Why has cosmetics become so expensive? PEOPLETALK columnist and author of the Beauty of Beauty channel on beauty pricing

A few months ago, online cosmetics stores recorded a 31% increase in order numbers: people bought imported perfumes, luxury care products, and only their favorite products until their prices soared. We propose to discuss how the same prices are formed, and why even the most beloved Russian-made washbasin has increased in price.

For starters, there are insta or no-name brands. They produce cosmetics (if they are in factories that comply with health standards) and sell directly to the consumer through their social networks. More serious brands, such as L’Oreal, Natura Siberica, Aravia, work according to a different scheme, which we propose to disassemble.

The cosmetic cost of a conscious big brand is created by many factors. Here are the main ones: 30% of the final price is the manufacturer’s costs – laboratory research, development of the concept and formula, issuance of certificates, purchase of components, costs of production, packaging, marketing and advertising, salary Employees involved in all these stages. The remaining 70% of the cost of cosmetics is the cost of logistics and distribution. Funds need to be packaged in boxes, shipped, transported to the warehouse of a store or marketplace, delivered to retail outlets, placed on shelves and sold. In addition, the brand itself and the store must profit from the sale of cosmetics to end customers. So there are really many factors and the crisis has affected most of them.

For example, many Russian brands encountered difficulties when purchasing components. If before, cosmetics were purchased in France and Italy, now these countries refused to cooperate or it has become impossible or too expensive to deliver the goods to Russia. Western raw materials are exchanged in China, India, United Arab Emirates, Turkey, Malaysia and South Korea, but procurement prices from there have also almost doubled and manufacturers have no choice.

The cost and conditions of international transport also increased from 30% to 100%. Since the Russian market for cosmetic packaging was underdeveloped, modern and functional packaging for cosmetics was also imported mainly from Europe or China. Thus, additional costs are added to logistics and packaging points.

Stores are also in trouble. Previously, major international brands organized discount and promotional activities for customers, which stimulated demand and benefited the retail chain. Now many of these companies have reset their marketing budgets in Russia, so the margins of the sellers have increased.

Therefore, the prices for cosmetics of even Russian brands have increased by 20-30% (or even more), rather than at the whim of a greedy seller. But you should not despair either – in the autumn many new affordable brands from Asia, India and Iran will appear on the Russian market. Meanwhile, the supply situation may return to normal for familiar brands to include prices and return promotional offers. By the way, you should be more wary of fakes – unoriginal cosmetics, which unscrupulous sellers are trying to sell, especially to those who miss Western brands leaving Russia.