7.

13 Do you think L’Oréal will succeed in changing the buying habits of Brazilian
women?

Yes. L’Oréal will succeed. This is because L’Oréal is the world's largest cosmetics
company, they have maintained a successful reputation around the world. Although can't
seem to make the right step when it comes to selling its products in Brazil due to the
Brazilian women, who make up a significant customer base, are currently targeted mainly
through direct door-to-door selling.

Brazilian women from the banks of the Amazon to Sao Paulo's slums and the affluent
beach communities of Rio de Janeiro have traditionally bought their skin creams and
mascaras from door-to-door sales representatives, not the shops where L'Oréal sells its
brands. Getting Brazilians to alter their buying habits won't be easy. The two major players
who use the door-to-door method claim roughly 50% of all color cosmetics sales and 42%
of skin-care sales. L’Oréal’s challenge also reflects the rising competition that global
consumer-goods companies face from local rivals who understand the tastes and
peculiarities of their home markets. Door-to-door vending is a longstanding custom in Brazil
that has ushered millions of Brazilian women into the middle class. Some 2.5 million women,
out of a total female work force of 42 million, earn a living from direct sales in Brazil.

While it had been in Brazil for 50 years, it had mainly focused on hair products.
Combined, makeup and skin care account for less than 15% of L'Oréal's sales in Brazil, a
paltry amount compared with the nearly 50% of sales the two categories provide the
company world-wide. To build its presence in makeup and skin care, L’Oréal has hired
personal beauty advisor to offer shoppers in-store consultations. L'Oréal also plans to offer a
new line of lightening creams at pharmacies. The CEO of L’Oréal Jean-Paul Agon notes, “Our
big bet here is to create a makeup business in retail from scratch. The more the market
develops, the less relevant direct sales will be." So from this statements, I do believe they
can succeed since the makeup game has stepped up over the years. Social media has had a
big impact on this, causing more women to be interested in makeup and willing to visit
department stores in order to find their perfect makeup set.
REFERENCES

Christina Passariello, (2011) L'Oréal, Brazil's Women Need New Style of Shopping