Higher income and vanity support high in the segment
Valor Econômico
More brands, more releases and new consumers on the market. The hygiene, beauty and cosmetics sector sold greater volumes this year, especially those items of greater added-value - and that should make the sector achieve real growth of up to 12% in net income (net of taxes) in 2010. The initial analysis of the Brazilian Association of the Personal Hygiene, Perfumery and Cosmetics Industry (Abihpec) pointed to growth between 10% and 12% (deflation rate) in the segment revenue. Now, companies and entities of the sector believe the growth should stay close to ceiling expected for the year.
In an analysis of results of large companies of the sector, the data can be even more encouraging. From January to September, Natura grew 22.5% in revenue and made 75 launchings. Hypermarcas had an organic growth (excluding acquisitions) of 29% between January and September in the areas of personal hygiene and beauty. Boticário launched 402 products in 2010 and it expects to increase the income by 25% in the year. For the Brazilian Association of Cosmetology (ABC), the growth rate should stay little above 10%. The Abihpec expects the annual rate be maintained, at least, at 10.5%, the same rate seen in the average of the last 14 years. In 2009, the segment had net sales of R$ 24.9 billion (US$ 14.7 billion) after growing 9.8% (deflated rate). Considering inflation, growth achieved nearly 15%.
The migration of consumers of classes C and D to classes B and C, respectively - fruit of gains in income by the population - directly reflects in such movement. That because the sale of such goods is related to the gains in the household income. It is estimated that 45% of the purchases of beauty products in the country occur door-to-door, that is, with payments in cash, according to the Brazilian Association of Cosmetology. Besides, there is a matter related to the greater need for welfare and vanity of the Brazilian, say experts.
In the analysis of the Brazilian Association of Direct Sales (ABVD), which has Avon and Natura as members, the investments made in warehouses and distribution centers in the segment "from the scratch", throughout 2010, shows there is an expectation of maintenance of that level of long-term growth, says Paulo Quaglia, President of the entity. Avon and Natura have increased their storage structures this year. The analysis of consultants regarding the performance of the companies in 2010 confirms the scenario. For Juliana Campos, of Ativa Corretora, the companies have benefited from the high acceptance of the consumer for the launchings. "The excellent performance in the market of operation, the maintenance of the high growth rates of the sales channel and the excellent acceptance of new launchings" explain the performance of the sector, says on a report.
Some products stood out this year and others should keep the good performance in 2011. Perfume and makeup received high investments from Avon and Natura in 2010. As regards Unilever, it focused in areas such as deodorants, antibacterial soaps and anti-dandruff products, as well as Procter & Gamble, which entered such segment as it brought Head & Shoulders to Brazil three months ago. This year, P&G also decided to launch its brands of facial creams and cotton pad, in the country, Olay and Naturella, respectively. The Brazilian Hypermarcas has invested more on beauty products for men (with the Bozzano and Gillette lines) and increased its operation and launchings of brands such as Monange and Risqué.