São Paulo – A good idea coupled with good planning and an attractive market. The strategy for a good deal to come to fruition and head straight to the foreign market, conquering customers in Europe, the Arab countries and the United States. This is Cadiveu, a small Brazilian company based in the city of São Paulo that manufactures professional hair care cosmetics. With only three years in existence, Cadiveu exports 6,000 product kits, out of a total output of 11,000. For 2010, the expectations are the best possible. “Growth of 50% in sales,” says Claudia Alcântara, director of research and development for the company.
The history of Cadiveu has to do with the roots of Brazil, more precisely the Indian tribe Kadivew (the horse-riding Indians), from the state of Mato Grosso do Sul. The sound of the name and the beautiful hair of the Indian women inspired the creation of the brand. The raw materials used in the formulations are also very much Brazilian.
“The first line that the company developed was cocoa-based, named Cacau Brasil, and for exports only,” explains Claudia. To become more efficient in the formulation, distribution, marketing and sales phases of, Cadiveu outsourced the entire manufacturing of its products, and only has 20 employees. “We develop the formulas, pass them on to our suppliers and they deliver the finished product to us,” she says.
Presently, the company works with three different lines for hair and scalp care. One line is Cacau Brasil – including products such as cauterization kit, maintenance kit and reconstruction of damaged hair, for example –, shampoos and hairstyling products (which have replaced gels for shaping hairdos) for men, and the Plástica dos Fios line, also for reconstruction. A fourth line is being developed by the company, featuring organic hair care products. The line includes products made from Amazonian fruits, mango and ginger.
In the Arab
According to Claudia, after preparing the product for the foreign market (by developing packaging and campaigns in English), Cadiveu made a field test: taking part in international trade fairs. The fairs chosen were the largest in the world for the segment: Cosmoprof, in Bologna, Italy (April), and BeautyWorld, in the United Arab Emirates (June). The former quickly resulted in contact with a representative of a Saudi hairdressing salon chain. “Three months after making contact, we were able to close the sale to Saudi Arabia,” celebrates Claudia. The first shipments totalled 300 kits.
One things lead to another, and the sale to the Saudis led Cadiveu to attend the BeautyWorld trade fair, where they made contact with an Arab importer. The result: the monthly shipment of 1,000 product kits to the Arab market. The total foreign sales volume is currently 6,000 kits per month, the United States market being the leading target. Latin countries such as Colombia and Panama have also received products by Cadiveu. “In 2010, our goal is to increase exports by 50%,” said Claudia. New Arab countries are targets for the country next year.
*Translated by Gabriel Pomerancblum