O Boticário is in the finals of the Internationalization Highlight Award promoted by Franchising Brasil — a sector project for the internationalization of Brazilian franchise brands carried out by means of a partnership between the Brazilian Association of Franchising (ABF) and the Brazilian Trade and Investment Promotion Agency (Apex-Brasil). This is the first edition of the award, which purpose is to recognize chains that, by participating in initiatives developed by the program destined for promotion and qualification, have started or achieved a consistent internationalization process of their brands from 2018 to 2020.

The beauty brand that currently operates in 15 countries via franchise, direct sales and e-commerce presented as its case its expansion in the Arab world. In the end of 2018, Millennial Capital, a retail-focused fund, invested in the O Boticário’s operations in the city of Dubai by means of the opening of a shop at the Mirdif City Centre Mall. Only four months later, the chain opened its second point of sale at the Dubai Mall, the largest mall in the world.

For the chain, that was the most important milestone in its expansion plan, and also an opportunity to innovate: the shop at the Dubai Mall was the first unit of the brand to test technology innovations of RFID (radio-frequency identification). The system shows information on a led display about a product when consumers express their interest in it by taking it from the exhibition shelf.

At that point of sale, the brand paid extra attention to sustainability and optimized resources at the most. Power consumption was reduced by 20%, on average. In Brazil, the model has been implemented already in points of sale in Rio de Janeiro, São Paulo, Curitiba, Salvador and Fortaleza.

Today, O Boticário has four shops in the United Arab Emirates and its products are sold in large retail chains, such as Boots Pharmacy and The Grooming. Also, its products may also be purchased online on its own e-commerce platform and on the websites of Amazon, Carrefour and Golden Scent – a local e-commerce that offers branded fragrances, as well as on other two platforms serving the Arab world: Mumzworld and Noon.

To Marianah Mikosz, marketing coordinator of the international operations of the brand, they expect to open new points of sale in the Middle East. “The place has the highest average ticket price considering all the operations of the company worldwide, with a productivity up to 3 times higher than in Brazil”, explains Marianah.

According to the marketing coordinator, the Middle East beauty market is one with the highest growth rate in the world. “We have chosen physical retail stores to start our operations. CFT in Dubai is a 2.3 billion dollars market (according to EuroMonitor), and 98% of sales in the beauty sector are made in physical retail stores”, says Marianah. She also adds that the main category in such market is Fragrances, and it involves the major manufacturers and players in the world.

Considering the categories in which O Boticário operates, Toiletries was the one that captivated consumers the most in the United Arab Emirates, thanks to its Nativa SPA body lotions, which have quinoa oil in their formulation and offer long-lasting hydration. Regarding Fragrances, the highlights are Lily, Elysée and Malbec, which offer high-quality and sophisticated Eaux de Parfums with a fixation time that is longer than the one offered by other brands, what meets the high expectations of local consumers regarding fragrances and essences.

“The fact that O Boticário was able to thrive in such demanding market is an undeniable evidence of the quality of the fragrances produced by the Brazilian company. So, it serves as a great parameter for us to understand the potential performance of the brand in any other market”, she completes.

Background of O Boticário

In 1977, investing only an amount of money corresponding to 3 thousand dollars, pharmacist Miguel Krigsner started a small business in a side street in Curitiba, a city in the South region of Brazil. Since the beginning, “Dr. Miguel” realized his true love was cosmetics. Soon he created his first fragrance. Sold in an amphora-shaped bottle (the main symbol of the brand), the fragrance is composed of an unusual mix of ingredients. And as a result of a passionate dream the brand was born.

Today, O Boticário’s shops are found throughout Brazil, and it has hundreds of thousands of resellers in direct sales and e-commerce. The company operates in 15 countries, including Colombia, Panama and Mozambique, among others.

About the International Highlight Award

The purpose of the award is to recognize chains that, by participating in initiatives developed by the program destined for promotion and qualification, have started or achieved a consistent internationalization process of their brands.

The award ceremony will be announced soon and three franchises will be the winners in the general category and one chain will be the winner in the Strategy and Consolidation category, which was created because of the high quality of the cases submitted to Apex-Brasil and ABF for appreciation. The criteria to be evaluated by the judging panel composed of members of the Franchising Brasil Management Board are: complexity of sector and market; operationalization process; impact of case; innovation of the initiative; and relationship with the participation in the Program.

About Franchising Brasil

Franchising Brasil is a sector project carried out by means of a partnership between the Brazilian Association of Franchising (ABF) and the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) for the internationalization of Brazilian franchise brands and promotion of their businesses abroad. The initiative was developed to promote this business model that is well recognized in the main international markets.

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