Ottie
This web site presents the possibility of "Ottie Entering to the Colombian Market". A whole overview of the products is showed, but for the purpose of this marketing project only the Company and Purple Dew tabs have been completed develop.
*All the pictures used in this web site are property of Ottie Ecuador.
Ottie Entering to the Colombian Market
MISION
Rediscover the natural beauty of the Colombian women by using cosmetic products made with Natural Ingredients.
VISION
After ten years of being in the Colombian market, have the 5% of the market share
MARKET DATA
The following information have been gathered from different sources: Euromonitor International, ANDI (Cosmetics and cleasning products Chamber), PROEXPORT (Governmental Agency for the Development of Investments), PROPAIS, and ICEX (Spanish Institute for Foreing Trade.
According to Proexport Colombia (2011) the global cosmetics and toiletries sector has remained robust over the last decade, rising from US$ 201,94 billion in 2001 to US$ 376,84 billion in 2010.
Between 2000 and 2010, Latin America showed a 13% share of the global cosmetics and toiletries market with an average annual growth rate of 9,3% while the international average was 6%.
* Cosmetics Sub-Sector Growth / Colombia vs. Latin America.
Cosmetics and Toiletries Sector in LATAM
The main distributors of the Cosmetics and Toiletries Industry in Latin America are Brazil with the 46% followed by Mexico with the 18%, and Colombia situated in the thrid place with the 7%.
According to Euromonitor International, by 2010 sales inside Colombia reached US$ 6,235 million, becoming the third-biggest cosmetics and toiletries market in Latin America.
The Cosmetics and Toiletries Sector in Colombia includes three broad categories such as cleaning products, absorbents and cosmetics. In 2014, the cosmetics subcategory represented the 52% of sales of the whole sector.
Based on Forbes magazine (2014) the whole cosmetic sector in the world registered a total sales over US$ 310.000 millions, where Latin America reached to the US$ 80.000 millions anually. From this digit Colombia sales are aproximatelly US$ 8.000 millions where the 15% are imported products.
Commercial Balance - Exports vs. Imports
Proexport mentioned that the Cosmetics and Toiletries Sector is higly representative for the country and is one of the sixteen goverment priority sectors. Due to the Productive Transformation Program (PTP), the government and the private sector work together in order to achieve the recognition of Colombia in 2032 as a global leader in the production and exports of cosmetics based on Natural Ingredients due to their high biodiversity.
To support their productive processes, Colombian companies have quility international certifications, such as ISO 9001, INVIMA certifications, BPM and its logistics processes and BASC certifications.
Also the Colombian production and the dynamics of market growth have doubled in the past ten years. The average growth market rate by 2011 was 9,9%. According to Proexport this significant growth could be directly connected with the fact that Colombia encourages and atracts foreing investment and it has showed great results figures. Many important multinationals have operations in the country, such as Kimberly-Clark, Belcorp, Henkel, Procter & Gamble, Avon, Unilever and Yanbal. The foreign companies have invested in distribution, innovation, development centers as well as production plants, all of this had generated high value-added production.
While the 88% of the cosmetics companies in the country are domestic, 74% of the sales are made by the foreign companies. However in 2013 the net foreign investment totaled US$ 12.573 millions.
Referring to this chart of the Evolution of the Colombian Imports, it could be seen that the Cosmetics subcategory has always been above the imports of absorbents and cleaning products.
According to a PROPAIS Study, for the Cosmetics subcategory, in 2000 the imports were USD$ 74,256,528 millions, while in 2014 the imports increased to USD$ 399,368,485 millions.
According to the ANDI, in 2010 the exports of the Cosmetics subsector extended to US$ 411 millions, while the imports reached US$ 292 millons.
* Evolution of Colombian Imports for the Cosmetics and Toiletries Sector.
* Evolution of the Sector´ Commercial Balance
Because of different Trades Agreements Colombia has with other worlwide countries, it has become one of the most competitive countries in Latin America. Especially talking about the Cosmetics subcategory, Colombia has FTA in force with United States, Europe, Mexico, Chile, CAN (Andean Comunity) and Mercosur. For 2012, the main countries of origin of the imports were: Mexico 32%, United States 12%, Brazil 11%, France 10%, Peru 9%, Argentina 5% and others.
Relation among Colombia and South Korea
On December 16, 2014, the Colombian Congress aproved the Free Trade Agreement between Colombia and South Korea.
The FTA includes a wide range of elements to boost bilateral trade and investment. The Minister of Trade, Industry and Tourism of Colombia explained that the FTA is of great importance for the country, especially for its agricultural sectors, as Korea is a major importer of these products. The FTA will eliminate tariffs on 96.1% of Colombian products exported to South Korea, and 96.7% of South Korean goods coming to Colombia over the course of 10 years.
According to Colombia Reports Intelligence (Feb 21, 2013), Trade between Colombia and South Korea quadrupled between 2002 and 2011, with traded products between the two countries last year worth $1.89 billion, of which nearly $1.5 billion were South Korean exports to Colombia, mostly vehicles, parts, machinery and technology products. Colombian exports were primarily coal, coffee and metals to Korea.
For the full development of this project further information will be added:
1. Benefits of producing cosmetics in Colombia: biodiversity (use of natural native ingredients), R&D, human talent prepared, government tax preferences.
2. Situation on the entry of new international competitors into the Colombian market (Mary Kay, Bath and Body Works)