Monday, January 15, 2018

Beauty industry must consolidate recovery but concerns margin

The beauty and personal care industry should consolidate this recovery year of production, with room for more releases. The heating consumption scenario, however, is no guarantee of more profitability, due to high costs of inputs.
The expectation in the industry is that the revenue will grow about three times above the result of gross domestic product (GDP), according to the latest projection published by Focus Bulletin, the Central Bank, will be 2.7 percent this year. Thus, there would be a high space, in real terms, approximately 8% of the consolidated turnover of the industries.
The figures are a boost to the sector, who may have grown so real at about 2 percent last year, reversing the falls of 9.3%, from 2015, and of 6.3%, 2016-the first in nearly 20 years, according to Abihpec, entity that represents businesses.
For 2018, an indicator of more positive perspective is in the advancement of new product releases, according to executives of companies providing ingredients found by the DCI.
With the economic recovery and, in particular, employment, open space so that the consumer can expand qualitatively your consumption basket throughout this year. To the industry, this is the opportunity that companies have to test more innovative products on the market, while seeking to extend the average ticket of products sold.
"It's amazing the amount of companies that are calling us to participate in events of innovation and presentation of new projects. This shows that there is a good prospect of consolidation of the recovery that we have observed in the last quarter of last year ", says the commercial Manager, Alexandre Monteiro Colormix. According to him, the industries are with a view of improvement of the average ticket of its products. "' Comoditizadas ' lines, most basic items, should follow, but all this innovation is to pull the aggregate value."
Similar perception has the Director-General of Assessa, Daniel Barreto, which also provides inputs to the beauty and personal care industry. "We're seeing a reaction of industries, with more projects and releases on the street. It's not an overwhelming, spectacular recovery, but is significant, "analyzes.
He points out that the industry items have a critical factor, when it comes to shampoo, SOAP and deodorant, which avoided during the crisis cut your final basket. However, the industry has not gone unscathed, suffering relegation prices. "Consumption in tonnes fell in the same proportion to the value of the products," he points out.
Even if the environment is more positive, the re-composition of the banks by industry, with the marketing of products of greater value, will depend on increased consumer disposable income. "The improvement of employment need to transfer to a higher consumer spending", ponders the commercial Manager of the chemical distributor Bandeirante Brazmo, Michael Perone. Anyway, he adds that the result of the company at the end of 2017 "surprised", getting 10% more than projected.
On the other hand, the year begins with a warning: high inputs. Among the concern is oil, which yesterday reached hit the track $ $70 – the highest since December 2014. "That can take the price of raw materials to follow up or even rise further", says Perone, that does not rule out an increase of about 10% in the first quarter, prices that could fall from the second quarter. Initially, the industry was hoping for a retraction of the costs.
Monteiro, adds that many Colormix inputs manufactured in Asia, in the segment of heavy chemistry, are also facing increasing trends, by major restrictions under environmental, reducing the supply chain. In addition, as most of the raw material is imported, the price of the dollar is another factor that may restrict banks.
DCI - 12/01/2018
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