If hygiene industry anticipates the IPI and raises prices

Hygiene and beauty industries have felt the need to fix up the price tables on the market, an anticipation of the entry into force in may from pecuniary IPI to the distributors in the industry.
In an interview with Broadcast, real-time service the Agência Estado, the President of the Brazilian Association of the industry of personal hygiene, perfumery and cosmetics (Abihpec), Joao Carlos Basilio, affirms that there is need to adjust prices in retail sales, the industry still is negotiating in Brasilia a reversal measurement.
According to the calculations presented in meeting the IRS in January, the Government's decision to pass the charge IPI cosmetics sector at wholesale will result in a real increase of consumer prices of 12% on average, and a drop in sales of the products reached of 17% to 18%.
The increase of tax burden comes at a time when companies also deal with high costs from the impact of exchange rate on imported inputs.
In a few lines that depend on more than imports, as some categories of fragrances and makeup, Basil estimates that foreign exchange and taxes would lead to an even greater need for high. "There's no denying that this impacts the consumer's pocket," he pondered.
Faced with the new reality, Abihpec considers that there is a possibility of the Brazilian consumer spending to give preference for cheaper brands products.
According to Basil, however, it is still not possible to determine which companies are betting on the so-called "trade down".
For him, it is expected that the devaluation of the real has its positive side: reduces purchases of Brazilians abroad, a kind of consumption that rivals the purchase of premium products in Brazil.
The need to plan the price transfers in advance exists both for industries that deal with third-party retailers as direct sales, where you need to draw up catalogues of products, says Basilio.
During a teleconference with analysts and investors, Natura has reported that it will readjust in 3.7% your price table halfway through the first half, and is still evaluating how it will react to the increase of the IPI for some categories of products.
"We are studying the competitive landscape of the segments achieved, taking into account the increased competitiveness and the setting for the exchange rate," he said, on occasion, the President of the company, Roberto Lima.