MEXICO CITY — Brazil’s beauty industry, the world’s third-largest, is expected to grow by 11.8 percent to 42.6 billion reals, or $19.2 billion at current exchange, this year, despite slowing consumption on the back of Brazil’s economic downturn.
Latin America’s largest economy is set to grow a mere 1 percent in 2014, down from a 2.3 percent hike last year and much higher growth rates in the past few years.
The slowdown, however, is not worrying the beauty industry, which continues to grow at double-digit rates, driven by buoyant consumption of low-price items in the flagship hair-care, fragrance and deodorant markets, which make up 50 percent of turnover.
“The industry remains unfazed by the fluctuations of the Brazilian economy since cosmetics, toiletries and fragrances are low-average-ticket products that don’t impact consumers’ budgets,” João Carlos Basilio, president of main industry lobby Abihpec, told WWD. He added the sector remains a top employer with 5.6 million workers and is “highly competitive.”
This year, the industry will step up investment by 5.2 percent to $14 billion reals, or $6.3 billion, with the majority going toward brand development, expansion and research and development activities. Beauty leads other industries in brand investment, with new product launches a key revenue booster, Basilio said.
“It is essential to invest in brand positioning,” he noted. “The market renews itself very quickly.”
According to Basilio, the beauty circuit has been growing at 3 to 4 percent above the economy in recent years. In 2016, Abihpec forecasts it will account for 2 percent of gross domestic product, up from 1.8 percent now.
“The industry remains optimistic, investing to increase production capacity, research and innovation,” Basilio asserted. Brazil’s beauty industry is now the world’s third-largest after the U.S. and China — but first in some segments including deodorant, sunscreen and fragrance, Basilio said.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)