Geovana Pagel
São Paulo – Over the last three years, Arab countries have become one of the main export destinations for Brazilian cosmetic company O Boticário. As from 2000, the company has registered 15% annual growth in sales to the Arab region. With their current efforts to prospect new countries in the Arab region, the company expects growth of 40% in 2004.
O Boticário currently has 16 shops in Saudi Arabia and 20 in Dubai, United Arab Emirates, where they also installed an office, in 2001, representing the brand in the region. Distribution is through a local partner.
The company financial and commercial director, Artur Grynbaum, stated that the points of sale in both countries are not exclusively Boticário stores. "They are local shops that go by the name Bugshan, and are one of the most traditional perfume distributors in Saudi Arabia", explains the director.
He also stated that total Boticário export volume represents 2% of annual revenue, in 2002 closing the year at around US$ 454 million.
"Export is still not very great, but the company long term strategy is to introduce our unknown brand into these highly competitive markets that are used to big international brands", said Grynbaum.
The Arab market is responsible for 7% of export revenue. "Nowadays we export only our premium perfume line. The commercial mix is about 30 fragrances for men and women", he said.
One of the main technical requirements for export is products registration at the Saudi Arabia Standards Organization (SASO), the institution that regulates entry of cosmetic products in the country. "Another demand is labels in Arabic showing where the products come from", added Grynbaum.
The executive also points out specific negotiating needs with these partners. "The Arab people are masters at negotiation. They are very demanding in terms of quality, and, in general, are very flexible and friendly in personal relations."
Countries like Lebanon, Egypt, Jordan, and Morocco may be the next importers of Boticário products. "We are prospecting this market, starting negotiation", explains Grynbaum.
O Boticário
One of the most successful cosmetic franchises in Brazil, O Boticário was founded in 1977, in Curitiba (capital of the southern Brazilian state of Paraná). The company currently has 2,196 shops spread over the country, and exports to 89 shops and 519 points of sale abroad. In 2002, company revenue was US$ 454 million, and the group expects to end 2003 adding another 60 new shops.
O Boticário has a 34,346.54 square meter plant (including production and administration) and generates almost 10.000 jobs (directly and indirectly). In the industrial plant and in their own shops, the company employs 1,250 people.
The company sells over 600 items in the following lines: facial and body care, sun block, make-up, deocologne, deodorant, soap and shampoo.
The first foreign sales were to Portugal, in 1987, when 52 exclusive shops were established under the franchise system. In 1995, in Bolivia, 5 exclusive shops and 7 points of sale were established. In 1996, a distribution agreement in Japan was signed with a local partner and 438 points of sale, not exclusive.
In the same year, 2 exclusive stores were opened in Peru. In 1999, 2 exclusive stores were opened in Paraguay and another 5 points of sale were added. O Boticário also started business in Mexico in 2002, with 2 exclusive stores and 23 points of sale. In 2003 they started operating in Uruguay with one exclusive store and 10 points of sale.
Area of preservation
In 1990, the company founded the Fundação O Boticário de Proteção à Natureza (O Boticário Nature Protection Foundation), a non-profit organization with administrative and financial autonomy, destined to sponsoring and executing conservation projects.
The institution acts mainly in three programs: Incentive to Nature Conservation, Protected Areas, and Education and Mobilization.
The protected area program intends to build a group of private preservation areas, the first being the Salto Morato nature reserve, a 2,340 hectare area in Guaraqueçaba, north shore of Paraná state.
This natural reserve protects a significant area of Atlantic Forrest and also has infrastructure for scientific research, environmental education and open-air recreation. In November 1999, Unesco (the United Nations Educational, Scientific and Cultural Organization) declared the area World Heritage.
Contact
O Boticário
Phone: (+5541) 381.7000
E-mail: www.boticario.com.br
