Key Lesson #4 – Direct sales plays a key role – do not underestimate these relationships.
Since 2003, direct marketing has been the fastest-growing channel in the worldwide beauty industry. Much of this growth has come from the BRIC markets.
In both Brazil and Russia, direct sales is among the leading outlets and accounts for 24% of total personal care sales. Consumers in both countries view direct sales as the go-to channel for high quality products. In China, channel share has nearly doubled to 10% over the last five years as a result of the enactment of the government’s Direct Sales Law, making it compulsory for direct selling companies to obtain a direct sales license.Continue reading
Key Lesson #3 – Suburban and rural areas offer immense potential in all four BRIC countries.
So far much of the growth we’ve seen in the BRICs has been in the major cities. From Moscow to São Paulo, Shanghai to New Delhi, we can find modern retail concepts, Western brands, and savvy consumers. The channels of distribution have become quite developed, product awareness is high, and sales are well established.Continue reading
Key Lesson #2 – All four BRIC markets embrace Western concepts and products.
Consumers in all four of the BRIC countries are gobbling up Westernized consumer goods in virtually every category—fashion, electronics, entertainment, and, of course, beauty. With increasing disposable income and a growing middle class, these products are more affordable than ever. Brazilians, Russians, Indians, and Chinese alike gravitate toward European and American fragrances, skin care products, and makeup more each year.Continue reading
Beauty Retailing in the BRIC Markets – Key Lesson #1
Last week at the HBA Global Expo in New York City my second presentation on the BRIC markets walked the audience through the various channels of distribution in Brazil, Russia, India, and China. We looked at food stores in Brazil, open markets in Russia, kiranas in India, hypermarkets in China, and direct sales and specialty stores across all countries, among others.
I wrapped the talk up with some key takeaways, some of which I will share with you now and in the coming days.
To start: Key Lesson #1 – The economic crisis is global. BRIC countries are more protected but are not immune. Continue reading
Global Recession Levels Serious Blow to Lubes Industry
The worldwide recession has sent the global lubricants market into a tailspin – even demand in the usually burgeoning Asia-Pacific region has slipped by almost 3%. But, while the global community may be “in it together,” the specific market drivers and impacts of the recession vary significantly from one geographic region to the next. Given this uncertainty, what might the finished lubes industry look like once the worst is over? Read more…
BRIC-by-BRIC at the HBA – Russia: the Jewel of the European Personal Care Market
Last week I presented at the HBA Global Expo in New York City at two sessions covering the BRIC markets. My first presentation took an in-depth look at the Russian personal care market, assessing the market size and segmentation, product trends, competitive landscape, and future outlook.Continue reading
Kline Personal Care Industry Expert, Carrie Mellage, to Present at HBA Global Expo
HBA Global Expo Conference, which runs from September 15 to 17, 2009, in New York City, will attract a similar number of visitors in 2009 as in the previous year.
Organizers of this trade show say the show is on track to welcome a similar number of visitors in 2009. “We are running slightly ahead on registration compared to last year’s event,” HBA event director Jill Birkett told CosmeticNews. Around 12,000 people have pre-registered for the event to date, including 615 exhibitors and educational partners, Birkett said. The show attracted 16,207 highly qualified industry professionals in 2008.Continue reading
A number of small niche marketers looking for a white knight may cause increased M&A activity for the lubricants industry
With the state of the current economy it may come as a surprise that a number of firms are continuing to acquire other companies. However bankers are pointing to early signs of a pick-up in mergers and acquisitions (Source Reuters). This pickup in M&A activity may be due to the recession though not all cases can be definitively linked to it!Continue reading
Proposed regulations on Acetaminophen intended to keep consumers safe will result in substantial burden for manufacturers and could actually restrict consumer access to commonly used OTCs
An FDA advisory committee is weighing in on the safety of OTC acetaminophen, the key active ingredient found in many OTC pain relievers, sleeping aids, and cough and cold medications. The proposed regulations suggest either cutting down dosages of acetaminophen or completely pulling combination drugs that contain acetaminophen off the shelves.Continue reading
Q2 sales boosted by profits in emerging markets for a number of beauty firms
Direct selling companies did relatively well in 2008. We often see direct sales do well during economic downturns as unemployment rises, which results in an increase in independent sales consultants for the direct companies. For example Swedish direct seller Oriflame experienced an increase in the average size of its sales force by 19% to 3.1 million consultants and closing sales force was up by 25% in the beginning of 2009, Oriflame’s Q1 report revealed.Continue reading
