12/19/2008 15h42
Cosmetics producers increase estimate of sales in the year
Gazeta Mercantil - 12/19/2008
The world financial crisis has not intimidated consumers to buy cosmetics. Much the contrary, the sales in the last months of the year have been over the expectations of the retail segment and caused the retail networks to increase their purchases, causing the manufacturers of personal hygiene and beauty products to produce more. "Orders are still being placed". Due to the good moment of the sector, the Brazilian Association of the Industry of Personal Hygiene, Perfumery and Cosmetics (Abihpec) reviewed the sales projection of the sector upwards, to R$ 21.6 billion (US$ 9.4 billion) (factory price, without tax), which corresponds to a growth of 10.4%. The new forecast allows the sector to keep the increase at the two-digit level which has been registered for the last 12 years. The previous projection was of an increase of 8.7%. Among the segments of the sector, the one with the greatest growth is the segment of perfumery, which should register an increase from 16% to 17% in sales, followed by the personal hygiene segment, with an increase of 12% to 13%. In the segment of cosmetics, however, growth is less expressive, from 6% to 7%. "There will be more growth in volume than in sales and that is due to the heavier competition, which demands better quality products at lower prices", explained João Carlos Basílio, president of the Abihpec. The businesspeople of the sector are optimistic for 2009. "With the interest rates at the current level, inflation will not skyrocket and the purchasing power of the people will not be affected, so the consumption of non-durable goods, like cosmetics, should not suffer retraction", he affirmed. According to Basílio, the Abihpec hopes to keep the growth at a two-digit level next year. The main work of the entity will be to seek a reduction of the tax rates charged over several personal hygiene products. The idea, as he explained, is to reduce the tax rate of the products to up to 12%.
