BW Confidential - Issue #16 - November/December 2013 - (Page 81)

credit: istock Measured growth Growth in Brazil may be slowing and doing business in the country as complicated as ever, but the market remains attractive for international brands by Renata Ashcar T he euphoria over Brazil is waning slightly. A slowdown in the economy, increasing wage inflation and the rising cost of competing in the marketplace are set to take their toll on growth rates. Even market-leader Natura said that business in the country was more challenging at the beginning of this year. As Sephora senior vice president Latin America Paula Larroque puts it: “The current situation in Brazil is more conservative than before and there is perhaps less enthusiasm for the market than in other Latin American countries that are expanding now.” However, for the moment the market’s growth rates are still impressive. Figures from Euromonitor and ABIHPEC (the Brazilian Association of Perfume, Personal Hygiene and Cosmetics) show that Brazil is still seeing double-digit growth, despite the Value sales are set to increase, as consumers begin to ask for high-quality items and look for foreign fragrances impact of the dollar devaluation in 2012. Last year, wholesale sales of beauty and personal care were up 15.62% to R$34bn (US$14.02bn), making Brazil the third- November-December 2013 - N°16 - BW Confidential largest beauty market worldwide with a 9.6% share. Brazil boasts the largest deodorant market globally, while in the bath, children’s products, men’s grooming, suncare and haircare segments, the country claims second place worldwide. But it is the size of Brazil’s fragrance market that attracts the most attention. The fragrance category in Brazil is the largest globally for the third year running, with sales of R$5.4bn (US$2.23bn) and a 15.9% share of the country’s total personal-care market. However, more than 90% of fragrance sales are still in the hands of the local companies like n n n 81 Market watch: Brazil Country overview

Table of Contents for the Digital Edition of BW Confidential - Issue #16 - November/December 2013

Cover
Comment
Contents
Update
Brand & retail news recap
Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Coty ceo Michele Scannavini
Insight: Fragrance
Category overview
Regional breakdown
Launch strategies
The niche market
Retailer initiatives
Launch roundup
Strategy M&A analysis
Retail
The store of the future
Creative strategies
Store concepts
Digital Innovation strategies
Market watch: Brazil
Country overview
Natura & Grupo Boticário
International brand strategies
Prestige retailing
Trendwatch Upcoming innovation
Travel retail
Channel analysis
The CIVETs
Digital strategies
Interview: L’Oréal Luxe md travel retail worldwide Barbara Lavernos
Interview: WDFG global head of beauty Antonin Carreau
Radar Up-and-coming brands
Emerging markets Company profile: Shanghai Jahwa
Packaging
Luxury packs in the BRICs
Luxury innovations
Industry viewpoint
Last word Euromonitor International senior analyst beauty and personal care Oru Mohiuddin

BW Confidential - Issue #16 - November/December 2013