Seeking a larger share of the beauty market in Latin America, Avon announced an agreement with Greek skin care brand Korres to exclusively develop, manufacture and market Korres products in Latin America. This long-term agreement gives Avon the option to purchase all intellectual property rights for Korres products in the region, and covers all of Avon’s major Latin American markets.
Of the agreement, Avon Products CEO Sheri McCoy said in a press statement, “Latin America is a growing beauty market and a major component of the Avon portfolio. I’m very pleased that through this strategic alliance... we can leverage Avon’s extensive network and capabilities to bring the Korres brand and products to more women across Latin America.”
In another agreement, Ecuador’s industry and productivity department signed with Procosméticos in a bid to increase local beauty and cosmetic product production, with an eye on substituting imports and increasing exports. The agreement commits the beauty industry in the country to increase production to $54.6 million in 2014 and $64.9 million in 2015. It also establishes a 25% reduction in imports.
In Peru, beauty product exports are expected to rise by 10-12% in 2014; the Peruvian Cosmetic and Hygiene Committee (COPECOH) of the Trade Chamber from Lima (CCL) estimated total exports will rise to $160 million. Committee President Ángel Acevedo told Peruvian magazine Gestión to expect a rise of 12% in the first semester and a lower increase in the second; the aim remains to hit a figure of $3.5 billion by 2017, although Acevedo recognized the speed of growth had slowed. The industry saw exports grow by 23% in 2011 and 43% in 2013; he pointed to import restrictions and the renewed priority given to local industry in countries like Argentina, Bolivia and Ecuador.