Thursday, July 23, 2015

The cosmetics industry to hotels bet on higher-value products

Sao Paulo-the sale of cosmetics of the highest value for the catering section can ensure the billing of cosmetic manufacturers. That's because, with the retraction in the occupation of the hotels in the country, industry demand is lower this year.
The Realgem's Amenities, a leader in the manufacture of cosmetics for hotels, saw sales fall back in the first six months of the year and now works to make up for the losses with the orders in the second half.
"We grew up a lot last year, which makes it harder to overcome the numbers this year. In addition, we have an economic situation that does not favor, "says the Director of manufacturer, Mauro Carvalho de Oliveira.
Market-focused amenities, as they are called cosmetics to hotels, the company registered a high of 15% on sales volume in 2014 about one year before. Turnover rose by 25% in equal comparison.
For 2015, however, the expectation is to keep the volume of sales or next bit compared to last year. Already the revenue should grow about 5%.
"We still have signs of growth, but we realize that the hotels were very affected by the downturn in the local economy," he says.
According to estimate made by the Realgem's, the amenities can get to earn $ 3 billion a year. The company took into account data that indicate an average annual supply of 457 million a day in hotels, with average rate 78% occupancy and average cost of purchasing amenities kits for $ 8 to do the calculation.
"Even with the fall in the overall occupancy rate this year, the demand of the most expensive hotels stays," he says.
The Executive points out that the drop sharper in demand of the hotels amenities, not by economic is the result of a cost-cutting policy, but rather a reflection of the low occupancy rate of this type of accommodation.
"We realized that the most expensive hotels were not as hard hit by the slowdown, so sales of our lines of greater value, intended mainly to those customers, have registered better performance" reveals.
With that, the Realgem's has managed to minimize the impact of the downturn in sales volume, in which the cheaper lines have more weight with the value invoiced by the higher priced lines.
Alternatives
The beginning of the summer season in the hotel sector-from December to March is also cited by Oliveira as one of the factors that can sustain sales. "The expectation is that the sales volume to increase in the coming months, with the resumption of demand in the industry helping to compensate for the losses of the first half," he says.
The manufacturer is also putting a product line on sale this month, action that may keep in August, to stimulate sales.
"We chose to work with lower margins on some products to try to attract more customers with the line into promotion, because we know that we must have alternatives to keep growing", says the Executive.
Another Realgem's bet is the launch of new products. "Our strategy has been to invest in new lines with technical innovation and have identified that they maintain good result in sales, even with the less favourable scenario," says Oliveira.
Among the products that stand out, the Executive cites the lines Brazil talents and Nativa SPA, this last result of a partnership with the Apothecary Group from 2013.
"Our goal is to close contracts with hotel chains with proposals consistent with a native SPA-premium line of personal care. In this way, besides being an important point of contact with the final consumer, reflected also in the presence of company's brand, "explains the personal care manager of the Apothecary, Aline Mori.
In Executive assessment, the high dollar has influenced directly the vacation destinations and the tendency is that the number of tourists in the country increase this year, stimulating the demand for amenities.
She highlights the increase of 400 hotels on the basis of the catering section of the country until the Olympics in 2016, as another factor that can contribute to expand sales. "We have a very promising market for amenities and still don't feel this effect [of deceleration]", says Aline.
DCI – 23/07/2015
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