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A critical strategic challenge for players in the bath and body care category is the need to attract new consumers in developed markets in order to dilute growth pressures from emerging markets, and multifunctionality is the new strategic mantra.
Sustained growth in beauty in Latin America is turning the tables on traditional leading beauty markets.
Market players are positioning themselves to take advantage of Brazilian consumers’ growing interest in makeup.
The company saw local currency sales increase by 3%, but European sales decreased by 5% to €294.6 million (versus €309.4 million for the same time period in 2012).
When developing beauty and personal care products for emerging global regions, several formulation considerations need to be part of the equation.
Net sales growth during the quarter was particularly strong in the company’s luxury and MAC brands, online and travel retail channels, and overall in emerging markets.
Avon's total revenue of $2.3 billion for the quarter decreased 7%, or 1% in constant dollars, compared to the same time period in 2012.
The company's global makeup business was buoyed by restructuring in China and its growing fragrance business.
The company's results were affected by a voluntary recall of products from Kanebo Cosmetics over the summer.
Increasing numbers of ethnic shoppers and travelers who shop in Western markets are further encouraging this growth area of the beauty industry.