Perfumeries see sales grow shortly after high in the price of products

Sao Paulo-one of the more resilient sectors of the national economy, retailers of perfumery, cosmetics and hygiene managed to achieve a slight growth in sales during the first half of this year, despite seeing the prices of their products increase, on average, 11% above inflation from 2015.
Between experts and entrepreneurs, the feeling is that the results could be better, if not had happened, in January this year, the increase in the rate of tax on circulation of goods and services (ICMS) on products considered superfluous in 18 of the 27 States of the country.
"We have maintained the growth rate in line with current inflation. In the first half, was somewhere around 7%. It was a period when the situation didn''t help our industry, "says the Director-General of Ikesaki cosmetics, Élcio Arfelli.
At this juncture, he says, include a lack of consumer confidence, the retraction in the retail, high inflation and, primarily, the increased tax burden on the products. "All of this has contributed to have a result quite shy," says Arfelli.
Despite this, in accordance with the São Paulo commercial Association (ACSP), coupled with the thread of pharmacies, the perfumes are among the only portions of the brazilian economy with growth in sales records in the State of São Paulo in Brazil. Between January and April this year, pharmacies and perfumeries registered growth of 0.8% in sales volume compared with the same period last year.
"The fluff can resist more because women substitute a product of first line for a Monday, finding a way to keep buying beauty products", analyzes the President of ACSP, Alencar Burti.
Even with the encouragement of the numbers, the forecast for the year is not. On the contrary, the Association believes that the sector should have new retraction, however less pronounced than observed in 2015.
Last year, according to the Brazilian Association of the industry of personal hygiene, perfumery and cosmetics (Abihpec), industry sales of personal hygiene, perfumery and cosmetics had real fall 8%. The final consumer trade ended the year just above the 100 billion R$.
"There are signs that in May and June sales were better in many sectors. Let''s wait and observe the results in the second half to assess whether there will be a strong recoil, as last year, or whether the fall will be less, which is what we expect in the current rating, "indicates the Economist at the ACSP, Ulysses Ruiz de Gamboa.
Small fluff
The vision of stability in sales is observed also in small fluff. The reflection of this scenario is in the purchases of small traders of cosmetics with the distributors.
"In General, business is stable. Small business owners left to buy some products, but began to choose other. By facing more difficulties with working capital and stocks, they''re buying less, but will more often to the point of sale, "says the Director-General of the Brazilian cosmetics Company (EBC), César Tsukuda. The company sells products wholesale to small and medium-sized businesses in the industry of perfumery, cosmetics and hygiene.
In line with the Ikesaki Tsukuda cites the increased tax burden as the biggest villain to the brakes on the growth of the sector, even during the economic crisis.
"In the first half of last year, in search of new resources, the federal Government began to collect the tax on industrialized products (IPI) on beauty and fragrance items. But the reflection of that decision is on the results this year, "he says.
According to Tsukuda, the levying of the tax rate on the products led the prices on the shelves to go up between 20% and 25%. Last year, the problem was not so big, according to the Director, because entrepreneurs had already stocked items without the tax.
"I''m sure it caused a reduction in consumption, especially in view of the economic problems that consumers already suffering, as inflation, confidence and varied high costs", explains.
To Tsukuda, two specific categories of products avoided that sector numbers were negative in the first half: items related to curly hair and makeup. "They have sustained, surprisingly, turnover," he says.
The EBC also have reaped the results of that high sales of these types of products, with a slight growth in sales between January and June this year, in comparison with the same period in 2015. The values moved, however, have not been opened by Tsukuda.
"The secret was moving. We create promotions, we launched products and we have taken aggressive actions to evade the worst year of the retail of perfumes of the last twenty years, "she adds.