Domestic Cosmetics Sales Seen Up 9%

Russian cosmetics sales may grow 9 percent this year, benefiting producers such as Concern Kalina, the Russian maker of Black Pearl and Clean Line products, according to Renaissance Capital.

The pace of sales growth in ruble terms will decelerate from 15 percent in 2008 as global financial turmoil hurts economic expansion and income growth in Russia, analysts led by Natasha Zagvozdina at Renaissance wrote Thursday in a report. It will fall as much as 12 percent in dollars as the ruble weakens.

"In times of crisis, consumers tend to cut back on discretionary items as well as luxury products, while cosmetics and personal-care items remain an affordable luxury and a way to gain a sense of well-being," the analysts said.

Kalina will see "stable demand" for its products that are "in the low- and middle-price segments," the Renaissance analysts said.