The main thing is quality
Competition in the cosmetic market is very high, and the natural cosmetics segment is not considered the easiest one for new manufacturers. However, the niche of natural cosmetics and hygiene products has been actively growing in recent years. By 2018, the market for natural cosmetics is projected to at least double. The idea of using natural and organic products in all spheres of life is gaining momentum in society, so the production of such cosmetics is becoming more and more in demand every day.
How a company producing natural cosmetics works in modern conditions, we asked Victoria Maksimova, head of the sales department at “Adelaide”.
— The company "Adelaide" has been in the market for care and hygiene products for more than 10 years. How has it been organized and developed up to the present time?
— A years ago we started with the production of aluminum tubes. The fact is that aluminum tubes have unsurpassed barrier properties, so drugs are packaged only in them. Imagine, until now nothing better has been invented for pharmaceuticals.
It is quite natural that at some stage we also thought about the need to diversify production: we adjusted the packaging, and then our own production of cosmetic creams. Then these were the simplest, inherited from Soviet times, recipes: "Children's", "Silicone", "Lanolin" ... In such a way we were working slowly.
Then the 2008 crisis broke out. We had to survive. Nobody bought cosmetics. The management made a very risky decision - to radically change the marketing policy. Instead of a cheap mass market, we began to produce high-quality natural cosmetics. By the way, the company began to make natural cosmetics one of the first in the Russian market according to European standards. It was insanely difficult, because no one understood: what is “natural cosmetics”, why the composition should not contain mineral oils, animal products, silicones, parabens ...
So, the market demanded cheap products, and no one was interested in our beautiful, highly effective, ultra-modern creams.
We received the first recognition from our German colleagues. In 2010, the German company “Cognis” held a professional competition among cosmetics manufacturers Cognis Formulation Award 2010. Our “Orange Blossom” cream won first place in the “Natural Recipe” category. It was very pleasant to get professional recognition, but it was still a long way to commercial success, although it was after the competition that the first customer for contract manufacturing appeared, for whom quality was very important.
Now we have a full-fledged production with 5 reactors of 1.5 tons, which can operate 24 hours a day.
— More than 10 years of Adelaide's operation have passed and the end of the next year is on its way. What significant events for the company can you highlight in 2016?
— This year brought us cooperation with the “VkusVill chain of stores. We are very pleased that the company relies on quality and price, and does not pursue low prices. We are honored that they have chosen us among hundreds of manufacturers. “VkusVill” presents unique novelties for the Russian and European markets. For example, a shower cream that contains a complex of vegetable oils (sunflower, canola, rapeseed, macadamia, almond and jojoba) in a record amount. Imagine a detergent in which almost 50% are vegetable oils. Incredible? But it is so! After using the shower cream, no additional moisturizers are required. The skin becomes soft and silky.
— Cooperation with “VkusVill” is the release of products under the customer's private label. And what percentage does this type of activity take in the company's portfolio?
— A fairly high percentage. We now have a very high demand for private labels: they trust us. Unfortunately, many customers come with a desire to get the cheapest products on the market, in which case we categorically refuse. Niche "Adelaide" is innovative, high-quality and, of course, not cheap cosmetics.
— Can you name other partners for whom private label products are produced?
— Almost all contracts under which we work contain a strict requirement for the confidentiality of information. So, alas, I have no right to name the customers.
— How does “Adelaide” pay attention to product quality?
— Quality is everything for us. Partners from "VkusVill" came to our production site, and they are very demanding comrades, and were satisfied with everything - it is a great honor for us.
— What products do you make? What are their advantages?
— Last year we launched several lines under our own brand “L'Adeleide”. The company went further: it is no longer just natural cosmetics that do not contain parabens, silicones, artificial colors, mineral oils and lanolin; in addition, the innovative formula contains cellular complexes. Our advantage is that we use exclusively European raw materials. Technologists are constantly studying, going to seminars and master classes in Russia and around the world. We are aware of all new products and try to immediately apply new knowledge. Our staff is our value.
Most recently, the results of the Basf Care Creation Awards 2015, which was held by the “Basf” company, were summed up. “Adelaide” won first place in the “Innovation Formula” nomination.
— What, in your opinion, are the main problems in the production of cosmetics and hygiene products now?
— The problem is that there are a lot of cheap, low-quality products on the market, all efforts are thrown into marketing and advertising. The consumer believes that there are cheap and high quality cosmetics. Alas, there are no miracles. Only dummy creams are cheap. I think the situation will gradually improve. We don't make dummies.
— How does “Adelaide” make decisions to launch a particular product on the market?
— We carefully study the market and are always in touch with partners. A request comes in - to do something new, we will gladly do it. For example, in connection with import substitution, it turned out that in our market there are no domestic products for caring for bedridden patients. This is not an easy product, because in people bedridden, the skin becomes thin, like parchment, and the risk of bedsores increases significantly, and there are many other nuances. For such people, we have created the “Senti+” line, which includes a washing lotion that does not require rinsing, a protective cream and a toning balm.
— Does the crisis in Russia affect the business of your company?
— Of course, it does, a crisis is a crisis. The purchasing power has decreased, trade is striving to reduce purchase prices as much as possible, and all our raw materials have almost doubled in price due to the increased euro exchange rate.
— Do you plan to increase the range of products produced next year?
— Yes, we have already expanded the urea line at the request of our customers. Cosmetic cream "Urea 20%" is a hit of sales. We also plan to expand the line for oily skin with milk thistle. We will soon release a children's series as well. We are also planning to enter the European market, but it is too early to guess when. In the meantime, we are negotiating with a German company, studying certification requirements, working out logistics.
— Do you plan to increase marketing activity on the Russian market, hold promotions, sponsor TV programs? What methods of promoting your products do you use?
— Honestly? We are not planning. We invest in quality, we give the lowest possible price without screwing 500%.