Earth Beauty Brasil - Presentation

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    Entering an underserved niche with unique andexclusive products

    products

    opportunity

    team

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    cosmeticsin

    1

    brasil

    Today: US$43 BILLION

    2015: US$60 BILLION

    Source:Eurmonitor

    AND GROWING

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    2

    Fonte:ABIHPEC

    cosmeticsinbrasil

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    3

    Fonte:ABIHPEC

    cosmeticsinbrasil

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    underservedniche

    2011: +69%E-Commerce for Cosmetics in Brazil

    230124

    209

    0

    50

    100

    150

    200

    250

    2009 2010 2011

    US$millions

    4

    Key-Point:

    Sales for cosmeticproducts online

    almost doubledbetween 2010 and

    2011.

    Source:EBIT-2012

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    E-Commerce of Face Carein 2011:

    5

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    2010 Market Share

    2011 Market Share

    Key-Point:Lancme and Anna

    Pegova represent 63%of the market, while theother major players still

    havenot entered themarket.

    underservedniche

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    Why have the other major players stillnot entered this market?

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    Fear of damaging their traditional distribution

    outletsPharmacies

    Beauty Salons

    Super MarketsCosmetic Boutiques

    underservedniche

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    successstory

    2009 Entered the Brazilian MarketSelling only through e-commerceWithout a .br websiteVery limited marketing

    No celebrity endorsements

    Key Point:The market for sun-care online represents only 2% ofbeauty products sold online

    2011 - 18% of the online sun-care marketR$2 million per year

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    Brazil Social Media Powerhouse

    8

    Fonte:ABIHPEC

    SecondbiggestFacebookmarket in theworld

    Publishesthe mostnumber ofposts out ofall Facebookcountries

    Annual growthrate of Facebook

    users is 144%, thestrongest of allLatin American

    Countries

    53% of Brazilianswould like tobuy productsthrough theirsocial medianetwork

    61% of theA and B classbelieve in therise of socialcommerce

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    oursolution

    To sellproven, healthy, high-quality,

    American-Made beauty products, througha Brazilian Social E-commerce store.

    9www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    naturalbeauty

    90% of Brazilian consumers search forproducts with natural ingredientsAlmost all cosmetics available in Brazil havesynthetic and harmful ingredients

    10

    We have what the Brazilians are looking for: beautyproducts with natural ingredients, high quality, andwithout harmful components.

    Source:UEBT

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    Our beauty product categories:Face CareHairSkin Care

    Make UpAccessories

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    exclusiveproducts

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    32 year old brandOwned by member of our teamNatural Ingredients100% free of harmful ingredients

    Aproved and used by Hollywood ActressesNow, used by Brazilian ActressesMade in CaliforniaAccessible Premium Brand

    (R$ 50 R$ 110)

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    EarthScience

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    15 year old brand

    Growing 20% each year, forlast 10 years100% non-synthetic100% hand made

    100% free of harmful ingredientsOnly clinically proven natural solutionDermatologist recomendedHas won various international beauty

    awardsHi-Premium Brand

    (R$99 R$299)

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    Suki

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    our target-market

    Class B - DWomen 25-40

    Medium level educationUsers of social media

    Visits beauty salon regularlyMotive of purchase: Quality/

    value

    Key Point77% of the buyers of beauty products online in Brazil fall

    within these two categories

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    Class A - BWomen 30-50

    High-level educationBuyers of clinically proven

    productsVisits the dermatologist

    regularlyMotive of purchase: Quality/

    recommendation

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    our marketing

    FERNANDA

    MACHADO

    Program Launch Date Role

    Prime Time Soap

    Opera In the name

    of the father

    April 2013 MaincharacterofthemostwatchedTVprograminBrazil

    Film: Trust me April2013 LeadroleofanewfilmtobereleasedthroughoutBrazil

    Film: The Brazilian June 2013 LeadroleofanAmericanfilmaboutaBrazilianwoman,tobereleasedthroughoutBrazil

    Our Founder, exclusive celebrity, and endorserHuge social media presence

    2013 work schedule:

    15www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    Social CommerceAffiliate Program

    Access to popular magazines, tv,Radio, newspapes, etcCelebrity eventsOur medical representative

    Jonas Lima Junior Plastic Surgeon Hospital das

    Clnicas, So PauloAn exclsive team of dermatologistsPresence in the best beauty salonsGuerilla marketing

    Ambassadors

    FestivalsContestSamplesBeauty VanPop-up Stores

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    our marketing

    Social Media

    Magazines and Newspaper

    Dr. Jo

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    our team

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    Robert Frederick Riskin Robert is a graduate of the ColoradoLeeds School of Business, a young, California-native, with

    tremendous social media and e-commerce experience. Robert wasborn into the world of cosmetics and technology. Roberts familyowns the California brand Earth Science, and he has played an activerole in the company for the last 5 years.

    Fernanda Arrias Machado - Fernanda is a famous TV, film, and stageactress in Brazil. She is currently working with the media superpower TV

    Globo and has played leading roles in over eight prime time soap operasin Brazil. She won the Best Actress award in 2008 for her role in ParaisoTropical. She was the leading actress in the Brazilian film Tropa deElite, which achieved international acclaim and success includingBerlins Gold Bear Award. She also has vast experience in the world ofcosmetic advertising and endorsement, working with Avon and Lreal.

    Jonathan Peter Kendall - Jonathans experience is in businessmanagement and development through organic growth andacquisitions, his going public through an IPO with his former

    company DAOU-INTEGREX, and his Brazil-business experience makehim a powerful asset. He will use his experience to grow and expandthe business rapidly while retaining customer focus and profitability.

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    Collaborators

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    In addition to our core team, California Beauty has thecollaboration of three professionals with extensive andproven ability in their areas of performance:A former Director of one of the international "giants"of the cosmetics industry with 15 years experience in

    Brazil, has participated in developing the our strategyand will remain an integral part of the team

    A plastic surgeon who certifies the quality of ourproducts

    A Brazilian consultant with extensive experience inmanaging large and medium enterprises.

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    ofadvisors

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    boardRebecca Riskin - Rebecca is a successful California business woman,and the mother of Robert, who falls into the Active Adult category and is

    a dedicated user of the products. She brings her unique perspective ofsuccessful women and entrepreneurship, and her can-do spirit hasalready moved us forward and helped us hone our direction. With salestotaling over $1 billion, she has been Santa Barbara's top realtor for thelast decade.

    Al Decuir - In his distinguished 35+ year career, he has been a leader inthe U.S. finance and banking community. He currently specializes inPrivate Placements, Corporate Finance, and Mergers & Acquisitions.Prior to spending the last 20 years in advisory, Alfred held seniorpositions in Domestic US Banking, International Banking, Investment

    Banking, Fortune 500 Treasury, and Finance Company Treasury. Hisengagements included US$400 million Life Settlements securitization,US$40 million oil & gas financing, and US$20 million student housingprojects.

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    our strategy

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    E-Commerce Strategy: An original andcompetitive modelStep 1: Create notariety, credibility, and desire

    2013Launch products andwebsites of Suki and EarthScience2014Launch Perfume Fe by

    Fernanda MachadoLaunch MyBody LineLaunch Mens Line

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    Step 2: Accelerate publicity and increaseaccess to the brand(2015-2020)Entering online Beauty PortalsEntering tradtional physical outlets(pharmacies, super markets, etc)Continuing to developing and launchingnew lines of productsCalifornia Beauty Naturals

    California Technology Made in Brazil

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    ourstrategy

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

    ti li 2013

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    2013

    Februrary- R$150.000 invested- Company legalized- Websites in construction- Degree 1 products

    registered with Anvisa- Import licenses obtained- Logistics, PR, Marketing

    partners identified- Exclusivity with

    Fernanda Machado

    March- First import arrives in

    Brazil- Finish websites- Register Degree 2

    products with Anvisa- Partnerships with

    dermatologists andbeauty salons.

    April- Launch Earth Science- Events in Rio and SoPaulo- Media Buzz- Implement marketing

    strategies- Presence at Beauty Fairs

    2014

    July- Launch newproducts of EarthScience: AgeDefense

    August- Launch Suki- Exclusivity with MyBodyand other brands

    November- Increase marketing and

    prepared for HolidaySeason

    timeline 2013

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    product costs

    $R

    FOBR$100.000

    Product

    Cost(USA)

    Importa

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    Profitability: 35%After 5 years, the value of the company will be: 10 times EBIT

    (10 times is the average valuation for a cosmetics company in Brazil),or

    10 x 60 million x 35% =R$ 210 million24

    our valuation

    Our growth expectancy :R$2 million in year 1R$8 million in year 2

    R$16 million in year 3R$32 million in year 4R$60 million in year 5

    Investment Period: 5 yearsCapital need for launch: R$ 2 million

    www.earthbeautybrasil.com www.twitter.com/EarthBeuatyBR

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    for your attentionthank you

    21

    21.7906.2094

    EarthBeautyBrasil.com

    [email protected]

    phone

    www earthbeautybrasil com www twitter com/EarthBeuatyBR