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Growth; Exports of Mexico's Beauty Industry Boosting Economy
By: Cristina Kroll
Posted: April 27, 2012, from the May 2012 issue of GCI Magazine.
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Vogue has more than 1,100 employees, and it has strengthened itself with significant financials investments and acquisitions over the past two decades, including acquiring the Miss Universe franchise in Colombia. The forecast for the next five years includes an increased presence in other countries—notably Brazil, India and the U.S. In 2012, Vogue expects its full product/brand portfolio will be distributed in Mexico. Currently, it exports to 14 countries.
L´Oréal’s Latin America Performance Notable
L’Oréal’s 2011 fiscal reports show the global brand owner’s sales grew 13.2% in Latin America, its largest regional gain—followed by Asia and Africa/the Middle East. Growth of professional products in the “new markets” is notable, particularly in Asia, Latin America and the Middle East, where the company is increasingly investing in hairdresser training and rolling out innovations attuned to local beauty expectations, as exemplified by the launches of Oilthérapie in India and X-Tenso Care in Brazil. The consumer products division had a notably good year in Mexico, Argentina and Chile, thanks to the success of its deodorants and hair colorants.
Decent sales levels in luxury products were due, in part, to the dynamism of L’Oréal’s major brands in Latin America. The active cosmetics division, too, was boosted by good performances in Latin America, among other markets, notably of the Innéov brand in Brazil, the top market for the brand. Broadening of distribution channels and the penetration of new well-being channels, such as drugstores and medispas, also are an important element in the division’s worldwide strategy.
Peru Posts 10% Growth in Use of Beauty Products
Peruvian consumers have become more sophisticated purchasers, and this was evident for the country’s beauty market, where, between January and September 2011, sales grew by 10%. According to the market research firm Kantar Worldpanel, as published by newspaper El Comercio, Peruvian spending by women on feminine products grew while consumers in general spent a bit more on soaps and conditioners, among other products. These consumers, too, are increasingly aware of and are spending on sunscreens, body lotions, styling creams and fragrances.
Dynamism is partly attributable to upsells, with consumers, for example, going beyond shampoo purchases and adding conditioners and styling creams to their regimens. Currently, shampoo has a 98% market penetration throughout the country, while conditioners recorded 40%.