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Markets & trends

“Consumers are looking for brands that have a purpose,” Elton Morimitsu, Euromonitor International

The quest for a more minimalist lifestyle, the sharing of products and services, and the ever-increasing use of online channels to research and buy products – these are some of the global consumer trends pointed out by Euromonitor International’s Top 10 Global Consumer Trends for 2018 study. But how does this movement affect the Brazilian beauty industry? Brazil Beauty News spoke with Elton Morimitsu, senior research analyst at Euromonitor International, about the impacts and effects of these trends on the cosmetics and personal care market in Brazil.

Elton Morimitsu, senior research analyst at Euromonitor International

Elton Morimitsu, senior research analyst at Euromonitor International

Brazil Beauty News – One of the consumer profiles outlined by Euromonitor is the so-called ‘clean lifer’, who is willing to consume less and adopts a more minimalist lifestyle. Do you believe that Brazilians are ready to let go of products considered to be superfluous and will focus more on the essentials?

Elton Morimitsu - Brazilian consumers are, in fact, becoming more rational in their choices. This is not to say that purchases of beauty products will go down. The greatest effect of the clean lifers’ trend in Brazil comes from the ever-growing search for products that are committed to ethical and sustainable practices. There has been an increasing demand for products that are cruelty-free, free of harsh chemicals and that feature sustainable packaging. Although Brazil is the fourth largest global market for beauty and personal care products, its potential is still underexplored. In terms of per capita spending, Brazil ranks 26th in the world, meaning there is still a great potential to be unlocked. In the color cosmetic category, for example, Brazil ranks 33rd in the global ranking, showing there is still plenty of room for growth.

Brazil Beauty News - Do you believe that the ‘borrower’ consumer trend (people who choose to exchange and share products and services) could impact the beauty industry in Brazil?

Elton Morimitsu - I believe the beauty and personal care industry will be one of the least affected by this trend. Beauty products, for the most part, are applied directly to the skin and eyes. Concerns about skin conditions and health problems, such as conjunctivitis, make it harder to share these products. Even dermatologists and ophthalmologists do not recommend sharing certain types of cosmetics.

Brazil Beauty News - The use of social media as a customer service tool has been a reality in Brazil for over a decade. Can channels that promote consumer participation and collaboration be seen as a reminder to companies that their products and services are under constant review and can gain lovers or haters from a simple comment posted on social media?

Elton Morimitsu - Companies are still looking at how to best use digital tools for short- and long-term goals. However, most of them already understand that traditional media is losing its importance. On the other hand, digital media is becoming increasingly relevant and, consequently, influencers are gaining more traction. The Beauty Survey, conducted by Euromonitor International in 2017, showed that 14% of Brazilians are affected by online recommendations when purchasing makeup, while 11% of them claim to be influenced by ads on TV and magazines. We live in the information age, where influencers continuously deliver supposedly unbiased reviews on products and brands – and this is precisely what many customers are looking for. That is why so many companies are investing in social listening as a way to better understand their customers and build a closer relationship with them.

Brazil Beauty News - Is the demand for vegan, organic, cruelty-free products and brands that cater to fitness enthusiasts growing in Brazil? If so, how should companies adapt to this trend?

Elton Morimitsu - More and more consumers are searching for products that offer something beyond their primary claim. They are looking for brands that have a purpose. According to our data for the Health and Wellness industry, which analyzes the demand for food and beverages with a health and well-being claim, the organic food category is one of the fastest growing in Brazil. Between 2012 and 2017, this segment showed an average annual growth of 14% and it is expected to continue growing at an 8% rate per year until 2022. The beauty and personal care industry is also benefiting from this movement, with many brands implementing the same principles into their products.

Brazil Beauty News - Many companies were virtually “born on Instagram” and make their sales exclusively through this channel. Looking at the ’I View in my Roomers’ trend and the focus on virtual reality, can we say that physical stores are likely to shrink as the share of online sales keeps rising?

Elton Morimitsu - Generally speaking, there is a trend for faster growth of the e-commerce channel in the various industries studied by Euromonitor International. Online shopping offers greater convenience to customers, who can quickly search and compare prices between different retailers. For the beauty industry, we also see this growth, but more sparingly – mainly due to the challenge of having an accurate perception of the products through the Internet. Features such as texture and fragrance are quite relevant in this segment and cannot be experienced online. However, the introduction of new technologies, such as augmented reality, can streamline this migration to the online channels. Companies like Sephora and Urban Decay are already investing in this type of technology so consumers can "try out" products online. Today, companies understand they need to be where the customers are. We live in an omnichannel world and companies that are focused exclusively on one or two sales channels are investing to increase their reach.

Brazil Beauty News - Does skepticism of mass-produced products represented by the ‘sleuthy shoppers’ lead to the search for homemade brands with limited-edition, customized products?

Elton Morimitsu - Overall, we see beauty and personal care companies increase their product portfolio to meet the unique needs of a larger group of customers. In the hair care category, we have products created for a wide range of hair types. There are products for curly hair, for example, with claims that are so specific that enable customers to select the best product to cater to their unique curl type. In the makeup segment, we also see new technologies being used to achieve an extensive color palette to match each customer’s skin color. Products such as Clinique’s BIY (Blend It Yourself Pigment Drops) were developed with the purpose of being as customized as possible.

Brazil Beauty News - Should companies invest more in consumer groups that actively participate in the development of products? Many brands already do so, but according to the study, this is a trend that will continue to grow.

Elton Morimitsu - Consumers have always been at the heart of creating new products. Many product launches end up, at some stage, being influenced by customers’ insights, whether in their conception, trial period or sampling stage. What we see today is more interaction with customers to accompany a more dynamic market. By including consumers in the product development process, companies aim to incorporate the point of view of people that are constantly bombarded with information. On the other hand, customers do not simply want to have their ideas heard, but rather to be an active part of the creative process. In Brazil, we see companies using this practice to launch products whose specifications are closer to those that consumers are searching for. Partnering up with influencers often streamlines the process as they end up being the spokespeople for particular groups. One example is the Seda BOOM line, developed in partnership with bloggers.

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

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