Premium Beauty News - How is evolving the nail polish market worldwide?
Cary Robinson - The market growth is slowing, we no longer record the impressive double digit rates that we experienced a few years ago. Novelties and special effects products are now driving the market and consumers are demanding better performing products. I am convinced that the new chemistries and technologies are going to renew the interest in this market. Gel polishes, for instance, already represent 15% of the US market and are one of the most dynamic categories in Europe.
Our strategy is based on strong technological advances, highly reliable and qualitative industrial tools, breakthrough innovations combined with differentiated marketing offerings to support our clients.
Premium Beauty News - Actually, you recently announced your intention to open new production facilities in Europe and Brazil.
Cary Robinson - We export from the United States about 40% of our production, two-thirds of which go to Europe. Russia, the Middle East, China and Brazil are also important markets with strong opportunities for growth. In a market where speed to market is a key factor of success, it is important to have fill-in and logistics facilities closer to our customers. However, 100% of our products are formulated in the USA.
Premium Beauty News - A lot of suppliers of cosmetic and beauty products are currently investing in Brazil.
Cary Robinson - As far as nail varnishes are concerned, Brazil is the world’s largest market in volume, while the United States are the leading market in value. The Brazilian market cannot be ignored but barriers to trade are very prohibitive. We are therefore identifying small Brazilian companies to buy and within the next 12 months will own a Brazilian company. Our competitors are doing exactly the same.
Since it was protected from foreign competitors, the nail polish market in Brazil had no pressure to evolve. As a consequence the chemistry of these products has remained the same for 25 years. The presence of new manufacturers, introducing new processes and chemistries will have a strong impact on the market. Brazilian brands will now have the opportunity to market different and innovative products.
Also, the quality of products will improve. Many consumers are ready to pay a bit more for products with a better quality. We’ll not be another low cost producer in the Brazilian market.