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Chilean Men Outspend Other South American Men on Beauty
By: Cristina Kroll
Posted: January 27, 2014, from the January 2014 issue of GCI Magazine.
Sales of men’s beauty products in Chile are projected to see an increase of 41% between 2012 and 2017, reaching $255.7 million. In fact, according to Chilean magazine Estrategia, men’s products represent one of the main growth areas in the country. Álvaro Márquez, executive president of the Cosmetics Industry Chamber of Chile (CIC), explained young men are starting to use a lot of skin care creams, which are expected to lead to an explosive growth in sales over the next few years.
Chilean men spend $21 per capita on beauty products, making them the biggest male spenders in the region—Brazilian men spent $18.8 and Argentinian men spent $15.6 per capita, respectively. In 2012, sales of men’s shower products and deodorants, one of the largest sectors for male consumers, reached $181 million, and the CIC estimates these products represent only 1.5% of the industry as a whole.
Stendhal Makes Second Debut in Argentina
French brand Stendhal Paris, part of Groupe Jacques Bogart, has arrived in Argentina for a second time via the distributor Sirap, and the companies organized an exclusive meeting with beauty editors in the Rond Point restaurant to present their product lines. Stendhal regional brand director Nélida Vincent explained to GCI that an advanced premiere of the wider launch will be made at three points of sale: L’Espace de la Beauté at the Caesar Park Hotel and the Galería Promenade at the Hotel Alvear in Buenos Aires, as well as Bauza Perfumerías in Mar del Plata.
“In the meantime, we’re in talks regarding distribution at other stores in Buenos Aires, in the province of Buenos Aires and in the rest of the country,” said Vincent.
Stendhal also has a presence in Uruguay, Mexico, Colombia and Paraguay, and Vincent believes, “Argentina will be a great [opportunity] for the brand.”
Nivea Gets Creative in Promoting Innovative Products
Nivea developed a unique marketing strategy in Argentina for its new In-Shower Body Moisturizer. To promote the fact that the innovative new product is used in the shower, the company took advantage of “the biggest shower in the world.”
On a rainy November 1, 2013, the company put sample providers dressed in rain boots and white bathrobes and armed with blue umbrellas on the world’s widest avenue, 9 de Julio in Buenos Aires. Commuters were taken by surprise, as samples of Nivea’s new product were handed out and the sample providers helped them cross the street without getting wet. This strategy was promoted across all Nivea’s social networking channels, particularly Facebook.
Nivea developed the In-Shower Body Moisturizer to be a hassle-free way to moisturize skin while in the shower. Designed to be used after shower gel, it leaves skin feeling hydrated and silky soft, even after towel drying.
Mexican Women Urged to Use Hair Conditioner
The Mexican personal care industry’s national chamber and association (CANIPEC) launched a campaign to promote the use of hair conditioner. The initiative was supported by beauty industry giants Unilever, P&G, Colgate-Palmolive and Grisi.
The campaign included the creation of a website with information about the benefits of using conditioner and utilizing striking enhanced images of models with “wire hair” and “sponge hair” to make the message clear to the target female market. This initiative, with its slogan “Don’t leave your hair half-finished,” was devised in response to Mexican women’s relatively low per capita consumption of hair conditioner, as compared with their consumption of shampoo. The campaign also won first and second prize in the Health and Beauty category at the Mexican advertising association’s Tótem Awards 2013.
Belcorp to Open Its First Plant in Mexico
Peruvian direct seller Belcorp announced the construction of its first facility in Mexico. The project involves an investment of $110 million, and the site will have an initial production capacity of close to 60 million units per year. According to Mexican newspaper El Economista, the output will satisfy local demand as well as supply other Central American countries and the U.S. Mexico is the second-largest beauty market in Latin America, and it has seen some of the largest all around growth in recent years.
The new plant, which will be located in the Parque Industrial Aerotec, will cover 140,000 square meters and create 1,000 jobs, approximately 70% of which will be filled by women. It is hoped the plant will be finished between the end of 2015 and the beginning of 2016.
Colombia Adds a Bit More Luxury
L’Oréal’s luxury skin care brand Kiehl’s continues to expand in Colombia, launching its second store in Bogotá at the end of November 2013, and with a third being planned for 2014. Located in the Unicentro shopping center, the new store offers free skin care diagnoses and samples of its products in a bid to attract new consumers.
Kiehl’s began as a pharmacy in New York’s East Village in 1851 and developed into a brand with a philosophy based on creating products that combine pharmaceutical, medical, botanical and cosmetic knowledge. The personal attention in its stores and its method of communicating the benefits of its products have become distinctive features of the brand, and it is using that attitude to help gain Latin American brand fans.
The brand’s first Bogotá location represented an investment of $516 thousand, and Kiehl’s 37 stores in Latin America report sales of close to $ 8.5 million a year.
Cristina Kroll is a business journalist specializing in the beauty sector and living in Buenos Aires, Argentina. She has written for the main Argentine magazines related to the beauty business, and was a correspondent for French magazine Beauty Business News.