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Avon Makeup Line Luxe Available Through E-commerce

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Avon is planning to make an entry into the Brazilian e-commerce space with its makeup range Luxe. Launched in July 2014 with a strong marketing campaign, the new line is targeted at a high-end market, according to Sheri McCoy, CEO of Avon. Online sales have been a long-term aspiration of Avon, but the multinational was reluctant to enter the market for fear of creating competition for its representatives.

Before being launched in Brazil, Avon’s largest market, Luxe has been tested in other countries—notably Russia and the U.K. The new line comes on the heels of a revamp of Avon’s makeup line to “meet the demand of local consumers for new products,” says McCoy. All other items will continue to be sold exclusively through Avon representatives.

L’Oréal Acquires Niely Cosméticos

L’Oréal announced that it has signed an agreement to acquire Niely Cosméticos. Founded in 1981 by Daniel Fonseca de Jesus, Niely Cosméticos is the largest independent hair coloration and hair care company in Brazil, according to L’Oréal.

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“The acquisition of Niely Cosméticos is a strategic move for L’Oréal in Latin America and Brazil, one of the biggest and fastest growing hair color and hair care markets in the world where consumers have a long tradition of beauty and demanding expectations” said Frédéric Rozé, executive vice president of L’Oréal in charge of the Americas.

With a net revenue of 405 million Brazilian reals in 2013, the Niely Cosméticos group has two main brands: Cor & Ton for hair coloration and Niely Gold for shampoos and care. Sold at accessible prices and enjoying a large penetration among the country’s middle class, Niely Cosméticos products are widely distributed through retailers and wholesalers, supermarkets, pharmacies and perfumery chains. Niely Cosméticos operates facilities in Nova Iguaçu, in the state of Rio.

Men’s Grooming Thrives

The latest figures from the Brazilian Association of Cosmetics (ABIHPEC) show that sales of men’s grooming products in Brazil more than doubled in the last five years, reaching R$9.7 billion in 2013. The category is expected to grow about 80% in the next four years. According to data from Euromonitor International, Brazil is the second largest market for men’s grooming products, ranking only behind the U.S., and there is still plenty of room to grow. A survey by Mintel revealed that from 2009 to 2012, only 2% of new product releases in Brazil were targeted at male consumers.

New President of Natura

Natura board member Roberto Lima will replace Alessandro Carlucci as president of Natura. Lima had been the CEO of telecom company Vivo, Grupo Credicard and Publicis Worldwide. With 1.7 million representatives responsible for supporting its direct sales channel, Natura hasn’t announced plans to expand either through company-owned stores or traditional retail chain stores. Industry sources say the company will follow O Boticário’s strategy to create new brands and diversify its product offering. Acquired by Natura in 2012, Australian beauty retailer Aesop is set to open its first store in Brazil by December 2014. In early 2014, Natura expanded its portfolio to include fashion and décor items.

With a slowdown in the direct sales channel and increased competition, Natura’s net income fell 26.8% in the second quarter to R$175.8 million, compared to the same period in 2013. The result was due both to weak sales in the domestic market and a decline in gross margin. According to data from ABIHPEC, Natura holds a 20.4% market share of cosmetics and toiletries in Brazil, a decline of 0.9% compared to 2013.

Lojas Americanas Launches Personal Care Range

One of Brazil’s largest retail chains, Lojas Americanas increased its brand portfolio with the launch of the personal care range Basic+ Care. The new release follows the company’s strategy to invest in low-cost, everyday use products, which will be available in over 860 stores throughout the country. Lojas Americanas’ financial director Murilo Correia says the idea is to offer exclusive products at competitive prices. “Our goal is to increase our presence in the retail market and create greater loyalty to our brand among our existing customers,” says Correia.

Lojas Americanas currently has 12 own brands and a portfolio of 4,500 products, including clothing and household items.

Fernanda Bonifacio is a Brazilian journalist who focuses on the beauty industry, and has been published in the U.S. and Europe. She represented ABIHPEC and its member companies globally from 2002–2008. She has also been a communications consultant for raw material manufacturer Beraca since 2009.