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Brazil’s Beauty Sales Grow 14.75% in 2009

By: Fernanda Bonifacio
Posted: April 6, 2010, from the April 2010 issue of GCI Magazine.

O Boticário new distribution center near São Paulo, which will double the company’s distribution capacity, was prompted by the company’s 20% growth rate in 2009.

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In 2009, O Boticário also launched 362 new products, followed by a 40% increase in marketing investment. According to company president Artur Grynbaum, the domestic market will continue to be the company’s priority in 2010, as its exports dropped from 3% to 2% of the company’s revenue.

“We will strengthen our investments in research, innovation and technology,” said Grynbaum. “Above all, we will focus on customer relationships to continue marketing products that exceed their expectations and needs.”

Nivea Launches Sunscreen Inspired by Brazilian Consumers

Behavioral research on Brazilian women inspired Nivea to create its Protect & Bronze line, which includes sunscreen to tanning lotion. According to Beiersdorf’s marketing director Pieter Nota, it is the first time the company has launched a product in Brazil that will then be marketed worldwide.

And there is a strategic implication in the move. According to Nota, the country, the third-largest market for skin care products, has become a priority for Nivea, as Brazil only ranks seventh globally for Beiersdorf’s sales.

To reduce this gap—which was actually much larger just four years ago, when Brazil was Nivea’s 11th largest market in value sales— acquisitions are being considered. According to Nota, the latest of which occurred in China, where a local manufacturer of hair products (a category in which, at this time, Nivea no longer operates in Brazil) was purchased.