DALLAS — BeautiControl is moving to a Latin beat.
This story first appeared in the October 4, 2002 issue of WWD. Subscribe Today.
The $120 million direct-sales beauty company here, which is a division of Tupperware Corp. of Orlando, Fla., is accenting growth with an aggressive push into Latin America, especially Mexico.
With the help of Tupperware’s 375,000 Latin American direct-sales associates — who are being cross-trained to sell BeautiControl beauty products along with Tupperware’s food storage, preparation and serving items — BeautiControl hopes to grab a share of the lucrative Latin American beauty market. To solidify their brand unity in Latin America and present a cohesive marketing image to consumers, BeautiControl and Tupperware now share one corporate logo.
“We think the market potential is huge. It’s a very fertile ground for BeautiControl,’’ said Richard W. (Dick) Heath, the newly appointed group president of BeautiControl and Tupperware Latin America. Heath continues as president and chief executive officer at BeautiControl, where sales are running ahead 18 percent through the second quarter. Profits are up 75 percent. Jinger Heath, the wife of Richard Heath, is BeautiControl’s founder and chairman.
“Cosmetics, fragrances and toiletries do a combined business of over $25 billion a year in Latin America. The food storage market is a $1-billion-a-year business. We have 25 times the potential market,” remarked Heath. “And the Latin culture is looking for opportunities for women to work and earn money. But with a direct-sales position, they can still be at home with the family, which is still so big in Latin America.’’
Tupperware acquired BeautiControl in October 2000 as a vehicle to diversify and grow international sales with a consumable product, such as beauty goods.
“Under Dick’s leadership, BeautiControl has been experiencing strong double-digit growth, and we believe the time is right to more aggressively integrate BeautiControl in Latin America. He is the natural choice to lead this effort,’’ said Rick Goings, chairman and chief executive officer at Tupperware. Heath was named to his new post on Sept. 6.
BeautiControl’s Latin initiative started quietly a year ago in Mexico, due to the country’s close proximity to the U.S., explained Heath. Three weeks ago, BeautiControl started its big push into the region.
“Mexico is at the doorstop of the U.S. and also is the largest market in Latin America. And the Mexican consumer fits the typical Latin American profile very well, where the natural demographics are younger. We see ourselves expanding in Central and South America. The easiest countries to follow would be Guatamala, Costa Rica and Honduras. And then South America and the huge market of Brazil,” he said.
BeautiControl is targeting Latin American women and men aged 25 to 50 with its products. In the U.S., the target age range is 20 to 70.
“Unquestionably, we will lead with our company’s top strength, which is skin care. We have to understand that the Latin American market is driven by fragrance and color products. We will launch new products for this customer,’’ Heath added. Among the new Latin launches are two fragrances: Dreams, a women’s scent that has black currant, peony and pepper ivy notes, and 50/50, which offers a sheer floral scent for women and a spicy citrus scent for men.
BeautiControl’s other international expansion plans include a continued outreach in Asia, with businesses already established in Malaysia and the Philippines. There are tentative plans to roll the brand out to Europe in the future.
In the U.S., BeautiControl counts 53,000 direct-sales associates, a growing number.
“The higher unemployment rate in the U.S. has lead some women to discover new careers as direct marketers,’’ Heath explained. “And the consumer trend toward nesting and turning their homes into a private spa and retreat continues, which is benefitting our collections, especially the spa and skin care collections.’’
BeautiControl sales consultants have a new marketing tactic called Spa Retreats, which are 90-minute, in-home sales pitches that demonstrate and explain the company’s lineup of spa products. “It’s about escaping the harsh realities of the world. Consumers love these demonstrations. They’re extremely effective at building sales,’’ said Heath, noting that the program began about six months ago.
New products at BeautiControl include Jinger Heath’s Regeneration Platinum, a skin care and nutritional lineup designed for women age 40 and over; Regeneration Time to Go with Retinol, a time-release nighttime exfoliant, and Tight Overnight, a nighttime treatment product designed to reduce puffiness and help rebuild the skin’s dermal matrix.
Tupperware, with sales last year of $1.1 billion, sells food storage, preparation and serving items to consumers in more than 100 countries through more than 1.3 million independent sales consultants. Tupperware also has retail alliances with SuperTarget and Home Shopping Network, as well as a popular Web site.