Companies bet on releases and new markets to grow in the year

The cosmetics market competition is more fierce this year, despite the less favourable economic scenario. Given this, manufacturers are betting on the launch of new products and new markets to ensure increased sales.
Data from a survey conducted by the Brazilian Association of logistics and Distribution of pharmaceutical products (Abradilan) indicate that 58% of pharmacies expect high of up to 10% on sales of products of personal hygiene, perfumery and cosmetics, 33% expect high of 11% to 20%, and the remainder (9%) and designs high above 21%.
"It will be a challenging year, but the consumer is not going to stop buying products to take care of yourself," believes the Vice President of Embelleze, Jomar Beltrame. According to him, the crisis of confidence in Brazil has affected more retailers than the consumer and, therefore, the manufacturer is betting on more aggressive launches this year, to ensure the level of sales.
"In addition we have a very strong work expense reduction to preserve the company's box", says the Executive. He noted that in order not to lose the investment in new products, the alternative adopted Embelleze gain efficiency, reducing the headcount.
With the actions, the manufacturer expects to register a growth of 7% to 8% in real turnover this year, after ending last year with 5% advance.
Already the paulista Inoar Cosmetics, and launch new products, plans to expand presence in the regional market. "We estimate a growth in local market based on sales effort in the regions where we have low participation", says the Director-General of the brand, Eduardo Costa.
The manufacturer ended 2014 with sales of about $ 60 million, a rise of 10% compared with the previous year. In 2015 it is expected to expand to 10% to 15% sales.
The giant Natura surged from 5.7% in net revenue last year about 2013, amounting to $ 7.4 billion. The company's market share in the category of cosmetics and fragrances, however, retreated 0.5 percentage point in January to October 2014 against the same period of the previous year.
With the retraction, Natura has a 30.5% share of a category that grew 9.5 percent in the same comparison disclosed the financial statements of the company fourth quarter of 2014.
Sales channel
To regain marketshare, Vice President of finance at Natura, Roberto Pedote, said the company is reinforcing the actions in direct selling, the main marketing channel brand. "We recognize clearly that there is an internal competition on the own channel [direct sales]," said Pedote, in Conference call with analysts last month.
But according to the partner and Business Director of DirectBiz Consultants, Marcelo Pinheiro, direct selling companies of cosmetics can be benefited by the crisis. That's because in search of more income people end up looking for work in this type of channel, which increases the number of dealerships businesses.
"But it's not just large companies, many manufacturers of cosmetics for small and medium businesses have adopted direct selling", he quotes.
Patel estimates that this dissemination of the channel in the industry has also contributed to increase competition and, in this scenario, the big ones are the ones that suffer the most.
"With all the product prices in the category increasing, the sales effort will be decisive," says he.
Tax
Prices have increased, on average, 12%, due to the adjustment in the tax on industrialized products (IPI), estimates the Associação Brasileira da Indústria amenities perfumery and cosmetics (ABIHPC).
According to sources, a study commissioned by companies points out that the price adjustment will fall about 7% in sales volume in 2015. In some items, the low may reach 17%.
The Embelleze calculates that the measure raised in 13% to the company's tax burden and that this can result in a high of up to 30% in the price of the products. "We reset 12% in January and in May should have another increase," says Bakker, explaining that it is not in the plans of the Embelleze change the price range that she practices currently, so as not to lose the consumer public.
On Inoar, the plan is to absorb the rise in costs at first, so as not to affect sales. But if the rise in production costs, which includes spending on energy and water, is maintained, the transfer will be made.
Already the Natura set at 3.7% in February and prices provides for a further increase in the second half of 2015. "We will work with prices more aligned to what the market can pay," said Pedote.