Brazil has greatest increase in consumption
Valor Econômico
The retail of beauty and personal care products sold US$ 37.4 billion in goods in Brazil last year - nearly US$ 9 billion more than in the previous year, reveals Euromonitor International survey. The country registered the highest growth rate in the world - growth of 30% compared to 2009 -, and the figure of nearly US$ 9 billion is the greatest among the five sales leading countries. The skyrocketing in the sales has led large multinationals in the sector to announce plans in Brazil. The Swedish Oriflame, rival of Natura and Avon, admitted months ago it plans to make acquisitions in the country. And Mary Kay intends to open a plant in the country within five years, as informed the group a month ago. "The sales of beauty products and personal care products in Brazil represent more than half of everything they sell in Latin America", says Anna Chaia, President of L'occitane in country
According to Euromonitor, "the strong performance in the sales of products for the mass of the population has supported the results in the world", said Irina Barbalova, head of analysis for the segment of the consulting firm, in an event on the sector held in March. Data of Kantar Wordpanel on the industry in the country strengthen the conclusion. A survey of the consulting firm shows that class C, with more than 100 million consumers in Brazil, has driven the growth of the market. From January to March 2011, class C registered a 22% increase in the purchased value in the basket of beauty and personal hygiene items, according to Kantar. In class A, there was a 17% growth.
The consistent growth in the income of the Brazilian families and the increase of the competition among the brands (which tends to increase the offer and limit price adjustments) have helped explain the increase in the demand of the segment. For entrepreneurs of the sector, the consumer search for products that bring a well-being feeling also have influence in the performance. "People already understand feeling good in relation to appearance is a synonymous of quality of life. The industry gains with the change in the behavior", says Marcelo Nogueira, owner of the Extreme Global Licensing agency that licenses the Ana Hickmann brand.
The sales of products with the name of the TV show host (which include nail enamels and creams) grew 25% in 2010 and 30% this year. In the case of L'occitane, the subsidiary of the company in Brazil has become, in few years, the fifth most relevant operation in the world ranking of sales of the group. The company has three stores in the country among the ten largest in sales worldwide. "Latin America should overcome North America in terms of size and become the third largest regional market in 2015", according to the Euromonitor material.