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Brazil Now World’s Top Market for Fragrances

By: Fernanda Bonifacio
Posted: July 13, 2011, from the July 2011 issue of GCI Magazine.

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Since 2009, Estée Lauder has been studying the Brazilian door-to-door market, and the company’s CEO Fabrizio Freda has declared his interest in seeking acquisitions in the country as part of a strategic effort to transform the company into a more globalized business. According to Freda, it would be a challenge for Estée Lauder to compete in a market where approximately 95% of sales are controlled by mass channel sales.

Through the successful performance of the brands MAC and Clinique, Estée Lauder claims to have achieved a 12% market share in the Brazilian prestige segment. Nevertheless, the company’s operations in Latin America represent only 2% to 3% of the global market and still have much room to grow.

With investments of R$15 million, Jequiti expects to grow 40% by the end of 2011. In 2010, the company recorded revenues of R$360 million, up 88% over 2009.

Brazilian Subsidiary Among Nivea’s Top Performers

Since 2006, Nivea’s Brazilian subsidiary jumped from the 11th to the 4th position in the company’s global ranking, overtaking markets such as Russia and the U.K. Now, Nivea Brazil’s president Nicolas Fischer expects the country to surpass France and Italy and become the second largest subsidiary in terms of sales.

“Nivea Brazil’s average increase over the past five years was 15%,” said Fischer. “In 2009, we recorded the highest percentage growth among the company’s operations worldwide,” he said. According to projections by Nivea, Brazil tends to present the best performance in the block of developing countries.