Latviski English По-русски
Ceturtdiena 17.08.2017 | Name days: Oļegs, Vineta

MADARA Cosmetics: business fraudster image haunts the minds of many SRS officials

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUEveryone should cooperate in order to create an environment in Latvia that motivates residents and businessmen to pay taxes and do their best to help develop the country economically. It is essential to help residents let go of the stereotype that all businessmen are fraudsters. This would only improve cooperation between Latvian entrepreneurs and the State Revenue Service, which is currently considered to be repressive and aggressive, said Director of MADARA Cosmetics Uldis Iltners and Board Chairwoman and author of products and brands Lotte Tisenkopfa-Iltnere in their interview to BNN.

What are the most important events to take place in your industry?

Demand for natural cosmetics continues to grow in Europe. For example, data of the German market suggest that turnover of traders who deal in natural cosmetics shows signs of growing. Unfortunately, this growth is made up of products manufactured by large cosmetics production enterprises. This also applies to products that are marketed as natural but nonetheless are synthetic and private labels (mostly in lower price category and with synthetic contents). This trend clearly shows that customers are prepared to buy safe and natural cosmetics. However, they lack the knowledge to be able to differentiate natural products from conventional ones. In spite of worldwide trends to choose ‘greener’ and more sustainable products, Europe’s cosmetics regulations, unlike its agriculture regulations, do not define words like natural, biological and ecological in terms of contents. The only way to differentiate natural cosmetics from conventional is the presence of special certificates (ECOCERT and Soil Association).

The trends that demonstrate the application of cosmetics around the world and customers habits often change manufacturers’ assortment of goods. The most notable trend of multi-functionality, which came from Asia, has created new categories of products. In response, MADARA produced DAILY DEFENCE – multi-functional protective and nourishing balsam that can be used for eight different purposes.

Beauty bloggers have started playing a major role in consumers’ choice of products. They can easily inform buyers about the latest trends and products a lot faster than traditional media and beauty magazines. It should be said that numbers of Latvian beauty bloggers continue to grow. In Finland, Denmark and Germany, many bloggers have developed strong opinions people listen to. In Finland, MADARA launched cooperation with a leading beauty and natural lifestyle blogger-journalist-book writer Noora Shingler when launching MADARA BY NOORA SHINGLER line of products there in 2013.

There are also some strong growth indexes in Asian markets and internet space in Europe. Both continue to grow progressively in comparison with the slightly stagnating retail trade. It is noted in some countries, but not all. There are some changes in Latvia, but nothing significant. Northern Europe balances between development and recession.

How would you describe the government’s economy policy in its attempts to improve the economic situation in the country?

We praise our country’s and European Union’s support for the Chemical industry expertise centre, which allows the increase of competitiveness through the introduction of new technologies and resulting production of innovative products on the market. We also praise the programme for investment products with high added value.

How is your business impacted by Latvia’s policy? What changes would you like to see in Latvia’s legislation? What contributes to your business? What complicates things for you?

I would like for us, together with the country, to create an environment in which resident and businessmen would be motivated to pay taxes and develop the country together. In order to achieve this, the government, businessmen and municipalities have to work more professionally, more effectively and more transparently so that businessmen and residents have no doubts about where their taxes are used. Corruption, unprofessionalism and ulterior motivation need to be pushed out of municipal and state governments. The government and residents have to believe – businessmen are not fraudsters. Businessmen sacrifice their energy to bring their vision to life, create jobs and make money. This is admirable and should be welcome by the state, because they are the ones who form the country’s future economic development. Businessmen should not be automatically branded as fraudsters who only wish to steal from the state. The belief that all businessmen are fraudsters haunts the minds of many SRS officials. This makes the work of SRS more repressive and aggressive. It is not focused on cooperation and common goal – welfare of the country.

What is your industry’s ‘trump card’? What is the ‘Achilles heel’?

Our trump card is the cooperation with Latvia’s science in the development of new technologies, which forms the foundation of our new products and their realization in the world. Our Achilles’ heel is the lack of actual communication between businessmen and scientists – often they do not meet at all. They do not understand each other; do not know what they can give each other. MADARA Cosmetics successfully cooperates with scientists of the University of Latvia and Riga Technical University.

Do you feel any lack of skilled workers?

Mostly, yes. Our workers are not trained in Latvia. We train them in the company. We also have people from France working for us.

What do you predict for the next five years? Will the economic situation in the industry improve, worsen or remain the same?

Improvements and sharp falls in the cosmetics markets depend on the development of countries and regions. Latvia’s situation will improve. The situation in Europe will either improve slightly or stagnate. The situation in Asia and USA may experience high economic growth.


Leave a reply

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Brivais vilnis: nearly all fish processing companies are experiencing losses

Currently nearly all fish processing companies in Latvia are experiencing major or minor losses, says Brivais vilnis chairman Arnols Babris.

American helicopters to perform low-altitude flights within Latvia’s airspace

U.S. Air Force Brigade’s Task Force Phoenix helicopters, which are stationed in Latvia as part of Atlantic Resolve operation, will be performing low-altitude flights from 16:00 to 18:00 from Lielvarde to Dobele on Friday, 18 August.

Healthcare Ministry’s state secretary Karlis Ketners may be replaced

Latvian Healthcare Ministry may replace its state secretary Karlis Ketners. It is possible he will be transferred to work at Finance Ministry, as reported by LTV.

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Estonia seeks to improve reputation of state as employer

As the Estonian Ministry of Finance wishes to boost the reputation and brand of the Baltic country's public sector, it has announced a procurement tender aimed at preparing an action plan for reaching these goals.

Warning: there may be short-term problems with Swedbank internet banking functionality

Because of Swedbank’s planned IT modernization work scheduled for the night to Thursday, 17 August, there may be short term problems with payment card and internet banking functionality, the bank warns.

Aseradens: neither Usakovs nor Lembergs should be allowed to become prime minister

If he became chairman of Unity, Economy Minister Arvils Aseradens would mobilize democratic forces to prevent the possibility of either Aivars Lembergs or Nils Usakovs becoming prime ministers, Aseradens said in an interview to 900 seconds programme of LNT.

Caksa believes increasing wages for doctors would improve politicians’ credibility

The planned wage increase in healthcare could be the first step towards improving politicians’ credibility, says Healthcare Minister Anda Caksa.

Bill Gates donates USD 4.6 billion, reduces shares in Microsoft

The co-founder of the U.S. computer software firm Microsoft, Bill Gates, has allocated to charity 4.6 billion U.S. dollars (3.9 billion euros), which is the philanthropist's highest donation since the year 2000.

LOSP proposes using electronic packing slip system to reduce fraud

An electronic packing slip system for goods would be invaluable for agricultural goods, because it would help push out and reduce VAT fraud, says Latvian Agricultural Organisation Cooperation Council.

Latvia and Russia agree on exchange of additional 3,000 universal permits for cargoes

Latvia and Russia will exchange 7,000 universal permits for international cargo transports in 2017. This will be the largest universal permit volume in the past 15 years, as reported by Road Directorate.

Sierra Leone hit by tragic mudslide

A tragic mudslide has taken place in Sierra Leone, where flooding in the capital Freetown caused a mudslide, in which nearly 400 people have been have died.

Talks with potential KVV Liepājas metalurgs buyers to conclude in August

Talks with potential buyers of the insolvent KVV Liepājas metalurgs will conclude at the end of August, says representative of the company’s insolvency administrator Dzintars Hmielevskis.

Estonian e-Residency programme in deal with Paymentwall

International payments facilitator Paymentwall in collaboration with the Estonian programme of e-Residency program started this week Passport, a new service, with which businesspeople around the world will have the opportunity to found an EU company and access payment and other supporting services via internet.

Prosecutor: in parallel to Oligarch case, KNAB also worked on other cases

In parallel to the investigation of the so-called oligarch case, Corruption Prevention and Combating Bureau also continued working on other cases, said chief prosecutor Modris Adlers.

62.2% of Latvia’s population was employed in Q2 2017

Since Q2 2016, the employment rate in Latvia has increased by 0.8 percentage points. In Q2 2017, Latvian employment rate (62.6 %) was the highest recorded since Q2 2008 (63.1 %).