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Struggling in Brazil, Herbalife Nutrition is focusing on launching cosmetics products

The North-American company specialized in direct selling has developed a facial care line to meet the needs of Brazilian consumers.

Jordan Rizetto, general director of Herbalife Nutrition Brazil

Jordan Rizetto, general director of Herbalife Nutrition Brazil

Brazil is one of the most important markets for Herbalife Nutrition, a North-American multinational corporation that is present in over 90 countries. Brazil is the leader in sales for the region consisting of countries in South and Central America, but in the last few years, sales numbers have been plummeting. In 2018, the company’s revenue registered a 15% drop and sales are still decreasing in 2019.

According to Euromonitor, the company owns 83.6% of the nutritional supplements market, especially standing out among weight loss products. In an attempt to combat these losses in the face of Brazil’s ongoing economic crisis, the company’s strategy is to invest in cosmetic products.

Since May, their portfolio - which already boasted personal care products such as soap, deodorant, shampoo and conditioner - now offers a selection of facial care products. "Brazil is one of the world’s largest consumer of cosmetic products and it is currently eighth in the rankings for skincare," says Jordan Rizetto, general director of Herbalife Nutrition Brazil.

Their ’Skin’ line consists of five products focused on cleansing; treatments to prevent deep and moderate blemishes and formulas to instantly reduce expression lines. According to Rizetto, the products were specifically developed to meet the needs of Brazilian women’s facial routines. Women represent 80% of Herbalife’s consumers. Production was outsourced to Biophere, an industrial plant in the countryside of São Paulo.

Rizetto highlights the use of copper peptide in the formula of the cosmetics. "It is an ingredient naturally found in the human body that combines copper and three amino acids," he explains. "The compound has antioxidant and anti-inflammatory properties that help to repair damaged tissue as well as build new tissue," says Rizetto.

The line also offers products that "take care of beauty from the inside out", says Rizetto. The powdered supplement Beauty Drink Colágeno promises to improve skin elasticity, reduce cellulite and strengthen fingernails, among other benefits. "Skin products are a complete solution for consumers. Together, they provide the look of beautiful, healthy skin," he says.

The general director mentions another advantage in working with cosmetics. According to the Brazilian Direct Selling Association (ABEVD), the beauty sector represents 55% of direct sales in Brazil (the supplement market represents 4.3% of sales), which translates into a business volume of R$ 25 billion in 2017.

Rizetto says it is easier for sellers to initiate a conversation about cosmetics than weight loss products. For that reason, the company’s communication has been going through changes. It is no longer focusing on weight loss through their shakes - the company’s main product - but offering consumers a healthier lifestyle, with products that help their well-being.

Focusing on the combination of cosmetics and beauty supplements, the director of Herbalife Nutrition in Brazil says he is not afraid of competition with some of the sector’s giants such as Avon, Natura and Mary Kay. He says the company is working hard to innovate and offer new products to increase their portfolio.

Renata Martins

Portfolio

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

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