Netshoes will compete in retail of cosmetics

After entering the Womenswear segment with the launch of Zattini in 2015, the Group Netshoes decided to diversify its operations again. In the second half, the company goes on to compete in the area of cosmetics, with the online sale of beauty products. Leonardo Dib, Chief Financial Officer of the group, Robert Magee said the company has deals with national and international manufacturers offering beauty products on the website of Zattini. "The intention is to create a concept of the Department store in Zattini, so that the woman in the future items from fashion, beauty, wellness and nutrition in the same place," said the Executive. In his vision, cosmetics are a relevant market segment, with participation is still small in electronic commerce, with potential for expansion. The cosmetics sector moved R$ 42.7 million in the country in 2015-a real drop of 6 percent, according to the Brazilian Association of the industry of personal hygiene, perfumery and cosmetics (Abihpec). On the internet, the category accounted for 10% of sales, according to e-bit. The largest competitor in the segment is the Sephora, but manufacturers such as Natura, the Apothecary and Avon have reinforced their operations on the internet. "The diversification will allow expand sales using the same structure, thinning costs," Dib added. Zattini''s sales exceeded 100 million in 2015 and R$ the goal is to consolidate the operation this year. To command the area of cosmetics, the Group hired Netshoes Thiago Maia, commercial Director of l '' Oréal in Brazil. The Reneka 2015 ended with net loss of 63.2 million, compared with R$ a net loss of R$ 93.6 million the previous year. The result, said Dib, was due to investments in the operation of Zattini and operations of Argentina and Mexico. "The result was positive. The injury is much smaller than it was in 2014 and there has been significant growth of revenue, "said Dib. Still, the result was below the company''s forecast of reaching profit in 2015. The Group obtained 33% growth in net revenues, to 1.5 billion R$. The advance is higher than that registered by e-commerce in the country, from 15% last year. Clothing and footwear retailers as a whole (including physical stores) shrank 8.7 percent in 2015, according to the Brazilian Institute of geography and statistics (IBGE). "This growth shows a solid capacity market share gains, with strong growth, even with the recession in Brazil," said Dib. In 2015, the cost of the company''s sales rose 27 percent, to 441.4 million R$. General and administrative expenses, in turn, had increased 7%, to R$ 156.1 million. The injury before the equity of the financial result and taxes amounted to R$ million, against R$ 33 58.4 million in 2014. For 2016, the Group hopes to grow above average Netshoes retailers online. The e-bit designs to increase 8% in nominal sales, to 44.6 billion R$.