LITTLE FALLS, NJ, May 08, 2008 – Continued
expansion in the Brazilian economy has afforded
cosmetics and toiletries marketers one of the most
robust markets in the world in recent years, according
to new data compiled by worldwide consulting and
research firm Kline
& Company. With nearly 14% growth in cosmetics
and toiletries sales in 2007, Brazil now ranks fourth
in the global market and is poised for further double-digit
growth over the next five years.
The burgeoning middle class and increased consumption
levels, coupled with GDP growth of 5.4% in 2007
and a more potent Real, has boosted Brazil ahead
of bellwethers France and Germany in terms of
cosmetics and toiletries sales for the first time
since Kline started examining international cosmetics
and toiletries markets. According to data collected
for Kline’s Global
Cosmetics & Toiletries 2007 market report,
sales topped out at BRL 22,822 million (USD 11.7
billion) at the manufacturers’ level.
Sérgio Rebêlo, managing director of Factor de
Solução, Kline’s affiliate based in São Paulo,
says 2007 was the year of the “big, old-school”
multinational company in Brazil, with top-tier
firms growing faster than smaller players.
“The movement was led by companies such as Avon,
which managed to increase sales by more than 26%
after years of poor results in Brazil due to fierce
competition with Natura,” Rebêlo said. “Avon’s
success came through a restructuring strategy
that renewed the company’s portfolio, increased
media expenditures, and strengthened its relationship
with sales representatives.”
Other global players such as L’Oréal, Beiersdorf
and Unilever have also dialed up the competition
with innovative products and heavy media investment.
“On the other hand, ‘the Brazilian Star,’ Natura,
lost some of its shine and was unable to maintain
the huge growth rates it enjoyed over the last
few years, with sales up only 9.5% in the domestic
market,” Rebêlo said.
Makeup proved to be the fastest growing category
in 2007 for Brazil, with a 17.8% growth rate,
according to Kline’s report. In the Latin American
market overall, the luxury class posted the highest
growth in this category, up by 23.6%, followed
by salons at 17.4% and specialty stores at 16.5%.
“People in the middle- and low-income levels have
seen a big improvement in their purchasing power,
and they’re spending more on beauty products,”
says Carrie Mellage, director of the Consumer
Products practice for Kline’s research group.
“But because value is still important, companies
that offer quality products with midrange price
points are among the fastest growing in the market.”
Kline’s Global Cosmetics & Toiletries program,
now in its third edition, covers 16 countries
in Asia, Europe, Latin America, and North America
and examines 21 product categories within six
major product classes. The study details historical
sales, growth, and market share for leading brands
at the manufacturer, retail, and unit volume levels.
It also examines sales by product type and new
product activity and features five-year forecasts
for the overall markets for each country, as well
as each product class and category.
For more information about Global Cosmetics & Toiletries, go to www.klinegroup.com/reports/y559.asp
or contact Sérgio Rebêlo at +55 11 30790792 or
Kline is a worldwide consulting and research firm
dedicated to providing the kind of insight and
knowledge that helps companies find a clear path
to success. The firm has served the management
consulting and market research needs of organizations
in the chemicals, materials, energy, life sciences,
and consumer products industries for nearly 50
years. For more information, visit www.KlineGroup.com.