EXPLORATION OF OPPORTUNITIES IN BRAZIL FOR THE SKINCARE FIRM OF UK
EXPLORATION OF OPPORTUNITIES IN BRAZIL FOR THE SKINCARE FIRM OF UK
Introduction
Expanding business opportunities in other regions is essential to boost the business reputation of an organization. Therefore, the present study paper thrives on providing such opportunities for a skincare firm. Furthermore, the British skincare firm requires to explore its business opportunities in the current market of Brazil. Moreover, the present study paper sheds light on several factors in Brazil that influence the decision on business to consumer concept. In this regard, the external analysis of the region where the firm requires to expand its market is also analyzed within the context to determine the factors. On the other hand, in Part B, the recent distribution as well as the trends regarding the retail sector is analyzed below within the study paper.
Part A: Factors of Brazil for influencing distribution decisions
External environment analysis
| Factors | Description | Impact |
| Political |
|
The skincare firm may be beneficial severally as the country has a strong base in international affairs |
| Economical |
|
The strong GDP rate of Brazil may allow the skincare firm to develop strategies or business operations |
| Social |
|
The country has a large population
It may generate business opportunities for the skincare firm |
| Technological |
|
The skincare firm may be effective by complying with the advanced technology
It may assist by the vast amount from the government in technological improvement |
| Legal |
|
The firm may boost employee retention as the country has such effective acts as well as working hours is 8 hours |
| Environmental |
|
The firm may leave good impacts by CSR as the country generates hydroelectric power over the region |
Table 1: PESTLE analysis of Brazil (Source: Self-created)
Information states that the country is a most influential country that may leave a positive impact on the skincare firm over the region. In this regard, it can be uttered that the skincare firm may be beneficial severally as the country has a strong base in international affairs. On the other hand, it can be stated that the country states at 4.6 per cent in GDP rate scale. In this respect, it can be mentioned here that the strong GDP rate of Brazil may allow the skincare firm to develop strategies or business operations. Based on the study, it is required to be included here that a strong GDP rate may enable central as well as policymakers in order to analyze the economy effectively. On the other hand, a strong rate of GDP may be able to increase the profitability of the skincare firm (de Medeiros Braga, 2020). Based on the study it has been noticed that the country has a large population. Therefore, it may generate business opportunities for the skincare firm within the region. On the other hand, it has also been observed that the skincare firm may be persuasive by yielding to advanced technology. Furthermore, it may assist by the vast amount from the Brazilian government in technological improvement. Based on the study, it has been observed that the country has several laws or acts on employee retention as well as employee satisfaction as “civil law jurisdiction”. Moreover, the firm may boost employee retention as the country has such effective acts as well as working hours is 8 hours. Lastly, the skincare firm may leave good impacts by CSR as the country generates hydroelectric power over the region.
Factors influence distribution decision-making
The business model of B2C may assist an organization in order to influence dispersal procedure decision-making over concerned business process. The term B2C refers to a business process of providing or selling products in a direct manner of marketing. In other words, the model of B2C provides a model of the retail sector towards an organizational market opportunity. In this respect, it can be uttered that the business model that is mentioned above in the context provides services or offerings in a direct way of marketing (Perego et al. 2021). Therefore, the model provides services or business offerings in a direct way from its production to the end user. In addition to this, it has also been observed that users or consumers are frequently using skincare products for personal uses. As per the study of (Treiblmaier and Petrozhitskaya, 2023), it has been observed that the business marketing process that is mentioned above in the context, holds a much larger base regarding potential consumers. On the other hand, it has also been observed that large-scale businesses that are operating business operations with B2C business process, often consider large targets on consumers.
Information states that the business model that is mentioned above in the context, is more likely to take market advantages within the process. In this regard, it can be uttered that the skincare firm that requires to expand its business operation in the market of Brazil, may be able to gain in the competitive market by paying attention to B2C marketing. As per the study of (He and Zhang, 2022), it can be stated that the e-commerce model regarding B2C, may cut down operational as well as physical costs of infrastructure. However, as the skincare sector has a large base of consumers, it may be able to gain more revenue from the market by setting low costs at its price rate. In addition to this, it can be uttered that the influence to connect with the consumers directly may be able to personalize the products effectively (Wei, 2022). Information states that all the textures of skin vary by everybody. In this regard, it can be stated that consumers may require to personalize their products as per the need of their skin.
However, an organization may be able to boost knowledge about the demands or requirements of its consumers as well as serve them better quality products by personalization. On the other hand, it can also be stated that by paying attention to the B2C concept, an organization may be able to gather data from the demands of its potential consumers (Jiang, 2019). Therefore, that particular organization may also require the knowledge regarding the demands of the location where it set aims to expand its business procedures. In order to gain a market reputation, a skincare firm may require to pay attention to connecting consumers directly as well as take such decisions over the process.
Part B: Current Distribution and retail trends
Current distribution scenario of British skincare firms
Information states that the key channels of distribution in the market of British skincare are retailers, supermarkets as well as hypermarkets. In addition to this, the distribution channel of skincare products involves malls or supermarkets, direct selling, pharmacy and drug stores, beauty salons and certain kind of others. On the other hand, it has also been observed the distribution also aligns with the management of SC within the process (Vona et al. 2021). Therefore, the aspect that is mentioned previously in the context furnishes sustainability within the market distribution channel. In addition to this, it can be stated that organizations must be able to pay attention to the CSR application within the business operation. Therefore, it allows an organization in order to run in the long term in the region effectively.
From the above figure, it can be stated that the total revenue of skincare segments shows the amount of 4.05 billion dollars in US dollars in the year 2023. In addition to this, it has also been observed that the British market is expected to develop by 2.38 per cent in a year. On the other hand, it has also been observed that in the United Kingdom, the market for skincare generated a value of 3.1 billion in the year 2021. However, it enhanced the scale of revenue to around 36.15 billion dollars in the year 2023. As per the report that forecasted in the year 2021, shows that about 37 per cent of surveyed generations spent capital 10 to 20 British pounds on skincare products.
Retail trends in the worldwide market of Skincare
The retail and market trends can be described as the tendency regarding the financial market in order to move in a direction over time that is particular in process. In addition to this, it can be stated that by paying attention to the market trend, an organization may be able to anticipate the business change as per the demands of consumers. In this regard, it can be uttered that it is essential to pay attention to the demands of consumers as well as satisfy them by providing personalize skincare products. Based on the study of (Longhurst and Gibson, (2020), it has been observed that the organization, which is more likely to satisfy its targeted consumers, gains a market reputation. Based on the study, it has been observed that the market of skincare products globally is valued at 130.50 billion dollars in the year 2021. In this regard, it can be mentioned here that the market is expected to reach 135.83 billion US dollars in the next two years within the region (Boutkaska, 2019). On the other hand, it has been observed that the trend in the worldwide market required products as proactive prevention. On the other hand, it has also been executed that the skincare product that is trending in the market is laser mixing.
From the above figure, it has been illustrated that the global market of cosmetics has grown up by six per cent. In this regard, it can be uttered that the market size of skincare was valued at 262.21 billion dollars in the year 2022. Based on the study of Tsaabitah, (2022), it has also been observed that the retail market of skincare products also requires to pay attention to more inclusive knowledge based on the demands and skins of consumers. Furthermore, it is expected to expand its opportunities at a compound total growth scale of 4.2 per cent from 2023.
Conclusion
Based on the study, it can be concluded on a concluding note that, the skincare firm may be beneficial by expanding its market opportunities to the current market of Brazil. In this regard, the concept of B2C may enhance the business opportunities of the skincare firm within the regional market where it requires expanding its business operations. In this regard, it can be uttered that after evaluating B2C effectively, it is likely to personalize the skincare products by gathering the demands and requirements of consumers. Based on the study, it has been noticed that the region has had a strong consumer base over the past years. Along with that, it has gained market revenue over the procedures. Furthermore, it requires paying attention to the present recent trends concerning the pestle analysis of Brazil.
References
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Websites
Statista, (2021). Skincare tech market revenue in the UK Available at:
https://www.statista.com/statistics/1292388/skin-care-tech-market-revenue-uk/ [Accessed on: 24.04.2023] (Statista A)
Statista, (2022). Available at: Annual growth of the global cosmetics market from 2004 to 2022 [Accessed on: 24.04.2023] (Statista B)
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