1 – Considering that the consumer has changed his perception of the product and his vision of the world, what are the main challenges today, in the production of cosmetic products through outsourcing?
Consumers are increasingly looking for products that represent them, personalized and / or customized and that create a positive shopping experience, all of which requires a lot of efficiency and flexibility to bring innovation very quickly to keep up with the speed that the market demands.
2 – Would you say that taxation and foreign exchange are the main obstacles to the development of the sector?
I believe that the complex tax system, especially in the field of cosmetics, combined with the high value of taxes on the product and with different rules for each sales channel, is a complicating factor and a barrier to the entry of new players, as for the exchange rate, sudden fluctuations as we are facing today may be more damaging to business planning than the value of the dollar or euro itself.
3 – And how about the informality? How and how much, if it is possible to add value, does informal production hinder the cosmetics outsourcing sector? If the government also fail to collect, why are there no effective measures against informality?
The Brazilian cosmetics market is highly regulated and taxed, this in a way encourages the gray market, I cannot estimate the percentage that informality represents in the total market, but I believe that simplifying taxes and rules would be good for the sector and it could reduce the informality, in addition to a more effective inspection by the state.
4 – What is the difference between outsourcing the production of cosmetic products to small and large companies?
The process is the same, we customize and co-create with customers, our process is mostly Tailor made, each customer is unique and special.
5 – Does the demand for agility require greater standardization of offers? Is it still possible to produce customized formulation?
Standardization helps to bring more agility and shorter product development and delivery times but customization is part of our business, each customer receives their products with some degree of customization, we have a portfolio of more than 10,000 colors and shades and more than 200 formulas in addition to numerous options for decorations and packaging, each customer can obtain the product that best suits their needs, always with high performance and quality.
6 – You commented that the demands were different from those that the company presented to the market. At what point has occurred this turn of expectations in products and, also in the production mode to “sustainable”?
The advent of social networks and the emergence of digital influencers brought a new dynamic to the sector, information flows almost instantly and trends are created very quickly. I have no way of defining exactly when, but I believe that in the last two years there has been a radical change in the cosmetics market: vegan, natural products, Halal for the Muslim market, clean beauty, etc. Sustainable production and sustainable products today are a reality and a necessity for the present and the future. In recent years this is more evident than ever. We still don’t have another planet to live on, so we have to be aware of how to use ours.
7 – Does this occur in all markets where Schwan operates in Latin America? What are the strongest markets in the region and their main demands?
Yes, not only in Latin America but in all markets. In Latin America the largest market is the Brazilian market, with a wide variety of products for lips and eyeliner for eyes and masks for eyelashes and attuned consumers who value good makeup. Mexico, Colombia, Chile and Argentina are also strong markets with consumers who understand makeup.
8 – Schwan Cosmetics has sustainable work that is already part of its values, but are there other demands that are specific to the communities in these markets?
The demands for sustainable packaging is certainly one of them and serves all communities. The vegan community has grown a lot in Brazil and requests products with this characteristic, Halal for the Muslim community, we have a wide portfolio to serve the most varied groups.
9 – In the month that the International Women’s Day is celebrated and that so many companies around the world create specific actions to value the work of women, because Schwan has 75% of female employees and since when this predominance occurs?
This predominance happened in a natural way. The beauty segment can be a factor that contributes to this adhesion. In our processes we do not distinguish between genders, we evaluate the candidates’ professional skills and interests.
Schwan Brasil’s team of employees is made up of more than 70% women and is present in the entire organization, from the operation to senior management, where this percentage reaches 75%.