ParfumGigi@aol.com
Mon, 2 Oct 2006 22:03:59 EDT
Cosmetics in Russia asked press service of Dow Corning to comment upon the company’s development in the local market.
Dow Corning has served the Russian market since the 1970s when we were represented by a local agent. In 2003, we opened our own office because the economy was growing and Russian customers were approaching us for new solutions and support. Having a local office means that we are able to work more closely with our Russian customers and attract new ones. This has been so successful that we have already moved into larger offices and have taken on additional staff.
Who represents your company in Russia?
We have both direct accounts and distributors. For cosmetics our distributor is Russo Chemie. Our employees support them so that our distributor can provide excellent technical, commercial and logistical support. Our Moscow representative office started operations in 2003. The office in Moscow serves as a platform for growth by providing customers and manufacturers with a choice of innovative silicon-based technologies and solutions to compete in the global marketplace. In 2005, we opened an Application Center at the Moscow Office that allows Dow Corning to assist customers in developing creative solutions, through formulating silicones in cosmetic applications, and meeting new trends in cosmetics and personal care, as well as product concept development, optimization and troubleshooting. The Center also allows us to provide theoretical and practical training on Dow Corning technologies, products and test methods.
Do you feel competition from other suppliers?
Euromonitor reports that the cosmetics and toiletries market in Russia has grown at a compounded annual growth rate of 12.5% over the last five years. That kind of growth is bound to attract raw materials suppliers and we have seen evidence of increased competition. However, despite this we feel we are in a good position because the core of our strategy is our commitment to giving customers the exact combination of solutions and product technology they need to achieve their business goals. We have developed a continuum of products and solutions that are tailored to each customer’s requirements -- whether they are innovating and creating new technologies or want reliable, proven solutions.
Which Dow Corning products are in demand on the Russian cosmetics market?
Our products are used in both the skin care and hair care markets. In skin care, we have had a high level of demand for silicones that go into moisturizers and anti-aging products. Silicones in skin care products provide an improved aesthetic appearance. In hair care, the primary focus has been on shampoos for damaged hair. Silicones help create the appearance of glossy, shining hair.
How does Dow Corning’s strategy in Russia differ from the company’s strategy in other countries?
When we first aggressively pushed into the Russian market, awareness of the benefits that silicone brought to the cosmetics market was low. Because of this, we have spent a great deal of time increasing awareness of what silicones can do to improve consumer products. We were amazed and delighted at how quickly the Russian market adapted silicones to their formulations. Our strategy is now much more geared around the marketing of our newly launched products and our total solutions offering which equates with our strategy in other countries.
What are the results of Dow Corning’s work in Russia to date?
Our results have been terrific. We have come a long way from the situation in 2001 where there was little awareness of who Dow Corning is and what benefits could be derived from adding silicones to cosmetics formulations. As a result, we have been able to achieve growth in Russia and, with the addition of the Application Center and the help of our partner, Russo Chemie, we feel confident that we will continue to be successful.
What are your plans for 2006 and in 2007?
We have already held joint seminars (both hosted by Russo Chemie) with Reheis, to promote silicones in the antiperspirant and deodorant market, and with LCW Sensient, to promote the benefits of silicones in the color cosmetics market. External Sources expect that the Russian market will see growth in both of these markets over the next five years. We will continue to promote our Leave-In Conditioner Kit and will have more new products in 2007. It is also very important for us to continue to grow the good relationship that we have developed with PCAR. We think the work that they do is very important in helping to develop the cosmetics market in Russia.
4th September 2006
