Wednesday, September 16, 2015

Contains 1 g plans to resume selling abroad and on the web

The Sao Paulo brand of makeup Contains 1 g resumed plans to open franchise stores abroad after a failed attempt for 15 years. In addition, plans to reactivate the operation of e-commerce and catalog direct sales next year. "Keep doing the same is not enough in times of crisis," says founder and president Rogério Rubini.
On the rapid worsening economic, Rubini also decided to restructure and strengthen the ties with the franchise network. The paranaense accumulates the Presidency with the commercial Department for about 60 days. "The owner is never too much," he says. In October, the first meeting of the Advisory Council, which will bring together franchise franchisees to suggest improvements to the business. The network has 170 franchisees and 190 points of sales (130 stores and 60 kiosks).
The goal is to open 20 more units this year. The Contains 1 g, which acts only through deductibles, is more cautious and prioritize the malls to points. Sales ' same ' stores, in establishments open for more than a year, are tied with the last year. Considering the new units, revenues should rise about of 10% until December. In 2014, the retail chain's revenue totaled r $ 152 million.
Abroad, Rubini is in contact with potential franchisors for about two months. The idea is to take advantage of the high dollar, buying currency from most of packaging and raw materials, which led to price adjustments total 20% this year.
The first foray of international market contains 1 g occurred with five franchised stores in Mexico, Spain and Portugal, in 2000. While in Brazil the flagship were still the fragrances, representing 85% of revenues outside the makeup was responding by 90%. "The makeup line was significantly lower, to a young audience, in simple packaging. The aggregate value seemed lower, "says the founder. Overseas stores closed and Contains 1 g if repositioned within the internal market.
In 2007, the company made the turn of perfumery for makeup brand-category that represents 95% of the revenue. At the same time, changed the sale by catalogue physical retail stores. The products have become more sophisticated, to meet the classes A and b.
The company tried an approach with lower-income consumers, with the C1G line, which costs about 40 percent less than the leading brand. But this year decided to return the focus to the upper classes, who can keep spending stable even in the crisis. The C1G's portfolio should be reduced from 120 to 80 items.
Makeup sales totaled $ 3.45 billion in Brazil in 2014, up 1.9% on the previous year, according to Euromonitor. Avon leads the market, followed by the Apothecary and Natura. The Contains 1 g is in sixth place.
Competition has increased in recent years. The attracted foreign as American Brazil Mac, Maybelline, L ' Oréal, the French in addition to major retailers, like Sephora. "Against increased competition, the output is to be more efficient," said Rubini.
Among the new initiatives, the company prepares the reactivation of sales site, which only worked for about a year, until 2012. The payroll was greater than the revenue achieved in the channel and the strategy generated conflict with the network of franchisees. Now, the company has decided to hear the owners of brand shops to reset the online operation. On sales by catalog, the company, which started on porta a porta, claims to have experience to take up the idea.
Valor Economico
Related products
News Item translated automatically
Click HERE to see original
Other news
DATAMARK LTDA. © Copyright 1998-2021 ®All rights reserved.Av. Brig. Faria Lima,1993 third floor 01452-001 São Paulo/SP