Focused in classes C and D, Hinode grows and it bothers the Giants Natura and Avon

It was in places like Paraisópolis, in the southern area of São Paulo, the cosmetics brand Hinode undertook an impressive expansion of numbers: from 2014, amid the biggest economic crisis in the country, the company saw both your billing as the total of resellers up on home d and 1,400% – about 15 times. Betting on the power of classes C and D, the Hinode closes 2017 with 750,000 consultants and R $2.6 billion revenue. Mere unknown, went on to serious threat to direct selling giants, like Natura and Avon.
Today seen as competitor to be combated, the Hinode-"rising sun" in Japanese – had humble origins: it was created by Adelaide and Francisco Rodrigues in the garage of the family home, in the Paulista Lauzane, the northern zone of São Paulo, for 29 years. "We used two lines of saline and the structure of a Bic pen to fill old perfume bottles," recalls Sandro Rodrigues, eldest son of the founders and President of Hinode.
The company prospered in the early years, but soon parked in modest level, with revenues of $8 million per year – R enough to give comfort to the Rao, but little to make the brand relevant. The path chosen for the "jump" of the business was the multilevel marketing, in which dealers are paid not only by their own sales but also for the sales of the teams that form and the teams formed by their nominees – a way not free of controversy.
It took, however, nearly 20 years before the idea was implemented: the first inspiration of Sandro came at a meeting of the American Amway – that uses this same concept-in 1991, but the deployment only occurred in 2008 in Hinode. Despite the sure way, he proved to be hard: the recipe soon fell 90%. In the next three years, the family was forced to sell goods to sustain the enterprise. "I had to gather the directors in a room and ask them to reduce the salary by half."
In 2012, when the company had only box to survive for three months, Sandro realized the problem during a meeting: the old salesmen had no profile for multilevel model, which required team leaders. It was then, he said, that the sort of Hinode started turning.
Speed
Since then, the company has kept my foot on the gas pedal. This weekend, met 40000 people in São Paulo – in addition to Brazilian consultants, brought hundreds of Peru and Colombia, which markets began to open in the last month. The annual Convention also served to launch 80 new products, they're going to add up to 500 existing items.
To take off the image of "emerging", Hinode should close soon the sale of perfumes similar to foreign fragrances, which was the mainstay of the business for a long time. The company also intends to fold their franchises to thousand units in five years – the goal is to adopt a uniform standard for the network.
The expansion of Hinode's been the market leaders look carefully for her – as industry sources, Natura and Avon already observe the strategies of "newbie" to define his plans. Sought, the two companies refused to comment.
A consultant who has starred in Hinode considers, however, that the clash between intuitive strategies and market solutions is one of the challenges of the business, especially in marketing and product design. A partner has defined the business as "lacking professionalism", but with the advantage of agile decisions taken, concentrated in the four sons of the founders – Sandro, Arun (Sales Director), Alessandro (marketing) and Leandro (operations).
The search sophistication is one of the objectives of Sandro, you don't want to just make their best-known brands, but also compete for customers in direct clash with Avon, Natura and the Apothecary. For 2018, the investment in marketing must be much heavier. A new advertising agency has been contracted to reposition the brand and "sticking" the lock to win the class.