LVMH acquisition in Brazil marks entry of Sephora into market
LVMH has acquired a 70 per cent controlling stake in Sack’s, which will be held by the newly established Brazilian subsidiary, Sephora do Brasil, according to LVMH spokesman Hugues Schmitt.
He told CosmeticsDesign-Europe.com that: “This is the first acquisition in the South American market, and Brazil is one of the fastest developing countries in the region with very good growth potential for cosmetics and perfumes.”
This idea is supported by research conducted by Euromonitor, which described Brazil as one of the fastest growing markets for cosmetics and personal care, and the third largest globally.
Sales in the country increased 14 per cent in 2009 to hit an estimated $29bn, a figure which is expected to reach $35bn by 2014.
Sack’s is major online retailer in Brazil
Schmitt also highlighted the strong foothold of the Sack’s business, a major online retailer for cosmetics in Brazil.
Sack’s website carries over 270 brands, and according to LVMH, attracts four million unique visitors each month, making it one of the top-three most frequently visited e-commerce sites in the country.
The remaining 30 per cent stake in Sack’s will be held by the current owners of the business, including co-founder and CEO Carlos André Montenegro, and the current management team will remain in place. Financial terms of the agreement were not disclosed.
“We look forward to benefitting from Sephora’s global beauty industry knowledge to further enhance the experience we offer and continue to realize the enormous potential of our company as we open a new chapter of our story,” said Montenegro.
