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    News From Latin America

    A Colorful Future for Brazil And the Rest of Latin America

    ...

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    Daniela Ferreira, Correspondent05.01.19
    From lipsticks and nail enamel to eye shadow and foundation, sales of color cosmetics in Latin America increased at a faster pace than global market between 2012 and 2017. According to Euromonitor, the category grew 42.9% in retail value in the region compared to 34.8% globally. The gains were less pronounced in Brazil, where sales rose 21.8% during the period. However, forecasters predict good prospects for color sales in Brazil through 2022, where it will grow 26.4% compared to 20.6% globally and 19.4% in Latin America. These forecasts suggest plenty of opportunities in the region for beauty brands.

    Brazil is the No. 5 market for color cosmetics in the world, trailing the US, Japan, China and UK. Of course, it ranks No. 1 in Latin America, followed by Mexico and Argentina. According to Euromonitor International, Maybelline (L´Oréal), Mary Kay, Natura, Avon Color Trend and Risqué, a Brazilian nail polish brand that belongs to Coty, are the leading color cosmetics brands in Latin America. Many of these brands appear in the Brazilian rankings too, but Euromonitor ranks the top five as: Risqué, Maybelline, Avon Color Trend, Make B (O Boticário) and Avon True.

    According to Segmenta, a Mexican market research company, prestige brands can be found in the hygiene, perfumery and cosmetics market in Brazil, which is dominated by mass brands. Of course, color cosmetics are a major category for the direct sales channel in Latin America; the exception is Mexico, where color cosmetics sales are consolidated in the premium market. That may be due, in part, to the maturity of the market.

    Brazilians have the same rationale whether they’re buying cosmetics or clothing or cassava. They demand the best cost-benefit ratio. In fact, according to research conducted by Kantar, when buying makeup products, 39% of women consider the price/quality ratio. It is a consideration that’s ahead of brand recognition (26%), hypoallergenic claims (25%) and fragrance (18%).

    Popularity Contest
    Brazilians are known for focusing on lip products when choosing color cosmetics, so it is no surprise that it ranks second in sales in the overall color cosmetics category, trailing only nail color. Eye makeup usage is rising, but it has a way to go to catch nail products. According to data published by Mintel nearly a year ago, 79% of women used nail polish in the last 12 months, followed by lipstick/lipgloss (78%), masks (61%), foundation (60%) and eyeliner (57%).

    Colorama, a nail polish brand owned by L’Oréal, launched a color collection featuring the most popular shades throughout its 70-year history. Called Grandes Sucessos (Great Successes), it invites consumers to remember moments and recreate them with the most desired nail polish shades from each era. The brand relied on social media polls to select the six shades.

    From tips to lips, Vult launched Lip Oil, which is formulated with vitamin-rich jojoba and sunflower oils. According to O Boticario, the brand’s owner, the formula moisturizes and helps minimize the appearance of lip lines. Meanwhile, Natura launched UNA Velvet matte lipsticks, which are said to have a velvety texture while providing 12 hours of maximum pigmentation. Natura says UNA Velvet contains the most pigment of any formula in its makeup portfolio.

    O Boticario interviewed 15,000 consumers and tested more than 200 formulas before launching Make B Explosion Effect. It is said to dramatically increase lash length, boost volume and even make them curlier.Make B Explosion Effect is enriched with special particles that adhere easily without agglomerating or accumulating.

    Quem disse, berenice? (Who said, berenice?) is a makeup brand from Boticario Group. It is said to promote a “volume explosion” through an applicator with more than 400 nylon bristles and fibers, which guarantee double volume in the first layer. The technology also allows for a uniform coat on the lashes.

    In order to offer products that combine technology, innovation and performance, Eudora, another Boticario brand, introduced Eudora Glam makeup. According to the brand, it meets the Brazilian desire for sophistication, glamor and quality. There are 18 products for skin, eyes and lips.

    Peruvian direct sales company Belcorp’s Concentre Line entire makeup line contains Maitake imperial, a mushroom that’s been purported to have rejuvenating properties. The final formulas were more than four years in the making.

    According to Cris Irigon, communication director at Boticário, one of the main makeup products is Make B. Base Beauty Cushion, a liquid sweat-proof foundation, oil free with SPF 40 which provides a dry touch and matte effect. It is stored in a sponge specially developed with unique technology, which absorbs the product and provides a dosed application. In addition, it is refillable.

    Communication Is Key
    But no matter how effective a finished formula is, if its benefits aren’t well communicated, the product will fail to sway consumers. To get women trying and buying, marketers have a variety of strategies. According to Irecê Andrade, marketing manager at Vult, the company’s communication strategy rests on three pillars. The first is social networks: Vult has an Instagram profile with more than 3.3 million followers; a YouTube channel, led by the official makeup artist, Vanessa Rozan, with more than 150,000 subscribers; and a page on Facebook with more than two million people. According to Andrade, they are the central points for interacting with consumers, communicating launches and building the brand. The second pillar calls for building relationships with digital influencers and makeup artists who are fundamental to communicating products benefits and will vouch for product quality. Finally, the third pillar is the creation of partnerships and co-branding. Through a variety of events that link Vult with complementary brands, company execs expect to boost product experimentation.

    Formulation Trends
    According to Segmenta, demand for “fast beauty” is creating new opportunities for indie brands in the makeup and treatment categories. Irrespective of retail channel, there is a growing movement for fast beauty, a term inspired by fast fashion, which refers to adaptability in the creation of products tuned to new trends and also involves agility in the manufacturing and distribution phases.
    This phenomenon allowed some of the new brands to be more competitive, since, unlike big national and multinational brands, they are able to quickly get new, trendy products to market. Another highlight is the recent launches associated with influencers. The products and brands tied to online influencers sell four times faster than average, according to Segmenta.

    What technology is of most interest to color cosmetic consumers? According to Mintel, cushion compact makeup, which makes it easy to apply the right quantity of the product, eyebrow makeup, and liquid nail polish tape are most sought after, followed closely by nail polish pens and face contouring makeup.

    Other factors that encourage consumers to buy or to buy more makeup or nail polish are: appealing color (66%), in-store discount on the product (44%), appealing finishing effect (e.g. matte, metallic) (38%), recommended by family/friends (29%), product being launched by my favorite brand (25%), according to Mintel.


    Daniela Ferreira
    Correspondent
    daniester@circulodabeleza.com.br
    Mobile: 55-11-993880867

    Daniela Ferreira is a marketing and communication professional in both consumer and B2B cosmetic markets. At present she is master´s degree student in fashion program at São Paulo University (USP) with research project about fashion and fragrance and also including works presented at conferences. Her expertise comprises managing and launching products, communication planning and market studies for identifying new business opportunities. She also has a blog about perfume, its interactions and insights for the market (https://olfativo360.com.br/)
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