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Clarins Forecasts 30% Fragrance Revenue Growth in Brazil

By: Fernanda Bonifacio
Posted: August 25, 2009, from the August 2009 issue of GCI Magazine.

While in Brazil for the launch of the Twins fragrance, Gérard Delcour, president of Parfums Azzaro, a Clarins Group brand, noted that Clarins’ revenue in Brazil rose 16.6% in 2008. He forecasts the company’s sales growth to be 30% by the end of 2009.

After the success of Azzaro Pour Homme, which Delcour claims to have been the leading male fragrance in Brazil in 2008, the French company has undertaken a strategy to launch products that will attract younger consumers. According to Delcour, the new releases don’t compete against the brand’s best sellers, but they help bolster the brand. “Although sales [of new releases] add 6–7% to the total, they do a lot in terms of changing public perception—demonstrating that Azzaro is not only a classic, but a brand constantly up-to-date.”

In 2009, the Clarins Group intends to gain a position in the Brazilian fragrance ranking, jumping from fourth to third—beyond top sellers Carolina Herrera and Christian Dior. Who will be surpassed? Delcour prefers not to say.

“Brazil is the one of the [top markets] for perfumes and cosmetics expansion in the world,” Delcour said. According to his projections, Brazil, Russia, India and China—the BRIC nations—will account for 60% of global growth within the next five years. Euromonitor International also expects BRIC nations to be the biggest contributors to absolute growth.

Nivea Grows 17.4% in Brazil

Nicolas Fischer, president of Nivea Brazil, had good news to announce at brand owner Beiersdorf’s global meeting—the brand’s Brazilian efforts resulted in a 17.4% sales increase for the first quarter of 2009, the brand’s largest gain. The company’s worldwide revenue dropped 0.5% in the same period. In Europe (excluding Germany, which posted an increase of 7.2%) sales fell 7.8%, and North American sales fell 5.4%. And—except for Russia, which retracted 4%—developing markets posted positive numbers. Sales in Mexico grew 11.7%, while Argentina grew 12.8% and China 12.2%.