Brazilian people – naturally sensual,
propels the cosmetics market
Cathy Laporte, Exhibition Manager for in-cosmetics writes a series of three articles focusing on the Brazilian market for HP & Co first ever presented by SPC Magazine. As editor of cosmeticos br for 10 years (now in March) I added some information to this article, only with the intention to further expand the vision of our national and international readers of this pulsating market.
Cathy Laporte highlighted that Brazil is moments away from becoming a global force in fashion and beauty, and that brands are now becoming aware of its potential.
“Beauty is so important in Brazil, vaidade (or vanity) doesn’t have a negative connotation in Brazilian Portuguese.” So says Alexander Edmonds, author of Pretty Modern: Beauty, Sex and Plastic Surgery in Brazil.
In the article Cathy mentions Euromonitor data highlighting that the Brazilian market was valued at US $ 42 billion in 2012, representing 58% of the Latin American beauty and personal care market and is on track to overtake its rival Japan as the world’s second largest beauty market within a few years. Data that ABIHPEC – Brazilian Association of Toiletries, Perfumes & Cosmetics had already announced in April 2013 and in April 2012: “With 12.5% of the worldwide share, Brazil remained deputy leader in the segment Hair Care in 2013. And: “Brazil has 10.1% global market share, against 11.1% in Japan and 14.8% of the United States, according to the president ABIHPEC, João Carlos Basilio.”
Laporte believes that we had meteoric rise. The Brazilian cosmetics market actually has been presenting annual results of continuous double-digit growth since the 90s.
But, fundamentally, she says that the last two decades have also witnessed an increased interest in personal appearance from Brazilians across all walks of life. The interest in personal hygiene and appearance in Brazil dates from our indigenous ancestors who always bathed more than once a day due to the heat and the availability of rivers. Fact that permeated our culture of beauty as well as the habit of perfuming and the hair care. Brazil is a sensual country by the warm climate, which guarantees greater willingness to go out, see friends, dancing and dating, and this leads to the interest for the appearance.
Currently, Brazil is the second largest global market for hair care products which, together with fragrances, accounts for nearly 40% of total sales within beauty and personal care. Trends-wise, colouring and straightening have become extremely popular, with some women admitting to using four or five hair care products a day in a bid to create their perfect look. As a Brazilian I can attest that this is the honest truth. Perhaps even more product yet, if we consider the styling products.
But that’s not all. The penchant for poker straight hair has caught on around the world: the ‘Brazilian blow dry’ is now one of the most requested styles in salons. Combine that with the fact that hair care is the most exported product category and it’s clear that the country is fast becoming a trend-setting hub for the global beauty industry.
Cathy Laporte also speaks about our preference for straight hair,since the majority of the population, descends from blacks and Indians offers a counterpoint to the Brazilian has caught on around the world: the ‘Brazilian blow dry’ is now one of the most requested styles in salons. Combine that with the fact that hair care is the most exported product category and it’s clear that the country is fast becoming a trend-setting hub for the global beauty industry, she says.
Brazil is the world’s largest market for deodorants and perfumes, the third largest for colour cosmetics and oral hygiene and the fourth largest for skin care. It is also the second largest market for men’s grooming products, highlighting that an interest in personal appearance is not solely limited to women. Brazilian men are more aware of their appearance than ever before and this market segment is predicted to see dynamic growth in sales, driven largely by the introduction of sophisticated value added products, says Exhibition Manager for in-cosmetics.
According to ABIHPEC (Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry), there are 2,392 cosmetic, toiletry and fragrance manufacturers in Brazil, predominantly located in the southeast of the country. Of these, the top five leading companies – Natura Cosméticos, Unilever Brasil, Avon Cosméticos, Procter & Gamble do Brasil and Botica Comercial Farmacêutica (O Boticário) – account for 50% of overall value sales.
Laporte points out that a recent shift from direct to store based retailing is bringing about a change in this market structure. What is true. But it is not only the arrival of large international brands that are giving rise to intense competition. Local companies such as Natura, direct selling and O Boticário, largest cosmetic franchise in the world, with over 3600 stores in the country, compete among themselves. Boticario Group now owns 3 more brands, two of them – Eudora the own O Boticario brand are also actuating in direct selling. Natura must deploy its first physical store in the second half and the project is expected to grow throughout Brazil.
Success stories from the likes of Sephora (who entered the market in 2010, launched its first store in 2012 and was predicted to have ten more by the end of 2013) are commonplace and will continue to abound as beauty specialist retailing continues its run as the fastest growing retail channel of recent years.
And concludes: “Right now, however, it’s clear that the beauty world is finally waking up to Brazil and the huge potential that this market has to offer. Not only has it become Latin America’s fashion and beauty powerhouse, but this emerging force is also set for global domination over the next few years. “
However, not long ago this journalist had knowledge of a market analyst who wasn´t really convinced of all the noise that was causing the Brazilian cosmetics market, if what it had was actually a very large population that was beginning to have access to beauty.
The movement was stronger, became such a large wave that today the Brazilian market delivers market trends , as evidenced by the above article. The vast majority of fragrance houses in the world, at least the larger ones, have settled in the country as well as the large chemical companies, packaging, glass, etc..
To add, just the fact that Brazilians, for its endowment for seeking the wellbeing and beauty, is currently a very demanding consumer, who knows and collects fragrances like no other people in the world. A knowledge by the way, that was acquired only from 1992, when the country has reduced import duties, which included the cosmetic market.
Next in-cosmetics which takes place in Hamburg from 1-3 April 2014, will shine a light on Brazil’s vibrant personal care market via the Brazil exhibitor pavilion; exclusive educational programme content; the Brazil Trail highlighting original projects, unique ingredients and exhibitor formulations; examples of innovative skincare, colour cosmetics and hair care beauty products from Brazil handpicked by Mintel and a Networking Zone with a Brazilian bar.