Monday, February 23, 2015

Consumers will pay more dearly for cosmetic

The increase in the tax on Industrialized Products (IPI) of cosmetics begins to reflect retail. The estimate of entrepreneurs in the sector is more than 10% drop in sales throughout this year and that consumers pay up to 12% more for some items.
According to the Director of network commercial fluff Ikesaki Cesar Tsukuda, the biggest problem at the moment is in the rules of this increase. "The Government commented on the increase in the ECI, about spending the collapse in wholesale and Distributor, but effectively the text has not yet been published. And depending on how it is published, it will have a greater or lesser impact ", explained the Executive.

To Tsukuda, regardless of the niche that will suffer with higher taxation, the products will be more expensive to the consumer and that negatively impact sales. "We've been feeling earlier this year a difficulty to obtain growth and improve the movement of stores," said Tsukuda.
Unemployment
For the Executive of the Ikesaki this ' penalty ' to the sectors involved, as well as decrease the volume of sales will cause the closure of openings both in trade and in industry. "This is a sector that employs a large workforce, not only the industry, but also the part of services. The feeling, talking to several entrepreneurs in the industry, is that they will start firing. "

The Associação Brasileira da Indústria de personal hygiene, perfumery and cosmetics (Abihpec) estimates a cut of 200 thousand jobs. The entity also provides a significant drop of 17% in sales in 2015.
Opportunity
Despite the concern of some companies in the sector and of the entity, according to the CEO of Glambox (signature Club of beauty products), Fernando Leal, this will be a moment of good opportunities for the brand expand. "The increase of taxation doesn't scare. The industry, which is our business partner, not signaled changes in their business strategies, "he said.

The Glambox says not to believe in smaller investments in new items, as has as the differential provision of product launches to customers. . "I get five to 10 emails per week, seeking Glambox for partnerships."

The brand intends to double revenues this year and says ensuring partners privileged information of consumers. "We are experimenting and need content source for women. With this we made loyalty to our partners [industry] market information to help them to expand operations. More than 90% of our consumers respond to questionnaires on products received in the box, "said Leal.
With three models of contract signature: monthly, semi-annual and annual, and boxes with six products on average, Leal said that will make a little readjustment in tuition. "But this has nothing to do with the increase of IPI. Is a transfer on the basis of operating costs ", he concluded.
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