Adapting the business model and marketing strategy of local cosmetic brands in the Russian market

At present, domestic cosmetic companies in Russia lack effective mechanisms for overcoming consumer distrust and adapting to new market conditions created by the departure of leading foreign brands after 2022. This study addresses the need to develop adaptive business models and marketing strategies for local Russian cosmetic brands to cope with consumer distrust and effectively respond to the market turbulence. The research methodology is based on the theories and concepts of business models, marketing strategies and consumer behaviour. The study was conducted as an ad-hoc investigation employing a mixedmethods design. The qualitative exploratory phase included 10 in-depth interviews with consumers, which provided a detailed understanding of their motivations and perceptions of beauty products. The main quantitative phase was carried out through an online survey with 456 respondents. To analyse data, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were applied, which ensured the reliability and validity of the identified factors. The paper highlights key determinants of beauty consumers’ behaviour towards Russian local brands, such as a mandatory sensory experience and emotional connection with the client, and presents recommendations for formulating adaptive marketing strategies under current market conditions, namely ensuring close integration of the business model’s elements, where environmental and social agendas are not auxiliary, but core components. These findings significantly expand practical knowledge in the field of cosmetic industry in Russia. A comprehensive approach was implemented to explore consumer behaviour under turmoil, employing a mixed-methods methodology to produce recommendations that address the existing theoretical and empirical gaps.