Alexey Vinogradov, cosmetics department director of Transatlantic International, speaks about Himalaya Herbals performance in Russia.

Cosmetics in Russia: In March 2007 Himalaya Herbals Health Care launched its beauty line in Russia. What is the company's background and plans for development on the local market?

Alexey Vinogradov: Last year Hymalaya Herbals reported $200 mln total turnover. The company deals in pharmaceuticals, personal care, food supplements, animal health and pet's care and has offices in 73 countries worldwide. A chain of "signature stores" selling, products only under Hymalaya brand, work in India, Malaysia, Singapore and Hong Kong. We plan to proliferate this chain to Russia. The first store will be opened in Moscow in spring 2008. The second one is to be launched in summer in Saint Petersburg.

CiR: What share does Russian office contribute to the total Hymalaya sales?

A.V.: 30% with medicine products included.

CiR: How do you achieve this result?

A.V.: According to Hymalaya's distribution policy we supply to pharmacies and specialized perfumery and cosmetics stores both chained and standalone. We also sell through Ol!Gud, one of the largest and best known drogerie in Russia. At present we cover 22 large cities and their regions in the vicinity.

CiR: What is your promotion policy?

A.V.: Transatlantic International exhibits at InterCHARM, the largest professional event in Eastern Europe. Besides that we develop close cooperation with press and organize regular promo-campaigns.

One of our recent successful projects was conducted together with Liza glance magazine and Domashniy TV channel. Several girls competed to become the face of Himalaya Herbals in 2008. The winner, Irina Kazieva, got the contract and a travel to Boa. She is just an ordinary girl, not a model. At present we place her photo in promotion materials, publish interviews with her.

Our promotion policy has several peculiarities. Firstly, we promote massmarket products using techniques essential for premium segment (for example, a performance in a luxurious restaurant). I believe this policy works for the brand capitalization and strengthens emotional appeal. Secondly, we are successfully positioned as "modern ayurveda". Ancient recipes and methods sound in a new way being processed by up-to-date technologies. This niche is free in Russia. Everything connected with the East is popular now, but this niche does not depend on fashion. Himalaya Herbals targets both groups of people: naturalness adherents and Ayurveda followers. We work to popularize Ayurvedic ideas and conduct several educational campaigns.

Hymalaya Herbals has been known in Russia for 30 years as a pharmaceutical manufacturer. This reputation supports our performance in beauty segment.

We are confident in our products quality and our promotion aims at stimulating a consumer to make the first purchase. According to our statistics, 70% of people tried Hymalaya make the second purchase with increase in average bill.

CiR: Will you describe your average consumer?

A.V.: Our typical consumer is a woman at the age of 25-45, with higher education and over $1000 monthly income. Most of them herd about Ayurveda and its basic principles.

Besides that, teenagers and women after 45 years old form a substantial part of our target group. We created special products for young skin based on antibacterial herbal extracts and several anti-ageing products.  

Hymalaya bestsellers are cleansing gel and foam with nim, foot care cream, nourishing cream, anti-ageing products, anti-acne line, lip balm, shampoos and balm rinses.

CiR: Does consumer preferences in Russia differ from other countries?

A.V.: Preferences of Russian people substantially differ from that of Indians and are absolutely the same as that of European consumers. Our products are specially customized for Russia: bright aromas are changed for neutral ones.