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Companies & industry

“Brazilian customers are looking for more diversity”, Aude Genesté-Barera, Jeanne Arthes

Jeanne Arthes, one of the main French manufacturers of fragrances for mass markets, has been selling its products in Brazil for 15 years. Brazil now represents 4% of the company’s foreign sales and is one of its main markets. However, it remains challenging, due to heavy customs tariffs, local taxes and regulatory impediments, Aude Genesté-Barera, marketing manager, told Brazil Beauty News.

Brazil Beauty News - Foreign markets account for a large part of Jeanne Arthes annual sales, what is the rank of Brazil?

Aude Genesté-Barera - One of our main missions is to help fragrance lovers worldwide to discover the art of French perfumery. The Arthes Group has been manufacturing perfumes in the pure French tradition for 35 years: all our perfume ranges are elaborated in Grasse, the world perfume capital, and available at competitive prices. Foreign markets currently account for 80% of our annual sales. We promote and distribute our products in more than 100 countries, and Brazil ranks fifth in this list, after Europe (Germany, Spain, etc.), Japan, Russia and Indonesia. The Middle East is also an important market for us.

Brazil Beauty News - Brazil has the reputation to be a difficult market.

Aude Genesté-Barera - I can only confirm that it is a very difficult market! There are important barriers to trade and strong local brands. Custom tariffs and taxes have a strong impact on the final retail price in Brazil. As a result, our perfumes are more expansive in Brazil than in many other countries. I think that it is in Brazil that our products are the more expansive. However, despite this problem, we remain 3 to 4 times less expensive than prestige imported brands and we can offer French quality perfumes at reasonable and accessible prices, and our core market is the same than in other countries: teenager girls, young women and men.

There are also a lot of regulatory and technical impediments. It may take a long time to register a new product, and Brazil is therefore one of our top priorities when starting the regulatory process.

Brazil Beauty News - What are the particularities of the Brazilian demand?

Aude Genesté-Barera - Brazil used to be a market for big sizes where we were mainly asked to supply 100ml bottles. However the Brazilian consumer is changing and is shifting towards smaller sizes that are also less expensive. However that does not mean that sells are declining in value or in volume. Actually, consumers are looking for more diversity. Smaller sizes and prices allow changing one’s perfume more often.

There is also a strong preference for fruity, floral and light fragrances. There are hardly any heavy Chypre, woody or leather fragrances on the market. However, Brazilian customers are highly interested in new products. It is important and quite easy to launch new fragrances in Brazil, but the consequence is that the average lifetime of a product is quite short. Our best sellers in Brazil are Amore Mio Forever and Arome. As far as men’s fragrances are concerned, they are Cobra Man, Rocky Man Black and Caliber 12.

Brazil Beauty News - What about distribution? The Brazilian retail landscape is evolving very fast!

Aude Genesté-Barera - Direct sales are very important in Brazil, but this distribution channel requires huge investments. Furthermore its market share tends to decline. Our products are distributed in traditional outlets such as Renner. Our main competitors are Brazilian perfume suppliers such as Jequiti or worldwide perfumery groups such as Coty.

Brazil Beauty News - Recently, you launched a new line of skin care and bath products under the brand name Jeanne en Provence. This first foray outside the perfume category was very successful and you are investing a lot in development and production tools. Do you plan to launch this new line in Brazil?

Aude Genesté-Barera - We are convinced that the Jeanne en Provence brand has a strong potential on the Brazilian market, however we’ll have to overcome barriers to trade. Skin care and toiletries are more difficult to register than perfumes, and we must be careful to the positioning of the line on the market. We have no intention to produce locally and the local price of the line will be a key factor of success. Once again: our goal is to supply foreign markets with affordable “made in France” cosmetic products.

Interview by Vincent Gallon

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© 2014 - Brazil Beauty News - www.brazilbeautynews.com

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