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Faber-Castell plans to double production of cosmetics in Brazil in the next 10 years

Emphasis on product segmentation, more assertive launches and a broad exploitation of different distribution channels are among the factors that are driving the growth of the make-up market in Brazil.

Faber-Castell has been operating in Brazil for 85 years and is one of the world’s largest pencil manufacturers, with an annual production of around 1.9 billion units. However, many customers are unaware that, besides its famous colored pencils, the company outsources production of make-up of more than 150 brands in 17 countries through its business division Faber-Castell Cosmetics. In 2013, the Brazilian operation doubled its capacity with the inauguration of a new plant in the city of São Carlos.

Lourenço Piteli, business intelligence manager of Faber-Castell in (...)

Lourenço Piteli, business intelligence manager of Faber-Castell in Brazil

In an exclusive interview with Brazil Beauty News, Lourenço Piteli, business intelligence manager of Faber-Castell in Brazil, analyzed the company’s performance in the country, the development of its partnership with clients in the launch of new products and the current market trends.

Brazil Beauty News - Two years ago Faber-Castell opened a new plant for the exclusive manufacture of cosmetics that expanded the company’s production capacity in Brazil. How has this division performed since then?

Lourenço Piteli - Faber-Castell has been operating in the make-up segment for eyes, lips, face and nails since 1978, with plants in Brazil and Germany, which manufacture and supply cosmetics to large companies through outsourced contracts. The new plant doubled the production capacity of the cosmetics division and maintained the company’s double-digit annual increase. Exports have also remained high, with the emphasis on the Latin American market. We expect Faber-Castell Cosmetics to double in size in the coming 10 years.

Brazil Beauty News - What are the market trends you have noticed in the make-up segment in Brazil?

Lourenço Piteli - Brazil is a young market and in constant transformation, with consumers becoming increasingly more informed and aware. The increase in income among the lower middle class, the rise of women on the job market and the introduction of new distribution channels are factors that have contributed to the excellent performance of the cosmetics category in Brazil.

One trend we have noticed is the growing segmentation and sophistication of the products. They are created to attend different age ranges, social classes and more specific needs of consumers. The companies are rethinking their portfolio in a dynamic and aggressive way, with increasingly more assertive launches that reflect a closer relationship with the public.

Brazil Beauty News - What are the new developments in the make-up market for eyes, lips and face?

Lourenço Piteli - We are seeing three levels of consumption in the make-up segment for eyes: the basic has been winning increasingly more followers; the premium segment, which was previously restricted to experimentation, has expanded its market share considerably; and the trendy level, with more daring, colored and diversified products has won the space of the experimental area with a share that is still small but steady.

The highlight of the lips category is innovative packaging and applicators, as well as the combination of different colors in a single product. The triad texture-format-attribute also defines the current scenario, with unique products such as the pen lipstick – which offers moisturizing and high color fixation –, lip plumping formulas, vitamins and exfoliating ingredients.

Face make-up is following two parallel trends. While part of the market has stayed with multi-functional products for reasons that range from price to practicality, we have also seen a fast growth in products with specific indications including foundation, concealer and shimmer. One of the determining factors in the expansion of consumption of these items has been the growing popularity of beauty blogs that review the product, explain its purpose and give tips on how to use it.

Brazil Beauty News - What has changed in Faber-Castell’s relationship with its partner companies?

Lourenço Piteli - Faber-Castell has been operating in a more participative and collaborative way. Companies can now rely on a much broader support from the productive chain. Strategies are discussed jointly, based on the market knowledge we have acquired over the years, as well as investments in research and innovation. Each product is thought together and the new releases are discussed with the brands before they reach the market.

Brazil Beauty News - What will be the main Faber-Castell launches in Brazil in 2015?

Lourenço Piteli - Faber-Castell Cosmetics works with four launching cycles a year and we have already confirmed our participation at the MakeUp in SaoPaulo show, to be held in December. The products that will be presented in the event are still being discussed with clients and cannot be publicized during the approval stage. However, we can already comment on the launch of new versions of the “chubby stick” (retractable lip liner) and liquid make-up products, including foundation, gloss and eyeliner. The nail care segment is still small in Brazil compared with Europe due to market specificities but we will be highlighting products manufactured in the German plant as well as those produced in Brazil, such as the jumbo moisturizing pencil for nails.

Fernanda Bonifacio

Portfolio

© 2015 - Brazil Beauty News - www.brazilbeautynews.com

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