Latviski English По-русски
Tuesday 20.03.2018 | Name days: Made, Irbe

MADARA Cosmetics: crisis hit demand for low cost cosmetics

(+2 rating, 2 votes)

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU

Direcor of MADARA Cosmetics Uldis Iltners

The economic crisis hit the Latvian cosmetics and beauty care industry only a little, moreover, it was exactly low cost cosmetics sales that dropped, not the ones of medium and high cost segments, Uldis Iltners, director of MADARA Cosmetics, told the business news portal BNN.

What are the recent key events in your sector?

Eco-cosmetics segment keeps celebrating victory. According to Organic Monitor, in 2010, eco-cosmetics market grew 12% in Europe. Practically, eco-cosmetics is not a niche any more, it is an ordinary mainstream product, as also Garnier and other leading cosmetics brands attemtp to enter the market with certified products.

Similalry, last year, many new eco-cosmetics brands with various market positions were presented in Europe. Since the mission of MADARA Cosmetics is to offer people safe and natural cosmetics, we are glad the proportion of safe eco-cosmetics is growing in European consumption. Market growth is tied to more knowledgeable consumers and their will to live a healthy life. If some years ago, there were brands that merely claimed they were natural, but actually used synthetic raw material, one cannot deceive any one like that any more.

Do you lack qualified work force?

We could characterise MADARA Cosmetics as a relatively small company with exceedingly royal employees. We try to attract new staff by already previosuly selecting them as meeting the profile of MADARA.

However, there is shortage of chemists and technologists in Latvia. Despite there are cosmetics production traditions, there are no specialists of an international level, thus, we are trying to develop these positions and also attract foreign experts as consultants.

What changes would you like to see in the Latvian legislation?

The law should clearly state what is natural cosmetics and what ingredients are allowed. This would ensure arranging the eco-cosmetics market, excluding the share of «as if» eco-cosmetics. Consumers would benefit the most, as they could choose safe cosmetics unmistakeably.

As an exporting company, we would also want to see changes in the law On the Value Added Tax, providing that commodities export is not only exporting from Latvia, but also from any other EU member states. Moreover, the deal should be approved by any EU customs department’s issued declaration.

How did the crisis affect the sector?

Only a little. Women still kept taking care of their skin, thus ensuring the consumption. Interestingly enough, sales dropped exactly for companies operating in the field of low cost cosmetics. Whereas they changed only slightly for medium and high prices cosmetics.

So, we can conclude that during the crisis there was «lipstick» effect in Latvia, namely, when many market players were short of funds to purchase luxurious goods as cars and fur, they opted for luxury goods that do not require that much investments, including premium cosmetics.

What is your assessment of the government’s policy to improve the economic situation?

Latvian economic policy is merely formal. There are no real activities and results.

However, there are also several positive matters linked to EU rights, for example, the labour law was amended to make it more flexible with regard to employers.

However, all in all, I cannot name a single the government’s and the Economic Ministry’s activity to reach sustainability and balanced economic development. Another significant issue of the economic policy is Latvian monopolistic companies supervision or, if necessary, limitation of their activities, because Latvian business competitiveness depends on this greatly.


Leave a reply

  1. Kima says:

    This is a very good Latvian product, I suggest it to the women of other countries as well.

    Thumb up 0 Thumb down 0

France's ex-leader Sarkozy in custody over links with Libya

French ex-President Nicolas Sarkozy has been taken in custody on March 20 and was held in custody on Tuesday and interrogated amid an investigation into whether late Libyan leader Muammar Gaddafi added funds to his 2007 election campaign.

KVV Liepājas metalurgs’ steelworks bought out by Austrian Smart Stahl

The auction for the sale of the insolvent KVV Liepājas metalurgs rolling mill equipment concluded with the victory of Austrian Smart Stahl GmbH, as confirmed by insolvency administrator Guntars Koris.

Entomologist: at least 5% of ticks in Latvia are infected with encephalitis

There have been cases of tick activity during the winter period in Latvia this year. As air temperature increases, ticks become active and start popping up. This means residents should seriously consider vaccination to avoid getting encephalitis from tick bites, entomologists say.

Rail Baltica station’s construction at Riga airport will cost EUR 4.5 million

Creation of a separate railway station and related infrastructure at Riga International Airport as part of Rail Baltica project will cost EUR 4.5 million, says the project’s manager in Latvia and board member of European Railway Lines company Andris Linužs.

Norwegian minister steps down to keep minority government in power

In a move to avoid the collapse of the Norwegian minority government, its Justice Minister Sylvi Listhaug resigned amid a political storm she had caused by blaming an opposition party of not being harsh enough toward terrorism suspects.

Political party calls for immediate action to resolve «over-salted Riga» problem

Member of For Latvia’s Development political party’s Riga City Council faction Ansis Ansbergs urges the administration to find a quick solution to the excessive use of salt during the winter season because it has a negative impact on both human and animal health, as well as the state of buildings, cars and plant life in the capital.

MEP: fair competition should be secured for all European farmers

Sixteen members of the European Parliament from Latvia, Lithuania, Estonia and Poland submitted a joint proposal on Monday, 19 March, for a resolution regarding the future of the Common Agricultural Policy with a request to equalize the level of direct payments across all of Europe starting from 2021.

Estonia prison sentence upheld to Syrian man for causing burns to wife

In the Estonian criminal case, where a Syrian man has been convicted to 10 years in prison over causing corporal damage to his wife by setting her on fire, Estonian Supreme Court has rejected his appeal.

Olainfarm’s sales volume increased by 16% over the course of the year

Provisional consolidated data from Olainfarm for February 2018 shows that product sales volumes have reached EUR 10.69 million, which is 33% more when compared with the same period of 2017.

Minister: it is not impossible for banks to reduce number of risky clients to 5%

It is not impossible for Latvian banks to reduce the number of risky clients to 5%, says Finance Minister Dana Reizniece-Ozola.

Syrian Afrin left by 220 000 civilians, Turkish-supported rebels loot town

After seizing the northern Syrian town of Afrin from Kurdish militia, Syrian rebels supported by Turkey have been looting properties, journalists have reported. The town has been left by estimated 220 000 civilians.

Ministry orders Riga City Council to lift restrictions on questions

Latvia’s Environment Protection and Regional Development Ministry has asked Riga City Council to act and fix violations of democratic principles in the newly approved rules for deputies.

Observers of Russia election see lack of genuine choice, numerous irregularities

Official results of the Russian presidential election showed that Vladimir Putin received in a competition of eight candidates over 76% of votes and European observers have found the election has been conducted efficiently, but that there has been a lack of choice.

Olainfarm: tax law does not allow applying for tax discount in investment projects

Rushed changes to the Corporate Income Tax Law, approved as part of the expansive tax reform, do not allow businesses with prior permission from the government to apply for CIT discounts in investment projects to receive said discounts if their historic profits are not divided into dividends.

EU agrees to UK's transition period before Brexit

In a breakthrough in the Brexit talks, the UK gave its consent on Monday to an agreement with the European Union that a tangible border would not be established between British-ruled Northern Ireland and Ireland to have the bloc agree to retain most EU advantages for close to two years leaving the union.

Latvia experiences one of the most rapid export rises among EU member states in January

In January 2017, Latvia experienced one of the most rapid export increases among EU member states when compared to the same month of the previous year, according to data published by Eurostat on Monday, 19 March.

Russian citizens living in Latvia provided more support to Putin than citizens in Russia

During the presidential elections in Russia last week, support provided to President Vladimir Putin by Russian citizens living in Latvia turned out considerably larger than it was in Russia.

Every third illegally downloaded software programme – infected with a virus

Data compiled by International Data Corporation shows: every third illegally downloaded software programme is infected with malicious software. Nevertheless, 69% of consumers and 33% of businesses in Europe procure computers with software from unsafe sources.

Russian economy has grown stable along with oil prices

Higher prices of oil have allowed the Russian economy to recover despite European Union's and U.S. sanctions and in time to benefit the Russian President Vladimir Putin, who has secured his next term in office.

Number of vacant jobs in Latvia grew 17.9% in 2017

In 2017, there were 17.0 thousand job vacancies in Latvia, which was 2.6 thousand vacancies or 17.9 % more than in 2016. In public sector there were 6.1 thousand job vacancies van in private sector 10.9 thousand vacancies.

Latvian cosmetics producers exports goods worth approximately 20 million euros

Cosmetics producers in Latvia export products worth EUR 20 million every year. Volumes increase 5% every year. The main export partner states are located in Europe. Still, there has been a significant increase of export volumes to third countries – to some countries this increase was as large as 60% -70%, according to data from Latvian Cosmetic Manufacturers Association.

US Chamber of Commerce worried that Latvia’s political culture has not changed since Ridzene talks

American Chamber of Commerce in Latvia (ACCL): «We are concerned that Latvian society’s and its government’s political culture has not changed much since the publication of information detailing events associated with Ridzene talks in 2009-2011. The state capture detailed there may still be possible...

Latvia’s prime minister open for talks regarding MPC system’s liquidation

Prime Minister Māris Kučinskis is prepared to discuss the possible liquidation of the mandatory procurement system, but not for all businesses at the same time.

Air temperature in Latvia to remain mostly positive throughout the week

On Monday, 19 March, weather in Latvia will change, as a low atmospheric pressure area together with an atmospheric front will approach the country from the north. The day will be sunny for the most part, but the amount of clouds will increase as hours go by, as reported by State Environment, Geology and Meteorology Centre.

Ukraine: British diplomats expelled from Moscow could work in Kyiv

In a reaction to Russia's announcement that it would expel 23 British diplomats from Moscow as part of the UK-Russia argument over poisoning of double-agent in an English city, Ukrainian Foreign Minister has suggested to his British counterpart that the 23 diplomats could now work in Ukraine.

Most read

Most commented

Newest comments