São Paulo – A group of six cosmetics companies from the state of Paraná is getting ready to enter the foreign market. Since the beginning of the year, the enterprises are part of the internationalization section of the Paraná Cosmetics Project, an initiative of the Brazilian Micro and Small Business Support Service (Sebrae) of the state, in partnership with the Brazilian Association of Toiletries, Perfumes & Cosmetics Industries (Abihpec) and the Brazilian Agency for Industrial Development (ABDI).
According to Virginia Allgayer, consultant to the Sebrae and manager of the Paraná Cosmetics Project, the idea came up last year, when the Sebrae discovered that Paraná is the third leading cosmetics producing state in Brazil, with 145 enterprises, after São Paulo (732 companies) and Rio de Janeiro (146 companies). “After determining the industry’s potential, we started working,” she says.
In the beginning, a survey was conducted to learn what the companies had that was ready for the foreign market, such as bilingual promotional material, product lines and price tables. Then, the companies received courses, consultancy, and lectures about taking part in business matchmaking rounds and international trade shows. The possibility of shipping products via the postal service was also presented to the group. The Exporta Fácil (Easy Export) service enables goods to be shipped abroad in small amounts, and is generally used for shipping product samples.
The companies were also encouraged to enrol in Beauty Care, the ABIHPEC’s Integrated Sectorial Project, promoted in partnership with the Brazilian Export and Investment Promotion Agency (Apex). The project selected priority markets for the Brazilian cosmetics industry: Saudi Arabia, Angola, Mozambique, Colombia, Peru and Portugal.
The companies based in Paraná chose to focus in Colombia, Angola and Mozambique, the former for its geographical proximity and the latter two because of the language (the two countries speak Portuguese, as does Brazil). Virginia also explains that aspects taken into consideration included regulation for entry of cosmetics into the countries, the size of the consumer market, and climate.
The consultant reports that four companies in the group have already taken prospecting trips to Colombia, and ended up visiting Peru as well. Together, they presented products such as creams, massaging oils, bathing oils, gift kits, anti-cellulitis creams, shampoos, soaps, perfumery lines, and children care lines. Thus far, only one company in the group exports its production.
“These enterprises have focused on the foreign market, and this makes them more visible in the domestic market,” explains Virgínia. “It improves the product mix and marketing quality. Once the internationalization starts, there is no turning back,” she says. The departure from domestic market dependence is another interesting aspect of foreign sales. “Internationalization is a way of lowering the risk of focusing in one single market.”
Virginia claims, however, that 2010 is a preparatory phase for the enterprises. “We are preparing ourselves this year to work on stronger sales next year.”
The world’s third
Brazil is the world’s third leading producer of personal hygiene, perfumery and cosmetics products, after the United States and Japan. The country is also the world’s first in deodorants; second in children care products, men’s products, oral hygiene, solar protection, perfumery and bathing; third in hair care products; sixth in skin products; and eighth in skin products; and eighth in hair removal products.
In 2009, the country earned US$ 153 billion in revenues from exports. South American countries are the leading importers of Brazilian products. There are 1,659 cosmetics manufacturers in Brazil.
*Translated by Gabriel Pomerancblum
