Export, Latvia, Markets and Companies

Eco-cosmetics maker Madara Cosmetics will launch two new cosmetics lines at the beginning of the next year. The company's financial director and board member, Uldis Iltners, said that they will include children products, for instance, soap, shampoos, oils and lotions, as well as a new line of hair-care products – shampoos and conditioners. The company is also planning new facial and body-care products, informs LETA.

Although turnover on the cosmetics market has decreased by almost one-fourth this year, turnover for Madara Cosmetics has increased 50%.

Iltners believes, however, that next year Madara Cosmetics development will not be as fast. The company is planning slower growth in Latvia next year, and will place greater emphasis on the development of stores abroad.

Last year Madara Cosmetics turnover totaled LVL 399,600, a threefold increase on 2007, whereas this year the company is looking forward to LVL 1 million in turnover.

The company has three stores in Latvia, but its products are also available at more than 50 outlets altogether, including the "Kolonna" stores.

Bath and body cosmetics producer Stendera ziepju fabrika is also planning new products in the coming years. The company will start producing facial and body creams already in 2011, the work on the new products is already by the way.

Stendera ziepju fabrika co-owner, Janis Berzins did not wish to reveal all the plans for the company, he only said that production of creams and other cosmetic products would be a logical step in the company's development.

Latvia's largest cosmetics producer, the joint-stock company Dzintars does not comment other local producers' plans because it is not informed about them. Nevertheless, Dzintars is also planning expansion – the company's board chairman Ilja Gercikovs reveals that Dzintars is working on renewing its product range as well as on new products. A new cosmetics line, "Dzintars Actuell", will be launched already at the end of the year, and in the second quarter of next year – "Real Dream" will make its debut.

According to Gercikovs, Dzintars focuses on the company's stores, the number of the company's stores in Latvia will be increased from 52 now to 57 by end-year.

In Lithuania, Dzintars is active in large shopping malls, and Dzintars are to open in Estonia, St. Petersburg and Kaliningrad soon.

Gercikovs said that the cosmetics market in Latvia has contracted some 25-30%, although the business of Dzintars has not decreased this much.

Gercikovs believes that the market will not stabilize next year because purchasing capacity is decreasing, unemployment is growing and taxes are being raised: "The current policies will destroy the business environment".