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“The quest for wellbeing and a healthy lifestyle is a trend observed across different population groups,” Vanessa Bretas, Brazilian Franchising Association

The Health, Beauty and Wellness market is on the rise in the ranking of Brazil’s largest franchises, which is still led by O Boticário and features SPA das Sobrancelhas, Sobrancelhas Design and Não+Pêlo among its top 50.

Vanessa Bretas, Market Intelligence Manager at ABF

Vanessa Bretas, Market Intelligence Manager at ABF

The Brazilian Franchising Association (ABF) has recently released the second edition of its ‘50 Largest Franchise Brands in Brazil’ study. The survey was conducted with its over 1,100 associated companies and the results revealed that the Health, Beauty and Wellness industry has increased its share of the market from 12% to 16% this year and currently occupies the third position behind food (34%) and educational services (18%).

The ranking of largest franchise operators continues to be led by O Boticário, accounting for 3,762 stores – still well ahead of second-placed AM PM Mini Market, with 2,400 stores across the country. Sobrancelhas Design has moved from 49th to 46th position, totaling 320 stores. SPA das Sobrancelhas (43rd) and Não+Pêlo (47th) have also joined the ranking, with 304 and 299 stores, respectively.

In an interview with Brazil Beauty News, Market Intelligence Manager at ABF, Vanessa Bretas, analyses the figures and talks about the trend towards a healthier lifestyle for Brazilians.

Brazil Beauty News – In the second edition of ABF’s ‘50 Largest Franchise Brands in Brazil’ study, the Health, Beauty and Wellness sector recorded a 16% market share, up from 12% in the previous year. What factors have led to this increase?

Vanessa Bretas - The growth in market share is mainly due to the entry of two new brands in the top 50 group: SPA das Sobrancelhas and Não+Pêlo. Their expansion is in line with the sector’s positive performance in recent years and its growth in both revenues and number of stores.

Brazil Beauty News - This industry has overtaken fashion as the 3rd largest category in the rankings. Was this a surprise?

Vanessa Bretas - I would not say it was a surprise, given the solid position of the Health, Beauty and Wellness sector in the franchise scene. We also need to remember that this industry is, at times, boosted by the so-called “consumption replacement” phenomena. That is, if consumers cannot buy a car or travel overseas, they will invest more in goods that have less impact on their available funds, including cosmetics and beauty treatments. Lastly, brands operating in this segment have made efforts to explore complementary sales channels associated with their franchise businesses, including e-commerce and direct sales.

Brazil Beauty News - With the exception of O Boticário, which sells cosmetics, the other three companies in the top 50 are focused on beauty services. Is this a new trend in franchising?

Vanessa Bretas - At ABF we have has seen a quest for wellbeing and a healthy lifestyle across different population groups. These franchise businesses have been showing they are capable of catering for this demand by offering high-quality services and good value for money.

Brazil Beauty News - The study shows that most companies in the rankings (66%) have been operating for over 10 years. Neither Spa das Sobrancelhas or Sobrancelhas Design have completed 10 years in business, while Não+Pêlo has just reached its first decade. Why are they an exception to this rule?

Vanessa Bretas - Although there are exceptions, the development of a franchise operation with more than 200 stores usually requires time to mature. When we are talking about over a thousand stores, even more time is needed. The length of time a company has been in business is an important factor, but the amount it is willing to invest is also key. Most cases where there is fast growth relate to markets that are still being discovered, so companies operating in them must have discipline and dedication to keep their businesses solid and efficient.

Brazil Beauty News - O Boticário has long been Brazil’s leading franchise company and recorded a balance of 32 new stores between 2016 and 2017. AM PM convenience store chain came in second place, with 400 new stores in relation to the previous survey. Do you think that O Boticario’s leading position can be put at risk in the coming years?

Vanessa Bretas - With nearly 4000 stores, it is natural that O Boticario’s expansion pace is not as fast, especially with the economic recession of the last two years. Food franchise networks, such AM PM, are experiencing a moment of considerable growth. This is due to a shift in consumer behavior, which saw an increase in the eating-out culture, purchasing smaller quantities, and the search for cheaper gas (since the stores are located in gas stations). This company has its own expansion challenges and it is hard to make any predictions. What we can highlight, though, is that in just two years the franchise sector showed signs of great vitality.

Renata Martins


© 2018 - Brazil Beauty News -

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