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Inside Brazil: Direct Sales Grow 14% in 2008

By: Fernanda Bonifacio
Posted: June 5, 2009, from the June 2009 issue of GCI Magazine.

IFF’s new creative center outside of São Paulo will, according to the company, help it study and understand the preferences of consumers and how they affect and are affected by global trends.

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Avon is not the only company to benefit from the positive scenario. Amway is investing $45 million in order to double its revenue in South America by 2012. The newest brand in the direct sales market, Jequiti, plans to launch new products in its catalog by the end of the year.

Christian Dior Leads Fragrance Sales in Brazil

The world’s largest luxury conglomerate, LVMH announced that Christian Dior was the leading fragrance brand in the Brazilian market in 2008. It was the second consecutive year the brand led in sales. According to the Mexican market research company Segmenta, the women’s fragrance J’Adore, which celebrates its 10th anniversary, is the highest selling fragrance in the country.

“One of the reasons for Dior’s revenue having increased 13% in Brazil in 2008 is the launch of the male fragrance Dior Homme Sport,” said Renato Rabbat, group director, LVMH. “It was our most daring investment in recent years, and it turned out being a huge success.”

LVMH’s Givenchy brand also gained prominence in the national ranking, and climbed one position to the fourth place in fragrance sales.

New Fragrance Fixative Discovered in Native Plant

A discovery made by forest engineer Ana Virginia Castelo of the University of Brasilia has drawn even more attention to the potential of Brazil’s “cerrado,” a tropical savanna region and the country’s second largest biome—and an area of international scrutiny as the impact of deforestation has gained notoriety. Castle found linalool, a substance that serves as an excellent fixative for perfumes, in the essential oil of the leaf of the Araçá do Cerrado (Psidium myrsinides). According to Castle, there are many synthetic fixatives, but natural fixatives, which have only been available in small quantities, are in high demand for certain segments of products.