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Company profle: Dermage Emerging markets s Dermage currently operates 60 stores in Brazil, 20 of which are wholly owned; the rest are franchises country like Rio de Janeiro or major So far the company says it has managed comments Braun. n n n capitals in the northeast region, the brand to weather the storm in Brazil in terms of Indeed, the dermocosmetics market, already has good distribution. Overall, in the slowdown and increased diffculties for which was practically non-existent in Brazil Brazil the objective is to open 10 new stores businesses operating there. “Brazil is always 10 years ago, has seen a range of players this year. The investment for the franchiser is a challenge and it used to be easier to work come into the market, such as Avène and around R$200,000 (US$57,444) per store. Eucerin and heavyweights from the L’Oréal The aim is to open 40 new stores in the next group, such as Vichy, La Roche Posay three years, which will bring Dermage’s total “ and Skinceuticals. However, Dermage to 100 stores. Brazil is always a challenge commercial director Ilana Braun says that However, while convinced of the and it used to be easier to being a local company has its advantages. brand’s potential, the company also views “Brazilian consumers’ awareness of expansion as a challenge given the close work here, but we continue skincare has grown in recent years and by relationships that it has formed with its to bet on the country being a Brazilian company we have always consumers. It fears it could lose its proximity developed products that are suitable for with its customers by having a wider Brazilian skin and the country’s climate.” distribution and becoming bigger. ” Dermage also has international ambitions. Dermage founder Lisabeth Braun While for the moment the brand is only sold in Brazil, it is looking to expand abroad. It Dermage factfle has received requests to launch franchise Founded: 1990 here, but we continue to bet on the country. operations in Portugal, the UK, the US and Sales: R$102m (US$29.29m) Consumers may have been more optimistic Colombia. The idea is to begin expanding Product line: skincare, haircare, make-up, in the past than they are now and we are in Latin America through pharmacies and nutricosmetics up against tough competitors, but our then franchises before branching out further No of pos: more than 500 strategy is always to deliver quality and afeld. Dermage plans to launch in Colombia have a close relationship with consumers,” in the near future. Watch this space. n 108 November-December 2015 - N°24 - BW Confidential