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Here is an excerpt of ourcosmetics magazine :
An International Division for Keyline Brands
British company, Keyline Brands Ltd, is opening an International Business Division, headed by John Kingham, who joined the enterprise in November 2000. Keyline Brands, which already exists in Ireland, Finland, Bahrain, Gibraltar, Italy, Latvia, South Africa, Spain and the UAE, wants to develop its activities in Europe. The personal care manufacturer and distributor, which announces 2000 sales of £10m, operates mainly on niche markets in pharmacy.
Founded in 1990, Keyline Brands owns: Inecto Hint of Tint temporary hair colours, Cuticura mildly medicated talcs and soaps, Adorn hairsprays and mousses, and Erasmic shaving range. It also distributes brands such as Zero Frizz, Thicker Fuller Hair, Citré Shine (haircare products) and Riemann P20 Once-A-Day Sun Filter (suncare products).
L’Oréal Spain Shows Strong Growth
According to Rolf Sigmund, general manager of L’Oréal Parfums et Beauté in Spain, the brand’s growth over the past two years has been very strong.
"Since 1998, our growth has been higher than that of the overall selective market, of which we control a 22% share. Lancôme is the leading brand in three segments: skincare, makeup and fragrance. Biotherm is number one in men’s cosmetics, second in suncare and third in skincare. Helena Rubinstein is already in the top seven on the selective circuit, having posted growth rates of more than 20% over the past two years. In 1999, the growth of the group as a whole, including Ralph Lauren, Cacharel and Armani, was up 17%, while the average for the Spanish market was +14%.
So far this year, L’Oréal Parfums et Beauté has launched the fragrances Miracle by Lancôme, Nemo by Cacharel, Mania by Armani and Romance for Men by Ralph Lauren, plus the skincare products Vinéfit by Lancôme and Force C Premium by Helena Rubinstein.
Brazil: The Trends of Consumption
Consumption trends are on the rise
The past ten years have seen a sharp rise in the Brazilian population's consumption of beauty products. In fact, the greatest increase has been among men. According to a study by the ABIHPEC/SIPATESP, 71% of Brazilian men used a shampoo in 1990. By the end of 1999, this figure had risen to 86%. The index for women rose from 89 to 96% during the same period. In fragrance, the upturn is even more significant: 40% of men used fragrance in 1990, compared to 76% in 1999. Among women, 86% now say they use fragrance, up from 56% a decade ago.
This represents a growth of 90% for men and 53% for women. Many beauty products that were formerly neglected sell well today, including lip glosses, eye pencils and eyeshadows, whose sales have grown remarkably in the past four years. In the deodorant category, sprays have always been the preferred type, with 49.5%, followed by roll-ons with 22.4% in the first half of 2000.
The Brazilians' traditional tendency to use the same moisturizer for the body and the face is being reversed, as more and more consumers buy specific products for facial care. This trend is no doubt encouraged by the greater number of products available. Anti-age, anti-wrinkle and eye contour products should have high potential on this market, given that the number of Brazilians over age 65 is 8 million today and is expected to double within 20 years. Children's products are big in Brazil.
Nearly all the brands have come out with a line for infants or children (who are, after all, the consumers of tomorrow). The hottest target today is teenagers, who are finding more and more attractive products at affordable prices, especially EdTs and makeup endorsed by television stars. Ethnic products are another major trend, especially in haircare and make-up.
Elida Gibbs has launched a body moisturizer specifically for black skin in its Vasenol line. Note that no less than 57% of the country's population is black or of mixed race, which explains why this strategy has been taking off in the past four years. There is even a trade fair specifically for ethnic products: the third annual Cosmoétnica will be held in São Paulo this November.
Fighting red tape, boosting the market
In terms of regulations and legislation, nothing is simple in Brazil. It is no easy matter to register a formula with the Ministry of Health in order to obtain marketing authorization, and taxes and tariffs are higher than in many other countries. In the past, registering a product took about two years, but the process was streamlined in March 2000.
It now takes less than one month for Category I products and about two months for Category II, which includes skincare products with active ingredients whose effectiveness must be proven. Thanks to the efforts of the union and its president João Carlos Basilio da Silva, the IPI (tax on industrialized products—one of three taxes comparable to the VAT) has been reduced somewhat, although it is still prohibitive.
The IPI was as high as 77% until June 1992. It was first lowered to 40% for fragrance and skincare creams and 32% for makeup, and is now down to an average of 20%, and only 10% for suncare products and colognes. The fragrance category remains the most heavily taxed: any product containing more than 10% alcohol is subject to a 40% IPI. J.C.B da Silva's main goal is to continue to fight for the reduction of this tax and the harmonization of regulations and taxes throughout Latin America.
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