Beauty Retailing Through Direct Sales in Emerging Markets 2011: Channel Analysis and Opportunities Published March 2012 Base Year: 2011 A comprehensive analysis of the challenging retail environment for cosmetics and toiletries through the direct sales channel in the four emerging BRIC markets. This report focuses on key sales figures, trends, and business opportunities.

1. Consumer Products
In-Depth Report Series
Beauty Retailing Through Direct
Sales in Emerging Markets 2011:
Channel Analysis and Opportunities
1st Edition
Published March 2012
Base Year: 2011
Regional Coverage A comprehensive analysis of the challenging retail environment for
cosmetics and toiletries through the direct sales channel in the four
Brazil
emerging BRIC markets. This report focuses on key sales figures,
China trends, and business opportunities. The report answers questions
India
including:
Russia
Who are the main players, and what is their focus?
What opportunities do these countries have for marketers and
retailers?
What is the importance of this channel to cosmetic and toiletry
sales in the BRIC countries?
How can this channel be used effectively alongside other larger
channels?
Which beauty categories lead in this channel, and by how much?
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Report #Y416H | © 2012 Kline & Company, Inc.

2. Beauty Retailing Through Direct Sales in Emerging Markets 2011:
Channel Analysis and Opportunities
Report Scope
Beauty Retailing Through Direct Sales in Emerging Markets 2011: Channel Analysis and Opportunities provides
subscribers with insights into opportunities this channel represents in the fast-growing BRIC markets.
The direct sales channel is divided into four distinct subclasses: person-to-person, Internet sales, infomercials, and
home shopping networks. Some of these subclasses are used to a greater extent while others are negligible in each
of the four countries this report covers.
Including an analysis of each individual country, plus an Executive Summary, this report analyzes the latest
developments for the channel in each country, providing an accurate, detailed examination of the competitive
landscape.
The report series focuses on the fast growing direct sales channel for the emerging markets as follows: Brazil,
China, India, and Russia.
The report focuses on the personal care market, including sales by product class and category, as follows:
Fragrances
Hair care
Makeup
Oral care
Skin care
Other toiletries
Key Benefits
This comprehensive report enables subscribers to exploit business opportunities by understanding how they can
leverage this channel to meet the growing demands for diversification of outlets in which to sell their beauty
products. The report shows how this channel has managed to grow, even in the face of a poor worldwide economy.
It will give subscribers knowledge of how the different subclasses in the channel often work synergistically with
other larger purchase channels.
Specifically, this report assists subscribers by:
Providing information to help marketers identify opportunities in each local market
Describing marketing activities of the leading direct sales companies
Quantifying industry sales for this hard-to-track non-traditional channel
Developing sales forecasts by country to predict changes that will occur through 2016
Subscribers receive one day of consultation time with members of the research team. This time can be used for
assistance with plans or to explore related industry information. This report is available through a Web-based
format for easy access.
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3. Beauty Retailing Through Direct Sales in Emerging Markets 2011:
Channel Analysis and Opportunities
Report Contents
1. INTRODUCTION 4. COMPANY PROFILES
Profiles for the major and minor direct sales companies in
2. EXECUTIVE SUMMARY emerging markets as listed in Table 4 will be provided, including
This chapter provides an overview of the direct sales channel for a corporate overview, company activities, sales by product class,
all four markets in terms of overall sales, current trends affect- and marketing activity outlook to 2016.
ing the channel, regional differences, opportunities, and forecasts
through 2016.
Major company profiles are analyzed across all BRIC markets and
include Amway, Avon, Mary Kay, Oriflame, and NuSkin.
3. COUNTRY PROFILES
Analysis of sales and growth for cosmetics and toiletries through
this channel for each of the countries listed in Table 1. Each coun-
try profile includes:
Overview
Sales by subclass as shown in Table 2
Cosmetic and toiletry sales by leading companies
Manufacturers’ sales of cosmetics and toiletries by product
category for 2006 and 2011 as listed in Table 3
Marketing activity
Outlook to 2016
Table 1: Countries Analyzed Table 3: Product Class Analysis
Brazil Product class Categories
China
Fragrances Fragrances for men, fragrances for women
India
Hair care Conditioners, hair coloring products, hair styling
Russia and sprays, shampoos
Table 2: Direct Sales by Subclass in BRIC Makeup Eye makeup, face makeup, lipsticks and lip glosses,
nail polishes
Person-to-person marketers like Amway, Avon, Faberlic, Oral care Mouthwashes, toothbrushes, toothpastes,
Natura, Mary Kay, Oriflame
E-commerce including brand websites, multi-brand sites Other toiletries Deodorants and antiperspirants, personal cleansing
such as Sephora.com, and retailer sites products, shaving products
Skin care Baby care, facial treatments, hand and body
lotions, skin care for men, sun care
Table 4: Company Profiles
BRIC Markets Brazil China India Russia
Amway Herbalife Infinitus Forever Living Ciel Parfum
Avon Jafra Perfect Hindustan Faberlic
Mary Kay Jequiti Tiantian Unilever Mirra-M
NuSkin Natura TMall Jafra
Oriflame Racco Modicare
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4. Beauty Retailing Through Direct Sales in Emerging Markets 2011:
Channel Analysis and Opportunities
Methodology
Kline is unmatched in our ability to gather hard-to-get market and competitive intelligence with a high degree of
confidence. Kline’s approach places the principal emphasis on primary research techniques to ensure that the
foundation of business intelligence and insight is accurate, current, and reliable.
During the course of field research, Kline’s professional staff of industry experts conducted in-depth discussions
and personal interviews with a wide range of knowledgeable industry participants and opinion leaders, including
retail executives, category managers, buyers, distributors, sales representatives, manufacturers, and marketers in
the beauty industry.
This approach has proven to be the most effective and reliable approach to obtaining accurate market data,
capturing expert insights, and identifying business opportunities.
Primary research represents the bulk of our research efforts. In addition, this analysis is supplemented by
secondary research drawn from the review of annual reports, 10Ks, company literature and other reports, trade
publications, and non-confidential information from Kline’s extensive database. Extensive store and website checks
were also conducted to obtain information on product selection and availability, display and sales techniques, and
other merchandising trends. Kline’s Beauty Retailing Global Series is used as a foundation.
Kline Credentials
Kline is a worldwide consulting and research firm dedicated to
Recently published or in-progress research for the
providing the kind of insight and knowledge that helps companies
Personal Care industry includes:
find a clear path to success. The firm has served the management
consulting and market research needs of organizations in the At-home Skin Care Devices
chemicals, materials, energy, life sciences, and consumer products
Cosmetics & Toiletries USA
industries for over 50 years.
Beauty Retailing USA
Kline's research and consulting services extend across the entire Consumer Insights of Personal Care Innovation
USA
personal care value chain. Our solutions have helped clients
develop better ways to create and profit from new business Natural Personal Care
opportunities, respond to competitive and economic threats, Personal Care: U.S. Competitor Cost Structures
improve productivity, achieve sustainable growth, and optimize Professional Skin Care
performance. Kline provides clients with facts, forecasts, and Salon Hair Care
recommendations based solidly on the realities of the market.
Our market research reports and services are designed to provide subscribers with a deeper understanding of their
markets, an outlook for their business, and accurate information about their competitors. Our clients tell us they
often use Kline's market research to validate their own internal analysis, and many clients rely on Kline reports as
their most critical source of information.
For more information about this study or Kline's other services, e-mail us at sales@klinegroup.com, visit our website
at www.KlineGroup.com, or contact us at any of our regional offices listed below.
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