Moscow’s export of cosmetics increased by almost 30 percent

Moscow exported the cosmetic products in the amount of $ 357 million over 10 months of 2021. This is 27.7 percent more than in the same period of 2020 and 12.3 percent more than in 2019.

"Moscow is the main exporter of cosmetic products in the country, it accounts for 45.2 percent of all Russian deliveries, while in 2020 its share was 39.4 percent. In January — October 2021, the capital’s manufacturers shipped cosmetic products worth $ 357 million, which is almost 30 percent more than in the same period of 2020, "said Vladimir Efimov, Deputy Mayor of Moscow for Economic Policy and Land Relations.

He noted that within 10 months of 2019 manufacturers exported their products to 86 countries, in 2020 — to 90 countries, and in 2021 — to 94 countries. Most of cosmetics are purchased by Belorussia with supplies amounting to 86.4 million dollars. Kazakhstan imported goods in the amount of 82.6 million dollars, Uzbekistan — 30.7 million dollars, Azerbaijan — nearly 21 million dollars, Georgia — 15.3 million dollars. They account for 66.1 percent of the Moscow exports of cosmetics.

"In comparison to 2020, the capital’s exporters found new countries for deliveries. For example, for the first time cosmetic products from Moscow was delivered to Switzerland totaling 560.2 thousand dollars, to Morocco — totaling 210.8 thousand dollars, to the Dominican Republic — totaling 52.4 thousand dollars, to Costa Rica totaling nearly 50.6 thousand dollars. In general, the capital increased exports of all categories of cosmetic products in 2021, " said Alexander Prokhorov, Head of the Moscow Department of Investment and Industrial Policy.

Perfume is a special export item. Capital’s manufacturers exported products worth 45.5 million dollars — it is almost 55 percent more than in the same period last year. Exports of makeup and skin care products increased by almost 40 percent — up to 109.5 million dollars. Supply of essential oils brought almost 1.6 million dollars. It is 38.3 percent more than in the same period of 2020. Exports of shaving products, bath ingredients, deodorants and fresheners reached nearly 44 million dollars to increase by 22.2 percent.

How Mosprom and Moscow Export Center help exporters

The Mosprom Centre actively supports Moscow manufacturers. The Centre helps them participate in international exhibitions and business missions in other countries. The Mosprom organizes a specialized educational program aimed at developing professional skills and competencies, selects buyers, organizes technological tours to the capital’s production facilities.

The Mosprom Centre studies in detail advantages of the capital’s products to correctly choose counterparties and carry out appropriate pre-sales activities. Its employees hold preliminary negotiations with buyers to find out what they are interested in. Last year the Centre ensured participation of 127 capital’s companies in 14 business missions and 10 international industrial and agro-industrial exhibitions. Within the framework of these events, more than 1.6 thousand B2B meetings were held. Buyer events took place in Latin America, Europe, East Asia, Africa and the Middle East.

In addition, the capital’s manufacturers of cosmetic products are supported in foreign markets by the Moscow Export Centre (MEC). It also helps participate in business missions and foreign exhibitions, finance acceleration programs. MEC supports online exports through more than 90 platforms, places goods in duty-free shops, holds consultations, webinars and conferences, selects buyers and is engaged in pilot support programs (international retail-network).

Thanks to the Centre, Moscow companies can sell goods through foreign electronic platforms. For example, a company concluded a contract for supplying children's cosmetics with partners from Armenia and Germany in 2021. Now cosmetic companies have access to promotion programs on Chinese marketplaces Epinduo and Taobao, as well as on the German platform Kaufland.

Last year, 10 cosmetics manufacturers were selected for the Russian Commodities Pavillion in Chengdu, China. A few more manufacturers presented their products for free in the duty-free shop of Sheremetyevo Airport. Moscow companies involved in the cosmetics sector, participated in business missions with partners from France, China, Israel, Hungary, UAE ,the CIS countries and other countries. They also conducted an online business mission within the framework of the Intercharm Korea exhibition. The entire business component of the events, including the organization of negotiations and services of translators, was paid for by MEC.

In addition, manufacturers can form a strategy for exporting, participating in acceleration programs, where MEC will co-finance up to 90 percent of the cost of participation. Such projects were carried out with the Moscow School of Management "Skolkovo", GenerationS, GVA and other organizations. As a result, many companies found partners abroad. For instance one of the graduates of the "Exporters 2.0" program is now selling cosmetics to Turkmenistan, Vietnam and Uzbekistan.

Cosmetic products are also supplied abroad by the Moscow Region, the Stavropol Territory, St. Petersburg and the Nizhny Novgorod Region.