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Lancôme Seeks to Manufacture Fragrances in Brazil

By: Fernanda Bonifacio
Posted: November 5, 2010, from the November 2010 issue of GCI Magazine.
Inside Brazil

Carlos André Montenegro, founder and CEO, Sack’s, will oversee the transaction of Sack’s to Sephora while increasing LVMH’s presence in Brazil.

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The value of the transaction is rumored to be worth US$120–200 million, but Montenegro wouldn’t confirm the figures. He said the company hopes to have the first Sephora stores open in Brazil within 18 months. “We intend to slowly change our name from Sack’s to Sephora, and obviously increase our portfolio of LVMH product.”

Amway Forecasts Doubling Sales in Brazil

Amway’s Brazilian subsidiary plans to grow 100% by the end of 2010 and up to 200% by 2015. According to marketing director Davi Damazio, the company invested US$5 million in Brazil over the past two years. “In early 2010, we recorded a total of 50,000 consultants, with the southeastern region accounting for 50% of sales,” he said. “By the end of the year, our goal is to reach 125,000 consultants.”

To facilitate brand expansion, Amway has invested more than US$500,000 in the opening of its first Experience Center in São Paulo. The space is dedicated to serving and educating both resellers and customers, who can try and buy cosmetics, vitamin supplements and household products at the center. “Up until then, our stores were equipped to exclusively serve consultants. Now [the center] also allows end customers to get to know our products better,” said Damazio.

Meanwhile, the franchise network O Boticário prepares to take its first steps toward the direct sales channel. Created over the past 18 months, its pilot direct sales project will be primarily deployed in two Brazilian cities. The move aims to boost sales of 915 franchisees by offering them a new channel for selling O Boticário products.

Natura to Begin Manufacturing Outside Brazil

Natura plans to elevate its presence in other South American countries by manufacturing outside of Brazil. According to vice president of financial and legal affairs Roberto Pedote, Natura’s cosmetics will be produced in at least one of the three countries where it has consolidated operations—Argentina, Chile and Peru. Together, these countries recorded growth of 122.7% in net profit in the second quarter 2010, totaling US$1.3 million.