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Australian Gold to start local production and double its sales in Brazil

Boticário Group’s latest business venture, Multi B, will handle local marketing for the US-based company’s sun care products.

For the first time in more than 30 years of operations, Australian Gold is manufacturing outside of its US headquarters. Brazil has been chosen as the base for Australian Gold’s expansion strategy and Multi B is the company responsible for marketing the products locally. As Boticário Group’s latest business venture, Multi B aims to strengthen the holding’s multi-channel strategy and expand its activities to the pharma channel and multi-brand stores. Boticário Group is also handling local manufacturing for Australian Gold.

According to data from Euromonitor International, Brazil is the second largest market in sun care products, behind only the US. Brazil recorded sales of R$ 2.9 billion in 2016 and is expected to grow by more than 22% in the next 5 years. “We have an ambitious plan in Brazil. It’s one of the top markets for Australian Gold, with the greatest potential for growth,” says Multi B Marketing Manager, Mauricio Ferro.

Operating in Brazil since 2004 with a product mix that includes sunscreen, tan accelerator, self-tanning lotion and after-sun products, Australian Gold ranks among the top 10 sun care brands in Brazil. J&J currently leads the market followed by Beiersdorf Nivea and L’Oréal. By manufacturing locally, Australian Gold expects to double its sales in the coming years, raising the current R$ 21 million to R$ 42 million, as well as solidifying Brazil’s position among the company’s top five global markets.

Producing locally is part of a strategy that helps us to not only minimize the effects of currency variation and import taxes, but also ensures a fast response to the Brazilian market’s demand for sun care products,” explains Ferro. He claims that the nationalization process was straightforward, due to Multi B “having one of the most modern cosmetic production plants in Brazil.

Australian Gold’s products distributed in Brazil will continue to follow strict rules from the US headquarters. With better prices as a result of local production, the brand should also increase its competitiveness in the market. SPF 30 Sunscreen (237 ml) and Dark Tanning Accelerator (125ml), the two best-selling products in the 2018 summer season, are already being produced locally and will be sold together as a 30% off promotional pack for R$ 85.90.

The duo pack was inspired by Australian Gold’s new marketing campaign in Brazil, ‘Keep Your Body Tan, Keep Your Skin Protected’. “We want to stand out from other brands by educating customers on effective skin protection and showing that the combination of sunscreen and tanning lotion can provide coverage and give a beautiful glow at the same time,” says Ferro, in line with the brand’s ‘healthy tan’ motto.

Ferro claims that the partnership between Multi B and Australian Gold allowed for a “huge opportunity in the Brazilian sun care market” and was motivated by Australian Gold’s quality and tradition, which “match the Boticário Group’s values.

In addition to Australian Gold, Multi B has brands Bio-Oil, Lee Stafford, Nuxe, Revlon, Salvador Dali and Sinful Colors in its portfolio as well as Boticário’s quem disse, berenice? and The Beauty Box. “All our activities are strategically planned to avoid internal competition. Each brand also has a very unique target audience,” says Ferro.

© 2018 - Brazil Beauty News - www.brazilbeautynews.com

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