Starting in May 2012, Shiseido will commence sales of the bareMinerals brand into Brazil. This will be a first time for bareMinerals in South America. The brand intends to tap into the changing Brazilian market where consumers are actively shifting their interest from the mass to the entry-prestige segment.
On the back of its overall economic growth, Brazil has seen a steady rise in the middle-income group, which has stimulated consumption and contributed to double-digit growth in the cosmetics market over the last few years. The Brazilian cosmetics market currently ranks at the world’s third-place after the United States and Japan.
Product sales will be carried out through e-commerce and retail sales, including standalone bareMinerals boutiques, with the aim of achieving more than 100 stores handling the brand products over the next five years.
Seeking to make inroads from the know-how accumulated by bareMinerals in the North American market, Shiseido will promote a hybrid marketing strategy combining social networking services and traditional retail business. Indeed, Bare Escentuals, Shiseido’s North American subsidiary and owner of the bareMinerals brand, enjoys a renowned expertise in social networks marketing. The brand is considered as a leading click-to-brick innovator with advanced expertise on how to drive online audience to the counter. “Experience in managing standalone bareMinerals boutiques will also prove to be an asset for this venture,” Shiseido adds.
Also betting on the recent consumer trend in Brazil toward natural and organic products, Shiseido expects brand awareness to increase rapidly and bareMinerals to rapidly grow at a top position into the mineral cosmetic segment.
“Additionally, the price range of bareMinerals is designated as an entry-prestige brand to target the middle-income group, which is considered the growth engine of consumption in Brazil. For this reason, Shiseido do Brasil Ltda. will be working to expand customer points of contact with bareMinerals while distinguishing Shiseido brand products, which are in the highest price range.”
This move is part of Shiseido’s current three-year plan (April 2011 - March 2014) to develop its international business focusing especially on emerging markets.