Targeting the Brazilian Market? Maybe Take the Green Road…

Brazil is becoming the darling of the beauty industry, with a growing number of international brands looking to woo its consumers. Already the third largest in the world, the Brazilian cosmetic & personal care products market is predicted to overtake Japan to take number two position by 2020. Cosmetic brands eyeing the Brazilian market should consider shoring up their green credentials for market success.

Brazilians have a strong affinity to beauty products. Indeed, Sephora commented last year ‘Brazilians are truly beauty junkies…we see limitless potential’. However, what is less understood is that Brazilians are fashion and eco-conscious. A survey by GfK revealed that over half of Brasilian consumers consider the environmental impact of cosmetic products when purchasing. When asked about the most sustainable firms, Natura Brasil was top of their list. 

Natura Brasil, the largest cosmetics company in Latin America, is recognised as the most sustainable beauty firm in the world. It was ranked number 2 in a global survey of the 100 top sustainable corporations (Corporate Knights, 2013). Natura Brasil specialises in natural-based cosmetics, with many ingredients ethically sourced from the Amazon. It has spearheaded many sustainability initiatives, and is the only sizeable cosmetics company that is carbon-neutral (since 2007). 

The Boticario Group, the second leading cosmetics company in Brazil, is also very active in CSR and sustainability. It set up the Boticario Group Foundation for Nature Protection in 1990. The foundation protects over 11,000 hectares of Atlantic Rainforest and Cerrado, two of the most endangered biomes in Brazil. The foundation has donated over USD 10 million in nature reserve programs, enabling the discovery of 69 new species of plants and animals. 

With Brazilian consumers accustomed to associating beauty products with ethics, foreign brands are advised to flaunt their green credentials. It is perhaps no surprise that some of the leading green / ethical cosmetic brands are entering the Brazilian market. Korres Natural Products, Yves Rocher and the Body Shop have all made investments in the last year. 

Apart from the cultural nuances, distribution is a major hurdle for foreign brands looking to take a slice of the lucrative Brazilian market. Many brands struggle with building distribution networks in the vast country. As will be shown at the Sustainable Cosmetics Summit, foreign brands need to take a ‘creative approach’ to market entry and distribution. The Body Shop resorted to acquiring a local competitor, Yves Rocher is opening concept stores, whilst Korres has entered a strategic alliance for network marketing. 

The marketing and distribution challenges associated with the Brazilian cosmetics market will be covered in the Latin American edition of the Sustainable Cosmetics Summit. Natura Brasil, Group Boticario, Korres Natural Products, L’Oreal, and Johnson & Johnson are some of the cosmetics brands sharing their experiences at the summit. The summit will be hosted alongside in-cosmetics Brasil on 10-12 September. 

Source: Sustainable Cosmetics Summit 

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