Russian Cosmetics Market: How the Preferences of Russians Have Changed After the Pandemic

The pandemic has changed the preferences of Russians in the choice of cosmetics. Over the past year the demand for decorative cosmetics fell by 17.5%. Consumers now prefer personal care products and vitamins. What is most interesting is more and more men began to buy cosmetics.

Cosmetics Market Trend

According to the TEBIZ GROUP, the size of the cosmetics market in 2020 decreased by 7%. While sales of decorative cosmetics — lipsticks and cream foundations — fell, the demand for personal care products, masks and body lotions only increased. Online sales of cosmetics have grown significantly over the year.

Dynamics of the size of the Russian cosmetics market in 2017-2020 (mln USD)

Source: TEBIZ GROUP

The purchase of cosmetics is gradually going to the Internet, following other products. "In 2020, 69% of all customers used the Internet when making a purchase decision," says Tamara Shokareva, President of the Direct Selling Association. "In 2018, there were only 53%." Marketplaces also note a cosmetics boom. From January to April 2021, residents of our country purchased twice as much cosmetics, perfumes and care accessories than a year before, Wildberries noted.

Marketplace sales are now showing explosive growth. Thus, people prefer to make small purchases in them (the average check is 1,150 rubles). Direct sales are not growing so intensively; by the end of 2020, goods in all categories were purchased by 7.4% more than a year before. But that said, people are ready to make big-budget purchases. A third of customers place an order for 500-1500 rubles, another third for 1500-3000 rubles. And only 8% of customers make small purchases worth up to 500 rubles.

Another interesting trend is the growing popularity of man cosmetics. From January to April, men bought 15 times more different products and 4 times more shaving tools on Wildberries, the demand for colognes nearly doubled. The popularity of various styling and care products for beards and mustaches is also growing.

Segmentation of the Cosmetics Market

In 2020, the category "Skin care products, skin protection products, other makeup products" became a key segment of cosmetics, according to TEBIZ GROUP. They account for almost a third of income (28.2%).

The structure of the cosmetics market in Russia in 2020

Source: TEBIZ GROUP

According to the Direct Selling Association, sales of beauty products in 2020 increased by 6.8%. Also, the demand for perfumery increased, which was purchased by 10.7% more. The greatest interest among customers today is caused by patches for the skin around the eyes. Since the beginning of the year, their purchases have grown by 257%.

The Size of the Online Cosmetics Market

According to research conducted by Data Insight with the support of Arvato Rus, in 2020, 83 million orders for the amount of 95 billion rubles were placed in online cosmetics stores, while the average check was 1,150 rubles. In 2020, online cosmetics stores received 158% more orders than in 2019. Online sales increased by 99% in rubles over the same period. The average check decreased by 23%.

Source: "Online Cosmetics Market", Data Insight research supported by Arvato Rus

The number of online orders in cosmetics stores is 10% of all orders made from Top 1000 retailers. The sales volume in rubles was 4%.

Online Cosmetics Sales Leaders in Russia 2020

Wildberries.ru became the leader among Russian online retailers in the cosmetics category. Its share by volume of online sales among online cosmetics stores for 2020 amounted to 37%. Ozon.ru is in second place and L'Etoile, an online cosmetics and perfumery store, is in third place.

Geography of Online Cosmetics Stores in Russia

Of the online cosmetics stores included in the Top 1000 online retailers, Moscow and St. Petersburg (including the region) account for 82% of stores, and the other regions — the remaining 18%.

Traffic and Conversion of Cosmetics Online Stores

In the segment of online cosmetics stores, the conversion in 2020 was 5.1%. The closest indicators for online book stores and online stores of clothing, footwear and accessories are 5.9% and 4.5%, respectively.

The ratio of the number of orders (including orders through applications) to the number of visits to the site — comparison of categories

The traffic structure of the segment of online cosmetics stores is close to the average values for the entire eCommerce market, with the exception of a 3 times higher share of advertising clicks (10% versus 3% on average) and a slightly increased share of "organic" content.

Social Media Activity in the Cosmetics Segment

Instagram is the most popular social network in the cosmetics segment. 91% of stores have their communities in it, 68% of which have more than 10,000 subscribers. The social network VKontakte became the second most popular in the segment — 89% of stores maintain their communities in this social network, 63% of which have more than 10,000 subscribers. Despite the fact that only 25% of stores maintain accounts on the Odnoklassniki social network, they all gained more than 1,000 subscribers, with every fifth store gaining more than 100,000 subscribers.

Distribution of online cosmetics online stores by the number of subscribers

• *The share of online stores using the social network
• **The median of the number of subscribers

To Sum Up

In 2021, the trend for the transition of customers of cosmetics from offline to online will continue. Therefore, if you decide to promote a cosmetic brand in the Russian market, try to ensure the maximum presence of the brand in the online space: website, social networks, marketplaces, etc.

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