Brazil’s hair care market is feeling the impact of the recession, so what can brands do to drive further growth?
Source: Euromonitor International
Brazil’s hair care market lost more of its gloss in 2016, falling in both value and volume in all categories except shampoos and perms and relaxants. Thanks to these two categories total sales remained stable, falling by only 0.3% to $5.92bn, but overall the impact of the country’s economic situation compounded by price increases, driven by increases in costs (especially as a result of the taxes on the commercialisation of goods (ICMS) and on industrialised products (IPI)), led customers to reduce their use of hair care products, according to Euromonitor International.
Juliana Martins, Beauty and Personal Care Specialist at Mintel, agrees: “Although it has not been affected as much as other sectors, the segment has suffered during the recession. In addition to reduced purchasing power among consumers, some austerity measures imposed by the Brazilian government in 2015, such as the collection of IPI on some cosmetics (such as hairstyling products), have had a large impact on the sector.”
“In 2016, it was evident that some leading brands lost value share due to the trading-down process,” Euromonitor says. “This was not only because of customers’ concerns about disbursement, but also because . . .
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