Group hopes transaction will help Sephora gain foothold in Brazilian market
The LVMH group is to acquire a 70% controlling interest in the Brazilian online fragrances and cosmetics retailer Sack's, assisting the entry of the French group's cosmetics seller Sephora into the growing Brazilian market. Demand for cosmetics and fragrances in Brazil has continued to increase slowly in the last 12 months despite the worldwide economic contraction, especially in the direct selling segment of the market.
Sack's markets some 270 brands and has a client-base of about 830,000 with 4 million visitors a month to its Internet site. LVMH has said that Sephora will bring its international market experience to bear in developing the Brazilian enterprise and increase market penetration. Sack's was founded in 2000 by Carlos Andre Montenegro and Marcelo Franco and aims to be the leading online provider of cosmetics in Brazil. The Sack's founders will retain a 20% stake in the company and will remain in place in the Rio de Janeiro HQ.