Brazil cosmetics chain invests in satellite communications

O Boticario stores throughout Brazil will soon be supplied by Gilat Satellite Networks through its satellite subsidiary StarOne and long-term partner Embratel, to deploy the satellite-based VSAT network to what is currently the largest cosmetics chain in Brazil.

The investment is being made in an effort to increase the cosmetic retailer's logistics efficiency and ultimately aims to bring significant cost savings.

O Boticario says that the remote sites will be deployed throughout its stores, including various locations in airports, supermarkets and shopping centers all over Brazil. One thousand sites have already been implemented, with the remaining to be installed in the first half of 2006.

As part of the consortium with Embratel, StarOne is responsible for the implementation of a Multi-Service Communication System that will handle the communication needs of retail stores throughout the country, the companies said in a statement.

In an effort to meet O Boticario's needs, applications supported by the VSAT system include credit card authorization, Internet access and voice-over IP, as well as video, audio and IP multicast that can be used for distance learning, together with music clips distribution, management presentations to employees or product launch initiatives and advertisements geared towards consumers.

O Boticario says that it will utilize the multicasting capability so that the same source of information and messaging is delivered to store employees, ensuring that the corporate communications system is uniform and precise.

Like RFID, the implementation of VSAT systems is becoming increasingly common in the cosmetics retail environment as companies seek to up logistical efficiencies in an age where a strong supply chain can make the difference between a successful and an unsuccessful business.

According to COMSYS the global VSAT market is currently valued at nearly $4 billion, a market that Gilat currently has a 26.7 per cent share of.