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Markets & trends

"Consumers want to be recognized as individuals, not as part of a group", says Beauty Fair’s Cesar Tsukuda

The director of the largest beauty fair in the Americas says that customization of the shopping journey and new technologies are some of the key issues for the future of cosmetics retail in Brazil.

Although the internet is the main source for consumers to discover new beauty products, a recent poll by media platform Teads reveals that the majority of people would rather buy beauty products in person in off-line stores. According to the study, 65% of people interviewed prefer buying in department stores, followed closely by retail chains (64%).

Cesar Tsukuda, general director of Beauty Fair

Cesar Tsukuda, general director of Beauty Fair

The beauty retail market plays a key role in the cosmetics industry in Brazil. "It is among the most competitive, strong and creative markets in the world. It is a market that pays attention to trends, is inspired by successful international models and adapts these trends to the taste of Brazilian consumers", says Cesar Tsukuda, general director of Beauty Fair.

In February, the largest beauty fair in the Americas organized an event to discuss the future of cosmetics retail in Brazil. "Physical stores will not die, but they have become a complementary step in consumption. In order to keep physical stores relevant and attractive we need to offer quality products with innovative experiences", says Tsukuda.

According to him, the customization of the shopping journey is a key issue in the evolution of beauty businesses. "Consumers want to be recognized as individuals, not as part of a group. Retailers can no longer offer the same shampoo promotion to everyone on their mailing list. The client wants to receive promotions and news from the brand they like, targeted for their hair type", he says. In order to customize the buying experience, data collection is key. According to Beauty Fair’s director, even large stores that have a large quantity of clients can gather personal data and preferences from consumers.

"Customization down to the individual level is what everyone aims for. In Brazil, we see loyalty programs in drugstores and supermarkets based on clients’ CPFs (Social Security number) and shopping history to present each client with a list of offers and promotions. This is still incipient, but they are paving the way", says Celso de Moraes, CEO of multi brand chain Mundo do Cabeleireiro.

According to Tsukuda, the business that wants to stand out in the market needs to create an ecosystem to foster complete solutions to clients. With a similar idea, Moraes mentions examples of successes in the international market. "This is already a reality in big companies such as Amazon and Alibaba. They are investing in different companies, from a series of sectors such as logistics - to deliver the products they sell - and banks - to finance consumers or retailers. They have their own ways to pay and are also present in entertainment and digital media. Everything you can imagine is available in their ecosystem", he says.

Moraes believes that even large corporate conglomerates should have a physical store. "Amazon was created in the digital environment only and it bought the supermarket chain Whole Foods. A physical store is inevitable. It is where clients try things out, where they go to feel the products. It also works as a point for product collection, return or exchange", he says.

Tsukuda also mentions new technologies as key for the future of beauty retail. "The use of virtual reality and artificial intelligence in stores is another strong trend we have been observing outside of Brazil".

According to the CEO of Mundo do Cabeleireiro, this is a priority. "We are very behind on technology. And not just us, but nearly 90% of Brazilian retail. Our chain is reaching out to suppliers to try to change this by 2021", says Moraes.

Renata Martins

Portfolio

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

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