A worldwide phenomenon, the Indie Brands were subject of an unprecedented study by the consulting and business intelligence firm Factor-Kline, which has finalized a survey on the oportunities and investments of the cosmetics Indie Brands in Brazil.
And study maps more than 60 indie brands that together earn about $ 400 million reais. Indie cosmetic brands are run by their founders and direct marketing efforts to specific niches by focusing on digital marketing strategies.
To get an idea of the growth of this trend, the Brazilian market for “traditional” cosmetics grew by 201% in 2018, while indie brands had an average growth of 40% per year, and some with an impressive 500%.
The target audience of these brands are mainly young people from 19 to 40 years, who seek healthier, sustainable and ethical consumption. The products these companies produce contain, in most cases, more natural ingredients and no animal testing – meeting the demands of this recent consumer behavior.
According to the Factor-Kline survey, despite sales of R $ 400 million in 2019 alone, 90% of these companies were founded between 2015 and 2019. Most of them are run by women, 86% of these brands have a fully vegan portfolio, 74%. all natural and 23% have only organic products.
Juliana Bondança, Factor-Kline project manager says that their growth depends, however, on solving structural problems such as working capital to support the pace of growth, access to information and market intelligence, logistics structure and scale to access differentiated raw materials and packaging. “In some cases this is already happening through strategic and financial investors looking for growth stories far above the market average.”