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Cosmetic Trends Emerging in BRIC Countries
Posted: October 14, 2009
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Meanwhile, in the largest, yet mature, direct sales market of Japan, the channel is losing share to other outlets—namely department stores, drug outlets/pharmacies, and specialty retailers as new, Western-style stores multiply.
Mass merchandisers' share surges in BRIC markets
Typically somewhat isolated from the effects of a dismal economy, the mass merchandisers channel may have suffered a tougher blow had it not been for stellar growth in the BRIC markets. Faced with a declining share from erosion by drug outlets/pharmacies and direct marketing, this channel eked out less than 2.5% growth in the United States. However, the developing BRIC economies posted double-digit growth in the channel: 14.1% collectively and around 25% each in Russia and India. The leading international retailers, Walmart and Carrefour, dominate in Brazil and China, with Walmart launching an aggressive expansion in Brazil through the acquisition of local chains.
Also contributing to growth through the channel, mass merchandisers have fine-tuned their product offerings and revamped store space to appeal to consumers and boost cosmetics and toiletries sales. By devoting more shelf space to naturally positioned brands, luxury and masstige products, and male grooming products (especially in India), the mass channel will continue to grow at a moderate rate.
Department store dichotomy