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Friday 20.07.2018 | Name days: Ramona, Ritma

MADARA Cosmetics: crisis hit demand for low cost cosmetics

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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.

 


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  1. Kima says:

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

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