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Companies & industry

Água de Cheiro plans to open 80 new stores by the end of 2020

After being purchased by Holding Narsana, the famous Brazilian perfumery brand was restructured and has been making investments to expand its audience, reaching younger people and people of higher income.

Água de Cheiro wants to grow again in Brazil, but in a healthy way, according to director Olindo Caverzan Junior. Founded in 1976, the brand had 900 stores across the country and was a pioneer in the beauty franchise market. Facing a series of crises, the company was over R$ 70 million in debt until it was bought out by Holding Narsana in 2016.

The company was then rebranded. Physical stores got a new layout with a more modern and minimalist style, focusing on clients’ experiences. The logo and product packaging were redesigned and the entire brand operation was restructured. "We had to understand and optimize internal and external processes, improve the relationship with franchisees, structure new departments and strengthen the brand’s features to then begin to think of expanding", says Caverzan Junior.

Olindo Caverzan Junior is Água de Cheiro's director

Olindo Caverzan Junior is Água de Cheiro’s director

The brand closed out 2019 with 180 stores. In 2020, they plan to open 80 new stores and increase revenue in points of sales. "To reach these goals, our main strategies are to invest in advertisement and communication, focusing on multi-franchisees: entrepreneurs interested in opening more than three brand operations", says the executive.

Caverzan Junior says nearly 15% of Água de Cheiro’s current franchisees own more than just one store. "We will work to increase this number, as we understand it is a sustainable and efficient way for the chain to grow", he says. New stores will probably open in the Southeast region, especially in the state capitals - São Paulo, Rio de Janeiro and Belo Horizonte - where the brand was born.

Expanding the audience

In order to grow, the company also decided to expand its audience, which currently consists of established consumers: people of low income who are around 45 years old. "Our goal is to continue to take care of and retain our clients, respecting the origin and the history of the brand. At the same time, we are working to reach new audiences, whether they are people of higher income or of different ages", says Caverzan Junior.

One of Água de Cheiro’s initiatives was to include products licensed by famous international brands such as Everlast and Lamborghini in its portfolio. According to the director, own-brand products correspond to 70% of the company’s portfolio, while fashion brands make up the remaining 30%. "We have been in the market for over 40 years and we understand the need to reinvent ourselves beyond our classic products, which are already well-established. We want to strengthen Água de Cheiro’s image as an example of beauty consumption and as a link between international and national products, offering diversity, fair prices and high quality", he says.

Another strategy the brand developed was opening a department dedicated to young people, launching the line #Self[ie], aimed at Millennials and inspired by the 1980s and 1990s. "We have those who grew up in that era and those who have been inspired by the nostalgia and the trends that emerged from those decades, especially in the fashion and beauty markets", says Caverzan Junior.

Despite the economic challenges Brazil has faced and the world crisis caused by the new coronavirus pandemic, the executive is optimistic. "We are in a very mature and solid moment of our restructuring process. We have created an expansion department, we have established a partnership with communication agencies and we have worked relentlessly to strengthen the relationship with our current franchisers while building solid relationships with new franchisers. Our growth project is focused more on care than on acceleration", he says.

Renata Martins

Portfolio

© 2020 - Brazil Beauty News - www.brazilbeautynews.com

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