A wire by wire of Brazilian hair

How to convince someone that a product that did not exist until recently is essential as of today? The Playbook of master in technology companies achieve this feat-is being applied by the cosmetic industry to convince the Brazilian women to spend more with hair products with different attributes.
In the country, revenues from the sale of shampoo, conditioners, dyes and grew up at least 15% by 2012, according to Nielsen. And the explanation for the good performance is one: innovation.
To play the Brazilian consumer preference, multinationals such as anglo-Dutch Unilever, Procter and Gamble's American & French L?Oréal invest billions of dollars in product development and in marketing each year. The Brazil became a priority when it comes to hair care for one simple reason: for most of these large conglomerates, the Country is the market leader in sales in the segment.
Today, the Brazilian women spend at least $ 40 per month with their hair, according to Ibope intelligence. The same survey shows that the potential for growth is still strong in the area of treatment, because these products are today present in only 55% of Brazilian homes. Therefore, the order is to innovate.
Following this reasoning, the P&G launched in Brazil a treatment for the wires that, alone, opened a niche of R $ 100 million in 2012. Now, the company is preparing to release the Pantene line Expert, with an average price of $ 45. In one year, Unilever turned the TrésEmme on the main premium brand of shampoo and conditioner in the country, despite the price 30% greater than the traditional line charged by Dove. "It was the biggest launch in the history of Unilever", says Fernando Fernandez, President of the group in the country.
Today, it is clear to the multinationals that is not only the price that makes the head of. So, companies have invested more in the quality-related tags. When executives of big beauty companies talk about new releases, give more emphasis on brands such as Pantene, TrésEmme and L?Oreal than silk and Fructis, for example, that are 50% cheaper. "Even for the consumer of the class C, the price is not the primary factor of choice in 90% of cases," says Juliana Azevedo, marketing director of P&G Beauty for Latin America.
To enrich the offer worked for the three leaders on the market of products for hair in the country-Unilever, L?Oréal and P&G. With a new machine that can reach 100 new products per year, these companies gained market and distanced themselves from the competitors.
Today, in the evaluation of retail experts, innovative products for the treatment of the hair are available mainly in large-scale retail, pharmacies and supermarkets. "It is a change that has brought convenience to consumers, who can find more variety in sales channels," says P&G Executive.
Although there is still room to improve product offerings, there's no denying that "sophistication" as is obvious both in supermarkets and pharmacies. "Today, you can find shampoo salon in any supermarket. In pharmacies, you find up imported brands, like L?L'Occitane ", says Marie-Océane Gazurek, luxury and fashion specialist Trojan group Branding.
Reaction
Even with the perception that this is a growing market, the main Brazilian beauty brands not moved at the same speed of the multinationals. Natura and the Apothecary have timid participation in hair products (Natura appears in eighth position and the Apothecary is out of the list of the ten largest). The companies expect to begin to change this picture from now on.
Leader in the Brazilian market of cosmetics, Natura is bolder strategy. After years asleep, the brand Natura Plant is coming to market with a line of treatments with 32 products that consumers will receive from this month. To develop the novelty, the company interviewed 5 thousand Brazilian women and segmented to offer eight types of yarn, according to Renato Abramovich, Director of business unit of Natura.
As the market is very competitive, the company reduced the amount normally charged for shampoos and conditioners in 20%. A bottle of Natura Plant should come out for about $ 12, a figure similar to that of "top line" products in supermarkets. The company, however, gives you the option of buying refills, reducing spending with packaging. To repurchase the product, the disbursement of the consumer will fall to less than $ 10.
The Apothecary also developed a new line to its most popular brand, take good care. The price of the products, about $ 13, was set to increase the frequency with which consumers go to the store brands in 3.5 thousand units throughout the country.
Natura and the Pharmacist are trying to transfer part of the reputation we have in other categories-as perfumery and skin-care for hair. And so, who knows, to recover at least part of the lost space for multinationals.