12/30/2008 10h25
Brazil is already the worlds second beauty products market
Valor Econômico 12/30/2008
Brazilians taste for wearing perfumes and cosmetics and personal care products made Brazil become the second largest world consumer of beauty products, surpassing Japan. Until 2007, the country was in third place, with Japan and the USA in the second and first places, respectively. But in 2008 the sales of the sector increased to R$24.54 billion (US$ 10.7 billion) granting the national market one step up in the ranking, according to João Carlos Basílio da Silva, president of the Brazilian Association of Personal Hygiene, Perfumery and Cosmetics Industry (Abihpec). "We grew 10.4% in sales, whereas the Japanese and the American markets should have retractions", he affirmed. In the big industries of the sector, the growth exceeded the general percentage registered by the association. The sales of the
O Boticário company, for instance, should close the year with an increase of 16% to 18% compared to the previous year. And the perspectives for next year continue optimistic. For 2009, its president, Artur Grynbaum, plans the opening of at least 100 more stores - currently, there are 2.6 thousand, with investments at least equal to those from 2008, of R$ 175 million (US$ 76.1 million). In the
Natura company, the expectation is as optimistic as of its rival, influenced by the good results of this year. "In the first nine months of 2008, we grew 20.9% compared to the operating profit of the same period of 2007", says José Vicente Marino, former president of Johnson & Johnson, who, since March, is
Natura's Business Vice-President. Compared to 2009, the company is getting ready for "Whatever should happen." "We don't know the impact the crisis can have. Therefore, we try to foresee several scenarios, from the most drastic ones to the less severe ones and we have an action plan for each one of them", said Marino. According to him, the additional investments (above a level the company does not discloses) of R$ 400 million (US$ 173.9 million) foreseen for 2008, 2009 and 2010 are maintained, nonetheless. The significant sales increase is making Brazil one of the drivers of the international growth of American Avon, the largest door-to-door cosmetics sales company of the world. "Until the third quarter, our growth in Latin America was 25%, and Brazil was the greatest market", said Ricardo Patrocínio, the Marketing Officer of the company. In spite of the uncertainties, he believes that the sales should grow in 2009. In order to stimulate businesses, the company plans on making launchings here at the same time as in the United States. And he bets on the strength of actress Reese Witherspoon as the Company Girl.
