Friday, July 12, 2013

An eye on ' Lipstick effect ', Natura and Avon makeup lines challenge

The weakened economy not discouraged the makers of makeup. In times of crisis and economic downturn, the phenomenon called "Lipstick effect", in which women use small indulgences to feel good. The door to door sales companies Avon and Natura, who lead the industry, just relaunch your main lines of makeup. Companies do not reveal values, but say investing as never in the category.
"As much as we have a Brazil with many doubts, this is an industry that is enduring," says Renato Abramovich, Director of business unit of Natura. In the first semester of the year, sales increased by 7%, according to Sipatesp, the cosmetics industry Union. Economies in retraction, says the Executive, the sale of sectors such as the car tends to fall, but with the makeup occurs until the reverse effect. "Can happen to [the consumer] buy something simpler, but in General, it is good for the market as a whole," he says.
The market, which includes items to mouth, eyes and face, grew 10% between 2010 and 2012 and moved $ 2.6 billion last year, according to Euromonitor. Despite being the third largest in the world, behind United States and Japan, half of Brazilians still does not use makeup. So brands invest in education of consumers and experimentation.
The direct selling channel focused 78% of category sales, but faces growing competition in retail. Last year alone, debuted the networks who said Berenice, Le Lis Beauté and the French cosmetics retailer Sephora. Not to mention the expansion of other brands such as the Apothecary, Contains 1 g, MAC and Maybelline.
The direct fight to keep your space. According to Abramovich, the category is strategic for the industry because it is an important generator of requests. Natura has three lines of makeup and relaunched the watercolor-intermediate price and sold it in June, with changes in the mix and packs. According to Abramovich, the portfolio of 71 items is more balanced between subcategories of mouth, eyes and face. The items to the mouth are still the most sold in the country, but the other two groups have won space. "This shows that the market is getting more and more sophisticated", says the Executive.
Avon, the market leader, will invest 60% more on marketing this year for 2012 due to the relaunch of its line. Are 185 items, almost 50% more than the former, because of the greater variety of colors and the introduction of new products such as the BB Cream, a product that, according to the company, gathers base, sunscreen and moisturizer, among other items. "We will not give up leadership. We want to win ' market share ', and not only keep ", says Ricardo Patrocínio, Director of marketing for Avon.
The new Avon products cost, on average, 8% more than the previous line. "We increased the price of those products that the technology is perceived by the consumer," says sponsorship. One of the novelties is a eye pencil that is pointed to by turning the lid. Other items try to teach the consumer to make. There are shadows, whose packaging bring drawings to indicate where to use each color. Avon produces about 70% of the portfolio in São Paulo and imports the rest.
The two releases have in common the greater variety of shades of bases, to meet the Brazilian diversity. The Maybelline, L'Oreal, also develops new shades to get to at least eight. This movement is considered essential by the companies that want to succeed in Brazil. The who said, Berenice, the Apothecary, was born in August of last year, with 18 shades.
The variety of colors was singled out by the Apothecary as one of its brand new differentials, as well as a store that encourages experimentation. Alexander Bouza, former Johnson Johnson and Unilever &, was hired to design the project. Bouza compares his plan for the makeup market with what the Sneakers made for Hawaiian sandals, encouraging consumers to have more than one product of the same model. The Brazilian women still have few choices of lipstick. The who said, Berenice waiting comes to an end this year with 70 stores.
The L ' Oréal invests in expansion of Maybelline, her trademark mass created in New York. Of 5 kiosks in Brazil at the end of 2012, the company plans to finish this year with 50 and reach 200 in the next three years, between own and franchises. The brand is in other 2.5 thousand points of sale, between pharmacies and perfumeries. The Maybelline came to Brazil in 1997, but only in recent years l ' Oréal started to give greater strength to the mark, making the sales increase by five since 2009. The goal is to replicate this performance over the next four years, says marketing director Renata Kameyama.
Founded 28 years in the making, Contains 1 g went after selling perfumes and, in 1999, makeup. Five years ago, the brand repositioned to commercialize exclusively products of this category. Today the company has 179 stores and kiosks, between own and franchises, and provides open 20 more by the end of the year. The Bill provides for $ 190 million in 2013, up from 25% on 2012. Automaquiagem courses are the main focus of the company to attract the public to the shops, and the opportunity to try out the products.
The fashion retailer Restoque has, owner of Le Lis Blanc label, created in April 2012 the Le Lis Beauté. About 300 items are sold in kiosks, stores and Le Lis Blanc network. The goal is to have 300 shops in the country, found the value.
Valor Econômico - 12/07/2013
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