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Companies & industry

Aloha Oils to focus on direct sales for the launch of its essential oils range

Carlos Wizard Martins’ business group invested $ 20 million in the new business, which expects to close the year with 10,000 representatives and reach 100,000 by 2022.

Since selling his language school chain Wizard to UK-based education leader Pearson, Carlos Wizard Martins began investing in health and wellness businesses. Currently, the Martins family’s private equity firm, Sforza, runs natural products chain Mundo Verde, sports brands Topper and Rainha, and soccer schools Academia Palmeiras and Ronaldo Academy, among other businesses.

Thais Martins and Priscila Martins will head Aloha Oils' operations

Thais Martins and Priscila Martins will head Aloha Oils’ operations

The group’s newest initiative is Aloha Oils – an essential oils company that has recently started operating in the direct sales space. This is Sforza’s first foray into this business model after many years working in the franchise environment. "We chose the direct sales approach based on our goal to gain brand exposure and educate consumers about a category that is fairly new in Brazil,” says Carlos’ daughter, Priscila Martins, who will head the company’s operations alongside her sister, Thaís Martins.

"The idea for the business came about when I went to college in Hawaii. There, essential oils are widely used in the alternative medicine community,” says Priscila. They are extracted from plant leaves, flowers, barks and roots and contain highly concentrated compounds that can be used in baths, massages, inhalations, and also as cosmetic ingredients for shampoos and lotions.

The decision towards direct sales also took into account the channel’s positive outlook in Brazil. The country has around 4.3 million direct sales representatives and the category recorded revenues of R$ 40.4 billion in 2016, with about 90% of sales generated by beauty products alone, according to data from ABVED (Brazilian Association of Direct Sales Companies). “The idea is not to compete against the market leaders, since we are bringing a completely different product into the market,” says Priscila.

A survey recently commissioned by BCG consulting firm and conducted by Euromonitor showed that direct sales account for 26% of total cosmetic sales in Brazil – twice as much as in China (13%) and well ahead of the US (7%).

"We see direct sales as a way to provide additional income to thousands of people, which requires only a minimal initial investment. This business has an important social role and makes no distinction among its representatives – everyone can join the team regardless of their credit history, income or education level,” says Priscila. The only requirement is to fill out an application form on Aloha Oil’s website and purchase an initial kit consisting of eight 4ml pure essential oils at a total average cost of R$ 250. Representatives receive sales training and detailed information on the products and their benefits.

The new brand had an investment of R$ 20 million and is poised to start operating this month with a lean structure. All ingredients are currently imported and packaged in Brazil – lavender comes from Bulgaria, myrtle from Australia, and frankincense from Somalia. "In the future, we will work with compounded formulas produced by third-party partners throughout Brazil,” says Priscila.

Aloha Oils expects to close the year with a team of 10,000 consultants. In five years, the goal is to form a network with 100,000 representatives and reach R$ 1 billion revenues.

Renata Martins

Portfolio

© 2017 - Brazil Beauty News - www.brazilbeautynews.com

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