Direct Sales BRIC Markets

Direct Sales Deliver Big Beauty Bucks for Multifaceted BRIC Markets

With the ongoing efforts of beauty companies to create sales opportunities outside of the United States, we set out to see just exactly what makes the BRIC markets of Brazil, Russia, China, and India tick. We wanted to hone in on the purchase channel that we felt epitomized the growth of these markets and found that the direct sales channel was the one to explore.

The direct sales channel in BRIC markets outpaced the worldwide beauty sales growth of a 4.7% compound annual growth rate from 2006 through 2011 by more than double.

Growth of Cosmetics and Toiletries in BRIC Markets through the Direct Sales Channel, 2006 to 2011

Our recent research for Beauty Retailing USA revealed that the direct sales channel consists of several sub-channels, such as infomercials, e-commerce, and home shopping. Based on these details, our research for Beauty Retailing Through Direct Sales in EmergingMarkets 2011: Channel Analysis and Opportunities delved further to see how these sub-channels performed in the individual BRIC countries. One of the exciting findings was that, for example, beauty sales in China through the Internet have grown by nearly 200% from 2006 to 2011 and are valued at $3.5 billion in retail sales.

Another discovery that we made is that regional direct sales companies, such as Oriflame and Natura, as well as local ones, such as Racco in Brazil and Tiantian in China, are chipping away at the sales share of multinational direct sellers, such as Avon. These companies have the ability to quickly adapt to the culture and needs of consumers in these countries, as well as offer the most sought after products, such as skin care products and makeup.

We will be keeping a close watch on this channel in the BRIC markets as its potential may be unrivaled. It will be interesting to see how direct sales companies will be building equity in both the person-to-person and e-commerce venues, and how companies who do not have a presence yet in this channel will take the plunge.

Sales Share by Direct Channel Subclass of Cosmetics and Toiletries Sales in BRIC Markets, 2011 and 2016

And for those interested to gain a few more insights from this stirring research and identify how valuable this report could be to your business, we are holding a webinar on the 28th of March 28, 2012, at 9 am EST.

REGISTER HERE>>

Share this
Posted in Beauty & Personal Care, Personal Care and tagged , , , , , .

Leave a Reply