Brazil’s Beauty Market Up 11 Percent

MEXICO CITY — Brazil’s beauty market, the world’s third largest, grew 11 percent to 102 billion reals ($33.4 billion at current exchange) in 2014 as Brazilians continued to buy cosmetics with gusto, despite anemic economic growth in the overall economy, according to the industry lobbying group Abihpec. “This very strong growth is not surprising, despite the macro landscape we are going through,” said BTG Pactual analyst Thiago Andrade. “Gross domestic product is struggling, but that hasn’t really affected people on a day-to-day basis. Inflation is higher, but unemployment has not yet started.” A strong Brazilian beauty culture is also helping. “It’s a cultural trait,” Andrade added. “People really dedicate their wallet share to beauty.” In a down economy, for example, “women may go to the hair salon every two weeks instead of once a week and could trade down on product lines.” Despite problems suffered by some major beauty players, analysts said industry margins also remain strong, with direct sellers and multiformat retailers, such as drugstores, enjoying gross margins of more than 65 percent of sales. Regarding the crisis in the real — which has plunged to a 10-year low amid the economic woes in Latin America’s top economy — Andrade said companies import product

Follow WWD on Twitter or become a fan on Facebook.

Read More...



from WWD » Oliver Peoples, Byredo Launch Joint Products http://ift.tt/1NhNo2v

via IFTTT