Tuesday, September 15, 2015

Direct selling beauty item loses space

The direct sale of hygiene and beauty products must register a pullback from 2 percent in Latin America between 2014 and 2019, according to research firm Euromonitor. The model loses strength in Brazil and Chile, but is still on the rise in Argentina and Ecuador and has neutral performance in Mexico, Costa Rica, Colombia, Peru and Bolivia.
Supermarkets and hypermarkets will fall close to 3% in the marketing of cosmetics, while internet retailing will advance 20% and specialized physical companies like L'occitane and The Body Shop, will grow around 5 percent in five years.
"Multichannel strategy is very important for the direct sale of beauty triumphing again," says Marcela Viana, analyst Euromonitor. She cites the example of e-commerce Natura, that indicates representatives at the end of the purchase to receive the Commission of sale of the products.
The consumer has acquired new habits, the online trading and the exchange of information in social networks democratized information. Innovation is another way to remain competitive. Natural products are the ones more justifies an increase in the provision of consumer spending.
"We see a scenario some distinguished in Brazil, in Latin America. The market is not as strong for big names like Natura and Avon, but small businesses have much success in its strategy, like Mary Kay, Chandani and Queen Bee ", says Marcela.
Natura remains in the lead, but fell out of a 34.8% stake in 2009 to 29.8% in 2014. The slice of Avon rose from 30.8% to 22% in the same range. On the other hand, Jequiti jumped from eighth to sixth largest. Mary Kay says keep the growth rate expected for 2015, very close to what was in 2014-your number of consultants jumped from 300 thousand in December to 430 thousand this year.
In Brazil, Natura had 1.3 million represented by the end of June, up 1.8 percent over a year earlier. Productivity fell 3.6%, and the volumes have decreased 15%, reflecting a worse economic scenario and more competition. Avon's revenue in Brazil fell 32%, or 6% in constant dollars.
Fragrances represent more than half of direct sales, but lose space since 2006. The hair care category is growing.
Valor Economico
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