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Giovanna Baby invests big in mall sales and a premium line in aims to grow by more than 30% in 2019

Available at more than 5,000 points of sale, this Brazilian cosmetics brand wants to reclaim its former position in high-end markets.

Giovanna Baby was founded in 1972 as a children’s clothing store. A fragrance was developed in partnership with Firmenich to scent the brand’s São Paulo store. It caught the attention of shoppers, and was soon being sold as a cologne. This best-selling fragrance changed the company’s business and spawned an extensive line of personal care products that were sold in own-brand stores all over Brazil and even in New York.

In the early 2000s, Giovanna Baby was acquired by the Pro Nova group, which also owns Phytoervas. Since then, all company products have been sold exclusively at retail stores, totaling around 5,000 points of sale. A little over a year ago, the company overhauled its brand once again, by opening a new flagship store and several shopping mall kiosks, as well as launching a premium line with colognes, hair and body care products, and home ware. This shift marks the company’s desire to once again cater to the high-end market, and grow by at least 30% in 2019.

Marketing manager Glaucia Grasselli

Marketing manager Glaucia Grasselli

In an interview with Brazil Beauty News, marketing manager Glaucia Grasselli talks about this new strategy and what the future holds for Giovanna Baby.

Brazil Beauty News – Giovanna Baby was launched as a children’s clothing line. How did it transition into being a cosmetics company?

Glaucia Grasselli - When Giovanna Baby was founded, over 40 years ago, the company specialized in selling children’s clothing and accessories. A new, delicate fragrance was developed exclusively to scent the brand’s store in the Jardins neighborhood of São Paulo. Consumers loved it so much that a cologne with the same scent was soon launched. And with this the brand’s first cosmetic product was born - the Colônia Classic - which was quickly followed by other products developed with the same fragrance.

Brazil Beauty News - The company used to have many own-brand stores and even expanded its operations internationally. Why were they all closed?

Glaucia Grasselli - When the Pro Nova group (back when it was still called Nasha) bought the company 18 years ago, their goal was to increase the variety of distribution channels and expand the product portfolio. As a result, maintaining franchises and brand stores was not a priority.

Brazil Beauty News - Giovanna Baby then repositioned itself in the market, and started selling its products at retailers. What did this change represent for the company?

Glaucia Grasselli - Giovanna Baby products began to be sold at traditional retail outlets, increasing its market penetration and being displayed on the shelves of drugstores, cosmetics stores, supermarkets and wholesalers. This shift allowed us to reach new markets and new customers who had never bought Giovanna Baby products before. We also expanded our portfolio to include personal care products, such as deodorants, lotions and a cleansing gel.

Brazil Beauty News - In late 2017, the company opened a new flagship store and kiosks at several shopping malls in São Paulo. What are your plans for having own-brand stores again?

Glaucia Grasselli - There were two reasons behind this. First, we want to once again reach consumers in high-end markets, which used to be loyal to our brand, but who do not usually buy from traditional retail distributors. Second, we are seeking to increase brand awareness, so that Giovanna Baby can reclaim its position as a mainstay in people’s everyday lives. Opening our new flagship store and mall kiosks complements the new sales strategy and serves as an important vehicle for our brand.

Brazil Beauty News - Giovanna Baby is also launching a new premium line. Will it also focus on reaching high-end markets?

Glaucia Grasselli - Yes. The launch of the GB Premium line marks a reunion with our consumers from the 1980s and 1990s, when the brand was positioned to cater to the premium market. This new line offers sophistication with its personal care and home ware products, such as candles and scent diffusers.

Brazil Beauty News - What are Giovanna Baby’s expectations for 2019?

Glaucia Grasselli - In 2019, our goal is to increase our customer base and the number of points of sale. Today, our products are available at around 5,000 points of sale, and we see potential for adding many more, in terms of traditional retail outlets. We also plan on opening new mall kiosks in São Paulo, and are looking into the possibility of expanding to the countryside of São Paulo as well as other states. In 2019, we plan on launching over 100 new products, which will bring our current portfolio to more than 160 different products. Sales growth is projected to reach more than 30%.

Renata Martins

Portfolio

© 2019 - Brazil Beauty News - www.brazilbeautynews.com

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