This website uses cookies to ensure you have the best experience. Learn more

Giants In Cosmetics Essay

1245 words - 5 pages

To L'Oréal, Brazil's Women Need New Style of Shopping
By CHRISTINA PASSARIELLO
(See Correction & Amplification below .)
RIO DE JANEIRO—Brazilian women are among the biggest spenders on beauty products anywhere. But the world's largest cosmetics company, L'Oréal SA, has faltered in Brazil.
The reason: Brazilian women from the banks of the Amazon to Sao Paulo's slums and the affluent beach communities of Rio de Janeiro have traditionally bought their skin creams and mascaras from door-to-door sales representatives, not the shops where L'Oréal sells its brands.

Cosmetics giant L'Oreal is trying to change the way Brazilian women buy makeup. WSJ's Christina Passariello reports from ...view middle of the document...

Getting Brazilians to alter their buying habits won't be easy. The two major players who use the door-to-door method claim roughly 50% of all color cosmetics sales and 42% of skin-care sales. Natura Cosméticos, the market leader in beauty and personal care, has one million salespeople across the country, and U.S. cosmetics company Avon Products Inc. has built up a larger market share in Brazil than L'Oréal thanks to its expertise in direct sales.
L'Oreal's challenge also reflects the rising competition that global consumer-goods companies face from local rivals who understand the tastes and peculiarities of their home markets. Mexican bread maker Grupo Bimbo, for example, leads rivals such as Kraft Foods Inc. in Latin America, and last year it became the second-biggest bread maker world-wide after buying Sara Lee Corp.'s bakery unit. India's United Breweries Group has built a spirits giant around its popular Kingfisher beer.
Door-to-door vending is a longstanding custom in Brazil that has ushered millions of Brazilian women into the middle class. Some 2.5 million women, out of a total female work force of 42 million, earn a living from direct sales in Brazil.
Valdiane Vanessa Soares de Lima lives in one of Rio de Janeiro's toughest slums. A stay-at-home mother with two kids, she is accustomed to spending as much as $120 a month on Natura products. "I'm totally out of control!" the 23-year-old Ms. De Lima said with a laugh as she displayed some of her makeup in her tiny living room.
Natura Chief Executive Alessandro Carlucci predicts the direct-sales model in Brazil will be going strong for at least another decade. Customers like "the cultural side," he says.
But Mr. Agon takes a different view. The 54-year-old executive, who took over as L'Oréal's CEO five years ago, made his name as head of L'Oréal's U.S. unit by opening a center to research black skin and hair in 2003 and launching Soft Sheen-Carson hair-conditioning oils for African-Americans. In 2006, he spearheaded L'Oréal's purchase of The Body Shop.
Peddling Beauty
View Slideshow

Lucas Zappa/izp for The Wall Street Journal
Marcia Reis tries on Natura lipstick with saleswoman Andreia Zacaro.
Two years ago, L'Oréal was looking for new ways to grow as the financial crisis hit its core European and U.S. markets, and Brazil, the world's third-largest cosmetics market after the U.S. and Japan, seemed an obvious target. While it had been in Brazil for 50 years, it had mainly focused on hair products. Last summer,...

Other Papers Like Giants in Cosmetics

Itc in Rural India Essay

1903 words - 8 pages STRATEGY WITH HUL’S STRATEGY: HUL | ITC | They believe that Rural customers (women) will not go to malls and big retail stores, so as to sell their products they are providing that directly to home through women entrepreneurs as women can make a big network with other women in the villages and HUL products are soaps , detergent and personal products like toothpaste , cosmetics generally used by women, so they were trying to make a strong base

Supply Chain of Samsung Essay

2940 words - 12 pages architecture, and explore ruins. Many of the new design ideas are coming from outside. Last year, Samsung started sending designers abroad to spend a few months at fashion houses, cosmetics specialists, or design consultancies to stay current with what's happening in other industries. But in the Digital Age it's not too hard for strivers such as Lenovo of China and BenQ to make products that approach the quality of long-standing industry giants such

The Analysis of P&G International Marketing Strategy in Sweden

3173 words - 13 pages of the year 1969, the Swedish has begun to gain access to various P&G’s reliable brands through the large network of retail outlets in Sweden, such as grocery stores, pharmacies, electronic stores, cosmetics shops, and barber shops. For P&G in the Nordic region, P&G has a very simple goal – to keep what our brand promised and make consumers happy with their product selection. This goal is align with the culture at its regional head

How Global Brad Compete

4981 words - 20 pages have particular expertise: Switzerland in chocolates, Italy in clothing, France in cosmetics, Germany in cars, Japan in electronics, for example. More important, consumers expect global brands to tell their myths from the particular places that are associated with the brand. For Nestle to spin a credible myth about food, the myth must be set in the Swiss mountains, because that is where people imagine the brand hails from. Likewise, if L'Or

1. Did Nestle Undergo Either First-Order And Or/ Second Order Change According To The Case? Answer, Listing Example Of Types Of Change From The Above Story?

7146 words - 29 pages countries, not only results in better quality raw materials, and therefore better products, but also helps farmers. By providing them with regular and reliable income, Nestlé is able to contribute to improving their standard of living. 40 A network of local companies It’s a genuine paradox. Although Nestlé is one of today’s global giants, our priority is to be a local company in each of the 130 countries where we market our products

Freedom And Responsibility

2141 words - 9 pages adopted by the states to become the Bill of Rights in 1791. As defined by our U.S. Constitution, the first amendment states “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercises thereof; or abridging the freedom of speech, or the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances”. (Jordan, 1999) The first precept addressed in the

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

Related Essays

Mary Kay Ash & The Four Roles Of Management

1309 words - 6 pages against but they also carried most of the responsibility when it came to domestic duties. She knew women would need flexibility and open opportunity to rise up in the company structure. Her solution: direct sales marketing. With her approach to allowing anyone in her company to earn their worth through hard work rather than corporate politics, Mary Kay Cosmetics has produced more millionaires within a single company than any other in the world

Trends And Change Essay

1646 words - 7 pages two product areas. Specialize or focus on a narrow, deep but profitable niche.  You can win against the giants by looking for gaps in the market that are either neglected or poorly covered by big companies. For example, you can be the only cosmetics store in your area that has all the supplies necessary for organic cosmetics parties — and the staff that knows how to pull it together. People are often attracted to the idea of getting something

Marketing Essay

1070 words - 5 pages the store out by the brand will be a major overhaul. This will include Main Street, a series of 80 to 100 brand shops similar to the Sephora cosmetics ones it has in stores to replace the dozens of racks common in department stores. It also plans to open areas in all stores called Town Square, a place that will offer services and expert advice. The intent of this strategy, is to get the whole store checked out by the customer. Before, women may have stayed put in the womens section and men in the mens section, where they may missed buying some kind of home decor they may liked if they had seen it.

Brand Building Essay

2388 words - 10 pages cosmetics and beauty products companies, which has been consistently achieving volume, value and profit growth even during times when its competitors have faced a setback. What is the secret behind this continued success? Many things perhaps, but its brand architecture strategy is definitely one of them. The company has an amazing plethora of brands and sub-brands – about 500 in number – which are marketed in around 130 countries! L’Oreal has a matrix