Brazilians take beauty very seriously. Figures supplied by the IBGE (Brazilian Institute of Geography and Statistics) and the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec) show that while the country GDP and that of industries in general grew respectively 5.1% and 4.3% in 2008, that of cosmetics industries grew 7.1%.
Also according to the Abihpec, some factors may explain the good result for the sector. They are: greater female participation in the labor market, constant releases of products and use of state-of-the-art technology by personal hygiene, perfumery and cosmetics industries, which causes greater production and consequently sale of products at more competitive prices.
And Brazil, once again, is in the lead: it is the third cosmetics industry market in the world, losing only to Japan and the United States. Within the sector, one line is gaining strength: that of raw materials for natural and organic products.
A forecast by the Organic Monitor shows that consumption of these products is currently 4%, but in 2012 it may reach 10%.
According to figures by the Abihpec, one of the foreign markets the sector is going to continue betting on is the Arab. In early June, the organization participated once again in the Beautyworld Middle East, a cosmetics fair in Dubai, in the United Arab Emirates.
In 2008, the total value of sales of beauty products in the Middle East exceeded US$ 2 billion. In the Emirates alone, the beauty and spa market exceeds US$ 600 million.
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Brazil's Pet Passion, a maker of perfumes for dogs and cats, has ambitious plans. It wants to export to Europe, preferably beginning with the land of perfume: France. "If we manage to export to the French, then we will gain the necessary status to sell in any market, including Dubai," says the director and partner at the brand, Émerson Wan.
The businessman, who is also a chemist, has just returned from a two-week trip to France. In Paris, he researched new essences, visited pet shops and factories that make perfumes for animals in the south of the country.
"I was very glad, because our perfume has a superior packing than what I have seen around there. Furthermore, our fragrances are as good as the European, or even better," he celebrates.
The company has already received contacts from Spain, has a contact in Italy, but did not close any deals yet. "The important thing is that now we know we are on the right path. Right now, we are defining the strategies we are going to use in order to reach the importers," he says.
According to Wan, Pet Passion only works with the best raw materials, many of which are imported from France, by the way. One such example is lavender, which comes from Provence, France. "It is precisely this care that sets us apart," he explains. "And our care extends from the leaf to the flask, from choice of raw material to the handicraft manufacturing process," he states.
Headquartered in Curitiba, capital of the southern Brazilian state of Paraná, the company has developed five fragrances, plus a professional line for bathing and trimming. Although the brand is over 10 years old, it changed owners in 2005, and was recently reformulated and repositioned within the market.
"The concept, the choice of fragrance and raw material, everything is done by us," explains the businessman, who already enjoyed working with fragrances even before he went to the university.
"What I do is, I explain the type of fragrance that I want and the ingredients I want used. From then on, the creative process is a challenge to be taken on by the perfumer," he explains. The handicraft manufacturing of approximately 2,000 liters of perfume per month is outsourced to a local factory.
Pet Passion products can be found at pet shops in the states of Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Pernambuco, Paraíba, Goiás, Bahia and Maranhão. Soon, they will also be available at stores in the states of Rio de Janeiro, Minas Gerais, Mato Grosso and Tocantins.
Service
Pet Passion
Site: www.petpassion.com.br
Email: petpassion@petpassion.com.br
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]]>In 2005, 109 new factories were installed in the country, which represented an increase in 8.7% in the number of companies.
According to information from the Abihpec press advisory, in the northeastern state of Bahia alone, the number of factories increased by 90%.
The Bahia cosmetics industry ended 2005 with revenues of approximately US$ 18.2 million. The state of Rio Grande do Sul, in the extreme south of Brazil, in turn, jumped from 95 to 105 companies last year.
Exports by the personal hygiene, perfumery and cosmetics industry grew 20% in 2005 reaching US$ 400 million. Preliminary numbers released at the end of December indicated that the sector’s total revenues should reach approximately US$ 6.3 billion, 14.5% more than in 2004, with 1.3 million tons sold.
The personal hygiene sector grew 13.4% in the year, and cosmetics, 15.8%. The highlight was perfumery, which registered growth of 17.6% in sales when compared to 2004. Regarding the sales volume, personal hygiene presented a revenue increase of 9.2%, perfumery 8% and cosmetics, 11.5%.
According to the president of the Abihpec, João Carlos Basílio da Silva, the forecast was for sector growth to be 20%, considering a scenery of inflation of between 7% and 7.5% and stable exchange rates.
"With lower inflation than expected and appreciation of the Brazilian real against the dollar, the cosmetics industry limited itself to 5% price increases in its products, which reduced the revenue forecasts," he said.
The appreciation of the Brazilian real against the dollar also caused an increase in sector imports, which grew 35.4% from January to November 2005, when compared to the same period last year. Imports reached US$ 83 million.
Anba – www.anba.com.br
]]>The figures were disclosed Wednesday, December 21, by the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec).
The personal hygiene sector grew 13.4% in the year, and cosmetics, 15.8%. The highlight was perfumery, which registered growth of 17.6% in sales when compared to 2004. Regarding the sales volume, personal hygiene presented a revenue increase of 9.2%, perfumery 8% and cosmetics, 11.5%.
According to the president of the Abihpec, João Carlos Basílio da Silva, the forecast was for sector growth to be 20%, considering a scenery of inflation of between 7% and 7.5% and stable exchange rates.
"With lower inflation than expected and appreciation of the Brazilian real against the dollar, the cosmetics industry limited itself to 5% price increases in its products, which reduced the revenue forecasts," he said.
The appreciation of the Brazilian real against the dollar also caused an increase in sector imports, which grew 35.4% from January to November 2005, when compared to the same period last year. Imports reached US$ 83 million.
This year, according to the study by the Abihpec, the level of employment in sector companies has also grown. The increase registered was 6.62% between October 2004 and October 2005. The figures were supplied by 56 companies that, together, represent 72% of the market.
New Markets
The Brazilian cosmetics industry has expanded its brands abroad, although the countries in South America are still the main destinations. In recent years, new markets, like those of the Arab countries, entered the list of importers. The market in greatest expansion is that of the United Arab Emirates, followed by Lebanon, Jordan and Libya.
According to figures supplied by the Abihpec, the organization is after expansion of the scope of buyers of sector products, mainly supporting the participation of Brazilian companies in foreign fairs.
An example is the second participation in fair BeautyWorld Middle East, which took place between May 2 and 4 at Dubai Airport Expo, in the United Arab Emirates. At the event, 27 sector companies showed their products in an exclusive pavilion.
In 2005 businessmen in the sector also participated in Cosmoprof Bologna, which took place between April 1 and 4, in Italy, in NACDS Market Place, between June 4 and 7, in New Orleans, and in Cosmoprof North America, from July 24 to 26, in Las Vegas.
Abihpec estimates that domestic sales should grow 10% in 2006, resulting in revenues of over US$ 6.9 billion and a volume of 1.4 million tons, 7% more than in 2005.
Sector companies should invest US$ 100 million a year up to 2010. The money will be turned mainly to expansion of factories that are in operation.
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Egypt is not only the cradle of a millenary civilization. According to archaeologists and historians, it was there that, thousands of years ago, perfume arose. And O Boticário, a company that makes perfumes and cosmetics, has just opened a store in the country of the pharaohs.
O Boticário is headquartered in the city of São José dos Pinhais, in the metropolitan region of Curitiba, capital of the southern Brazilian state of Paraná,
"The Middle East shows itself as a market with excellent potential for expansion of the cosmetics sector," declared Roberto Neves, the International Marketing manager at the company.
The establishment opened in the Egyptian capital, apart from presenting the brand to new consumers in the country, will be used as a central office for the distribution of products in the North and Northeast of Africa.
Neves prefers not to inform how much was invested in Cairo, but states that the new store opened in July is a sign that there is interest in the region. "We will soon have more news in the Middle East," he said.
Apart from Cairo, O Boticário has one store and 30 points of sale in Saudi Arabia (where they intend to open another two up to the end of 2005), 20 points of sale in the United Arab Emirates and 60 in Jordan.
Another route that the company has been following to increase sales in the Arab countries is distribution in perfume chains and setting up installations in department stores, with corners and exclusive areas.
The entry into the region was preceded by market studies. "Before opening our store in Riyadh, we tested the local market for two years. We identified the growth potential and established a partnership with a local investor. We are doing the same in other countries in the region and will soon have news in some countries," explained the manager. According to him, the female Arab consumers show preference for the lines of make-up.
On the foreign market, O Boticário currently has a total of 59 stores in 23 countries. The company's plan for internationalization has consumed around US$ 43 million in recent years.
In Brazil, the brand has 42 own stores. When adding the franchise stores, the total rises to 2,328 points of sale. Last year, company gross revenues reached around US$ 240 million, with the production of 55 million units.
Perfume Is Born
The relations of the Egyptians with fragrances began around four thousand years ago and, at its birth, had a strong religious component. They discovered that if an aromatic substance were soaked in oil, the oil would become scented.
The technique then started being used in the preparation of gifts for the gods, as the fragrance in the oil lasted more than incense.
But the preachers soon noticed that it would be possible to have profit with the preparation of perfume for men. They then began, little by little, to transform their temples into authentic perfume laboratories. The first clients were the pharaohs and important court members, but the use of perfume soon spread.
According to historians, the need for refreshing and scented essences became so fundamental that the first strike in the history of humanity, in around 1,330 b.C., was by the soldiers of pharaoh Seti I, and they simply stopped supplying him with aromatic ointments.
A little later, in 1,300 b.C., pharaoh Ramesses II had to face a rebellion by the workers of Thebes, who were furious with the small food and ointment rations.
Talented professors, the Egyptians spread their knowledge of perfumery to the Assyrians, Babylonians, Caldeans, Hebrews, Persians and Greek. Therefore, each culture developed its own variety of fragrances, according to the ingredients locally available.
Omar Nasser is from the Fiep, Federation of Industries of the State of Paraná.
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]]>With the external market as the objective, the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec) and the Brazilian Micro and Small Business Support Service (Sebrae), created the Cosmetics Exports Group of the State of Minas Gerais, in the southeast of Brazil.
With little more than a year of existence, the group has just settled the plan for nine micro and small sized companies to be prepared to start exporting.
“We started work selecting the companies with export potential, which were interested in participating in a international trade promotion program in the whole state,” explains the coordinator of the project at the Sebrae in Minas Gerais, Simone Mendes.
Amongst the chosen companies, six industries are based in the capital city of the state, Belo Horizonte, and three in the city of Uberlândia.
“We identified the capacitation stage of each company for meeting the demands of the internal and external markets,” tells Simone.
According to her, the objective is to see the current reality of the group, to gather the companies according to their immediate needs, develop ways of business capacitation and promote trade.
According to the coordinator, after the indicators revealed the diagnostics, an action planning was carried out together with the businessmen. Product adaptation activities were defined and the main potential markets were identified. Amongst them are countries from the Middle East and North Africa.
“We have been for the second time to a fair in Dubai (United Arab Emirates) and the results were very positive,” states the Abihpec president, João Carlos Basílio.
According to him, the participation at the Beauty World Middle East in 2005 resulted in an increase of more than 100% in the business volume, in relation to the last year’s edition. “We estimate exports of US$ 12 million to that region in a period of 12 months,” bets Basílio.
The Abihpec president explains that, before anything else, the project aims at removing the micro and small sized companies from the sanitary informality.
“Some of them own inadequate facilities and this occurs especially due to the lack of information,” he says.
“First we take techniques that can advise these companies and leave everything set. Only then comes the part of good production practices, the correct manipulation of raw materials,” he explains.
According to Basílio, they even take information through summaries of congresses and seminars that take place in the city of São Paulo, the Brazilian economic center.
“We believe that through knowledge, the small entrepreneurs can find innovative solutions and launch differentiated products from the big companies. Thus going from regional participation, to national and finally international,” he remarks.
The partnership between the Abihpec and the Sebrae was signed about one year ago. According to the president, for three years Sebrae has worked with groups similar to this one in the states of Rio Grande do Sul (in the South of Brazil), in Rio de Janeiro and São Paulo (both in the Southeast), Bahia (Northeast) and Pará (North).
The Sector
The beauty industry generates, in Brazil, more than 2 million jobs and had net revenues of about US$ 5.4 billion in 2004, where 98% of the companies are small and medium sized.
According to information from Abihpec, Brazilian exports of the sector increased 97.5% in the last five years. Last year, exports added up to US$ 334 million.
“This year the sector should export more than US$ 400 million to more than 140 countries,” estimates the entity’s president.
Contact
Abihpec
Telephone: +55 (11) 3372-9899
www.abihpec.org.br
In a move to take advantage of Brazil’s enormous biodiversity, the Brazilian Ministry of Environment has approved the first contract with a private company for the use of plants, animals, minerals and micro-organisms in a determined region. The region is the Pantanal and the idea is to begin making perfumes from plants there.
The Brazilian pantanal is South America’s largest flood plain. It is located in the Central West region and with an area of approximately 140,000 square kilometers, covers large parts of the states of Mato Grosso do Sul and Mato Grosso.
Quest Internacional of Brazil Ltd. has begun collecting material at the Campo Formoso Farm in Aquidauana, state of Mato Grosso do Sul. The deal is that Quest will pay the landowner a 5% royalty on sales of any perfume made from local plants collected between now and November 2005. Quest will also be sending weekly reports to the ministry.
Eduardo Velez, who heads the Council on Genetic Property Management at the ministry, says the plan is to combat the irregular use of natural resources through government control.
“Companies will have to comply with legislation and share the benefits and profits that come from biodiversity use. This is part of the fight against biopiracy.
“We are stimulating the correct use of biodiversity so that the scientific community and the private sector can exploit this area with responsibility,” he said.
Another offensive in this area by the government, reports Velez, is a bill that is on the way to Congress which will improve legislation on natural resources use.
“We need clear rules,” he said.
At the moment, the Ministry of Environment is examining 12 proposals for commercial exploitation of conservation areas under control of the Environmental Protection Institute (Ibama).
Such projects will automatically pay royalties into the National Enviromental Fund which will use the monies to expand its conservation programs.
Fish from Amazon and Pantanal
Various native fish species from the Amazon and the Pantanal flood plains are on the list of the Brazilian Export Promotion Agency (Apex-Brazil), linked to the Ministry of Development, Industry, and Foreign Trade.
Through an agreement signed May 26 between the Apex-Brazil and the Special Secretariat of Aquiculture and Fishing, the Brazilian government will invest over US$ 634,000 in publicity, exportation, and the opening of new markets for these fish.
The project aims to encourage small producers to enter the export market. Besides traditional consumer markets such as the United States, France, Spain, and Italy, the partnership intends to expand commercial relations with promising markets such as the Middle East, Japan, and China, by promoting rounds of business and participating in international fairs.
According to the president of Apex-Brazil, Juan Quiróz, the goal is to raise the volume of exports from the 33 thousand tons registered in 2003 to 50 thousand tons by the end of 2005.
“Nowadays Brazil possesses two big trademarks, Amazônia and the Pantanal. We shall energize these brands and stimulate demand for the country’s native fish,” Quiróz explained, underscoring that the growth in exports will involve around 70 companies and will make it possible to generate over 3,500 direct jobs in the sector.
The Secretary of Aquiculture and Fishing, José Fritsch, is optimistic about the parnership with Apex-Brazil, since Brazilian fish already conform to a high standard of quality and trackability, prerequisites for acceptance of the product on the most stringent markets.
“Our native fish are of excellent quality, and those derived from aquiculture are bred without chemical additives or antibiotics.”
In 2003, Brazil exported US$ 419 million worth of fish and seafood, predominately shrimp, lobster, and tuna.
With the project, the government wants to push the exportation of cultivated native freshwater fish, in addition to the species caught at sea.
“Brazilian organic fish have all they need to conquer the world,” Fritsch affirmed, observing that world demand for organic products has grown annually on the order of 12%.
Agência Brasil
Translator: Allen Bennett