Brazil: A significant shift in the distribution of cosmetics

Distribution in Brazil can be divided in three major channels: Traditional distribution (retailers, beauty salons, health & beauty stores, etc.), direct sales (doorstep sales) or franchises (specialised stores and brand stores). After having been dominated for a long time by doorstep sales, the distribution of beauty products is evolving slowly but surely towards a more selective distribution.Until now brands like Avon and Natura historically dominated the distribution of cosmetics through their direct sales network, and this, with products at affordable prices. The country’s geography and market culture play a major role in the predominance of this type of sales. Women have the possibility to comfortably test the products with their beauty consultant. It is above all a social act. This also promotes employment and financial independence since the sector generated more than 4,000 jobs in 20 years, according to the Abihpec.

In addition to sales consultants, these brands have developed catalogue and internet sales and are now being confronted to the direct competition of websites selling cosmetics, where buyers have the choice between a number of brands , BIMcomseticos., etc.)

To note also the presence of another competitor and multi-brand distributor, represented by the Ikezaki group, established in São Paulo for the past 50 years. His products are meant for both professionals and individuals, with local but also international brands (Vult, L’Oréal, etc), at attractive prices.

Brazilian women are gaining access to premium products

Value-added products are attracting more and more women looking for higher performance and multiple benefits.

“Innovation and the unique value of products can play an attractive role in the market,” emphasised recently, Robert Kuruzu from ABVED, on the BrazilBeautyNews website.

Hence, there is an entire market to conquer with premium products and with a distribution network that is developing in parallel. In cities, more and more shopping centres are emerging. These, offer multi-brand retailers like Sephora real opportunities to establish themselves, as well as for franchises from brands like MAC, Granado oBoticario or Quem Disse Berenice from the oBoticario group, which focuses solely on make-up with innovative concepts, like the possibility to choose one’s brush regardless of the mascara.

Make-up, the leading sector

Brazil’s obsession for beauty is a driver to the make-up market, with a demand for ever more efficient and adapted products, as highlighted Brazil Beauty News.

“The demand must be higher for smaller, more practical and multiuse make-up products, such as BB creams, which provide time and money savings. Sophistication also is a trend that must be consolidated in the next years.

Another important point is to know the Brazilian woman’s expectations and needs in depth. Products climatization is essential, with products that do not obstruct the pores and even fight skin oleosity, as the consumer has been wearing make-up more often.
To take these opportunities and face the huge challenges, manufacturers must also pay attention to distribution channels and price ranges, in order to serve more demanding and updated consumers.“ conclued Luiz Alberto Bozzolo – H&C (Household & Cosméticos) Magazine in Brazil.