NEWS

InterCHARM-2009 – new lap for the Russian beauty industry development!

InterCHARM, the number one exhibition for perfumery and cosmetics in Eastern & Central Europe, will take place for the 16th time on October 28-31, 2009 at Crocus Expo Exhibition Complex, Moscow.

During recessionary periods, when companies re-consider the effectiveness of their marketing activities, exhibitions remain to be the only highly cost-effective way to generate sales leads, enter new export markets and deliver new business. Exhibitions continue to attract high quality audiences and first time attendees: according to CEIR Research Report 77% of qualified visitors at exhibitions represent new customers. Exhibitions attract buyers and decision makers: over 80% of exhibition attendees have an influence on purchasing decisions at show and 55% have buying plans as a result of attending (Exhibit Surveys 2007).

InterCHARM is currently the major event playing the role of a chief guide for specialists engaged in various fields of perfumery and cosmetics market. Being the most popular meeting point of beauty business professionals, the exhibition provides both the participants and the guests with ample opportunities for professional cooperation in search of fresh ideas and new perspectives. Established a unique platform for beauty professionals InterCHARM remains the principal contributor into the development of Russian perfumery and cosmetics industry.

InterCHARM for many years serves as an entrance gate for international companies looking for business opportunities in Eastern Europe. Over 40% of InterCHARM exhibitors today – international players, who are looking for the rapid development on the Russian market. In 2008, over 300 international companies from 30 countries including Belgium, Belorussia, Brazil, Bulgaria, China, Czech Republic, Finland, France, Germany, Hungary, India, Italy, Japan, Latvia, Lithuania, Moldavia, Pakistan, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey, UAE, UK, Ukraine, USA presented their products and services to potential clients in Russia. National and group pavilions of Germany, Spain, France, Italy, Poland, Bulgaria, Brazil, South Korea, Taiwan and China supported by respective trade associations in each country gave an opportunity to companies to develop the geography of their distribution. Government and official bodies of many European countries for many years support participation of their national industries in InterCHARM as it is one of the most effective platforms to do business in Eastern Europe.

By now InterCHARM has settled profound relationship with partners around the globe including Germany, France, Great Britain, Spain, Italy, China, South Korea, Poland, Thailand, Taiwan, Singapore, Bulgaria, Lithuania, Latvia, Estonia, Brazil and Japan.

InterCHARM is the only show in the area bringing all decision makers together, which helps to sharpen the market intelligence. Over 76 000 visitors, including major opinion leaders, beauty market experts and beauty business owners, technologists, manufacturers, distributors and retailers, commercial and mass-media representatives, politicians and stars, as well as 40 000 professionals of the beauty industry (cosmeticians, dermatologists, estheticians, managing directors of beauty salons, Spa and the cosmetology centers, nail masters, hairdressers and massage specialists) paid attention to the global beauty event, which accommodated 884 exhibitors last year.

Since 1994 InterCHARM has been making the case for trade fair as a launch pad for small and medium-sized enterprises as well as new and innovative products. It has become the best and most prestigious platform for European beauty market players, and all those interested in the region. The largest show in the area allows launching new product, overcoming objections, generating immediate sales and doing all that cost-effectively. As a result over 1400 companies from 46 countries and more than 130 000 specialists from all over the globe became InterCHARM clients.

Nowadays almost all world-famous brands of beauty care including Academie Scientifique de Beaute, Ericson Laboratoire, Anna Lotan, Holy Land, CHRISTINA, JANSSEN Cosmeceutical, Reneve, Natura Bisse, SOTHYS, GATINEAU, Payot, Keenwell, Pevonia, KLAPP, De Laurier, LCN, Creative, Orly, Alessandro Nails, Planet Nails, OPI, Akzent-direct, Jessica, Dance Legend, KEUNE, Paul Mitchell, Alex Beauty Concept, Australian Gold, GUAM, THALGO are present at InterCHARM.

In today’s world the role of InterCHARM becomes extremely important for the international players of the Russian perfumery and cosmetics market. In the current economic environment InterCHARM as main beauty industry event in the area becomes the most effective marketing platform, which provides multipurpose business facilities for the exhibitors to expand their business and meet fruitful contacts, obtain not just participation in the trade-show, but a COMPLEX SOLUTION for entering Russian and CIS countries market of beauty products. They get not just a booth, but everything they may need during and after the fair to make the participation even more effective:

booth at the largest in Eastern and Central Europe trade show;

listing in the official catalogue of the exhibition;

copy of the official catalogue;

report on development of Russian cosmetics and perfumery market;

substantial discount on Keys to the market package of services;

assistance in visa support, tickets and hotel accommodation;

publication in Marketing request book, distributed to a vast database of industry professionals;

free participation in “Doing Business in Russia” seminar which provides key information for foreign market players that spotlights such topics as: Russian perfumery & cosmetics market in facts & figures, consumers profile and their preferences, peculiarities of entering Russian regions and CIS countries, perfumery & cosmetics certification, distribution system: how to avoid risks and get a success and much more;

This year an extensive professionally oriented concurrent program will be a significant part of the show. Exhibition general partner ExpoMediaGroup “Staraya Krepost”, famous for organization of the professional beauty events, will offer a program, which will engage opinion leaders, world-famous speakers and beauty professionals to cover up marketing and management aspects of the Russian market in the new economic environment. The program will include the already mentioned “Doing Business in Russia” complimentary seminar for foreign exhibitors and visitors, Cosmetique News Forum (3-day event on marketing of perfumery and cosmetics), the all-Russian Convention for Beauty Salons, Competition of Beauty Salon Administrators, Nail Service Sñhool, Farma + Beauty Profmeeting, conferences, seminars and master-classes organized by companies – InterCHARM-2009 participants, as well as traditional show events such as Championships on Nail Design, SPA-massage and Hair Art.

In 2009 InterCHARM is getting prepared to welcome over 76 000 visitors on around 48 000 sq. meters gross. According to Anna Dycheva-Smirnova, Reed Elsevier Business development director, this will be achieved by means of the mailing database dramatic increase, involving more professionals from CIS and Russian regions, representatives of independent specialized retail stores and regional specialized chains, along with implementation of a special program for 500 independent retailers with strong purchasing power and import possibilities.

Remarkably, that according to the poll conducted by one of the Russian web-sites in January, 2009 among 1000 respondents from 7 regions of Russia, “Russians will rather save on food and entertainment than refuse form being healthy and beautiful”. This fact again contributes to the major beauty experts’ opinion claiming that perfumery and cosmetics market in Russia will not suffer much from the global crisis.

Popular trends and most developing sectors of the industry have always found place on the dedicated areas of InterCHARM exhibition. This year the expo will feature 10 traditional areas: Perfumery and Cosmetics, Beauty Salon and Institute, Nail Services, Spa, Hairstyling, interCHARMpack – the zone of package manufacturers and suppliers, FormulAction – the zone of manufacturers of raw materials and ingredients, Zoom – niche and innovative products, Novelty Gallery – perfumery and cosmetics products launched in 2009, National Pavilions for international participants; and 4 new ones – Bio, Farma+Beauty, Jewelry Section and Pavilion of Russian Manufacturers:

BIO: organic way of life – one of the most powerful driving forces of the last few decades. This year InterCHARM has come to devote this section to innovative cosmetic products of natural organic origin, offering own exhibition area to this promising domain.

FARMA+BEAUTY: it has proved to be one of the most prominent sectors of the Russian beauty industry, due to pharmacies gaining ever growing influence in the development of the industry. This area has been promoted at INTERCHARM professional for over 3 years, and this year it will be boosted at InterCHARM-2009. Companies now get wider opportunities to expand the ranges of product aimed at improving the person’s appearance. For a long time there prevailed an opinion that this goal was achievable through exclusively cosmetic products. Nowadays the orthodox belief has changed to realize that creams and lotions are not the only means to make you look healthy and attractive. During the recent few years there have appeared new categories of products pursuing the same goal, among which are nutrients, BAA, vitamins, electronic appliances, all of which use pharmacies as an effective trade channel. This section will acquaint InterCHARM visitors with cosmetic and parapharmaceutical products featuring therapeutic qualities intended to help people preserve healthy look.

JEWELRY SECTION: Fashion accessories have long become an integral part of the beauty business. Nowadays trendy accessories and fashion jewelry can be found on sale at beauty salons along with professional cosmetics. This year InterCHARM is spreading out the boundaries of perfection! The exhibition will present jewelry items from leading Russian and foreign jewelry manufacturers.

PAVILION OF RUSSIAN MANUFACTURERS: InterCHARM is proud to introduce the new area where Russian manufacturers can finally have the opportunity to demonstrate their achievements in cosmetics industry. Russian companies develop competitive, original products. Many companies including world leaders, are now looking for a local manufacturer to cut costs for imported ingredients and products, especially in times when euro/dollar dynamic rates influence so much on the Russian market. The Russian pavilion can serve this purpose best providing enough possibility for cost optimization and expanding business in Russia and CIS countries. The pavilion is supported by Perfumery & Cosmetics Association of Russia (PCAR).

In this way InterCHARM serves a perfect tool for demonstrating all the palettes of the cosmetics industry from raw-materials, packaging, manufacturing facilities to the finished product and beauty accessories. And even during the epoch of economic changes and market concentration, InterCHARM remains the utmost effective marketing platform consolidating the adjacent markets and perspective directions of the industry for all of us to become even stronger!

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Benefit from participation in InterCHARM-2009:

Spotlight yourself among the other successful market players, consolidate an image of the brand and company on local and global scale;

Get a full idea of Russian cosmetic and perfumery market: actual technologies and innovations, the latest trends and the best trademarks, offers and services;

Launch a new product with the guarantee of the success on the professional market;

Reach the clients’ needs, and aim at customer`s preferences;

Solve the first-key problems in 4 days saving your time and efforts;

Organize seminars, workshops, trainings, business meetings;

Present your products in Novelties Gallery and ZOOM area of innovative and niche products;

Use press-center services for effective communication with business press, glossy magazines and public opinion leaders;

Organize pre-arranged individual meetings with B2B visitors – major buyer companies from the most developed cities of Russia;

Participate in business and educational program and business meetings with foreign counterparts;

Travel to InterCHARM at the best rates provided by the partner companies

InterCHARM is an example of a highly effective model of business communication:

Every participant of the exhibition is provided with high-end business communication tools. Comprehensible segmentation and navigation system where every section is marked with a unique sign and color, professional approach at clients’ attraction and retention, etc. – all these tools strengthen beneficial properties of the show.

Every year the show organizers develop new effective methods of collaboration that rates InterCHARM among the best-organized events in the world.

Review on the Russian market

Over the last 5 years Russian perfumery and cosmetics market has been demonstrating annual growth by 10-12% in sales volume, attracting investment from brands wishing to expand internationally. However, over the recent period, the market appeared to slow down, reporting ˆ8,6 bln with 10,4% growth in 2007, and ˆ9,3bln with 8,7% growth in 2008. Experts see decrease in the market growth caused by natural reasons. One of them is that the demand for the quality cosmetics started in early 90-ies is now almost satisfied. Another reason is obvious – global crisis which has slowed down the markets all over the globe. Foreign players suspend exports, and domestic players suspend investments into business development. However, many companies now may benefit from the crisis, with the possibility to strengthen brands’ positions and occupy a bigger share of the market ceded by former competitors. Despite all that, the majority of professionals of the industry see the future of the Russian market in moving from mass product occupied by international giants, to customization. Besides niche positioning, the Russian companies have a good chance to expand in a segment of natural cosmetics. The belief of consumers in natural origin of the Russian cosmetics as is strong, as their aspiration to purchase products of higher price segments.

Opinions on InterCHARM-2008:

Tamara Govorova, Sales Manager, Faber Castell (Germany)

For us InterCHARM is one of the substantial exhibitions in Eastern Europe. It remains the key platform for taking significant business decisions. Nearly all the time we were occupied with meetings and negotiations with our partners. The exhibition illustrated the tendency for prevailing of natural and organic products; it dominates in all the segments - from packaging to product textures and odorants.

Rakel Novais, Brand Manager, Surya Brasil (Brazil)

InterCHARM-2008 brought together thousands of people, specialists of the beauty industry. We would like to find partners and distributors here. It is one of the largest expos in Eastern Europe, where lots of companies from Russia, Europe, Asia and CIS exhibit their products. Russian cosmetics market is growing fast; this is why the market is of a great interest to foreign players. We are happy to know that Russians care about their health and beauty, and are eager for new products and innovations.

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In 2008 InterCHARM was acquired by Reed Exhibitions, a renowned professional trade-fair organizer, and now it is operated in Russia by Reed-SK, which strives to make the emerging Russian and Eastern European market more transparent for foreign companies and their presence here more efficient. This becomes possible due to comprehensive knowledge of the industry and unbeatable expertise in trade show running. Reed Exhibitions excels creating high profile, highly targeted business and consumer exhibitions and events to establish and maintain business relations, and generate new business. Reed Exhibitions is the world’s leading organizer of trade and consumer events with a portfolio of over 470 exhibitions and congress projects in 37 countries, bringing together over 6 mln active event participants from all over the world. Today over 2,700 employees in 35 offices serve 44 industries worldwide. A unique network of offices and international sales promoters in 65 countries provide support to exhibitors on export markets.

InterCHARM is supported by Moscow Government and Perfumery & Cosmetics Association of Russia (PCAR).

Participation: intercharm@reedexpo.ru tel/fax (+7 495) 937-6861/62

PR department: Svetlana Ryadchikova pr@intercharm.ru tel/fax: (+7 495) 228-7071/73