Jul 8, 2007
Russia ’s exploding cosmetic industry may have been dealt a deathblow. New regulations, which came into effect on July 1 has placed the industry in crisis. The regulation will require cosmetic manufacturers to purchase additional equipment. This equipment will be needed so that the Russian government can keep tabs on cosmetics, fragrances and related products that are manufactured or sold in the country.
It is expected that this will result in as much as a 20 percent increase in prices by the end of the year. There is fear that this will force some manufacturers to leave the market. Of the 3,500 producers in the Russian market, only 650 have so far gone ahead and acquired the necessary licences to continue producing.
The new measure is aimed at stopping the illegal importation of alcohol into Russia. Unlawful imports are getting into the country under the guise of being perfumes.
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