Following earlier announcements that such a deal was in the making, a partnership in Brazil between Coty and Avon has now been officially signed.
The agreement between the two cosmetics giants will see ‘select’ Coty fragrances hitting the Latin American market via the retail channel of Avon Brazil’s 1.5 million-strong network of independent sales reps.
Coty's portfolio of celebrity and lifestyle fragrance brands will be the focus of the partnership, and its distribution by Avon will “increase both companies' global fragrance market share, consumer loyalty and brand appeal in Brazil”, say the brands.
"This commercial partnership allows Coty to expand its geographical reach and strengthen our footprint in the emerging markets, with Brazil being a key driver in our growth strategy," Renato Semerari, President, Coty Beauty, has said.
"Avon's extensive experience in Brazil makes the company an ideal partner," he noted.
Fragrance in Brazil
Brazil, Avon’s largest market, is also the largest fragrance market globally at the moment, and is also expected to have the strongest absolute growth from 2011-2016, according to Euromonitor.
With the partnership in the emerging market, both brands hope to leverage further the potential it offers.
“The deal brings together Avon’s extensive network of Representatives in Brazil and Coty’s portfolio of celebrity and lifestyle fragrance brands in an effort to increase both companies’ global fragrance market share, consumer loyalty and brand appeal in Brazil,” the companies note.
With Coty describing the partnership as aiming to “further expand our portfolio of high quality”, it looks like it is hoping to strengthen its more premium offerings in the country.
This is a move which confirms Euromonitor’s predictions for positive conditions coming up for high-end fragrance in Brazil, with the market research firm recently describing the region as “a good opportunity for premium fragrances”.
Canadean research firm says consumer demand for novelty in fragrance will drive future growth in the market, with Brazilians looking to indulge in new experiences, so broadening Coty’s current offering will meet this interest.
“Consumers’ desire to experience new or novel scents are a key motivation behind the consumption of just under a quarter of all fragrances in Brazil by value, while the desire to treat oneself is also important.” says Canadean.