Monday, September 21, 2015

Contains 1 g wrong concealer to conquer foreign markets

After some missteps and a revamped the image, Contains 1 g traced again a strategy to conquer the foreign market and increase internet sales.
Now, ran a correction throughout the operation. Closer to the franchisees, with new products and new partners, the company believes to be ripe to resume the projects and growth.
About 15 years ago, the beauty company began to expand out of Brazil. She had units in Mexico, Spain, Portugal and even in the Galeries Lafayette in Paris.
However, Contains 1 g was quite different at the time. In Brazil, was focused on perfumery, i.e. 85% of revenues. The line of makeup was limited, restricted to a few items for teens and geared for classes B and C.
Abroad, however, the biggest success was in the makeup line, responsible for 90% of sales. "The foreign market accept Brazilian but not the make-up perfumery", said the President.
So, the sales were not sufficient to defray maintenance costs, rental shops and workmanship. The international units closed.
New make
After changes in the business, the company is ready for the challenge of conquering aliens, believes Rogério Rubini, President of Contains 1 g.
In 2007, the company underwent a major change with lines of makeup to classes A and b. Began launching collections with more added value, in more beautiful, more suitable for the international market.
"Now, we're pretty confident that it is possible to go to this new venture," he said. In addition, "the devaluation of the real has a new opportunity, quite promising for Brazilian companies," he says.
The expansion in foreign markets will be made through franchises and the company today seeks partners interested to undertake outside the country, but has not yet defined markets.
The expectation is that the first units will be inaugurated in the fall of 2016.
On the internet
In addition to back out, the company also wants to enter new markets Brazilians from online sales. "No one else can afford to not be on the internet," said Rubini.
The Contains 1 g had tried from electronic trade in 2012. At that time, "the relationship between income and expenses was not adequate," he said.
The company had created a specific Department for online sales within the company. However, the team's salaries were higher than the revenue and the project was terminated.
"Lesson learned," says Rubini, "sought a partner that will perform all the steps of sale and delivery and will receive proportionately".
Imported rivals
Since the last restructuring of Contains 1 g, in 2007, several new brands hit the market, like the MAC, Sephora, NYX foreign and Brazilian Who said, Berenice?. Many of them already operating, including e-commerce.
About 4 years ago, Contains 35% 40 grew 1% per year. After the entry of competitors, the growth dropped to just one digit per year.
The company believes that the two new contracts will help to resume growth. To Contains 1 g, the quantity of points of sale is an advantage – are 190 units.
The high value of the exchange rate helps company to face competitors with more expensive products imported, believes Rubini.
Outside, however, the competing brands are more consolidated and operate with lower prices. A challenge that Contains 1 g still need to overcome.
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