Surfactants market stable

• Publisher: Elsevier Science
• Year: 2002
• Weight: 39 KB
• Volume: 2002
• Category: Article
• ISSN: 1351-4210
• DOI: 10.1016/s1351-4210(02)01146-0

✦ Synopsis

To Russia with love: it's the multinationals' new darling

The Russian economy now appears to have stabilised, Consumer spending has increased so rapidly during 2000-2002 that not only are retail majors being attracted to the country but is also making it the fastest growing market for many of these multinationals. Among them are Nestle, Procter and Gamble, and L'Oreal. Procter and Gamble is market leader in Russia in such sectors as shampoo, toothpaste, and detergents. In 2001, Russia, Ukraine and Belarus moved up to number 13 in Procter and Gamble's sales ranking, from number 17 in 2000. In only 5-10 years Russia could reach the top 5 in the company's sales ranking. In 2000, L'Oreal's sales in Russia increased 52%. In shampoo sales, five leading Western companies, L'Oreal, Procter and Gamble, Schwarzkopf-Henkel, Unilever, and Beiersdorf, control 63% of the market. There is still a long way to go for this economy, however. For example, annual per capita expenditure on Procter and Gamble products in Russia is only $4, compared with $77 in the US. But the potential for consumer sales is enormous; a figure illustrates the increasing trend in consumer spending in Russia and a table lists consumer majors' expenditures in Russia: for example, Nestle spent more than $200 M upgrading 9 milk chocolate and food facilities.