Estava ausente aqui no blog nos últimos meses, mas estou de volta ! Tenho uma coluna na revista americana Happi - Household and Personal Products Industry, que é especializada no mercado cosmético. Abaixo tem a matéria "Competition Is Fierce In Brazilian Beauty" que inclui uma entrevista que fiz com o presidente executivo do Grupo Boticário.
During the past 15 years, Brazil’s personal hygiene, perfumery and cosmetics sector sextupled to R$34 billion ($16.8 billion). In that time, Brazil became the world’s No. 1 market in fragrance, deodorant and children’s toiletries; the No. 2 market for bath care, hair care, men’s care, oral care and sun care and the No. 3 market for makeup.
What’s driving this dynamic growth? It is the increased buying power of the emerging middle classes. Once only purchasing the very basic products for day-to-day living, Brazilians are spending more and more on creams, lipsticks and perfumes. The aging population and the growth of women in the workforce have also boosted cosmetics sales.
And the competition is fierce, as more companies make big investments. The retail sector changed dramatically last year with the arrival of Sephora, which brought several new brands to Brazilians. Bare Minerals also entered the country last year and more brands are expected to follow, which should only make competition even more fierce. But local companies are fighting back. In 2011, the Boticário Group, which has more than 3,600 stores, launched its second brand, Eudora, via the direct sales channel. In 2012 the company achieved turnover of R$6.6 billion ($3.2 billion) and launched three new units: the Skingen Genetic Intelligence in facial skincare; franchise network Quem Disse, Berenice? in the makeup category, which inspires women to find their own way to become more beautiful; and The Beauty Box, a multi-brand retail network, which offers 60 of the best brands, including domestic and imported products. Just last year, 1,600 products were launched, including 500 within Quem Disse, Berenice?
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| Artur Grynbaum Boticário Group, Executive President Foto: Guilherme Pupo |
According to Artur Grynbaum, executive president, Boticário Group, the company’s gains coincide with Brazil’s growing clout on the global beauty stage. For example, he noted that Brazil is about to surpass Japan as the No. 2 beauty market in the world, trailing only the US, according to statistics compiled by the Brazilian Association for the Cosmetics, Toiletry and Fragrances Industry (Abihpec).
"Our economy has reached a stable level, with a robust financial system and is ready to face crises. The growth and the entry of new consumers meant more opportunities offered by the sector and the Boticário Group is aligned to this scenario challenges,” explained Grynbaum. “Our goal is to take part, in a relevant way, in the country’s growth. Our way to reach this is to meet the consumer needs at every opportunity. Hence, the launch of new business units, with different value propositions for different consumers, as well as new products, which reached 1,600 in 2012."
Fragrance remains the flagship product category at Boticário Group, but considering the recent launch of Quem Disse, Berenice’s 500 SKUs, the new Beauty Box business and the partial acquisition of Frajo (a Brazilian cosmetics importer whose brands include Revlon, Artdeco, La Perla, Lolita Lempicka and others) and it appears that the next step for the company is toward makeup and premium categories.
"The histories of Brazilian perfumery and O Boticário blend themselves, and we seek a strong performance in this category,” noted Grynbaum. “But we understand beauty as a matter that involves multiple categories."
Company executives are determined to consolidate these new business units and continue to invest in the categories that are already on the market.
Meeting Consumers’ Desires
"The Boticário Group wants to answer all consumer needs and desires when it comes to beauty,” he explained. “The consumer is multifaceted. We need to be in people’s lives with different brands, products and channels. Each of these operations brings its own value proposition. And that is how we intend to maintain the Boticário Group as a leading organization in the world of beauty."
For now, much of O Boticário’s efforts are focused on its home market. Grynbaum told Happi that only makes sense since, for the moment, Brazil is one of the top performers in the global economy. But the company also has operations in eight other countries - Portugal, US, Japan, Angola, Mozambique, Saudi Arabia, Venezuela and Paraguay.
For the sixth year, Boticário is sponsoring São Paulo Fashion Week, Latin America’s most important fashion event. The company also acquired shares in Scalina Group, which owns lingerie and pantyhose brands. While the link between beauty and fashion is strong, the company has no plans to enter fashion directly.
"The São Paulo Fashion Week sponsorship is aligned to the proposal that beauty and fashion go together, embodied in our line Make B., and the SPFW is a place that expresses this concept in a creative and democratic way,” according to Grynbaum. “Boticário has been the master sponsor of the SPFW since 2011 and this partnership has shown very relevant to the brand consolidation, reinforcing that we are always connected to the fashion market trends."
He called the 2011 acquisition of a minority interest in Scalina Group, Brazil’s largest manufacturer and retailer of women’s intimate apparel, part of his company’s diversification strategy.
On the subject of active ingredients for skin care, Grynbaum noted that O Boticário owns Labim, a molecular biology laboratory, in partnership with the University Positivo, to develop formulas that will expand the company’s portfolio and delight consumers who, he pointed out, are more informed than ever before and are eager to search out new options and new brand experiences.
"The Brazilian cosmetics industry is experiencing a great moment, which puts us in the global spotlight,” he told Happi. “This drives us even more to continue investing in quality products and services. Brazil has a very large market potential in this segment, which only makes us dream about ever greater conquests."
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