L’Oréal is on a tear in Latin America. Sales in the region soared 32% to $404 million in the first quarter of 2011, a gain that exceeded the company’s results in Europe.
“Growth is strong in all countries (of Latin America), particularly in Brazil and Argentina,” said a statement issued by the company.
New Players
A newcomer to the personal care market, Perrelli Cosmeticos, located in Pernambuco, is a unit of Demetrius Valencia. Perrelli’s goal is to sell quality cosmetics at reasonable prices ($37.50) to consumers in the northeast region of Brazil. A direct selling operation, Perrelli will go head-to-head with the likes of Avon and Natura.
Growth is a beautiful thing in Latin America. |
Bombril, a manufacturer of steel wool and other cleaning products for the home, will announce in the coming weeks its plans to enter the cosmetics industry. The company is negotiating the purchase of a domestic company, whose products are found in pharmacies, drugstores and perfumeries. According to Ronaldo Sampaio Ferreira, president of the company, it’s a small acquisition, but could be the first of several, as company executives insist that other brands are already on the radar screen. For example, Ferreira did not rule out the interest in cosmetics brands of Bertin group, holder of eight brands of cosmetics acquired within five years. Bombril wants to diversify its portfolio and get in on the growth being posted by the personal care sector in Brazil.
Hair Raising Numbers
Hair Brasil International Beauty, Hair and Esthetics was a big hit. The tradeshow, which was held in April in Saõ Paulo, attracted a record 80,000 professional visitors, including hairdressers, beauticians, manicurists and salon managers. There were 800 exhibiting brands, which have launched new products during the fair. The growth of the market was underpinned by greater participation of Brazilian companies and also 40% more international exhibitors.
More Investments
Mary Kay has aggressive plans for Brazil. Already one of the largest direct selling companies in the world and with 71,500 consultants in Brazil, Mary Kay wants to end 2011 with 100,000 consultants. But adding to the sales staff is just one phase to boost results in Brazil and other countries in the region.
David Holl, Mary Kay’s CEO, was in Brazil in April to open a new office in São Paulo. He told the press that part of the plan to increase these gains might be the installation of a factory in the country within five years, based on the expectation of growth of the local operation. “We are gaining greater scale, then the investment might come to be justified in the near future,” he said.
The group also invested in a new distribution center in city of Barueri (SP), four times larger than the former. The company plans end the year with 160 employees in the new headquarters (currently 60 persons) and with a 70% increase in the number of launches in Brazil.
Meanwhile, O Boticario, world’s largest network of franchises of cosmetics and perfumes, has opened another store for the Native Spa body care line. At press time, another store was set to open in a São Paulo shopping center. The $5 million investment will be operated by franchisees offering only Nativa Spa products, one of the most successful O Boticario lines, which boasts 163 SKUs. The new store is geared toward professionals and will include body massage.
São Paulo has become the cosmetics center of Latin America. |
According to O Boticario, from 2007 to 2009, Native Spa’s sales grew three times faster than the Brazilian personal care market overall and twice as fast as the O Boticario brand for the same period. In April, O Boticario Group opened four Eudora stores. For the first three months, operations are restricted to São Paulo and the metropolitan area, but the company expects Eudora to reach the entire national territory by the end of the year.
Subsidiary in Good Shape
The worldwide president of L’Occitane, Reinold Geiger, was in Brazil a while back to tout the company’s 2010 results in Brazil. The subsidiary’s sales surged 30% last year, after making its debut in 2009. L’Occitane currently has 70 stores in 18 Brazilian cities, with more than 150 points of sale throughout the country and is already the leading international brand in the Brazilian retail sector.
In the current fiscal year, which began April 1, L’Occitane wants to grow 35%. To help achieve that goal, the company opened a new distribution center in Jundiai (SP), which is expected to help triple distribution, which will help it reach its 2011 goal of having approximately 100 shops in the country, according to Ana Chaia, president of the company in Brazil.“Our focus is on class A and B, which has buying power to purchase our products, but still doesn’t know the brand. So the potential is great.”
A Perfume for Couples
Natura’s Amó line, which speaks of love and is designed to be used by couples, has expanded its portfolio to include Amó Xodó Deodorant Female Cologne and Amó Xodó Chantilly Body Moisturizer. Products were conceived to stimulate touch and intimacy, invitations to put love in motion, according to the company.
The fragrance features fresh topnotes such as bergamot, cardamom, mandarin, pepper and lime. The heart includes lavender, jasmine, aqueous flowers, a tea chord and exclusive essential oils. Base notes include musk, cedar sandalwood and guaiac, according to Veronica Kato, Natura’s perfumer, who co-created the perfume with Ursula Wandel of Givaudan.
Sueli Ortega has written for Isto É and O Estado de São Paulo. Since 1987, she has served as a correspondent for Cosmetics International. In addition, she created the beauty channel for El Sitio, an Argentinean website and the Women Channel. She has her own website, Cosmeticos BR and can be reached at sortega@cosmeticosbr.com.br