Interview: “We See the future with optimism!”, João Carlos Basilio (ABIHPEC)

abihpec

MakeUp in SaoPaulo is offering a platform of opportunities to grow knowledge and build network and build network with like-minded professionals. The event will take place for the first time in São Paulo, 3 and 4 of December.

In this interview, João Carlos Basilio, president of The Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC) talks about the sector in the country.  

MakeUp in …™: Could you give us details of what ABIHPEC represents in terms of number of associates and economic importance / role in Brazil (business volume of associate companies, the different sectors represented, etc.)?

Joao Carlos Basilio: The Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC) represents one of the sectors that grows more historically worldwide and counts, currently, on over 360 associate companies, of different sizes, corresponding to 94% of the whole sector invoiced billing.

Throughout the last 20 years, the entity has developed and supported actions focused on the Brazilian industry of personal hygiene, perfumery and cosmetics (PHPC), which showed an average compound deflated growth close to 10% per year in the last 18 years, having passed from an “Ex-factory” billing, net of taxes on sales, from R$4.9 billion in 1996 to R$38 billion in 2013.

As regards consumption, the Brazilian consumer has contributed to the increase in products sales and closed 2013 with R$93.3 billion at retail prices, according to data from Euromonitor Institute. With 9% of global invoicing and 54% in Latin America, Brazil is the first deodorant and perfume consumer market; the second in products for bath, hair, depilatory, child, and man and Sun protection; third in oral hygiene and make-up; and the fifth in skin products.

WorldPressOnline_makeup-in-are-three-events-across-the-world-three-colours-three-identities-and-one-passion-make-up-red-for-paris-pink-for-new-york-and-yellow-for-sao-paolo-the-organizers-of-makeup-in-paris-are-drawing-a-ra

MakeUp in …™: Which are the main activities and services provided by ABIHPEC?

Joao Carlos Basilio: ABIHPEC has been acting to reduce regulatory hindrances that prejudice the sector growth, anticipating and actively participating in discussions with the government. By means of a technical cooperation with Brazilian Health Surveillance Agency (ANVISA), the sector has contributed to improve the electronic registration system for new products, thus speeding up the existing process.

The entity also supports the increase of competition among industries through innovation.  For that, it counts on the Institute of Technology and Studies of Personal Hygiene, Perfumery and Cosmetics (ITEHPEC), which foments research and development actions in innovation and technology. By placing the sector closer to global possibilities, ABIHPEC strongly represents the interests of PHPC industry in national and international forums.

Through Regulatory Matters and Foreign Commerce areas, the entity aims at reducing commercial, technical and regulatory barriers as well as searching the discharge of productive chain in terms of import tax reduction for ingredients and inputs not manufactured in the country. As to international commerce, the total exportations of the sector in 2013 were US$ 783 million.

Additionally, aiming to promote the industry competitiveness by means of its internationalization, in 2000 the sector project Beautycare Brazil was developed, a technical and financial cooperation agreement managed by ABIHPEC along with the Brazilian Agency for Exportation and Investments Promotion (Apex- Brasil). With the execution of different commercial and qualification actions since its creation, the project is enlarging its representativeness, now with 56 participating companies (against 6 in the beginning), with a result of US$158 million in exportations in 2013.

With the aim of promoting, supporting and encouraging the country micro, small and medium businesses, ABIHPEC, in a partnership with the Brazilian Agency for Industrial Development (ABDI) and the Brazilian Micro and Small Business Support Service (National SEBRAE), coordinates in several Brazilian states the Program for Personal Hygiene, Perfumery and Cosmetics Sector Development (PDS/PHPC), focused on the sustainable development of companies, by means of management and dissemination of the knowledge on the sector.

WorldPressOnline_conference-not-to-be-missed-on-sept-12th-at-1215pm-in-2012-sleever-international-proposes-the-«-sleever-make-up-nail-polish-»-solution-an-innovating-technological-solution-in-the-world-of-make-up-and-its-pa

Among the different actions promoted by PDS, we mention the activity developed in a partnership with ABIHPEC market intelligence area, where market analyses are carried out and information is disseminated which assist several companies in the construction of their strategic planning.

In sustainability terms, ABIHPEC works for the society and anticipates the environmental legislation by means of its programs and studies, as is the case of  “Lend a hand to the Future – Recycling, Work and Income”, which directly collaborates for the reduction of recyclable materials volume that would be otherwise discarded in landfills, and also supports employment and income generation programs that promote social inclusion, improvement of work conditions and quality of life for recyclable materials collectors.

The Brazilian Association of Cleaning Products Industries (ABIPLA) and the Brazilian Association of Pasta, Bread and Industrialized Cake Industries (ABIMA) are also partners of the program.

Developed by the Association social area, the ABIHPEC Institute carries out two important social actions: the project “Love for life – beauty against cancer”, which attempts to recover self esteem among women under oncologic treatment, with self-make-up workshops; and project “Paedophilia: don’t close your eyes to it” whose goal is to raise awareness in society on its role in surveillance and fight against paedophilia.

The understanding that PHPC sector growth is also due to the continuous improvement of agents and partners, makes the entity invest in the acknowledgment of the works developed, by means of ABIHPEC award – Brazil Beauty and Suppliers Qualification Program, which encourages relevant results to the whole chain.

ed_72_anvisa_abihpec

The results obtained are aligned to ABIHPEC objectives: support, develop, encourage and create actions and instruments that contribute to PHPG sector growth in Brazil and worldwide.

MakeUp in …™ : How is the Brazilian market? Could you please detail your answer per segment?

Joao Carlos Basilio: The Cosmetics industry has been investing in the creation of products that help increase the final consumer self-esteem, in addition to skin care, including skin hydration, ageing delay, and sun protection as  preventive measures against skin cancer. The participation of men, young people and children has promoted the segment total market and in 2013 a larger scope of products for skin care, make-up and hair by products’ sales occurred. The cosmetics segment showed an Ex-Factory invoicing of R$9.4 billion in 2013.

 MakeUp in …™: The distribution is changing in Brazil.  In big cities, direct sales seem to be exceeding the traditional sales in stores or supermarkets.  What is your opinion? 

Joao Carlos Basilio: Distribution is not changing. In fact transformations are occurring in big cities due to difficulties in transportation, which makes the number of regional markets and shopping malls in neighborhoods and regions grow, in order to facilitate access by the public.  Direct sales at the moment is going through difficulties, however nothing is conclusive, no one knows for sure whether the market tends towards tradition or direct sales or franchise, because the market is under a process where there is no clear definition of future paths.   So, direct sales are not exceeding the traditional market.

WorldPressOnline_visitors-makeup-in-paris-2011

MakeUp in …™: More foreign companies are becoming interested in the Brazilian beauty market, both as suppliers of packing and raw material – that invest in local production units – or brands that invest in distribution channels. Do you see that as a temporary or lasting phenomenon?

Joao Carlos Basilio: I don’t see that as a phenomenon. The Brazilian market is a large market and will exceed R$100 billion (consumer price) this year, which consequently attracts companies’ attention – product manufacturers, packing and raw material suppliers – which naturally want to be present in this market.

It is not a phenomenon, in some cases we have observed that many companies took a long time to see the Brazilian market and will pay a high price to become consolidated in the Brazilian market, however it is still attractive and ABIHPEC sees the future with optimism.

MakeUp in …™: Make-up is in vogue. Brazilian women are clearly using more make-up. Is it confirmed by your studies? Why?

Joao Carlos Basilio: As was explained in the third question, Yes, make-up is in vogue and there are several reasons for this category continuous growth, for instance, the woman insertion in work market, awareness by companies on the need to climatize products for a country below Ecuador line – our cold weather is the hot weather in Europe and our hot weather has no reference elsewhere and is long.

Companies are observing that and are performing acclimatization of make-up products’ formulas to a tropical country like Brazil.

Source| Make Up in Sao Paulo

Advertisements

Posted by

I'm a Brazilian journalist based in West Midlands. In Brazil, I have worked with International Trade and Logistics publications. Now in the UK, I keep writing and I dedicate myself to a new project : Midlands Trade - a blog focused on business in Europe and Brazil. It's also supporting small businesses throughout the #MeetTheBusiness.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s