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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.
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If Nivea maintains this pace in Brazil for the remainder of 2009, it anticipates achieving its 2010 sales growth forecast a year early. “When I took [over as president] in 2005, my aim was to double the size of the division in five years,” said Fischer. “But with the growth achieved in the last three years (16% in 2006, 22% in 2007 and another 22% in 2008), I believe my goal will be reached before that.”
According to Fischer, there are a number of reasons for the performance of the Brazilian division, the first being the country’s economic scenario. “Brazil has never been so prepared to face a financial crisis,” he said. “More than half of its GDP comes from the domestic market, which minimizes the influence of the downturn in business.” Consumer behavior also bolstered sales. “Many people stopped buying cars or properties. They could have saved the money, as it happens in many countries, but Brazilians’ expenses were transferred to consumer goods.”
At least through December 2009, Nivea’s strategy will be to maintain its schedule of new launches, which account for one-third of total sales, and to target the male market. “These products have great growth potential. Brazilian men still have the habit to shave in the shower, using just soap,” said Fischer.
Supermarket Chain Launches Cosmetic Line
A branch of the Carrefour Group, supermarket chain Dia, launched an exclusive cosmetic brand, which will be available in more than 100 of its stores. Bio Pure is a line of 22 products for hair, skin and body care. The brand claims its prices are 15% lower than those of its primary competitors.
The brand expansion strategy includes an outsourcing manufacturing partnership with Lifar Laboratory. The brand also integrates the Dia’s guaranteed satisfaction program. Customers not happy with a purchase have four days to return products to the store.