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Companies & industry

Mahogany grows by 12% in first half 2014 and projects year-end revenues of R$ 110 million

With 160 stores throughout Brazil, cosmetics manufacturer Mahogany announced 12% growth for the first half of 2014, compared with the same period last year. The company, which is owned by Laboratório Sklean do Brasil, forecasts year-end revenues of R$ 110 million, 10% higher than in 2013.

Mahogany store at Santana Shopping

Mahogany store at Santana Shopping

These positive figures are largely attributed to increased sales in the perfumery segment – in which the company has a portfolio of more than 60 fragrances – and the Mahogany em Casa (“Mahogany at Home”) project, its direct sales channel. Launched at the end of 2013, the program turns franchises into distribution centres, with sales consultants selected by the franchisees. The project is already present in 39 stores of the network.

Mahogany’s goal is to reach 250 points of sale in five years, including franchises and company-owned stores, focusing on northern and northeastern Brazil, the state of Minas Gerais, and the countryside of Sao Paulo and Rio. The company also hopes to boost its online sales: the income generated by the website is now about equivalent to sales in one of its medium-sized stores.

Operating in the market for 22 years, with headquarters in Osasco (Greater Sao Paulo), Mahogany’s history took an important turn in 2006. Up until then, it used to sell its products at different retail outlets, such as supermarkets and drugstores. With the decision to open own stores, the company recalled its items from more than 3,500 retail outlets and started a franchise network.

Lavender & Cotton range by Mahogany

Lavender & Cotton range by Mahogany

In just one year, Mahogany tripled its income. No longer having to compete for space on the shelves with other brands, the company invested in new products and extended its catalogue with new ranges including men’s grooming products, makeup and fragrance diffusers. As a result, the company’s portfolio grew from 60 to 400 items.

However, Mahogany’s strategy was not to close its doors to large retailers altogether, but to expand on a new front. Thus, the company created a second range of products, Kevin Nichols, with a smaller portfolio and mid-price range, which replaced the Mahogany brand in many of the outlets where it was sold. More than 40% of the retailers embraced the new line, which is now available all over the country and comprises around 60 items, including shampoos, conditioners, fragrances, shower gels, deodorants and moisturizers.

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

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