Implementation of Environmental (Eco-Friendly) Business Solutions for Customer Loyalty in the Beauty Industry on Russiаn Market

For many countries, the environmental direction in business has long been the norm, but in Russia it is just beginning to develop. The negative impact of production activities of cosmetic companies on nature is increasing and has a great concern in the global society. Cosmetics manufacturers in Russia are getting concerned about this eco-trend: more and more products that appear on the market have symbols confirming the use of natural ingredients and the use of recycled materials or renewable resources for the production of packaging. However, not everyone succeeds in choosing the right strategy to increase their loyal customer base. That is why our goal is to explore the relationship between the application of environmental business solutions and consumer satisfaction with cosmetic products on Russian market. And based on the results of this study, our purpose is to propose the recommendations to increase loyal customers and performance on the market. In order to achieve more accurate study of customer loyalty to environmentally friendly cosmetic brands, an integrated approach is used, which includes the use of both indirect methods (content analysis of sites with reviews) and direct methods (questionnaires, NPS index). To achieve our goals, we conducted our own empirical study of Russian consumers of ethical cosmetics, since they are an important factor in the formation and development of this market, and they are also carriers of certain value orientations. An analysis of their value orientations was carried out, as well as other factors potentially capable of influencing the motivation of consumers and the consumption of organic cosmetics. As a result we expect to determine the relationship between environmental business solutions and customer loyalty but not so strong on the Russian market. We also assume that sustainable solutions do not dominate such factors as pricing and design in terms of customer loyalty, because of the level of awareness of Russian consumers. Moreover, we propose recommendations on how cosmetic companies can improve the performance through the use of environmental business solutions, increasing the level of satisfaction, and therefore the number of loyal customers.