"Increasing our distribution capability in South America is an important aspect of Impact Color's strategic growth plan," says Doug Thornley, co-founder of Impact Colors.
"Golden Business Class is also looking to diversify and extend its business with the addition of an expansive line of color pigments and effects. We believe that our alliance and complementary capabilities will help us both gain significant market share in Colombia."
GBC is a principal seller and importer of raw materials for the cosmetic sector in Colombia, and will use the deal to help expand its presence in the country.
"The strategic alliance that we have with Impact Colors is very important and is a perfect complement to our current line of raw materials," says Alexandra Orjuela, Golden Business Class sales manager.
Its other clients manufacture nail care products, eye shadow, compact powders, and lipstick; with 70 percent of the nail polish brands in Colombia, being distributed by GBC.
5th largest in SA
According to Colombia's trade bureau Proexport, the country’s cosmetics and toiletries market is the fifth largest in South America; with figures of $6.2 billion.
Production has doubled in six years; Colombian exports of cosmetics and toiletries have grown six fold in the last ten years.
With about 13 percent of the worldwide cosmetics and toiletries market in the decade 2000 to 2010, Latin America expanded by more than 9 percent, outpacing the global market's growth of 6 percent.
Confidence in Columbia
With its range of color cosmetics solutions and experience in different markets around the world, in Asia and in Europe, co-founder Thornley is confident Impact Colors will become a success in South America with this deal.
"From a marketing standpoint, there is nothing more important in the field of cosmetics than being able to identify fashion-forward trends and then use unique materials to create lipsticks, nail enamels, and eye shadows that capture the excitement and direction of the latest new thing," he says.
"Eye-catching pigments and color effects are the best way to add inspiration and futuristic impact to today's and tomorrow's lines. Matching GBC's flair with the trendy combinations and pallets suggested by Color Trends will delight customers in Colombia."