What do men think of cosmetics? This is the question that cosmetics companies are now trying to answer. The market that caters to Men's cosmetics has emerged as a promising market in the cosmetics industry. Today, Dior Homme Dermo System, spa treatments and NUXE Beau Player and other specialists no longer hide the cosmetic treatments that are meant for men but invest a lot of time and energy to develop their marketing strategy. This has led to extremely favourable results for the industry.
In this paper, we have chosen to study the introduction of L'Oreal's Men Expert range to the Brazil, to whose people, beauty and aesthetics are important factors for everyday life.
After a brief study of the current environment of the cosmetics industry in Brazil, we will take a look at the Men Expert range developed by L'Oreal Paris. We will develop a strategy to facilitate the introduction of the Men Expert range to the Brazilian market. We will also take a look at the risks this venture might face.
1) The environment
Brazil is currently the tenth strongest economic power. Their debt has gone down and inflation has been kept under control for several years now. Brazil is an emerging power that is becoming increasingly important. There is a strong inflow of FDI to Brazil. In fact, the country's Central Bank announced that Brazil received $ 45 billion of foreign direct investment in 2008, representing a 30% increase since 2007. The increase in FDI reflects the fact that companies that invest in Brazil have confidence in improving the economic situation in this emerging country.
Brazil presents a growth of 54% per year and its domestic demand grows by 6.5% every year. This is typical of an emerging market.
Tags: Emerging Brazilian economy, launch of L'Oreal Men Expert in Brazil, Global growth of the luxury industry.
[...] Product L'Oreal Paris wishes to introduce their range of Men Expert to Brazil. As the name indicates, this range caters exclusively to the cosmetic and skincare need of male customers. This range includes facial products that are used for facial cleansing, shaving products and products that respond to the different needs of various skin types. The products are divided to provide daily care and special care for important occasions. The Men Expert range is diverse and comprehensive with a total of 17 different products that are designed to meet the various cosmetic needs of men. [...]
[...] This market has experienced an average growth of for the last 12 years. In 2007, the turnover of these industries totaled more than $ 21.2 billion with the highest figure of for the previous year. The growth it has seen in terms of the consumption of cosmetics and skin care products per capita was most significant in 2011 i.e.+ 15.49 %.One can say that the market for skin care products is the most dynamic with a forecasted growth of 22%. [...]
[...] Thus, opportunities for brand development should first concentrate on entering the South American cosmetics market in Brazil(which is considered to be the representative of this region) and then focus on product diversification i.e. developing products that cater specifically to the needs of the Brazilian market. The possible risks Establishing a new line of cosmetics in a foreign country is not always safe for the economic viability of the company. Although our group, L'Oreal, is already present in the Brazilian territory, introducing a range can be a risky move. [...]
[...] For this reason, the Men Expert range from L'Oreal is 100% organic. This is a point that must be stressed upon though all modes of communication. Development possibilities After introducing the product to the market successfully, we must concentrate on its evolution. The implementation of this range in a country like Brazil gives us access to a new geographical area i.e. South America. If the introduction of our line is successful in Brazil, we could try to implement it in other Latin American countries like Argentina or Venezuela. [...]
[...] It would be ideal if the Men Expert range was present at each of these events. The FCE cosmetics trade fair is the most important of the three and this is the ideal platform to communicate the benefits of the Men Expert range. The mission network and the government agency UBIFRANCE encourages French cosmetic companies to take advantage of the favourable climate in the industry and are set to organize a special ‘Space France' for these companies at this fair between the 26th and 28th of May Everything is organized to maximize the impact of communication and the French Embassy's report on the Economic Mission of Sao Paulo, Brazil. [...]
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