by category, by volume, 2013

Primary market drivers – the top five trends influencing consumption

For each primary market driver:

Sub-trend explanations and analysis

Value of consumption influenced by the trend, (US$ millions), 2013

Volume of consumption influenced by the trend, (millions of KG), 2013

Percentage of consumption motivated by the trend, by category

Percentage of consumption motivated by the trend, by gender

Percentage of consumption motivated by the trend, by age group

Percentage of consumption motivated by the trend, by leisure time group

Percentage of consumption motivated by the trend, by income group

Analysis of how the trend influences consumption habits

Recommendations of how manufacturers can formulate their products to target the trend

How the trend will evolve in the category

What trends will increase in importance over the next ten years?

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Example table of contents - continued

Innovation examples

Innovative country-specific launches in the sector

Innovative global launches in the sector

Recommended actions

For each primary market driver and category, how to target the driver through:

Formulation

Positioning

Packaging

Occasion

Appendix

An explanation of the sub-trends

Detailed methodology

About Canadean

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Reasons to buy this report

This report brings together consumer analysis and market data to provide actionable insight into the behavior of consumers.

This is based on Canadean’s unique consumer data – developed from extensive consumption surveys and consumer group

tracking – which quantifies the influence of 20 consumption motivations within your industry.

Consumer trends analysis An overview of the key demographic groups driving

consumption in your industry, and what their motivations are

for doing so. This enables the reader to identify the most

important trends within the market and also determine

whether beliefs over what influences consumer behavior

within the category are accurate.

Future outlook The report provides insight to highlight the "so what?"

implications behind the data, and analysis of how the

need states of consumers within your industry will evolve

in the short-to-medium term future.

Recommended actions Strategic recommendations of how to capitalize on the

evolving consumer landscape are offered at a sector and

category level, allowing product and marketing strategies

to be better aligned with the leading trends in the market.

Product innovation examples Examples are provided of innovative international and

country-specific product development within your

industry, with analysis of how these products effectively

target the most pertinent consumer need states.

Demographic analysis Key demographic groups driving consumption within the

Russian market are identified. The figures showcase the

number of Skincare occasions attributed to specific age

groups and genders, as well as identifying whether these

demographic groups "over" consume in the category.

Market sizing Market value and volumes are given over 2008–2018 for

every category in the sector. In addition, distribution and

packaging dynamics are studied to provide a complete

review of current and future market dynamics.

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Canadean has identified nine mega-trends that drive consumer choice and these can be broken down into 20 sub-trends

Aspiration

Beauty

Better Value

Busy Lives

Changing Age Structures

Changing Life Stages

Connection

Experience Seeking

Fun & Enjoyment

Individualism

Indulgence

Media

Technology

Trust

Urbanization &

Migration

New Gender

Behaviors

Personal Space & Time

Quality Seeking

Health

Ethics

MEGA-TRENDS:

CHANGING

LIFESTAGES

CONNECTIVITY

CONVENIENCE

ETHICS

EXPERIENCE &

ENJOYMENT

HEALTH &

WELLNESS

INDIVIDUALITY

TRUST

VALUE

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Market value of the Russian Skincare market,

2008–2018

Market volume of the Russian Skincare market

(Unit Millions), 2008–2018

CAGR 2008–2013 XXX%

CAGR 2013–2018 XXX%

Local currency (RUB)

US$ millions

2008 XXX XXX

2013 XXX XXX

2018 XXX XXX

CAGR 08-13 XXX% XXX%

CAGR 13-18 XXX% XXX%

XXX

XXX

XXX

2008 2013 2018

The Skincare market in Russia was valued at RUBXXX,XXX.X million in 2013 and is forecast to grow at a CAGR of

X.X%, to reach RUBXXX,XXX.X million by 2018. The expansion of modern retailing is the major factor driving

positive value growth. However, as the market becomes more penetrated, with strong presence from international

and local companies, its value growth is slowing down when compared to previous years.

The Skincare market witnessed a steady rise in per capita consumption levels during 2008-2013, due to rising

concerns about beauty and looks. Market volume is driven by new products and increased consumer awareness,

due to extensive advertising campaigns by manufacturers.

The Russian Skincare market, currently valued at RUB109.5 billion, is forecast to register high growth over the next five years

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Number of occasions in the Russian Skincare industry by age in 2013

Number of occasions in the Russian Skincare industry by gender in 2013

Women:

Occasions: XXX billion

Per person: XXX

Men:

Occasions: XXX billion

Per person: XXX

Tweens & Early

Teens:

Occasions:

XXX billion

Per person: XXX

Early Young

Adults:

Occasions:

XXX billion

Per person: XXX

Pre-

Mid-Lifers:

Occasions:

XXX billion

Per person: XXX

Mid-

Lifers:

Occasions:

XXX billion

Per person: XXX

Older Young

Adults:

Occasions:

XXX billion

Per person: XXX

Older

Consumers:

Occasions:

XXX billion

Per person: XXX

Kids &

Babies

Occasions:

XXX billion

Per person: XXX

Women and Mid-Lifers enjoy the most Skincare occasions in Russia on an annual basis

The Russian female population have considerable higher Skincare occasions compared to males. While Mid-Lifers

aged 45-54 are the most frequent consumers of Skincare products, those aged 55 and over have the highest

number of Skincare occasions per year in Russia, due to the large size of this demographic. The desire to look

good and youthful amidst fear of aging is motivating this cohort to indulge in Skincare products such as facial

moisturizers containing anti-aging and anti-wrinkle properties, more often than other age groups.

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Men are more likely to seek out the best value for money Skincare product than women

Consumers seek value through either low-priced items as

well as those with added benefits

Consumers in Russia are driven by finding Skincare products

that they perceive to be good value for money, but this is

particularly important amongst men, at XX.X% of consumption,

than women, at XX.X%. As Skincare routines become more of a

daily ritual, consumers are becoming more price conscious and

shopping around for products that offer the best value, whether

this be in volume, where consumers feel they are getting more

for their money, or functionality, where consumers feel products

will have better effects.

As men see Skincare routines as less of a ritual, they are

therefore more likely to opt for a low-price product and private

label products. However, women like to shop around for a

product and brand they feel is functional, and often luxury, and

therefore trade-up for products that provide long-lasting effects

and anti-aging benefits.

The trend is also highest among Pre-Mid-Lifers, as these

consumers tend to have more disposable income than others,

as well as having multiple pressures, such as those from work or

family. Therefore, these consumers may trade up and look to

treat themselves to a luxury item.

Olay Total Effects Anti-

Aging cream also has

the added value of sun

protection. It is popular

among women looking

to trade-up to a popular

brand and premium

product.

This hand moisturizer

from Organic People is

small and compact, as

well as low in cost. It

also offers consumers

added value through

the use of organic

ingredients.

Brands can offer value by providing

products with multiple benefits

Consumers seek value through low cost

products with added features

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Innovative new product launches in the global Skincare market

Brand: Super Restorative Night Wear

‘Very Dry Skin’

Manufacturer: Clarins

Launched: 2014, UK

Trend: Beauty, Indulgence

Clarins launched a new Night Cream

called Super Restorative Night Wear for

dry skin. Clarins states that the product

meets the specific needs of very dry skin,

as it is enriched with organic Harungana

extract.

Brand: Glazed Apple Hand Cream

Manufacturer: The Body Shop

Launched: 2014, US

Trend: Quality Seeking, Ethics,

Responsibility & Spirituality

The Body Shop introduced this new

Hand Care product in the US market.

This non–greasy hand cream is enriched

with community fair trade Shea butter

and has a seasonally-sweet Glazed

Apple fragrance.

Brand: Advanced Genifique Youth

Activating Concentrate

Manufacturer: Lancôme

Launched: 2014, Australia

Trend: Beauty, Experience Seeking

Lancôme's new product uses Genifique’s

powerful complex with biotechnology-

derived ingredients. The aim of the

product is to reduce the appearance of

wrinkles and improve the evenness of

skin tone and texture.

Brand: Age Perfect Cell Renewal Day

Cream Moisturizer

Manufacturer: L’Oreal

Launched: 2014, Canada

Trend: Changing Age Structure

L’Oreal launched this new moisturizer in

the Canadian market. The product aims

to speed surface skin cell renewal,

revealing new skin cells for fresher and

more youthful looking skin.

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How to successfully target the Changing Age Structures trend

Body Care Facial Care Hand Care Depilatories Make-up Remover

Pro

du

ct

Formulation

•Added anti-aging and

firming ingredients

such as retinol and

collagen is attractive to

aging consumers

•Moisturizing natural

ingredients are growing

in popularity

•Added anti-aging and

firming ingredients

such as retinol and

collagen is attractive

•Acne and spot

treatments help

younger skin

•Many consumers are

conscious that their

age is reflected

through their hands

•Moisturizing

formulations

particularly in winter

months

•Added moisturizing

and anti-aging

ingredients for

maturing consumers

with dry, sensitive skin

as well as for younger

consumers with

delicate skin

•Moisturizing

ingredients are key for

older and younger skin

•Spot-fighting and

blackhead clearing

products for younger

consumers

Positioning

•Products positioned

around having anti-

aging properties and

offering a youthful glow

•Mild and sensitive

products for younger

consumers

•Taking the positioning

of a product intended

to counteract aging

will be popular in

Russia due to its aging

population

•Aging consumers are

prone to dry hands,

particularly in the cold

weather

•Positioning towards

working men and

women will also see

success

•Depilatories can be

positioned as a longer-

lasting alternative to

shaving, offering

convenience to

working women

•Removers positioned

around a Skincare

routine and using

before applying anti-

aging creams will do

well for Older

Consumers

Packaging

•Screw-top closures

and easy-grip

packaging for Older

Consumers

•Dispensers are also

popular for both busy

and aging consumers

•Screw-top closures

and easy-grip

packaging for Older

Consumers

•On-the-go Hand Care

is important for

working consumers

who wish to top-up the

product throughout the

day

•Packaging for easy

application in

important for all

consumers

•Wipes and sachets as

well dispensable

formulas are handy for

easy application

Occasion

•Products positioned

around everyday use

will be appealing to

aging consumers who

wish to slow down the

signs of aging

•Products positioned

around everyday use

for aging consumers

looking to slow down

the signs of aging

•Younger consumers

want everyday products

to combat spots

•Both adult and older

consumers will seek

products they can

apply once or more a

day, particularly in

cold weather to avoid

dry hands

•Depilatories which

can be used in the

shower will be popular

among working, time-

scarce women

•Make-up Removers

are important at the

end of the day to

freshen up the face

and remove any

make-up before

consumers go to sleep

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Body Care Facial Care Hand Care Depilatories Make-up Remover

Ta

rge

tin

g

Consumer

targets

•As consumers are

becoming more image-

conscious, consumers

of all ages are the best

target market

•Women are a larger

market than men

•Maturing consumers

who look to reduce the

signs of aging

•Young consumers

wanting to treat spots

and acne

•Working men and

women in particular

are both regular users

of Hand Care to avoid

dry and cracked hands

•Women of all age-

groups as they look for

products with added

benefits to the skin to

stop it from drying out

•Younger women in

particular, especially

professionals who

want to look good and

stand out in the

workplace

Key

segments

•Products with silky

textures enhance the

beautifying effects for

the consumer

•Facial Care products

which treat spots and

acne, as well as

reduce blemishes will

give consumers added

confidence

•Creams which treat

cracked, dry hands

•Products with long

lasting effects for

busy, image-

conscious consumers

•Make-up Removers

with added qualities

such as moisturizing

or anti-aging benefits

Pricing

Strategies

•Some consumers will

be willing to trade up to

a more premium

product with the

perception the product

will be more effective in

treating their specific

Skincare needs

•Some consumers will

be willing to trade up to

a more premium

product with the

perception the product

will be more effective in

treating their specific

Skincare needs

•Products should be

affordable as many

Russian consumers

are regular Hand Care

users

•Consumers are often

willing to pay extra

where they see fit,

with the perception

products will safer to

the skin

•Make-up Removers

with added benefits

should highlight this

clearly in order to

appear good-value-

for-money

Key

Channels

•Supermarkets &

Hypermarkets are

especially good to

target the mass

audience

•Supermarkets &

Hypermarkets are

especially good to

target the mass

audience

•Premium products

can be sold in

specialist shops

•Supermarkets &

Hypermarkets are

especially good to

target the mass

audience

•Supermarkets &

Hypermarkets are

especially good to

target the mass

audience

•Supermarkets &

Hypermarkets are

especially good to

target the mass

audience

How to successfully target the Beauty trend

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Summary Methodology

MARKET DATA

• Method: Analyst triangulation of

consensus numbers based upon

comprehensive primary and desk

research as part of an international

research programme.

• Coverage:

• 50 Countries fully researched

• Category and segment breakdown

• Eight channels

• Value and Volume data

• Internationally comparable data

• 100% standardized definitions

CONSUMER DATA

• Method: Extensive consumption surveys

and consumer group tracking with strict

age and gender quotas to ensure

nationally-representative results.

• Coverage:

• 10 Countries

• 20 Consumer Trends

• 26 Consumer Groups

• Category breakdown

• Integrated market sizing at the

country and category level

• Interim 2013 Consumer data

generated by mapping 2013 Market

size data onto 2013 Consumer data

consumption values

Details on the methodology for both of these research programs can be found in the Appendix.

This report is comprised of two data research programs

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