Gueisa Silvério, Head of International Trade, ABIHPEC
Brazil Beauty News – Created over 20 years ago, the Beautycare Brazil project supports Brazilian companies in developing their activities in foreign markets. How has the program worked in the current context, without international fairs and events?
Gueisa Silvério – Beautycare Brazil aims to promote the growth of exports of Brazilian products and services along the value chain of the personal hygiene, perfume and cosmetics industry. This work includes the selection of key markets and the participation of companies involved in the project in major international fairs.
Due to the pandemic, face-to-face events have been suspended around the world and Beautycare Brazil had to adapt to the new scenario. We focused on online activities, with content developed with specialists in ABIHPEC and international market research firms. This has allowed us to present up-to-date information on consumer behaviors and trends in countries like South Korea, the United Arab Emirates and the United States.
In the first half of 2020, we created a working group with members of the program to review our communication strategy and strengthen the image of Brazilian industry abroad.
For 2021, we seek to carry out actions in partnership with the international offices of Apex-Brasil, as well as with the commercial services within the embassies and consulates of Brazil. We have also broadened our initiatives to address other subjects likely to be of interest to member companies of the sector project.
Brazil Beauty News – It’s a paradox, but the Brazilian beauty sector performed well in 2020, with exports rising and a first trade surplus after a decade of deficit. How do you explain it?
Gueisa Silverio – We do not see this as a paradox if we consider both the good performance of our industry on its domestic market and the results of the trade balance.
Remember that Brazil is the world’s 4th largest market for personal hygiene and beauty products and the 3rd country for the number of product launches. We closed 2020 with sales up 5.8% (ex-works price), compared to the previous year. Despite the challenges posed by the pandemic, the Brazilian cosmetics industry has shown strength and agility.
Concretely, the sector recorded a positive trade balance of $ 23.4 million in 2020. The rise of the dollar against the Brazilian currency and the reduction in imports linked to the quarantine imposed by the coronavirus resulted in an estimated decline in imports of $ 585.9 million for the year, a decrease of 16.8% compared to 2019.
However, we must also take into account the increased interest of Brazilians in national products, always more innovative and of better quality and therefore more and more able to replace imported products and gain share in export markets. Brazilian perfumes, whose sales grew 8.4% in 2020, are a good example.
When we look at the performance of the Beautycare Brazil project, we see growth of 26%, in particular thanks to ingredient manufacturers, who have won major customers and gained market share internationally.
Brazil Beauty News – What are the main strengths of the Brazilian cosmetics industry on international markets?
Gueisa Silvério – Brazilian cosmetics are recognized worldwide for their innovative characteristics in several categories, the use of ingredients from our biodiversity is a real differentiating asset to attract new customers and increase our international competitiveness.
It should also be noted that the great diversity of the Brazilian population also stimulates the R&D of our companies and, consequently, the variety of their product offer, in particular for hair care.
Brazil Beauty News – Brazilian brands are strong and are developing in Latin America. How is your performance in other parts of the world?
Gueisa Silvério – Latin American countries are among the top 15 destinations for Brazilian cosmetics exports, accounting for 79.3% of the total. Argentina leads, followed by Chile and Mexico.
It is important to emphasize that a large part of our exports are carried out by multinational companies located in Brazil, or by national actors who operate independently, without the support of the project.
Things are different among the members of Beautycare Brazil. The project concerns the entire value chain. As a result, Latin America only represents 37% of our exported volumes.
In total, our members export to 118 countries, with Argentina, the United States, Colombia, Chile, Malaysia and Egypt in the lead.
