Agenda
Brazil:
Key Facts
Figures & The rise of the
middle class
The Brazilian Consumer
Cultural Codes &
Fragrance
Key Players
Channels of Distribution &
Market Dynamics
Northeast Region
Olfactive Landscape &
Evolution
& Preferences
Brazil Looking Forward
&
Final Considerations
Since overtaking the US, the gap has increased to US$ 1,5 bi
Brazil: Fragrance Highlight
Source: Euromonitor
#1 Fragrance Market in the World! (In 2010, Brazil surpassed the US (US$ 5,3 bi) in fragrance reaching US$ 6 billion in retail value)
Brazilians are brand conscious, well informed and well travelled
The Brazilian Consumer
Brazilians are at the crossroads of three cultures:
- European Roots and Taste
- Aspire to the American Dream and lifestyle
- Influenced by local cultural values (Patriotism/Brazil as a brand)
Brazil has always had its selected group of “Noveau Riche” distinguished by
their extravagant tastes and their tendency to emphasize their new social
condition. This is also valid for fragrance.
Brazilians are spenders – In Brazil you can buy everything in installments, even
luxury goods (70% of purchases in the luxury sector are divided into
installments)
“Imported or International” are positive attributes. There is a belief and
recognition of the superiority of “imported products.”
Customer service is a magnet for shopping. Brazilian clients tend to develop
long term relationships with their favorite sales people.
The Brazilian LUXURY Consumer
The Brazilian Class C Consumer
Class C is trading-up
Premiumization:
Fine Fragrance to Personal Care
The Brazilian Culture Code: Feminine Culture
Brazil is essentially a feminine culture, cordial, warm and welcoming
The woman is at the center and in the workforce
“Mulher Guerreira” refers to the many Brazilian women that fight hard to make
ends meet, make sure her children are
taken care of and her house is clean
…and yet she is happy, proud and always
optimistic
Women have HIGH SELF-ESTEEM
They want their children to say ‘Mother, you are beautiful.’ then they want
their husbands to say the same, the girlfriends, the neighbor and so on…
Women opt for smaller families
The Brazilian Cultural Code - Faith
Brazil is a strong mix of religion and superstition
Brazilians never lose faith
The Brazilian Cultural Code: Colorful
Colors are everywhere, from the yellow and green typical of Brazil
reflected in fashion and food to an array of colors reflected in art and all
things Brazilian.
It is part of its uniqueness and visual identity.
The Brazilian Cultural Code: Touch and Smell
Me da um Cheiro “give me a bit of your smell”
Through touch and smell we express love in Brazilian Portuguese
Touch/Sensorial is very important
The Brazilian Cultural Code: Movement and Sensuality
Beauty is about movement, “the way you move.”
Sensuality projects when a woman moves and dances
In Fragrances movement is related to sillage
Movement, Touch and Sensuality are aspirational
The Brazilian Cultural Code: Architecture, Movement and Sensuality
Oscar Niemeyer recreated Brazil’s sensuous curves in his architecture
“ What attracts me are free and
sensual curves of Brazil.
The Curves we find in the mountains,
in the waves of the sea, in the body
of the woman we love.”
Oscar Niemeyer, Brazilian architect
The Brazilian Cultural Code: Soccer = FUTEBOL
In ‘Futebol’ they don’t play, they dance
Soccer players aren’t just athletes,
they are artists
It is not just strategy, it is improvisation
You don’t explain it, you feel it
Soccer is serious business in Brazil
O Boticario Eudora Quem disse,
Berenice ? The Beauty
Box Lingerie
Brand
Original Brand
with stand alone
stores
Now selling
products through
Direct Sales, too
Launched of
several
Nativa Spa doors
New brand
focused on
sensuality
Sold through
stand alone stores
and direct sales
New brand
focused on color
and fragrance
Stand alone and
Mall Quiosks
Target to a
younger consumer
New store
distributing
international
brands to
compete with
Sephora
Purchased in
2011
Beauty is what we do
EDP + EDT
Higher Price,
Concentration,
“Value”
DEO COLOGNES
Intermediary Prices &
Concentration
DEO COLOGNES + FRESHNERS/SPLASHES
Lower Prices, Concentration,
Concentrations ~ 1.5% - 5%
Concentrations ~ 5% - 15%
Key Players – Basic Fragrance Portfolio Architecture
Source: Base: Ipsos Observer Brazil/ Mintel 1,385 adults aged 16+ who own and use fragrances
Where do Brazilians shop for fragrances?
Channels of Distribution
Data from past 12 months, June 2012
Source: Base:
Channels of Distribution
1
2
3
4
50%
23%
9%
6%
DEOCOLOGNES
CREAMS & LOTIONS
DEODORANTS
SOAP
D2D
DEOCOLOGNE REPRESENTS 50% OF DTD SALES!
Source: Kantar World Panel
While the impact of digital is undeniable, Brazilian consumers still have a strong
need for D2D due to lack of infrastructure, especially in the northeast.
NORTH (7% population)
SOUTHEAST (42% population)
NORTHEAST (29% population)
SOUTH (15% population)
MIDWEST (7% population)
Brazil: Regional differences – “Not One Country”
The Northeast
56% of Total Market Volume
46% in Total Market Value
Highest Fragrance penetration 83% vs 46% SE/South
Due to the hot weather, people take on average 3 showers a day
Freshness is key, not long-lastingness
Splashes are used in generous amounts
Fragrances are shared by all members of the family despite gender
The Northeast
Contrary to other regions, baby splashes are largely used by adults
Body oils and body lotions are key due to the predominance of dry skin
type. Overlapping scents is not a problem
Fragrances are also used to stay at home
Large usage of Lavender (culture influence)
Exploration of freshness through Lavender and Eau de Cologne. MUSK is a MUST – Sensuality. Iconic Fragrances 1943 - Seiva de Alfazema Phebo 1950 – Lavanda J&J 1965 – Lavanda Rastro 1974 - Lavanda Gio Baby 1974 – Wild Musk –Coty 1983 – Musc de Natura 1985 – Lavanda Thaty – O Boticário
Freshness And/or Sensuality
80 The Brazilian Perfumery broadens
1993 International Perfumery enters the market. Local players, react and became more “sophisticated”. Perfumery gets more complex-fine fragrance.
1993 – Shiraz – Natura 1993 – Mamãe Bebê - Natura 1994 – Floratta Verde - O Boticário 1995 – Kriska 1995 - Essencial 1996- BIOGRAFIA Her 1998 – Accordes- O Boticário
90 Tropical fruit cocktails introduced new ways to express freshness FRUITY EXPLOSION: EKOS FRESCOR DE PITANGA EKOS FRESCOR DE MARACUJA HUMOR 1 CREAMY ORIENTALS EGEO – O Boticário 2000 – GLAMOUR O Boticário
FRESHNESS & SENSUALITY Fruity COCKTAILS
SUMPTUOUS SENSUALITY
+ intro Gourmand notes
Red Fruits
RED FRUITS and SOFT FLORALs
EKOS PITANGA NEGRA
EKOS MARACUJÁ ROXO
HUMOR 5
EGEO DOLCE
LUXURY CHYPRES
GLAMOUR BLACK
EUDORA
00 10 Women’s Olfactive Evolution
Optimism Colorful
Bright, Sparkling & Vibrant
accords from Fresh Fruits
Femininity
Non-descript Floral Bouquets
Sensuality Care Creamy &
Musky
Comfortable
Second Skin
notes
What Do Brazilian Women Want to Wear?
Movement
What Do Brazilian MEN Want to Wear?
Mo
ve
me
nt
Sophisticated Amber, Woods,
Vanilla + touch
of
leather/darker
wood
Performance
Outdoor Aromatic, Musky
Clean, watery,
non-descript
fruity/green
notes
Fresh and
Masculine
Fresh, Citrus,
Clean
Important Note: Women in Brazil use MEN fragrances, especially in the Northeast
Forecast
Brazil will lead value growth with an increase of
US$ 5 Billion by 2016
accounting for 30% of total Global Value in actual terms
Final Considerations
Sensuality, Movement, Style, Happiness, Togetherness, Pride and Humor are
important cultural/emotional codes companies must convey when executing
a product launch
Brazilians have a longstanding culture of fragrances
The woman is the “Household Director of Operations”
She consumes and decides what her family will consume
She is at the center and she is also the greatest “influencer”