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.
INTERNAL MARKET DATA
Between the years 2012 and 2013 (August of each year) the dynamics of Cosmetics purchases grew 7 percentage points, from 3,69% to 10,07%. Generally every year the dynamics of sales extremelly increase on February, July and December.
Purchase Dynamics in the Colombian Households
Blue line: Skin care products
Red line: Make-up
Green line: After shave lotions
Notice the significant increased in some specific months.
Market Distribution of Cosmetics Purchases
The group of interest for this project is located in the 23% of sales that Makeup and lotions represent.
The biggest market concentration is in the capital of the country, Bogotá with 22,4% of the market, followed by MedellÃn with 15,5%, then the city of Cali with 11,5%, Barranquilla with the 5% of the sales, and others.
Cosmetics Distribution Channels
According to the ICEX, as in the early nineties, nowadays most of the distribution and sales of cosmetics targeting a low and middle income population, are concentrated in supermarkets and traditional establishments (neighborhood stores).
In the other hand, direct sales, specialized cosmetic stores, and professional cosmetic and dermatology centers have increased their share of distribution channels. This channels aimed to the medium and high income populations.
In the article called "Beauty and Personal Care in Colombia" made by Euromonitor International in August 2014 is mentioned that Colour Cosmetics, from higher to lower, sales take place in Store-Based Retailing, Non-Grocery Retailers, Health and Beauty, Beauty Specialist Retailers, Grocery Retailers, Modern Grocery Retailers et al.
Talking about the skin care products first take place in Store-Based Retailing, Grocery Retailers, Modern Grocery Retailers, Supermarkets, Hypermarket et al.
Market Size
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Average Spending per Capita
The CASIC in one of its news reports (2014) states that the average spending of a Colombian women for make-up vary from USD$52 to USD$104 per quarter. While men spend 40% of women average. According to this, PROPAIS announces that the spending per capita of the Colombia households in cosmetics reaches up to USD$110.
Sales Forecast
According to Euromonitor International (2014) the Colour Cosmetics sales from 2016 to 2018 will be USD$ 838,1 / USD$ 880,9 and USD$ 923 billion respectively. However the Skin Care Sales are predicted to be USD$ 1170.8 / USD$ 1224,9 and USD$1273,6 billion respectively.
Social Stratification
According to the BID (International Development Bank) and the BM (World Bank), the middle class in Latin America and Caribe has passed from a 20% to 30% of the total population.
For the full development of this project further information will be added:
1. Distribution Channels: a precise study about the exact number of: Supermarkets and traditional stores, pharmacies, departamental stores, specialized cosmetic stores. All this information must be categorized by neighborhood, average income, age.
2. Complete analysis about the social stratification in Colombia with special focus on the main cities of target: Bogotá, MedellÃn and CalÃ.
3. Price Analysis Chart: Compering competitors selling prices by product and distribution channel.