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Cosmetics and Toiletries in Bolivia Offers A Comprehensive Guide To The Size And Shape Of The Market

DUBLIN, Ireland-(Business Wire)-August 28, 2008 - Research and Markets (http://www.researchandmarkets.com/research/525e08/cosmetics_and_toil) has announced the addition of the "Cosmetics and Toiletries in Bolivia" report to their offering.

The Cosmetics And Toiletries in Bolivia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market — be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Why buy this report:

- Get insight into trends in market performance

- Pinpoint growth sectors and identify factors driving change

- Identify market and brand leaders and understand the competitive environment

Executive Summary:

Contraband for C&T products increased in Bolivia

Cosmetic and toiletries in Bolivia is one of the industries most affected by contraband products. Some categories even have illicit brands with significant shares such as Simmons in baby care. Algabo and Ballerina are also very common brands for shower/bath products and most of the sales volume is illegally imported.

According to official estimations from the national statistics institute (Source INE), 30% of the domestic C&T industry is supplied by contraband and some industry sources believe at least half of the value could be composed of illicit products. Some of the illicit trade is done using well known brands such as Sedal, Pantene, Lux and others, damaging multinational companies.

The lack of an efficient border control and the tax informality in Bolivian open markets makes it very easy for illicit players to operate. Legal companies have taken legal and educational actions to educate final consumers on the risks of illegal products. Regardless, price differences and in some cases the possibility to purchase a brand with a high quality/price positioning at a lower price, is very tempting for consumers, who are in fact very price oriented. With a centralised location in the continent, products readily flood in from duty free ports of Arica and Iquique in Chile, as do products from neighbouring Argentina, Peru, Paraguay and Brazil.

National producers increasing portfolios and marketing activities

There are several small and even artisanal producers supplying low price/quality products to those in lower socio-economic levels in Bolivia. Most of these companies are focused on shampoo given the high penetration of such products.

On the other hand, more industrial and formal national companies are also increasing their portfolios and sales volumes by improving their distribution systems and their products’ quality. Companies like Industrias Yama Bolivia SRL, Astrix SA and Multinternacional SA are aiming to increase volumes and values by offering products manufactured specifically for the Bolivian consumer base (in terms of packaging, volumes, prices, preferences and needs).

All national companies (industrial and artisanal) agree that their greater sales volumes are made with low price shampoos and conditioners. Other popular products offered are hair styling products, shower gels, foams and liquid soaps.

National companies focus their investments in advertising on television and in Sunday newspaper magazines, since they are considered the most effective communication channels. These companies target mainly those in mid to low socio-economic levels. Domestic companies are the ones really having to fight against contraband, since they are targeted to the same low socio-economic consumer base.

Presence of multinationals makes domestic C&T highly competitive

Considering that important cosmetics and toiletries companies such as Unilever, Colgate-Palmolive and Procter & Gamble are operating in Bolivia, competition is very strong. Unilever is one of the biggest marketing investors in Bolivia; Colgate also has very important investments to support mainly its oral hygiene brand.

Multinational brands are currently holding the biggest shares in all categories they are present. Meanwhile, national suppliers and other imported brands are considered followers of the trends set by multinationals in every product area.

Marketing activities with massive advertising campaigns, BTL activities, merchandising, etc are very common in the cosmetics and toiletries industry in Bolivia. Multinationals have been making important investments as a means of competing in a rather small operating environment with very limited purchase power. Most of these companies, like Unilever, Colgate, Procter & Gamble and Beiersdorf, target their products to upper socio-economic levels, pricing their products at high rates and making their brands aspirational for those in lower income brackets.

Key Topics Covered:

EXECUTIVE SUMMARY

Contraband for C&T products increased in Bolivia

National producers increasing portfolios and marketing activities

Presence of multinationals makes domestic C&T highly competitive

Direct sales have increased volumes due to aggressive marketing

C&T penetration is increasing in Bolivia

MARKET DATA

APPENDIX

Companies Mentioned:

- Astrix SA

- Industrias Yama Bolivia SRL