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Latin Beat: Beauty Market Grows in South America
By: Cristina Kroll
Posted: April 2, 2008, from the April 2008 issue of GCI Magazine.
page 3 of 4Vz expands in Chile
Argentine beauty retailer Vz will open three new stores in Chile during 2008—including one in Santiago de Chile. The retailer currently operates nine doors in Chile. Vz posted revenues of $2 million in 2007, and expects an increase of 35% in 2008. Created by Argentinean entrepreneur Verónica Zuberbühler in 2002, Vz now has a total of 40 points of sale in Argentina, Ecuador, Guatemala, Panama and Chile. Doors in Colombia are being planned.
Botanical line from Avon
Avon launched Liiv, a botanical line of beauty treatments, in Brazil. “Brazil was the first Latin American market in [the launch] because of the importance of this subsidiary for the corporation,” said Alberto Moreau, executive director of marketing for Avon in Brazil. In fact, Avon’s Brazilian sales are second only to those in the U.S. Launches in Argentina, Chile, Uruguay and Bolivia are planned for October, according to Evangelina Escribano, communication manager of Avon South American.
The initiative includes creating a variety of products—such as liquid soap, lotions and creams—formulated with plant extracts that revitalize and rejuvenate skin. The extracts are obtained through Avon’s Plant Essence Technology.
In additional South American Avon news, Jorge Quiroga Martinez, formerly general manager in Argentina, is now the company’s main chair in Mexico. René Ordóñez, formerly with Avon Central America, is the new general manager in Argentina.
Latin America Highlight in Colgate’s Performance
The Latin American market generated the largest earnings for Colgate-Palmolive in 2007, accounting for 26% of its sales. Europe accounted for 24%, and North America accounted for 19%. Latin American sales and unit volume grew 15.5% and 5%, respectively, in the fourth quarter. The strong volume gains were led by Brazil, Venezuela and Argentina. Higher pricing added 4.5% and foreign exchange added 6%. Latin American operating profit increased 19%, to a record level even after a strong double-digit increase in advertising during the quarter. Worldwide sales growth was 13.5% to $3,642.2 million.