According to Shiseido, “entry into the Brazil market for bareMinerals is one step in a line of achievements toward advancing the Shiseido Group further into emerging markets”.
bareMinerals will be sold through the Japanese cosmetic giant’s Brazilian subsidiary, Shiseido do Brasil via the channels of e-commerce and retail, which includes stand alone stores. Shiseido aims to have over 100 stores over the course of five years.
Shiseido’s expansion of its business in Brazil will utilize hybrid marketing, which includes targeting consumers heavily through social networking.
The company claims it is a prime market as approximately 90 per cent of Brazilians are active on at least one social network.
In line with this, Shiseido intends to use its knowledge from the North American market and its online users to drive sales in Brazil but has not elaborated on the specifics of this strategy.
The second aspect of the hybrid marketing includes focusing on the entry-prestige market with its ingredients as Brazil has seen steady rise in the middle-income group thanks to a stable economy.
This has led to an increase in consumption and contributed to the double digit growth of the cosmetics industry.
According to a company statement, “the price range of bareMinerals is designated as an entry-prestige brand that is within the moderate price range to target the middle-income group, which is considered the growth engine of consumption in Brazil.”
Brazil has seen an expansion of 2.4 trillion yen (US$31.2 bn) achieving third-place in global cosmetic market ranking after the United States and Japan, according to Shiseido.