Brazil's Beauty Sales Grow 18%

The growth in Brazilian beauty sales January to June 2009 was estimated at 18% by the Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC).This growth figure was arrived at from data reported by ABIHPEC’s associates for the first four months of 2009 (already consolidated) and by the sales estimate for May and June. ABIHPEC's president, João Carlos Basilio, noted that the projected 18% rate has not yet been consolidated, but asserts that the projection is conservative. “The definite result may even top 18%,” said Basilio.

The January-June numbers resulted in ABIHPEC's revision of its original 5% actual growth projection for 2009 overall, calculated in December 2008. “Our current projection is that actual annual growth will be 11%,” said Basilio. “The first semester saw a much higher growth than what was expected. Since the sales pace traditionally picks up speed in the second half of the year, everything indicates that the actual growth (discounting inflation) for the industry in 2009 will be 11% or higher."

In 2008, the Brazilian beauty industry posted R$21.7 billion in sales, and reported a 10.6% growth in relation to 2007. Coincidentally, the average annual actual growth each of the last 13 years has been 10.6% ABIHPEC cites a number of reasons for the growth.

“There is an important economic and financial factor to be considered: worker income has not been compromised. This has, by and large, preserved purchasing power, and the industry does not depend on credit but rather on income,” said Basilio. “There is also a cultural aspect in play, considering that hygiene is a habit that has become part of the routine of the population and strongly impacts the concept of preserving health. In addition, caring for one’s looks helps preserve a positive social image, and also weighs importantly in one’s work environment.

“But, of all these factors, what I find most relevant is that the industry had the vision to continue investing even amidst the crisis. The new releases continued at the same pace as in previous years, just as research and development was maintained to develop new products. For that matter, it’s a characteristic of the industry to make ongoing investments in the qualitative growth of its products so that it can meet the demands of a consumer that is increasingly more avid for quality and for broader product lines. Furthermore, the industry has been investing heavily in marketing and advertising. Just open a women’s magazine or observe the prime-time lineup of major broadcasters to see that beauty brands sponsor programs with top audience ratings. This type of commitment has made our industry not only maintain close relations with the consumer but to grow ever closer."

Additional details are available from ABIHPEC.

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