Especial Cosméticos

Not only soccer and carnival are promoting Brazil abroad. The image of the country – "beautiful by its nature", as Jorge Bem Jor sang - has been used in several industrial and service sectors in order to spread throughout the world products presenting green-yellow features. From commodities, which are strong historically and economically – such as soy, coffee and oranges - to fashion items, Brazilian goods, in general, are on the rise on the foreign market. Exotics, joy, exclusive raw materials and natural resources sustainable development are the factors that increase the canary portfolio. Among successful cases, such as sandals Havaianas and Antarctica's soft drink Guarana, our cosmetics are conquering more and more space and interest among international consumers. It is Brazil swinging around the world.
One of the first doors opened to a larger diffusion of 'Brazilianity' on the international market was the merchandizing in Duty Free stores of some genuinely Brazilian items, such as Natura's Natura Ekos line, Cachaça 51 and the famous Havaianas. About two years ago, O Boticário, for instance, introduced its products in free shops of the main airports of the Country. According to industry executives, this is one of pioneering initiatives that contribute to the enrichment of Brazilian show-window abroad and attracting attention of the foreign public.
According to Abihpec, the activities used by personal care, fragrance and cosmetics industries turned toward the international market will continue to grow during this year. The data for the past six month period, presented at Cosmoprof Cosmética 2004, show that in the same period of 2004 the exports have increased 28,27%, as compared with the same period of 2003, exceeding US$ 280 million in sales. The Association expects that the closing of 2004 will show an increase of 20% in foreign sales and that this growth will be repeated in 2005 and 2006.
As to cosmetics, the great appeal is not the fashion. The secret lies in its composition. Natural ingredients from our forests, mainly from the Amazon, attract the international consumer's attention and begin to promote success on the home market as well. Considered as national treasure for cosmetics manufacturers, these ingredients are present in shampoos, conditioners, toilet soaps, creams and lotions, and even in fragrances.

Source of inspiration – The Amazon region is considered as the main source of "exotic" natural resources. But Brazil offers several regions for extraction of native ingredients. "Besides the Amazon region, O Boticário uses raw materials stemming from prairies, Northeastern seaside and high forests, thus involving the South, Northeast, North and Central-West regions of Brazil", said Richard Albert Santana Schwarzer, company's research and innovation manager.
According to the manager, Boticário includes Brazilian actives in several products, especially detaching the items included in the lines Universal Solutions (haircare), Nativa (toilette soaps), Azulen (body care), Portinari and Glamour (fragrances). "We use some vegetable extracts and coconut milk, and some oils and butters from Brazilian biodiversity" Said Schwarzer. For him, all the categories of cosmetics also offer the opportunity to innovate through the use of natural ingredients from our forests. "The products for facial and body care, cleaning and treatment, generally speaking are those requiring more actives with different properties", he added.

Competitive price – The adoption of these differentiated actives does not mean a loss of price competitiveness. According to Ricardo Fonseca Cardoso, the owner of Natura Company, Brazilian products are successful abroad because, besides of offering differentials due to country's natural actives, they are competitive in the price struggle. "I have visited Canada recently, and I saw that our products are being merchandized at competitive prices with local or worldwide known brands", said Cardoso. "I have found items from L'Occitane e Lush, for instance, with higher prices, and this makes the Brazilian product even more attractive", added the executive.
Cosmetics manufactured with Brazilian ingredients have attracted the consumer from abroad even in Brazil. "When we show our products do these people, their eyes begin to shine'", said Mariana Sencini, owner of a Natura Company franchise, initiated recently in São Paulo. All the company's products are formulated with national actives. "We have specific lines with no alcohol and animal fat that are very successful", he said. "The main ingredients that are included in these products are essential oils from Brazil nuts and Cupuassu, Maracujá, Guaraná, Surinam cherry and peaches".

Packaging – In Sencini's opinion, cosmetics containing natural actives must attract the attention and therefore must be packaged in an attractive manner. "We have glass bottles that remind ancient products and transparent packages pointing out the color of the formulation", said the executive. According to Fábio Mestiner, president of Associação Brasileira de Embalagens (Abre), Brazilian ingredients, mainly those from Amazon, must be detached on the package, because they carry a strong selling appeal. "Thanks to the charisma and international repercussion of Amazon and the natural features of these products, their packages may not be confounded with industrial, chemical and synthetic products", he stated.
According to industry experts, the materials must be differentiated in terms of colors, textures and images. "The rich iconography of the Indians and their figures and standards also may be utilized". Mr. Mestiner states that other Brazilian products that do not come from Amazon must follow the same path, and use national folkloric or tropical themes. "We should not use these images and themes literally, but we must stylize them according to the characteristics and sophistication of each product.".

Promising Segment – To be successful in this market requires research and now is the time for it, in the opinion of Fátima Chamma, partner-shareholder of Chamma da Amazônia, one of Brazilian pioneering companies of local natural actives segment. "We are experiencing a special moment for research and development of Brazilian natural ingredients with application in the cosmetics sector," she added.
According to the executive, over ten years ago, some companies were initiating the merchandizing of raw materials of this sort; however, only now this market is on rise. "Many people were offering differentiated ingredients only as e show-window, there was no stock for meeting the demand", Chamma said. "Presently, research and creativity are excellent allies for innovation working up". Chamma is producing approximately 60 thousand units of cosmetics per month. Some 90% of its sales come from products containing native ingredients. "We perform from anthropological research, that recovers practices and habits of the Indians and their local communities, to the application of the proposed technology", added Chamma. Cabbage palm, white-tar, Priprioca, Brazil nut, Murumuru, crab-tree, Jutaicica and Copaíba are the ingredients included in the formulations prepared by the company. Today, Chamma has a store in Portugal and will open other two, still in 2005. "There is an interest also in France, Germany, Italy, United States and Spain", reveals the executive.

Conquest of the Territory – Natura also bets on the foreign market and invests in points-of-sale in other countries, that is contributing for increasing the success of 'Brazilianity' on the worldwide cosmetics market. In April, the company will open its first store out of Brazil, the Maison Natura, at the Carrefour de la Croix Rouge, in Saint-Germain des Près, Paris.
The store will have an area of 200 square meters and will receive the consumers with an invitation for a sensorial voyage to the heart of the Brazilian bio-diversity wealth. The experience in France will function as a test for the brand, and, possibly, will be taken to other European countries. Within the next three years, Natura may be investing up to Euro 12 million in this project..

Product diversity – The great Natura's star for conquering the foreign territory is the Natura Ekos line. Among the most important natural actives used for this line are: Crab-tree, Brazilian Wine-palm, Brazil nut, Cupuassu, Chamomile, Priprioca and White-tar. In spite of Brazilian bio-diversity is offering thousands of raw materials, Natura made a bet on the variety of products that may be derived from these ingredients.
According to Isadora Campos, product manager of Natura Ekos, the company is researching over 50 ingredients, but for using them in new products there are necessary some more years of studies and tests. "That's why we are investing in development of several products with the same substance, because they promote different benefits to individuals", said Campos. "There are some actives that replace synthetic substances and allow us to broaden our product portfolio".
According to a manager, not only the Amazon region provides the company with ingredients. Green mate comes from South and Surinam cherry (pitanga) and Maracujá from Southeast. Natura utilizes these raw materials in fragrances and body and hair care products. There are more than 100 items of soaps, oils, shampoos, conditioners, eaus-de-colognes fragrances and aromatizers. This line is being exported to South-American countries: Argentina, Chile, Peru and Bolivia, as well.

Raw-Materials – The number of ingredients derived from Brazilian botanics has grown. According to Sérgio Gonçalves, institutional marketing manager from Croda do Brasil, these actives have "increased greatly and consistently". The Crodamazon – a division that aims to research, develop and make good use of derivatives from Amazon plants, and at the same time promotes the preservation of natural resources involved – for instance, has launched its line with four products, and, today, offers over ten. "We have eight oils, three hydro-dispersion derivatives, and a blend, besides the raw-materials exported to France, and the innovation goes on", states the executive, yet promising even more products for 2005.
According to Mr. Gonçalves, the actives used in Brazil are Babassu and Brazil-nut oils, Cupuassu butter and Maracujá. According to Gonçalves, Brazilian raw materials represent over 20% of the company's exports. "The European market is the most important one interested in these products, nevertheless there are other regions that are looking for more information about them". According to the executive, the possibilities of using these ingredients are many. "Our products can be used even in the cleansing sectors, in both aqueous and oily systems".
At Beraca, one of the greatest suppliers of Brazilian natural actives to cosmetics industry, the sales have doubled form 2003 to 2004. " A half of our native ingredients sales comes presently from foreign markets", said Wilson Corassin, international sales manager of Beraca Ingredients. France, Italy, Germany and United States are the target-countries for these actives. "Asiatic countries also have demonstrated much interest in our ingredients, mainly China and Japan", he added.

Sustainability – According to the executive, in order to sell natural ingredients it is not enough to present the exoticism and differentiated benefits. "Abroad, mainly, the buyers request that the suppliers should have sustainable structures for both the environment and the people from the communities where these actives are obtained", observed Mr. Corassin.
According to him, Beraca is preparing itself strongly for meeting these requests. "We have invested much in the unit of Belém: in the sector of bio-search (there is an agronomist responsible for this sector), refinery and production capacity", he added. Mr. Corassin tells that, for three years, many Brazilian companies are trying to export natural actives, but they lack structure to meet the orders. Maybe now it is the moment for the companies to dive in the theme of 'Brazilianity'. It is worth to remember the optimism of the campaign: "I am Brazilian and I never give up", launched last year by Associação Brasileira de Anunciantes (ABA) – Brazilian Advertiser Association – with the purpose of rescuing the self-esteem of the population. As the Titãs music says, "the ideas are on the ground, you stumble on them and find the solution".

Rodrigues Translations - Legal, Commercial and Technical Phone: 55 13 3467-9568 or 55 11 6121-5097 E-mail: jrpr@uol.com.br