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Markets & trends

New business models shorten the distance between cosmetics and consumers

Makeup delivery services, subscription boxes and the so-called “beauty Uber” are among the services that use technology and creativity to deliver cosmetics to the customers’ home.

Online shopping has been a growing phenomenon in Brazil in recent years. According to the WebShoppers study carried out by Ebit, almost 25% of the Brazilian population made at least one online purchase in 2016, a 22% increase compared to the previous year. However, for entrepreneur Alexandre Abrahão, this business model has a major disadvantage: customers cannot try the products before buying them.

Alexandre Abrahão, CEO at Upperbag and MakeUpBag

Alexandre Abrahão, CEO at Upperbag and MakeUpBag

The way he found to fix this inconvenience was to launch MakeUpBag, a new concept in the delivery of beauty products in Brazil. Customers register online and enter their preferences and individual features. A team of advisors then gets in touch to get to know more about their needs and even looks at photos available on social media. “When customers respond to the questionnaire, they often have in mind the look they want to achieve, rather than the way they look now. By having access to Facebook and Instagram, it is easier to get a real picture of what each customer looks like to ensure a more accurate product offer,” says Abrahão.

MakeUpBag delivers a case with about 30 makeup and personal care products from brands like O Boticário, Contém 1g and Vult Cosméticos free of charge to the customers’ home, where they can test the samples and decide which products they want to purchase. “Customers usually pick an average 35% of the products delivered, which we see as a positive feedback,” he adds. The products that are not purchased go back to the case and are collected by the company’s courier within 72 hours.

Operating exclusively in São Paulo’s metropolitan area for the time being, MakeUp Bag came about two years after the launch of Abrahão’s successful experience with fashion delivery service Upperbag. Following the same concept, it delivers a custom selection of clothing items for men, women and children, reaching more than 6,000 customers and recording average monthly sales of R$ 200,000.

Another pioneering service was launched in Brazil late last year by Lilibox. The app acts as an intermediary between customers and sales representatives of brands including Avon, Natura and Mary Kay. The platform allows customers to select the products they want to purchase and the date when they want to receive them. The request is then sent to registered sellers and the first to meet the order’s criteria closes the sale.

Rafael Luciano, director at Lilibox

Rafael Luciano, director at Lilibox

Nicknamed the “beauty Uber”, Lilibox is now available in about 30 Brazilian cities and charges a 6% commission from sellers. “Our goal is to expand the portfolio and make Lilibox a great online department store. By 2018, we plan to operate in 120 cities around Brazil, and reach 500,000 orders placed through our app and 50,000 registered sellers,” says director Rafael Luciano.

With plenty of subscription boxes now available in the market, these companies were urged to innovate in order to attract and retain their customers. One of the alternatives found was to target niche audiences – which is what AfrôBox did by offering beauty products especially catered to black women.

Bellabox has also incorporated new features to set itself aside from the competition. In addition to delivering a surprise box with up to six beauty items each month, it has launched an e-commerce platform exclusive to subscribers, allowing them to repeat purchases at prices lower than traditional retail outlets and have the products delivered straight to their door.

Renata Martins

Portfolio

© 2017 - Brazil Beauty News - www.brazilbeautynews.com

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