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Cosmetics multi-brand retailer Mundo do Cabeleireiro ends the year 2019 with over 50 stores and more than R$ 200 million in sales

The family business from Pernambuco focused on São Paulo to expand its market and it’s now moving on to the countryside of the state.

Celso de Moraes, Mundo do Cabeleireiro's CEO

Celso de Moraes, Mundo do Cabeleireiro’s CEO

In 1993, a small cosmetics store opened on a street in downtown Recife, in the state of Pernambuco. A large portion of its clients was beauty professionals, who would buy the products they used in their salons at the store. This was the beginning of the story of Mundo do Cabeleireiro, which is now one of the largest multi-brand retail chains in the Brazilian beauty industry.

We began with street shops and then we created the ’prime’ model for people with higher income. Then we opened stores in shopping malls”, says Celso de Moraes, Mundo do Cabeleireiro’s CEO and son of founder Helena Carneiro. "We continue to open all three types of stores, depending on the opportunities we get.

Despite the name - which means "Hairdresser’s World" in Brazilian Portuguese - hairdressers and other beauty salon professionals represent only 5% of current sales. "26 years ago there were only a few cosmetics companies operating in Brazil. The client had to choose between six or seven brands available - usually multi-national companies like Well, Seda and L’Oréal. With the increase in the number of new brands and different products, the store became more attractive to clients in general, while professionals are now buying from different channels such as the internet, wholesale or direct sale," he says.

As the beauty market in Brazil grew, the relationship between the chain and its suppliers also changed. “Large industries began to focus their attention and resources on supermarket, pharmacy and wholesale chains. This led us to prioritize businesses with small and medium suppliers, who would treat us as equals, making the commercial relationship a lot better”, says Moraes, who currently works with 200 manufacturers.

Marina Moraes, Mundo do Cabeleireiro's vice president

Marina Moraes, Mundo do Cabeleireiro’s vice president

According to the CEO - who leads the company alongside his sister Marina Moraes - big mass market brands are still part of the store’s portfolio, which boasts over 9,000 items including hair products, makeup, nail polish, personal care products, accessories and electric equipment such as hair dryers and straighteners. “These brands are still in the store, but they don’t have the same space they once had. Our curatorship is based on the 26 years of experience in the industry, market research, listening to customers and always trying to bring launches and innovations to our shelves.

After consolidating itself in the state of Pernambuco, the chain chose São Paulo - a city 2,500km away from Recife - to continue with its expansion plan. They opened an office in the city and the first store opened in Shopping Tatuapé mall in June 2016.

Since then, there have been many other openings in many other shopping centers in São Paulo and cities in the metropolitan region of São Paulo, such as Osasco, Barueri and Taboão da Serra. “The markets of Pernambuco and São Paulo are different. The products we offer had to be adapted and we spent over a year working to understand the environment well enough. However, the decision to move to São Paulo worked”, says Moraes.

The chain is now expanding to the countryside of the state. In the last couple of months, the brand opened stores in Ribeirão Preto, São José dos Campos and Piracicaba and other cities are part of the company’s plan such as Jundiai and Campinas.

Mundo do Cabeleireiro ended 2019 with over 50 stores. “For the next few years, we want to maintain the growth rate we’ve had in the last few years so we can get to 100 stores soon”, says the CEO. Sales will go over R$ 200 million and they expect that with the expansion in 2020 revenue grows 40%.

Renata Martins

Portfolio

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

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