Brazilian cosmetics company O Boticrio, opens third store in the Middle East
The Brazilian factory of perfumes and cosmetics O Boticario, located
in Sao Jose dos Pinhais, in the southern Brazilian state of Parane, is
going to inaugurate another exclusive store in Saudi Arabia next July.
The chain of franchises already has two stores in the Arab country, in
Riyadh and Dammam, a showroom in Cairo, Egypt, as well as 105 points of
sale in Saudi Arabia and 20 in the United Arab Emirates.
The expansion project for the brand in the Arab market foresees the
installation of nine stores. According to the manager, yet this year,
probably in October, the fourth store will be installed in Dubai, in
the United Arab Emirates. The other ones haven't yet a date and place
established. "These exclusive stores are part of the continuity process
for brand consolidation in the Arab market," stated Roberto Garcia
Neves, manager for the International area at the company.
"First we entered the channels that are traditional in toiletry, the
points of sale. Before opening a store we experimented the local market
for approximately two years. As of the moment we had market
feasibility, we established a partnership with a local investor,"
explains the manager. In Saudi Arabia, Nahara Trading is the company's
"The Gulf is the market with greatest per capita consumption of
fragrances. That's why it presents itself as a market with excellent
growth potential for the cosmetics sector," he remarked.
Winning the region happened after a lot of market research. "We
carried out researches on the smelling senses in all potential markets.
It wasn't different with the Arab market," he assures.
The Arabs consume principally perfumes, men's and women's, and the
make-up line from O Boticerio. "As Brazilian make-up was developed from
the various ethnic groups existing in Brazil, it is adequate for all
markets. We have all chances of pleasing the Arab women who really care
for their appearance," celebrates Neves.
According to the manager, the export volume is still small,
representing 3% of the company's annual revenues, which in 2005 were R$
2 billion, the equivalent to US$ 910.2 million at current exchange
rates, but it is part of a long-term strategy to introduce an unknown
brand in such a competitive market, used to great international brands.
"O Boticerio wants to internationalise more and more. We are already
in Europe, the United States and the Middle East," he highlights. The
company's internationalisation plan consumed an investment of about US$
43 million in the last few years.
O Boticerio started its story in 1977 as a small prescription
pharmacy in downtown Curitiba, capital city of Parane, in southern
Brazil. Between direct and indirect jobs, O Boticrio generates about
12,000 jobs. The factory alone, located in Sao Jose dos Pinhais, has
about 1,100 employees.
In Brazil, the company counts on more than 2,400 stores. In the
international market, the brand is present in 55 stores and 1002 points
of sales spread around 24 countries.
The O Boticerio line of products counts on approximately 600 items,
amongst products for body care, facial care, sun blocks, make-up,
perfumes, deodorant, soaps and shampoos.
In January 2006, O Boticerio received, in New York, the award The
International Retailer of the Year, from The National Retail Federation
of the United States. The prize is an acknowledgement to companies and
businessmen in retail that contribute substantially with the sector
through their leadership, creativity and innovation.