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Companies & industry

After entering the Arab market, Goz Cosméticos wants to grow in the US and foresees exports amounting to 30% of revenues

The Brazilian company has annual revenues of about R$ 3 million and “was born with an exporting vocation,” according to its director, Leandro Tavitian.

Leandro Tavitian, CEO at Goz Cosméticos

Leandro Tavitian, CEO at Goz Cosméticos

Being a small company in Brazil is not a barrier to conquering international markets, but it can be a great challenge. The official government body that assists small and medium-sized enterprises, known as Sebrae, says that only 5% of around 19,000 Brazilian companies that exported in 2014 were small or medium-sized. This is a very modest figure considering that over 90% of Brazil’s companies fit this category.

In addition to that, a large number of those who take the risk of going overseas do not continue to export. Out of all small companies which sold their products abroad in 2013, 42.5% did not try again in 2014, according to the Foreign Trade Center of Studies (FUNCEX). The bureaucracy involved in adjusting to the laws in other parts of the world and the cost of entering the foreign market are some of the hurdles that prevent small companies from becoming exporters.

Nevertheless, there are exceptions to the rule and one good example is Goz Cosméticos, which has annual revenues of around R$ 3 million – the fact that the cosmetic industry had a turnover of R$ 101.7 billion in Brazil in 2014 puts it into perspective. The company was founded in 2002 in Osasco, a city located in the metropolitan region of Sao Paulo. Despite having opened its own plant only three years ago, Goz already exports its hair color and hair care products to the UAE and US markets.

The company was born with an exporting vocation. Our very first product line, Vitafio, had its label translated into English since it was launched. But as the business evolved, we realized we needed much more than that to become really involved in exporting,” says CEO Leandro Tavitian.

Goz Cosméticos joined the export incentive program offered by the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) and the Brazilian Association of the Cosmetic, Toiletry and Fragrance Industry (Abihpec) and took part in its first international trade fair, Beautyworld Middle East, in the UAE.

The result could not have been more heartening. Not only did the company begin exporting to the Arab market but it also set up an office in Dubai, in 2013, which has its own training center, warehouse and sales team. “It was a great opportunity and the brand was well-accepted in the country. Our products got a good positioning in the ‘A’ market and are available in premium spots such as the beauty salon at the five-star Four Seasons hotel in Dubai,” says Tavitian.

The successful experience encouraged Goz Cosméticos to look to new horizons, namely the US market, where the company opened an office and distribution center in Boca Raton, Florida, last year. “We want to learn with the largest and most demanding market in the world. The US operations will allow us to keep up to date with global trends and new developments, thereby improving our strategies in Brazil and other potential markets,” he says.

For Tavitian, the greatest challenge is not only to regulate the products in line with the particular requirements of each country, but also to tailor them to the cultural peculiarities of the export destinations. “The Asian market, which we are now assessing, is not big for keratin treatments and hair straightening products, although they are still very popular in Brazil”.

Goz Cosméticos plans to expand its distribution network to more US states in 2016 and expects 30% of the year’s total revenues to come from exports.

Renata Martins

Portfolio

© 2016 - Brazil Beauty News - www.brazilbeautynews.com

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