Brazilians zest for beauty has turned the industry into the world’s third strongest
Since an estimated 40 million people have joined the middle class in the past decade in Brazil, now the world’s sixth-largest economy, the beauty industry is booming and has become the third in importance globally.
According to a study by market research firm Euromonitor cited recently by a Brazilian industry association, the sector generated 43 billion dollars in sales in 2011, up 19% from the previous year.
That means Brazil now accounts for 10% of the global beauty products market, putting it in third place behind the United States and Japan. The Brazilian market is equally strong for women and men.
US door-to-door beauty products seller Avon has an enormous interest in Brazil, with the company’s local marketing chief Ricardo Patrocinio saying the business is “growing in very interesting proportions” in the country.
“Consumers have increased purchasing power and are open to buying different kinds of products” Patrocinio said.
The Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry attributes the growth to several factors, including the increasing number of women in the workplace and the seemingly constant launches of new products.
Economist Marcelo Neri of the Getulio Vargas Foundation says socioeconomic factors are definitely in play: “women are working more, have more money and are having fewer children, which allows them to have even more money. Between 2001 and 2009, women’s incomes rose 38%, against just 16% for men”.
“In Brazil, those who are successful... can start buying products to which they did not have access before. Now there are 40 million of them and the number is increasing”.
Renata Leite, a marketing executive for Colorama, a nail polish brand bought a decade ago by French cosmetics giant L’Oreal, said her company’s products have a broad-based appeal: from the working poor to the upper class.
“We hope to turn Brazil into a cutting-edge market that sets trends. This market can do that,” Leite said.
Alexandre Zolko, who launched the footwear brand My Shoes three years ago, is also counting on Brazil’s growing middle class to help grow his business. He says his motto is “accessible luxury.”
“My products are aimed at those using credit cards” he admitted.
According to official data, Brazil’s middle class now has about 95 million people, or about half the country’s 190 million population plus the fact the new buyers turn into avid buyers. Brazil passion for beauty also has some of the world’s best plastic surgeons, obviously for the upper class of this socially divided powerhouse.