09/07/2007
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InterCHARM as a mirror of East European cosmetics industry
The trade show: Up to 80% national market contracts are made at the major Russian trade show of the industry, InterCHARM global beauty event organized by Moscow-based ExpoMediaGroup Staraya Krepost since
1993
Cosmetics and perfumery, nail and hair care and accessories, spa products, niche brands, Novelties in Russian and global market Gallery, Trends area, packaging, raw materials, services to cosmetics industry, new emotions and exclusive concurrent program – all these and much more is expected to be available under the roof of the best in Russia Crocus Expo exhibition center, Moscow in the framework of the fair on October 25-28, 2007.
Those who are familiar with InterCHARM are not fazed by the figures, but are always amazed by the different contents every year. The event has been developed to bring decision makers together, and the traditional feature of the show is a wide business concurrent program, which stimulates visitors and exhibitors interest as well as helps to unveil the market opportunities.
What is important about figures is their ability to underline the event’s undisputed leadership in Russia, CIS countries, Eastern and Western Europe. In 2006, the year of its renovation, InterCHARM welcomed 850 exhibitors on an area of 18 000 sqm net (34% increase in comparison to 2005). The number of exhibitors including 270 international ones climbed to 14%. Bulgaria, China, Egypt, France, Germany, Israel, Italy, Korea, Poland, Spain, Taiwan and Turkey were flying their respective flags within dedicated national pavilions. The number of professional attendees was estimated at 94 000. In 2007 a selection of nationalities will present at the show, bringing diversity to each its area.
The market
Russian cosmetics market growth rate is expected to be about 10-12% and reach 7,8 bln in 2006. Though in general the market becomes slower, its development includes several trends. Medicated segment provides a lot of free niches. One of them is middle-priced products realized only through pharmacies. Expansion of retailers is made through purchasing of local chains, franchising and launch of own standalone shops.
On the one hand, Moscow market, taking 20% of the total cosmetics sales in Russia, gains maturity. In 2006 the capital market should have reached $1.5 bln. Moscow will step on a new stage of development after new mega-malls construction in the city suburbs. On the other hand, Russian regions hide great potential due to their vast territory and undeveloped infrastructure. Specialized retail chains, actively proliferating in the regions, report 25-40% of annual growth. The current situation forms a clear direction of market development.
Parallel to the process of regional Russia development, cosmetics companies actively consolidate. Small players leave the market, while large companies acquire new enterprises and diversify their business.
Retail operators develop their business with private label launches. Manufacturers search for crossborder innovations, gathering ideas from various industries.
Whatever the way Russian market will develop, legislative changes will alter the alignment of forces and stimulate further market consolidation. Small companies may leave the scene for larger players. The correlation between national and foreign trademarks is expected to shift in favour of the latter ones.or of East European cosmetics industry
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