News from Latin America
IN A MARKET dominated by direct sales companies such as Avon and Natura, Bel Col Cosmeticos is still relatively
unknown in Brazil, despite the fact that
the multinational cosmetics company has
operations in 16 countries around the
world including Peru, Argentina, Mexico,
Venezuela, France and Germany. According to Euromonitor, Bel Col was the third
largest cosmetic company in Latin America, even before entering Brazil. It landed
here with an intense campaign to open
opportunities for enterprising people
who want to be part of its team of independent consultants.
Bel Col uses the multilevel business
model with three exclusive brands, L’Bel,
Ésika and Cyzone, targeted at different audiences. Early next year, its beauty portfolio
will include 800 products—giving it the
largest number of products in a catalog of
direct sale companies selling to the Brazilian consumer. The company has 850,000
consultants to get all those product catalogs
into consumers’ hands.
Sueli Ortega has written for Isto É
and O Estado de São Paulo. Since
1987, she has served as a correspondent for Cosmetics International. In addition, she created the
beauty channel for El Sitio, an Argentinean website
and the Women Channel.
She has her own website, Cosmeticos BR and can be
reached at firstname.lastname@example.org
such as Avon, Natura
and Bel Col provide
For the past 15
years, Hypermarcas relied on acquisitions to
expand its business. Company founder Joao
Alves Queiroz Filho built Hypermarcas by
acquiring more than 30 companies, that includes spending $4.7 billion for personal
care, beauty, pharmaceuticals and household products. Last year alone, Hypermarcas closed 10 acquisitions, among them the
largest in its history, laboratory Mantecorp,
for $1.4 billion.
But acquisitions have been negligible
in 2011 as the company’s debt load has
risen and its share price has fallen. Since
the start of the year, the stock has lost
60% of its value, at the same time, debt
rose to $1.58 billion in the second quarter.
To boost its balance sheet, the company
is closing factories in rented properties
and transferring production lines to
Goias (central region of the country). The
cosmetics segment will be transferred to
Senador Canedo, also in Goias.
Natura’s Q3 Sales Rise 7.8%
Natura’ third quarter sales rose 7.8% to
$851 million, while net income increased
5.2% to $124 million. Domestic sales increased 5.5% to $768 million, while international sales surged 42%. During the
period, Natura launched 69 new products,
including VôVó, which features the innovative proposal of celebrating the bond between grandparents and grandchildren (see
HAPPI, August). Meanwhile, Natura Ekos is
being relaunched in a move to be concluded by year-end. The move includes new
formulas and packaging that strengthen
the connection these products enjoy with
Brazil’s biodiversity, according to the company. Through the nine months, Natura has
introduced 109 products. For the year, consolidated sales rose 9.5% to $2.4 billion and
net income increased 2.9% to $332 million.
Thus far in 2011, the number of active representatives has risen 16.3% to more than
1.3 million. The number of Brazilian reps
rose 14.9% to more than 1.1 million, and
international representatives increased
23.2% to reach 230,000.
P&G Expands Distribution
A growing Brazilian middle class is eager
to purchase health and beauty aids, and
Procter & Gamble is eager to sell products to them in all regions and through
all retail outlets.
“The Class C is consuming more tech-
nology and innovation,” said Jose Anto-
nio Valdez, commercial director. “Today,
the market is ready for our product lines.
Who would have thought seven years ago
that we could succeed with whitening
toothpaste, or a line like Head & Shoul-
ders? Products with higher added value
To take advantage of this new reality,
P&G is expanding distribution of Olay be-
yond pharmacies and into supermarkets.
The company hopes to duplicate the suc-
cess of Pantene, which is the No. 2 hair care
brand in Brazil after sales have jumped 10