Beauty sector registers first retraction in 23 years

The beauty industry, which for years boasted of being resistant to crises, also fell in 2015. Even the famous "Lipstick effect", a phenomenon that leads people to spend on personal care during periods of economic contraction, withstood the financial squeeze of the families. According to the Brazilian Association of the industry of personal hygiene, perfumery and cosmetics (Abihpec), the sector had 2.5% retracement from January to April, compared to the same period in 2014. It was the first time the thread went back in 23 years.
This bad result spread by companies, but with varied impact. According to market sources, the direct sales brands, like Natura and Avon, are among the most affected by the Brazilian decision to cut costs. The American company, which has Brazil as its main global market, saw its sales fall 6% in the second quarter; in dollars, sales plummeted 32 percent because of the strong devaluation of the real. In Natura, the recipe in the Brazilian market fell 4.6%, while the volume sold was 15% lower.
In the case of Natura, the market consensus is that it's not only the situation of the next sector influencing the worsening results. The company has had problems in deploying projects and if show competitive competitors — especially the network O Boticário, which has gained importance in recent years. "We think the Natura will continue to stand behind its main competitors in the local market, as the Apothecary, and international companies, such as Unilever, P&G and l ' Oréal, which are benefiting from being present in specialized retail and in drug stores," said Guilherme Assis, Brazil Bank Plural, in report on the balance of nature.
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Commenting on its results for the second quarter, however, Natura has made it clear that its strategy is to invest in door to door. Industry analysts say, however, that the company needs to have the courage to come out as "multichannel". So far, the consensus is that the steps in that direction-and the creation of Natura, internet sales, and the opening of a single shop of Aesop, in São Paulo-were too shy.
"The company says he wants change, but afraid to upset the consultants. The truth is that the client wants a store of nature ", says Daniela Martins, analyst at the broker Concordia. Natura develops four years ago a company store project, has so far bought to open it, but failed so far to get it. The report, Natura said in response sent by e-mail, which is experimenting with kiosks. The company did not want to give interviews.