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Sephora Opens Brick-and-Mortar in Brazil; Plans For 40
By: Fernanda Bonifacio
Posted: November 26, 2012, from the December 2012 issue of GCI Magazine.
page 2 of 3
With an average annual growth of 11% in Brazil, Shiseido plans to increase its revenue by 60% by end of 2012 and 100% in 2013 with the launch of two new brands, Nars and Bare Minerals, in the market. The Japanese multinational’s strategy is to strengthen its penetration in the Brazilian makeup segment, as more than half the company’s revenue is generated by its skin care lines.
Although it has operated in Brazil since 1995, Shiseido still imports its entire product range. According to Hideki Okada, president of Shiseido Brasil, the company intends to tap into the changing Brazilian market where consumers are actively shifting their interest from mass to prestige brands. Bare Minerals has opened two stores in São Paulo and invested in the multi-brand segment (e-commerce and retail stores), and in 2013, the brand plans to expand to Rio and the northeast of Brazil, with the opening of 15 exclusive shops. Nars products will be sold exclusively at Sephora locations.
Ikesaki Opens Brazil’s Largest Cosmetic Store
Retailer Ikesaki has opened its fifth cosmetic store in the city of Santo André, located in the São Paulo metropolitan region. With 2,800 square meters and approximately 20,000 beauty items (including equipment and accessories, in addition to products), Ikesaki’s new outlet is the largest cosmetic store in Brazil. Known for offering a wide range of products at affordable prices, the Ikesaki expansion demonstrates that mass, as well as prestige, is expanding in Brazil.
Like other Ikesaki stores, the new hyperstore targets both wholesalers and consumers hungry for new trends. In September 2012, Ikesaki also launched a new training center that offers courses and workshops for hair stylists and beauty therapists.
Coty Renewing Attempts to Acquire Jequiti
Coty has renewed its interest in acquiring Grupo Silvio Santos’ Jequiti Cosmeticos brand, which is valued at around US$500 million. According to Bloomberg, Jequiti has hired Barclays PLC to sell the brand, which has also drawn the interest of L’Oréal.
In June 2012, Coty raised roughly $700 million to make an initial public offering, but delayed it until early 2013. However, the company has been working to boost revenue by entering new regions and reinforcing its presence in emerging markets. At press time, Jequiti, Coty, Barclays and L’Oréal declined to comment on the situation.
Roger & Gallet Opens its First Store-in-store in Latin America
Rio was chosen by French perfume house Roger & Gallet for the opening of its first store-in-store in Latin America. The concept store, located on the second floor of Drogaria Venancio, reflects the brand’s plan to strengthen its presence in Brazil’s drug store channel.