Apothecary plans to have 100 shops network in Colombia

The cosmetics sector grossed around $ 4 billion last year in Colombia, according to the Chamber of Cosmetics of the National Association of Entrepreneurs of Colombia (Andi). The arrival of new competitors can help increase this value. One of them is the Brazilian Group Apothecary, who plans to have a network of 100 stores in two years. Five of them will start operating in 2014.
The arrival of the Brazilian group that produces and sells makeup, perfume, facial treatments, body treatments and personal care products translates into a greater supply in the Colombian market-a market already highly disputed, with brands such as Brazilian also Natura or the Vogue places and Nailen.
Andrés Giraldo Torres, Director of the Apothecary in Colombia, said that the goal of the Brazilian Group's invoice annually between $ 80 million and $ 90 million, from 2016. In Brazil, the company has a network of franchised stores, almost all 3,690, and revenues of $ 7.6 billion in 2013.
"What we need to do immediately is to consolidate the inauguration and the entry into operation of five stores in Bogota this year. I opened the first location on [Mall] Titán Plaza and within a few weeks we will inaugurate another in [Mall] Hayuelos. Then we will go to the [Mall] Center to Chía [Mall] Mayor Centre and finally to Santafé shopping center, "said the Director.
Giraldo Torres added that the goal is to have a commercial presence in major cities of the country, to ensure national coverage by the end of 2016. Although the company count with four brands (O Boticário, Eudora, Who Said Berenice and The Beauty Box), in points of sale Colombians will be marketed only perfumes and makeup brand O Boticário.
"We can't rule out the possibility of activating other long-term business models that the Group offers worldwide, such as direct sales or multi-level marketing (or network marketing, direct selling derivative). For now, let's concentrate on perfumes, ranging from $ 65,000, and in two lines of makeup ", specified the company representative.
O Boticário reaches a niche market (cosmetic and hygiene) in annual investments fluctuated between $ 80 million and $ 100 million in the last five years, according to Jaime Concha, Director of the Board of cosmetic and Hygiene of Andi.
"The investments are being made in new products and production lines, which makes this very dynamic market. In fact, the sector has been registering an interesting behavior. In the last 12 years, we tripled the size of the market, "said shell.
After Brazil, where the band originates and where it is considered today one of the largest manufacturers of beauty products in the country, Colombia becomes the first market of the region in which the Group has a consolidated operation Apothecary, with stores. The plan of expansion in Latin America had begun by Venezuela, but, given the economic situation in this country, the leadership of matrix in Brazil had to redesign the commercial strategies.
"We were Already planning for two and a half years what we want to do in this country. The Colombia's third most important beauty market after Brazil and Mexico and grows at annual rates of 10%. The categories of beauty in which we move products approximately $ 4.2 billion, which translates into a high potential of billing. The Colombia's surprising the Group direction Apothecary, reason why the expansion is seen as something safe, "said Giraldo Torres.
The Executive Director of the Chamber of Commerce Brazil-Colombia, Francisco Solano, warned that investments of the Brazilian cosmetics brands will continue growing. "The Colombia is a market focus and priority for the Brazilian Association of hygiene, perfumery and cosmetics. The Apothecary is a brand-symbol in Brazil, and the fact that investing in Colombia is a demonstration that previously studied our ability to consume and that our economy will inspire confidence, "commented.
For some Colombians, particularly for the inhabitants of Medellin, capital of Antioquia province, to mark the Apothecary could prove familiar, as it is a name I've ever heard for almost five years. Effectively, this is the same Brazilian brand which currently is announcing a plan to open five stores in Bogota and surrounding areas.
Torres, Director of the brand in Colombia, stated that a Venezuelan investor tried to represent the company through the acquisition of the franchise, but the business prospered. "This investor worked with the mark for two months in Antioch, but I wasn't prepared for this task, and it didn't work," said the Executive. (Translation of Warsaw Rachel)