Siberica power: Andrey Trubnikov captured the market of cheap cosmetics

Andrey Trubnikov engaged in cheap cosmetics during the 1998 crisis. Now his scrubs and shampoos Natura Siberica are sold in Harrods in London and in Monoprix in Paris, but Trubnikov again stakes on the products with the price under 100 rubles.
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"Look, our new product -" Egg shampoo ", - Andrey Trubnikov removes the bottle shelf, on which golden letters written:" Secrets of the best resorts of the USSR. " Behind the "Egg shampoo" flaunt soap "Gostovskaya" and balsam "Bath." On a nearby shelf - like series, but exploiting the secrets of the best Soviet resorts of Crimea. In the retail "Soviet" line should cost less than 100 rubles. "So what that in the USSR in the ink had to spit? People still miss! "- Insists Trubnikov. The owner of the company "first decision" knows what he is talking. At the time, it was he who invented the democratic brand of cosmetics for hair and body "Recipes grandmother Agafia". Then gradually "increased the degree of" accustoming Russians to Natura Siberica and more expensive Organic Shop - they are both positioned as organic cosmetics, but more affordable than imported.

Turning the "first solution" towards Cosmetics a la the Soviet Union - is entirely the result of the crisis. At the very Trubnikov for 2014-2015 had other plans: in the autumn of 2014 the company launched to the market Kosmetku Fresh Spa at the price of 1 ths. rub. in retail and its promotion at the same time opened its own spa area with a minimum price of 3,3 thousand procedures. rubles in Moscow. (One hour massage). But the line "not gone very well," winces Trubnikov (he withdraws failure on the packaging), and spa brings the monthly losses of $ 30-40 thousand.

Due to the devaluation of the cost of the entire makeup has almost doubled (foreign ingredients not less than 70% of it), the price on the shelf had to raise by 40-50% - as a result of the sale of Natura Siberica sank more than a third in real terms.

Requirement became cheaper brand - "Recipes grandmother Agafia" with a retail price of 100 rubles. Sales "Agafya" falling in the previous two years at 10-15% annually, and in 2014 went up (in 2014 and 2015 sales added 20%). "Played", including new packaging for scrubs and shampoos - the so-called doy-pack (pack of plastic with plastic cover - in such a sale, for example, mayonnaise) 100 ml. The new packaging, according to brand manager "Agafya" Daria Ashitkovo, reduce the price of cosmetics at least 20%.

Despite the fact that revenuetwo major companies Trubnikov - "the first decision" and "Natura Siberika" - has grown by almost 30% in 2014 to 7.6 billion rubles, profit decreased slightly -. 1%, to RUB 466.7 million. (Data "SPARK-Interfax").

In 2015, Trubnikov immediately switched to cheaper products: expanded range of "Agafya" in doy-packs, adding new types of shampoos and conditioners, and increasing their volume to 500 ml, has launched a line of "Secrets of the best resorts" and "crisis hits" - means a two liter container that you can use 18 different ways: as shampoo, shower gel, laundry detergent and cleaning crystal curtains, etc. (Retail worth less than 100 rubles.). In 2015 the revenues should grow by 20%, to 9 billion rubles. "We are planning to flood the market with cheap products, - said Trubnikov. - What else to do in a crisis? "

"Grandma" sells

The crisis of 1998 broke Andrey Trubnikov: his then business is the import of alcohol could not bear the shock of the dollar. To pay off debts, he sold the apartment and all the money was going to sell live chickens. In time his wife dissuaded, suggestin the more mundane idea - to make a cheap dishwashing detergent. Trubnikov obeyed, and bought a gel formula with a partner, Russified Vatfa Syrian Youssef Hamed, founded the company "Fratti NV". Four years they quite successfully sold dishwashing detergent "Fairy". In 2002, Trubnikov, who invested at the start of $ 5 thousand., Has sold its stake for $ 200 thousand. And founded the company "first decision". It belongs to him 60% now, the rest - the former wife Irina and son Trubnikov.

Over the next year Andrey Trubnikov thought about a new product and came up with a fictional character - the Siberian healer Agafya Ermakova, "grandmother Agafia". Under the brand "Recipes grandmother Agafia" in 2003, the entrepreneur began to produce shampoos, which cost in retail about 6 rubles. ($ 0.2 at the then exchange rate) - almost twice cheaper than the competition. Besides shampoo prices unexpectedly like customers that had the face - about a third of the label, as well as now, he held the portrait AGAFYA. At the competition, says Trubnikov, in this segment of the product was impersonal: eger, shampoo "Russian grass" competition with "Agafia" broke down and left the market. Soon, "the grandmother Agatha" has appeared on the shelves, "Auchan" and expanded line of shower gels, body creams and funds for the bath. What then were the sales, not Trubnikov said.

In 2008, Trubnikov decided to produce organic cosmetics. Then she was quite unpopular, and the market prospects are unclear. Thus was born the next hit - shampoos, creams and shower gels Natura Siberica. OOO "Natura Siberika" (in which 40% belongs to Irina Trubnikov, she performs a co-owner and other legal entities in the group) - For her separate legal entity has been registered.

Now many Russian brands are trying to "play on the organic nature": the majority of Russians like the theme of wild herbs and ancient recipes, so companies like to use it as a marketing ploy, he says a board member of the Russian perfumery and cosmetics Anna Smirnova Dycheva-association. But Natura Siberica - the first and, for the approval of Trubnikov, Russia's only "organic" certified according to internationalstandards, although, strictly speaking, is certified not more than 10-15% of the products, he says. However, this time the price - 200 rubles. - Was higher than the average for the Russian mass cosmetics brands, said General Director of "Natura Siberika" Igor duril.

Natura Siberica showed good sales, and inspired by Trubnikov began to invent and bring to the new line of the market, one after another: in 2010 - Organic Shop and Planeta Organica, in 2012 - Organic People, in 2014 - Natura Kamchatka (for part of the separate legal entity, such as "Planet Organic" Ltd.) are created.

Share in revenue and average price of major brands, "first decisions"

Natura Siberica

The share of the company's revenue: 50%

The average price on the shelf in retail: 400 rubles.

"Recipes grandmother Agafia"

The share of the company's revenue: 30%

The average price on the shelf in retail: 130 rubles.

Planeta Organica

The share of the company's revenue: 10%

The average price on the shelf in retail: 245 rubles.

Revenue rose - from 1.2 billion rubles. in 2010 to 5.9 billion in 2013 in the amount of the "first decision" and "Natura Siberika" (data "SPARK-Interfax"). ShuffleGUSTs expanded with multiple lines leased to four factories in Moscow, one of which makes the whole packaging for cosmetics (own factory in the group is not).

Since 2013, Trubnikov began buying land for organic farms: now "the first decision" has 22 hectares of land in Khakassia, 5 hectares in Estonia, the land on Sakhalin and Kamchatka. In this entrepreneur spent about $ 650 thousand. In the first two grown from a simple set of 13 herbs (chamomile, calendula, marjoram), which later make extracts for cosmetics. Farms in Sakhalin and Kamchatka await certification of land suitability for organic farming.

Make a quick

Who is launching a new line of cosmetics from "first decision" takes an average of four months. "In the segment of up to 1 thousand. Rub. the "first decision" is a brand for consumers with nearly any motivation, - says the managing partner of branding agency Depot WPF Anna Lukanina. - Do you want to ", native, natural"? Please, "Recipes grandmother Agafia". Do you want to "own", but popremialnee? Here's Natura Siberica. You do not believe in the Siberian grass?Please, here's "Secrets of Kamchatka"! Want tasty, "foreign"? Also there, Organic Shop ».

According to the number of positions in the portfolio "first decision" exceeds the largest international manufacturers of about 10 times:. 3 thousand items against the 300-400, are assessing Nikolay Semenov, Commercial Director of the St. Petersburg network drogerie "rainbow smile". But with the variety of "first decision" to go too far, he said Lukanina: range already so huge that "begin to lose interest in him."

"People love novelty cosmetics market - a market of new products", - parried Trubnikov. Especially if these new items - about one and the same substance under different labels. "Most standard formulas - all have here in this collection," - Trubnikov shows a rather thin book. Investing in a new product - from $ 10 thousand to $ 20 thousand -.. Go mainly for the design.

"The domestic firms big trouble: a completely unattractive packaging, which can not not love that, but even seen on the store shelf", - considersAET Alsou Razakova, chief editor of the specialized magazine Les Nouvelles Esthetiques. Trubnikov packaging very picky: likes to say that a product with good design can be sold more expensive. He works mainly with English and French designers, and in one of the office rooms arranged a mini-museum of packaging: traveling buys everything that interested him in their appearance - from alcohol to exotic oils. Do not hesitate and copy competitors. For example, showing a set of five different tools - from body scrubs to hand cream in small jars of black, he says: "The idea we borrowed from Lush. Only with them it costs 800 rubles. And we call it an Organic Kitchen and will cost 49 rubles. per jar. " External resemblance to Lush does have - due to the black color.

A good design and a standard formula "first solution" is not always limited. For example, "Agafia Soap for hair and body", similar in consistency to jelly black, the company developed a few months, and at the time of its release on the market is nothing like the market was not, says Dycheva-Smirnov. ButNow in the "Auchan" is already at least two products clone from competing manufacturers.

Yet the biggest successes Trubnikov in terms of sales volumes are still brand "Recipes grandmother Agafia" and Natura Siberica. In total, they bring us no less than 80% of revenue, and the most readily take to themselves the largest retailers - «Magnit», X5 Retail Group, «Children's World", "Girlfriend" and others.

edging out foreigners

Russian cosmetics market is falling for the second year in a row. In the first half of 2015 sales declined in real terms by 2.8%. However, due to the devaluation of the money market increased by 11,7%, Nielsen data show. Retailers added to the range of cheaper brands and get rid of the most import advancers.

"The consumer starts to prefer cheaper analogues of Russian-made", - says Maria Kurnosova, director of external communications "Auchan". To cater to the consumer, "Auchan" put on the shelves of a new line of "first decision» - Planeta Organica and children's series Natura Siberica.

"The Russian manufacturers are increasing the share of [the market], pushing the transnationals," - confirms the words Kurnosova Nikolay Semenov.

The speed of with which Andrey Trubnikov launches new low-cost products, it seems, is triggered. According to the number of new products, "first decision" in the times ahead of major international manufacturers, Semenov said: "If Sshwarzkopf releases per year, conditional, 10-15 new shampoo, the" first decision "- 30-45." However, in large networks, in its opinion, fall far from all trends of Russian companies: "From the many innovations we give not our price segment or a similar product is already on the shelves, it makes no sense to duplicate."

Marble and crystal

In 2010 Andrey Trubnikov opened its first own store - Organic Shop, spending on it about $ 200 thousand in the Organic Shop on sale and production of "first decision", and "for extras" organic cosmetics from other vendors -. A ratio of about 70 to 30%. Two years later, Trubnikov opened its first mono-brand store Natura Siberica. Now he has even shop on Tverskaya.

HotI sales volumes "Recipes grandmother Agafia" and Natura Siberica Trubnikov obliged to major networks (35-50% of cosmetics sold through the "Auchan" and other large retailers), are much more opportunities he sees in his own retail. Today it accounts for about 10% of sales (the rest are sold through distributors). "Its retail - this is a very large force, if you are able to fill its new products", - said Trubnikov. "For example, [sales] in the" Auchan "We got a 12% mark-up, for some products - 3%, they are - at times more. Its retail - a 100% mark-up to us ", - he says. In November 2015 own retail has brought 22 million rubles. net income, and "Auchan" -. a total of 4 million rubles, says the entrepreneur.

Now Trubnikov six monobrand stores Natura Siberica (three of them in Moscow, including one - on Tverskaya) and 16 multi-brand Organic Shop (nine of them in Moscow). This unusual move for the Russian manufacturers: own retail has, for example, the "New Dawn", but multi-brand stores to Trubnikov nobody opened. However, while Trubnikov in Moscow lags behindforeign competitors: at The Body Shop in Moscow - 26 stores in Lush - 26 from L'Occitane - 65.

"Most of our turnover allowed shops Trubnikov," - says Igor Rodin, Director of "Organic", the US distributor of organic cosmetics. Organic Shop In addition to this cosmetics sold in Wildberries and "Green crossroads", but there are volumes "significantly less", says Rodin. According to him, Trubnikov network does not require allocations for marketing and fees for entry, and the margin is less than the average for the retail market: 50% vs. 80-110%. Trubnikov explains that foreign "organic" takes only "for background": "We have for them as" Auchan ".

In the interiors of its Organic Shop Trubnikov, according to him, is not stingy. "We are trying to do now as a more chic shops, you can:. Marble, natural floors, chandeliers by € 25 thousand," - he bends his fingers. Cost interiors offset by the margin on their own products, for example, sea buckthorn and honey scrub Natura Siberica, which stands in the "Auchan" 129 rubles, Organic Shop will cost almost 5 times more expensive - 587 rubles.. For other products IU gapnshe, but also impressive: cream "Sea-buckthorn" hands - 80 rubles. against 258 rubles, shampoo Natura Siberica -. 180 rubles. against 339 rubles.

"Auchan" in general spoils us with their market prices, they are working with minimum mark-up - angry Trubnikov. - Only - due to their volume and I get a discount on raw materials, caps. Sometimes I feel like an intermediary between the manufacturer of caps and "Auchan". Sighing, he adds: "During the crisis, we will extend only to its own retail."

During 2016 Trubnikov was going to increase its network of almost tripled to open another 40 stores in Moscow - part of the premises in the street reteyl format has been removed, he said. For this purpose, he even plans to take credit for $ 3-4 million, although I did not use borrowed funds. cosmetics sales through its own retail Trubnikov expects to increase three times, without reducing the volume of supply in the "Auchan".

The representative of L'Occitane for two weeks did not have time to answer the question about the development plans of RBC, representative of the "Monex Trading" developmental format The Body Shop in Russia, declined to comment.

The Paris Est throughOnias

More recently, a fifth of the revenue the company "first decision" is produced in Ukraine, selling cosmetics in the usual self "Auchan" and other major networks.

In 2014, numerous flash mobs have been in the shops of Ukraine: the participants brought to the stores posters "Russian kills" and "The Russian bought - paid for war."

"There were several decrees, and the buyers themselves demanded that the shelf was specified country - the manufacturer of the goods, - says Alexei Doroshenko, director of the Ukrainian association of suppliers of retail chains. - As a result of the fall of the Russian goods sales ranged from 25 to 40% in money terms, and the network gradually withdrew these products from the range. " On this wave of products, "the first decision" refused to buy Ukrainian "Auchan" and most of the other networks.

In particular, in order to return to the market of Ukraine, Trubnikov rented premises in Estonia, near Tallinn, and has invested € 5 million in the production line. There he is now producing cosmetics Natura Estonica - analogue Siberica Ukraine the same in Estonia, where, as govorit Trubnikov, to Siberia with suspicion. Ukraine gradually began to buy Estonian line, but in previous volumes Trubnikov and does not count, hoping to send at least 10% in the coming years. To compensate for the losses in neighboring countries and at the same time balance the instability in the Russian market, Trubnikov want to earn more than in Europe. Cosmetics from the Estonian plant is already sold in Europe was sold at € 1 million in November.

The "first decisions" have their own shops Natura Siberica in Hong Kong, Japan and Denmark in January due to open shop in Barcelona. Through distributors brand is sold in the Netherlands, Spain, Canada, the Czech Republic and more than 30 countries. Three best-selling product Natura Siberica abroad - Daurian body butter, sea buckthorn scrub the scalp and black soap-detox.

Own stores are on the verge of profitability and operate more image-task, admits Trubnikov. Overseas sales bring him about 15% of revenue.

Soon, the share of exports is expected to grow further, it calculates a businessman. All December 2015 Showcases frantsuzsone department store Monoprix on the Champs-Elysees was framed cosmetics Natura Siberica, polar bears and bunches of rowan. "For us to showcase not take a penny" - says Director of Development of International Projects Alicia Zelenkova.

Monoprix chain, which sells products from food to clothing, including 209 stores in France. The range of network products, "the first decision" came in the autumn of 2015. Then the line Natura Siberica took British shops: a network of organic foods Whole Foods (the world's largest seller of organic products in the UK it has nine shops) and the famous Harrods - one of the largest and most expensive department stores in London.

To get to Whole Foods, it took a year of negotiations and the search for a distributor. "We could go to the vendor who is already working with Whole Foods, and then quickly caught on to the shelves, - says Zelenkova. - But on the other hand, we understood that this distributor for many brands, and it makes no sense to invest in us. So we were looking for a young company, which it would be interesting to develop its portfolio. " The names of the distributor and conditions withCooperation Zelenkova not disclose.

The beginning of sales in Monoprix unexpectedly helped the French press, says Zelenkova: a week in one of the magazines published an article stylist Christophe Robin, in which he talked about the benefits of a scrub for the scalp. Buyers began to look for this product, but there was only Monoprix scrub Natura Siberica. "It just flew off the shelves," - says Zelenkova.

But Trubnikov was not so happy with, "I was in the store Harrods, where the consultant tells everyone that this Russian cosmetics, and people go: do not want to take. We had to immediately instruct the seller to say that cosmetics Siberian. "

Dumplings and edifying songs

"Here we find men in Patagonia, Old Believers, in 1917, they fled from the October Revolution to China, then to Uruguay and later in Patagonia. They've got a whole village, women in headscarves collect these wild plants. Here I want to do such cosmetics - using recipes Old Believers ", - says Andrey Trubnikov. Pro has not yet completed projects, he generally tells much more readily than about all the rest.

In 2016 dollars in Moscowen open the first mono-brand cosmetic shop "Recipes grandmother Agafia". With it Trubnikov wants to add dumplings popularity, which is going to produce under the same brand. "And then we'll do through all these dumplings restaurant - continues Trubnikov. - I gave the phone [restaurateur Arkady] Novikov, that's him I want to do a restaurant, but it's true, it does not know yet. " Besides the restaurant plans to have Trubnikov travel agency with tours in Siberia, a spa in London, Natura Siberica shop in Cannes.

At the reception in the office, "the first decision" are products of the three new lines: "Star Secrets», Natura Siberica, modern designer Alena Akhmadulina and sets Organic Kitchen.

Andrey Trubnikov suddenly pulls out a nondescript black white bottle package upon which a large black type print "edifying songs on every day," and nothing more. "Here's a shampoo want to release - said Trubnikov. - There's some honesty there, you will not be deceived: no Siberian healer and ancient recipes, just a useful shampoo for every day. But I'm an employee of his sdelats do not give. "