Leaders in advancing cosmetic

The economic crisis and the increased tax burden imposed a drop of 8.6% to health and beauty sector in 2015, after two decades of growth, but the leaders continued to expand its market share in Brazil. The joint of the seven largest companies share advance of 60.8% in 2014 to 62.2% last year. The industry leader, Unilever, grupo Apothecary, Procter and Gamble (PeG), L '' Oréal and Colgate have expanded their presence, while Natura and Avon had slight loss of participation. The big companies took advantage of his negotiating power with suppliers, distribution structure and even the exchange rate-in the case of multinationals to expand retail presence.
Sales of beauty and personal care industry in Brazil reached R$ 100.66 billion in 2015, according to data from Euromonitor International Consulting. Together, the seven largest companies accounted for 62.2% of the market in 2015, up 1.4 percentage points over the previous year.
Large companies can cope better with the increase in taxation in the industry, compared to smaller and less structured companies, because they are able to sustain a larger tax base without profoundly affect the recipe, says Luiz Vieira, a partner at Strategy, which integrates the PwC consulting. The coverage and structure of efficient innovation-with more predictability of return-also favored the great. The expanded investments in dollars, in the case of multinationals when converted to local currency and export gained attractiveness. "A smaller company is vulnerable to be restricted to the Brazilian market", says Vieira.
"The small company doesn''t have enough volume to ask for the extension on term of payment to the supplier, on the contrary, and suffers the whole chain pressure, because open shelf space is expensive," says João Carlos Basílio, President of the Brazilian Association of the industry of personal hygiene, perfumery and cosmetics (Abihpec). According to him, smaller firms are giving up acting in some States of the country, by the difficulty to meet the tax changes as the new rates of GST in force since April this year.
"Large companies have the chance to increase the market share because they can deliver their products on time to the retail and franchises, who want a smaller stock, but without risk of missing merchandise. The small end up having a smaller impact on the shelves because the cost of distribution is high, "says Basil.
The Group presented the largest Apothecary gain market share among the industry leaders in 2015, with a high of 0.9 percentage point to 10.9%. The company says it has stepped up communications with franchisees and dealerships and held investments in product launches and marketing-1.3 1000 new products were brought to market last year, a level that must be maintained in 2016. The Group has more than 4 1000 stores in the country (mostly franchisees), but also acts in electronic commerce and sale by catalogue. In addition to the Apothecary, operates with the brands Who said, Berenice?, Eudora and The Beauty Box.
Anglo-Dutch Unilever, owner of the brands Dove, Rexona and TRÉSemme, kept the lead with an increase of 0.1 percentage point to 12.2%. The company took the first position of the Natura in 2015.
Fourth largest in the American sector, Procter and Gamble (PeG) had the second largest growth, with an increase of 0.6 percentage point, to 9.7%. To advance, the owner of the brands Pantene and Oral-B sought high segments in times of crisis, as the hair-care trips to the Salon are less frequent and the treatments were transferred home. The company made changes to the portfolio, to prioritize products and sizes that sell more and regional demands.
In the category of diapers, PandG realized more brands on the shelves, but less variety of sizes, so I redesigned the assortment with shopkeepers, four hands, says Frederick Heimbeck, Director of market intelligence group. The sales staff in stores has increased by 10%, according to the company.
Natura lost 0.3 percentage point and 0.1 point in Avon, 2015. Companies are in the second and seventh places in the sector, respectively. Direct selling suffers from the '' tired '' of the channel, which has lost relevance before the cosmetic sales in drug stores and specialty stores in recent years.
Natura has established as a priority for this year stop its loss of market share, according to the report of first-quarter results. The company opened a retail store, took the line I''m at drugstores and added tools like smartphones and card machines to work the salesgirls.
Avon goes through a global restructuring, which includes the transfer of the registered office for the United Kingdom and 2.5 1000 slots, in the name of annual savings of $ 350 million by 2018. In Brazil, its largest market, the company seeks changes in prices in the portfolio and initiatives to increase productivity in distribution centers and in the factory. Already l '' Oréal advanced 0.1 percentage point to 6.8%. The company claims "in 2016 is outperforming the market results", helped by the performance of Niely.
"The crisis brings two aspects: how to survive and how to find a new space in which the company is competitive. The hygiene sector is going through structural changes and companies will have to find new ways of positioning the business ", says Vieira, of the Strategy.