The Brazilian luxury perfumeries, which sell international brands, are undergoing a moment of review of its business model.
The country imports more perfumes each year - only in 2010 the increase was 46% - and is already the largest worldwide market of the segment, but the strong competition pressure the profit margins of the local shops. In addition to large networks such as Renner, they jostle for space with e-commerce, driven by growing Sack's, now the largest retailer of perfumes in Latin America. And they feel the impact of increased the Brazilians which travel abroad - perfumes are common items on the shopping lists of tourists.
In response, perfumeries are intensifying negotiations with suppliers to reduce prices, they started divide in parcels the spent on purchases - up to 10 times - and begin to include items in the national mix, besides building their own virtual stores.
From two years to now, Opaque, perfumeries network with seven stores in malls in Sao Paulo started to sell in six times stretched to ten on specific dates, according to Sun Chul Kim, a partner at Opaque. The next step, according to him, is to sell over the Internet, a project expected to take effect in mid-2012. The Opaque also assesses the ability to sell products manufactured in Brazil, without, however, popularize the products mix. "There will be premium products, hardly those which are already at the pharmacy or supermarket," he says.
Also in search of its share of the budget of the Brazilians - who spent US$ 6 billion in 2010 with perfumes, 93% with national fragrances and 7% with the imported ones - 16 perfumeries decided to join last year called on the Brazilian Association of Selective Perfumery Multibrands (ABPS). The group, which includes companies from Brasilia, Sao Paulo and Rio, has elected a representative to negotiate with suppliers all the volume of perfumes that it wishes to buy . "We achieved an average discount of 22%," says Jessica Souza, a partner of four stores of Universo Perfumery, a member of the ABPS, with 11 units in Brasilia.
In November, the association distributes its first catalogue together, with prices fixed for all participating networks. So, Jessica believes it will be easier to compete with such giants as Sack's and Renner.
"Importers ended up giving priority to them, due to the volume of purchase," he says. With 95 years of history and four perfumeries in malls Fortaleza (CE) , the network Casa Parente is looking at a new audience. It is a fact that disbursements of Brazilians abroad grew - in August they advanced 46% against the same month of 2010 and have exceeded in US$ 1.3 billion the spending by foreigners in Brazil.
"We lost the customer Class A who travels and purchase out of the country . In contrast, we gain from the inclusion of classes B and C in the fragrance market," said the owner of the network, Livio Parente. Six months ago, the Casa Parente customer can pay up to ten times the card. Colonies are already part of the national portfolio and the platform of the online shop is ready, scheduled to begin selling throughout Brazil in late 2012.
RR Perfumes, one of the largest importers of perfumes in the country, has received complaints from shopkeepers who need to review the profit margin. "What they say is that the consumer is going to the store, experience the fragrance and then buying abroad or at duty-free," says Barbara Kern vice president of marketing for the company, which brings to Brazil brands like Hugo Boss, D & G and Chloé.
In addition, in the segment there is also a perception that consumers seek the physical stores to prove perfumes and then buy online. Also LVMH, which distributes directly in Brazil brands Dior, Givenchy, Kenzo and Acqua di Parma, states that the perfumeries have insisted in lower prices on negotiating .
The company attributes the loss of profitability of retailers to the high taxation. "The perfumes are suffering a big drop in sales by the evasion of consumption for the foreign market, which could be avoided by taxes reduction," said Renato Rabbat, director general of the division of LVMH perfumes and cosmetics in Brazil.
According to Rabbat, despite the more competitive environment, the perfumeries are still the main sales channel for suppliers of imported perfumes and cosmetics in Brazil. LVMH brings in early 2012 another strong competitor in this market - the network of Sephora cosmetics and perfumery.