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Inside Brazil: Beauty Sales Grow 18% in First Half of 2009

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

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Mahogany is among the beauty companies contributing to the growth of franchised businesses in Brazil. It adopted a franchising system in 2005, and now has 63 stores and is investing to reach 110 points of sale in 2010.

Oral Care to Gain 34.7% in Three Years

According to research by Euromonitor International, the Brazilian oral care market is expected to grow approximately 34.7% by 2012. It is a rather favorable estimate considering the maturity of this segment, which has already reached 95% of Brazilian households.

Mouthwash led the growth forecasts (78.3%), while toothpaste, which currently accounts for 61% of the market, is expected to keep leading sales. However, due to toothpaste’s high penetration in the market, growth will be more modest (23.3%).

Beauty Additions to Weleda Brasil’s Offerings Adds 6% to Its Revenue

Known for its natural products, Weleda Brasil is redirecting investments to the beauty sector. Inspired by the company’s French showroom, all 14 Brazilian brand doors will be rethought. The initiative, which is forecast to cost $1 million during the next two years, is part of the company’s new strategy to increase its portfolio and expand the number of points of sale.

“The culture of buying natural products is now spreading in Brazil,” said Mara Pezzotti, president, Weleda Brasil. But, according to Pezzotti, the company doesn’t intend to compete directly with market leaders Natura and Avon.