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BIMA: Opening the Door for US Beauty Companies in Emerging Markets
Posted: January 2, 2014
Over the next three years, the Center for International Trade Development will be able to take over 60 beauty companies to compete in the global markets. The time could not be more perfect for this; after the 2008 global financial crisis, industry growth has mainly been supported in emerging markets around the globe, including China, Brazil, the Persian Gulf region, Russia and India.
While several large corporations already have a foothold on some international markets, such as Revlon, Proctor & Gamble and L’Oréal, small and medium-sized enterprises (SMEs) can enjoy certain advantages in emerging markets that are not possible for goliath-sized players.
First off, due to the size and complexity of larger corporate structures, expansion into previously untapped markets is slow, leaving new consumers underserved. Because of their smaller size, SMEs are able to infiltrate emerging markets much more quickly and establish a strong brand presence. Additionally, the dexterity of SMEs allows them to control costs while still sourcing quality ingredients for their beauty products. When fluctuations in the market occur, SMEs are thus better able to adapt and pick up quickly on new trends and rapidly capitalize on new products.
However, even with these advantages, playing on a global scale is no easy task. The largest barrier to entry for most companies is their lack of information needed to enter a new marketplace. Without the confidence and education to begin exporting, these SMEs miss out on reaching the 70% of consumers that live beyond U.S. borders.
Finally there is a comprehensive educational program within the beauty, cosmetic and personal care industry focused on international trade expansion for SMEs. The Beauty Industry Market Access (BIMA) program provides valuable resources and education to assist SMEs in entering emerging markets abroad, a revolutionary initiative supported by its previous success abroad. This is done through two main initiatives: training and foreign trade delegations.
The BIMA educational program will provide health and beauty manufacturers and distributors with the skills needed to grow their brand through export sales. Educational sessions are conducted bi-monthly over a five-week period. The program helps companies to achieve the following:
- Confirm operational and financial infrastructure for existing domestic sales
- Develop international intelligence for effective brand building
- Overcome regulatory, legal and operational trade obstacles
- Create a strategic export growth plan for success
In addition, the BIMA program will organize trade delegations that will provide the opportunity to exhibit in the California Pavilion at the world’s largest overseas shows. Participants will have access to the following trade delegations:
- Beautyworld Middle East 2014
- Cosmoprof Hong Kong 2015
- Beauty Fair Brazil 2016
Participating companies will be provided with:
- Customized and furnished exhibition space in the California Pavilion
- Marketing and public relations support
- Shipping consolidation
- Use of Pavilion lounge
Since 2012, CITD has assisted 33 California companies achieve more than $100 million in export sales at Cosmoprof Bologna and Beautyworld Middle East. While the numbers speak for themselves, participants also thoroughly enjoy their experience with CITD and BIMA. Two current participants had the following to say:
“There are certain aspects of the business that we didn’t realize we didn’t know and were faced head on with during the training… such as building our brand for international pricing, channels of sales, distribution management, etc.," said Sharie Hendricks, founder of Laguna Candles
“The trade mission was an eye-opening experience. It was our first time in Europe, and we now know what to anticipate in future sales efforts in the EU. The Pavilion was very organized and staff was very professional," said Lincoln Lee, director of Dermaesthetics
The winter BIMA training session will run from January 9 to March 4, 2014. CITD is accepting applications for training sessions and the 2014 BeautyWorld Dubai trade show. For more information, contact 562-938-5018 or e-mail CITD@lbcc.edu.
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