L'Occitane tries to make up ground with new brands

SÃO PAULO-L'occitane's sales had a strong deceleration in Brazil: in fiscal year 2013, which ended in March, the expansion in the Brazilian market was 7%, compared to 35% in 2012. To reverse this situation, the company invests in expanding its portfolio of brands, with L'occitane au Bresil, released in may, and new positioning for the Le Couvent des Minimes, which will gain a new internet sales site from this Thursday, 5.
With 30% lower prices than the parent brand, Le Couvent des Minimes is sold in Brazil, so shy, since 2011. So far, the line was only available in 58 Pão de Açúcar stores in the five boroughs. This reality will change: in addition to the virtual store of its own, the Le Couvent des Minimes will be sold on sites like Dafiti and beauty on the Web.
In traditional retail, the mark closed partnership with Sao Paulo drugstore. Until the end of September, will be in 50 stores, spread out in 20 cities. The network of pharmacies also sell L'occitane, but the Chairman of the group in Brazil, Benjamin Beaufil, clarifies that the Le Couvent des Minimes will be in different stores, to avoid that consumers get confused. An online campaign will explain the proposal of the new line.
Similarities
However, according to sources in the industry of beauty and fragrance, the problem is that the brand Le Couvent des Minimes has positioning quite similar to L'occitane's own. Just look at the portfolios. Both have French origin and verbena based products, says a source.
For the consultant Ricardo Klein brands, partner at consulting Top Brands, one of the essential steps in the process of expansion is to explain the proposal of Le Couvent des Minimes to the clientele. Today, people are used to seeing the L'occitane in Sao Paulo drugstore. If you go to another store and find a similar product, the customer can get confused, says the expert. If the product families are very close, the risk of cannibalizing the other gets larger.
Another question in relation to the market strategy of L'occitane is that, while other brands try to open other sales channels, the new brands of the French network are all jostling in retail.
L'occitane products au Bresil, born with the proposal to use active ingredients Brazilians in formulation, are sold within the 90 stores and kiosks in shopping malls. The example of Le Couvent des Minimes, the line of appeal also practices Brazilian prices lower than those of the main tag.
To bet all your chips at retail, the company takes a different path trodden by leading Brazilian brands of cosmetics. The apothecary, retail leader Group, are migrating to direct selling as much with its flagship brand as with Eudora, created in 2011. Already the door-to-door giant Natura is making its first retail experience, with the opening of a store on rua Oscar Freire. The brand intends to open 20 to 30 units across the country.
After using the last fiscal year to clean up after a period of strong expansion, the President of L'occitane in Brazil expects the new brands to boost the result of 2014. Last year, Brazil has contributed 3% of the total growth of the company during the previous period, participation had been higher, 8.8%. According to the global balance of L'occitane, the worldwide turnover was 1.04 billion. The Brazilian, slice 4%, amounts to $ 130 million. The information is from the newspaper O Estado de s. Paulo.