Russia is a rapidly growing market in the cosmetics industry, with increasing interest in Asian and Japanese cosmetics brands. Consumers are increasingly turning to high-quality, natural ingredients, and sustainable production processes. With the rise of e-commerce, demand for cosmetic products has surged in major cities, with online sales now holding a significant market share alongside traditional stores. However, local regulations and customs processes can create barriers for foreign brands entering the market. Despite these challenges, innovative brands have successfully entered the Russian market and gained great traction, especially among young and conscious consumers.
Expanding into international markets, establishing partnerships with the right distributors, and building strong business relationships are critical steps for any company. However, one of the most challenging stages of this process is finding reliable distributors. At CuB Consultants, we conducted a distributor search project for a Japan-based client, successfully connecting them with the right business partners in the Russian market.
Our client and objectives
Our client, a Japan-based company, offers a wide range of skincare and cosmetic products. The company has established itself in the industry with innovative and sustainable solutions. They aimed to enter the Russian market and work directly with distributors to expand their sales network.
Market research and identifying potential distributors
In the first phase, we thoroughly analyzed the cosmetics industry in Russia. During this process, we focused on firms that distribute Japanese and Korean cosmetics and have a track record of success in distributing similar products.
We identified a total of 28 potential distributors. These firms were located in major cities like Moscow and Vladivostok and served large retail chains and independent stores. Each candidate’s position within the industry, along with their strengths and weaknesses, was thoroughly evaluated.
Initial contact and meetings
We initiated contact through emails, phone calls, and face-to-face meetings, sharing the client’s company profiles, pricing offers, and product catalogs. Following the initial contact, four distributors expressed interest in further collaboration. The distributors we recommended, such as Kitayama Shoji Corporation, JWT (Japan World Trading), Japonica (Osaka), and SATORI, were well-established companies with strong connections in the Russian market. We discussed pricing, order quantities, and market entry strategies during these meetings.
Meetings with distributors
Video conferences were arranged with the selected distributor candidates. During these meetings, collaboration terms, marketing plans, and local market expectations were discussed. Together with the client’s sales team, we clarified product range, pricing policies, and distribution processes. Following the meetings, it was decided that product samples would be sent, marketing strategies would be shared, and competitive analysis would be conducted.
Results and next steps
By the end of the distributor search process in Russia, four potential distributors began serious collaboration discussions. These firms were chosen for their ability to effectively reach the target audience for the client’s products. The next steps involve completing pricing negotiations, sending product samples, and sharing market strategies with these distributors. In the final phase, the goal is to finalize agreements and help the client successfully enter the Russian market.
Would you like to learn more about the cosmetics industry, the Russian market, or finding business partners? We can arrange a meeting with our lead consultant, who successfully managed a distributor search project in Russia for a Japanese company.
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