13 May Interview with Ms. Mila Litvinjenko, Founder/CEO, AURA
Could you share your insights on the current state of the cosmetics industry and the competitive landscape, particularly in the makeup sector?
The cosmetics industry has seen constant growth since 2020, even during COVID. We have experienced annual growth of 25-35%, which is remarkable given the economic challenges. In tough times, women may not afford luxury items like shoes or clothing, but they still buy small things like makeup, which brings them joy. Digitalization and social media, especially TikTok, have been game changers. At first, I dismissed TikTok, thinking it was a silly platform, but now, anything beauty-related can go viral instantly. I have seen makeup products sell out just from social media buzz.
Traveling to beauty fairs worldwide, I have observed significant industry growth. Digitalization is making cosmetics more accessible. Before, you had to visit perfumeries or stores; now, bloggers, influencers and everyday women showcase products online, making them easier to trust and buy. Trends vary by country, but transformation-focused beauty is everywhere. Personally, I advocate for authenticity—enhancing, not changing, your natural beauty. Our brand follows the ‘makeup no-makeup’ trend, where you wear makeup but still look naturally beautiful.
Could you share how AURA Cosmetics started and share some key facts and figures about your company and the markets you cover?
I never really thought about our success, I just focus on creating new products and keeping up with trends. I started as an interpreter, but I craved something more creative. My journey into cosmetics was accidental. While working as an interpreter at a major beauty fair in 1995, I picked up samples of cosmetics, packaging and raw materials. I didn’t even have a business card, so I improvised, pretending I had a company. At the time, I knew nothing about the cosmetics industry, I didn’t even wear makeup, just lipstick. However, when I returned to Serbia, the idea stayed with me. I started researching the market, first on my own, then with a professor from the University of Social Sciences. A year later, in 1996, I founded the company completely on my own.
After conducting market research, I placed my first order. At the time, state-owned companies dominated the market, prioritizing chemical products over cosmetics. Makeup was an afterthought, with outdated packaging and no focus on trends. The only company following trends was Slovenian, but due to the embargo, we couldn’t import their products. This gap in the market was my opportunity. With no experience, I chose suppliers based on reputation. One of the best nail polish manufacturers was a French company, which remains our supplier today. I paid 40-50% more for quality, knowing persistence would lead to success, though it would take time. I hired nine workers, none with cosmetics experience. When purchasing machines, I pretended my ‘technical manager’ was too busy to attend — there was no technical manager. I observed everything, then trained my employees myself. Three months in, Italian experts advised me to shut down, saying I was wasting too many raw materials and had poor production capacity. At first, we produced just 1,200 lipsticks per shift. I stayed in production refining the process and within six weeks, we reached 3,500, on par with top companies. Today, we make even more. Experience taught me that being hands-on is key to success. It is tough, but worth it.
People were hesitant to buy from us. When I said we were a local cosmetics company from Niš, many dismissed us. I was born in Belgrade, but I never believed only Belgrade-made products were worth buying, just like in France, where quality products come from all over, not just Paris. But at the time, being from Niš was a disadvantage. To overcome this, I sometimes used the name of one of our suppliers, presenting us as an Italian company. This opened doors, even though in Italy, northern and southern products have different reputations. I didn’t love this approach, but I had to encourage my team. I told them, ‘One day, they will call us asking for our products.’ It seemed impossible back then, but I believed in quality. AURA started with nail polish — an easy, low-risk product. Customers liked it, then tried our lipsticks and other items. When they trusted us enough to use our foundation, I knew we had made it because people won’t put just anything on their face. I originally planned to launch a skincare line, I had everything ready, even paid for packaging in Switzerland, but at the last minute, I decided against it and I’m glad I did. In Serbia, people either buy pharmacy-made creams or established brands. Without a strong heritage in skincare, it would have been a tough market. Today, we focus solely on makeup under our brand, though we produce skincare, body care and perfumes for private labels. Despite high demand for imports, I have always said no—we sell our expertise and knowledge.
Into which countries have you expanded your sales over the years?
After 27 years, we remain committed to excelling in what we do best: makeup. We have around 100 employees and the number keeps growing. Our company operates in Croatia, Bosnia and Macedonia. Last year, we hit a record production of 7–8 million units. While we could expand faster, my philosophy is step by step, reinvesting profits instead of relying on loans. When we did take credit — only two or three times — it was for production upgrades, always ensuring we could repay even in a worst-case scenario. Our production follows Good Manufacturing Practice standards, which aren’t required for cosmetics but serve as a strong marketing advantage. When international buyers visit our modern Serbian facility, they are often surprised—it meets the same standards as European factories.
We are currently in 16 markets and expanding. We are finalizing a distribution deal for 15 African countries and negotiating for India. In the Middle East, we had a distributor for the UAE but weren’t satisfied, so we are setting up a new one. We have also entered Austria, a highly regulated market, working with the BIPA drugstore chain, as we do in Croatia. While we are eager for Africa and the Middle East, we are taking a strategic, steady approach. The Serbian and ex-Yugoslavian markets opened doors for us, but our advantage lies in quality and persistence. Since we are a manufacturer, we always have stock available. Rapid expansion requires careful planning, so I prefer a step-by-step approach to ensure success in every market and satisfaction among our partners and distributors.
AURA is a strong company—we honor agreements, maintain quality and have no issues entering new markets, even as a Serbian brand. We export to Europe because we comply with EU regulations, with every product registered in Brussels. Competing alongside global players proves that a local company can thrive by offering quality and originality, not imitation. For 27 years, we have focused on excellence in both products and packaging. There is strong interest in acquiring AURA, but I’m not ready to sell yet.
How do you stay ahead of market trends and consumer preferences when developing new products?
Trends are changing rapidly in this digital era. When asked about three- or five-year plans, I used to have clear answers, but now plans evolve almost daily. Our mission remains the same: providing high-quality products that meet consumer needs. I travel frequently to attend six major makeup fairs yearly. I will be at fairs in Los Angeles, followed by Paris and New York, where trends are set a year in advance.
Innovation is constant. Cosmetics are no longer just about color; they now combine beauty and care. Ingredients have changed so much that the entire industry, including AURA, had to invest in new machinery. Today, makeup is 50% color and 50% care. In the past two to three years, every major supplier has emphasized “clean” formulas, with at least 93% natural ingredients. The focus is no longer just on long-lasting color, but also on hydration and skincare benefits. While these trends are strongest in Europe and the US, they are gradually influencing the Balkans. All our upcoming products will incorporate skincare benefits, including SPF, UV and blue light protection. Care is the future of cosmetics and we are fully embracing it.
How do you communicate about your products’ attributes, your quality and innovation focus to the end user and consumer?
Since COVID, digitalization and social media have had a huge impact. We used to advertise in Elle, Harper’s Bazaar, Cosmopolitan and Grazia, but now we focus entirely on social media. After working with external marketing agencies, we have switched back to in-house marketing. Our employees, especially those who work in production and the lab, are deeply involved and can share their firsthand experiences. This personal touch is essential, as agencies can’t provide that same level of connection.
We are also undergoing major changes, including adopting new software to fully embrace digitalization. We have employees who have been with the company for 25-26 years and are resistant to change. However, we live in a time where change happens daily and we must adapt. It’s crucial to attend fairs and bring in young people. In the last four months, we have hired five or six people under 30 and their ideas are fantastic. I’m learning from them every day. While my experience is valuable, I’m learning from them too. It will be challenging for some long-time employees, but we must change, follow trends and listen to our customers.
What are your plans for the US market and how important is it as a source or export market?
I have always loved America, but it wasn’t until 20 years ago, when I first visited New York, that I truly fell in love with the USA. Since then, I have also visited Los Angeles and found ways to return more often, not just for fairs but also for business. Last September, at a New York fair, I met a woman who said she bought our products online in the US. I was surprised since we don’t officially sell there due to FDA regulations. However, I learned that someone from Serbia was selling our products online. I believe, with our strong marketing, display and product quality, we can succeed in the US. market. There are many ex-Yugoslavians in Chicago and Los Angeles and I frequently visit LA, where I have met Serbian makeup artists working with celebrities.
Our pencil is a best-seller and I have seen it used by some of them. My personal goal is to enter the US market and I believe it’s achievable. We have everything the market needs and I’m very familiar with it. I’m not focusing on the ex-Yugoslavian population, but on the American market. People are open and when they ask where to buy our products, I show them and sometimes leave a sample. I’m confident we can succeed. In New York, I saw a brand that had huge growth despite offering just 15 average products. Their success came from providing a unique experience, not just the product itself. I believe in persistence, quality and adapting to trends, especially in this new digital age. We have been working on finalizing documentation for the US market for two and a half years. Now, we are considering whether to open a company or work with a distributor.
What is your final message to our readers?
I often tell young people there is no perfect time to start a business. The best time is when you are ready and at peace with your decision. With persistence, perseverance and quality, you can achieve anything. Respecting ethics in every department is key to lasting success. Trust, quality and a focus on the end user are essential, whether you are in cosmetics or any other industry. If you offer quality goods or services, anything is possible.