Contents:

Baby Care in Brazil Euromonitor International June 2009 List of Contents and Tables Executive Summary Despite Obstacles in 2008, Market Continues To Show Positive Signs Natura Cosméticos and Unilever Hold Top Positions Demand for Value-added Products Tends To Increase Despite the Economic Downturn in 2009 Non-store Retailing Gains Share Over the 2003-2008 Period Positive Outlook But Growth Will Be Slower in 2009 and Over the Forecast Period Key Trends and Developments Domestic Companies Are Expected To Continue Increasing Their Shares in Cosmetics and Toiletries Global Crisis and Its Impact on the Brazilian Cosmetics and Toiletries Market Demand for Value-added Products Tends To Increase in Brazil Manufacturers Keep Close Eye on Brazilian Teenagers As Key Consumer Group for Cosmetics and Toiletries Products. the Power of Direct Selling Continues To Dominate Market Data Table 1 Sales of Cosmetics and Toiletries by Sector: Value 2003-2008 Table 2 Sales of Cosmetics and Toiletries by Sector: % Value Growth 2003-2008 Table 3 Sales of Premium Cosmetics by Sector: Value 2003-2008 Table 4 Sales of Premium Cosmetics by Sector: % Value Growth 2003-2008 Table 5 Cosmetics and Toiletries Company Shares by NBO Retail Value 2004-2008 Table 6 Cosmetics and Toiletries Company Shares by GBO Retail Value 2004-2008 Table 7 Cosmetics and Toiletries Brand Shares by Retail Value 2005-2008 Table 8 Sales of Cosmetics and Toiletries by Distribution Format: % Analysis 2003-2008 Table 9 Sales of Cosmetics and Toiletries by Sector and by Distribution Format: % Analysis 2008 Table 10 Forecast Sales of Cosmetics and Toiletries by Sector: Value 2008-2013 Table 11 Forecast Sales of Cosmetics and Toiletries by Sector: % Value Growth 2008-2013 Table 12 Forecast Sales of Premium Cosmetics by Sector: Value 2008-2013 Table 13 Forecast Sales of Premium Cosmetics by Sector: % Value Growth 2008-2013 Appendix Gift Sets Definitions Avon Cosméticos Ltda Strategic Direction Key Facts Summary 1 Avon Cosméticos Ltda: Key Facts Summary 2 Avon Cosméticos Ltda: Operational Indicators Company Background Production Summary 3 Avon Cosméticos Ltda: Production Statistics 2008 Competitive Positioning Summary 4 Avon Cosméticos Ltda: Competitive Position 2008 Belocap Produtos Capilares Ltda Strategic Direction Key Facts Summary 5 Belocap Produtos Capilares Ltda: Key Facts Summary 6 Belocap Produtos Capilares Ltda: Operational Indicators Company Background Production Summary 7 Belocap Produtos Capilares Ltda: Production Statistics 2008 Competitive Positioning Summary 8 Belocap Produtos Capilares Ltda: Competitive Position 2008 Botica Comercial Farmacêutica Ltda Strategic Direction Key Facts Summary 9 Botica Comercial Farmacêutica Ltda: Key Facts Summary 10 Botica Comercial Farmacêutica Ltda: Operational Indicators Company Background Production Competitive Positioning Summary 11 Botica Comercial Farmacêutica Ltda: Competitive Position 2008 Colgate-Palmolive Indústria E Comércio Ltda Strategic Direction Key Facts Summary 12 Colgate-Palmolive Indústria e Comércio Ltda: Key Facts Summary 13 Colgate-Palmolive Indústria e Comércio Ltda: Operational Indicators Company Background Production Summary 14 Colgate-Palmolive Indústria e Comércio Ltda: Production Statistics 2008 Competitive Positioning Summary 15 Colgate-Palmolive Indústria e Comércio Ltda: Competitive Position 2008 Grupo Bertin Strategic Direction Key Facts Summary 16 Bertin Ltda: Key Facts Summary 17 Bertin Ltda: Operational Indicators Company Background Competitive Positioning Summary 18 Grupo Bertin: Competitive Position 2008 Hypermarcas SA Strategic Direction Key Facts Summary 19 Hypermarcas SA: Key Facts Summary 20 Hypermarcas SA: Operational Indicators Company Background Competitive Positioning Summary 21 Hypermarcas SA: Competitive Position 2008 Indubrascom Indústria Brasileira De Cosméticos Ltda Strategic Direction Key Facts Summary 22 Indubrascom Indústria Brasileira de Cosméticos Ltda: Key Facts Company Background Production Summary 23 Indubrascom Indústria Brasileira de Cosméticos Ltda: Production Statistics 2008 Competitive Positioning Summary 24 Indubrascom Indústria Brasileira de Cosméticos Ltda: Competitive Position 2008 Procter & Gamble Do Brasil SA Strategic Direction Key Facts Summary 25 Procter & Gamble do Brasil SA: Key Facts Summary 26 Procter & Gamble do Brasil SA: Operational Indicators Company Background Competitive Positioning Summary 27 Procter & Gamble do Brasil SA: Competitive Position 2008 Unilever Brasil Ltda Strategic Direction Key Facts Summary 28 Unilever Brasil Ltda: Key Facts Summary 29 Unilever Brasil Ltda: Operational Indicators Company Background Competitive Positioning Summary 30 Unilever Brasil Ltda: Competitive Position 2008 Headlines Trends Competitive Landscape Prospects Sector Data Table 14 Sales of Baby Care by Subsector: Value 2003-2008 Table 15 Sales of Baby Care by Subsector: % Value Growth 2003-2008 Table 16 Baby Care Premium Vs Mass % Analysis 2003-2008 Table 17 Baby Care Company Shares by Retail Value 2004-2008 Table 18 Baby Care Brand Shares by Retail Value 2005-2008 Table 19 Baby Skin Care Brand Shares by Retail Value 2005-2008 Table 20 Baby Sun Care Brand Shares by Retail Value 2005-2008 Table 21 Forecast Sales of Baby Care by Subsector: Value 2008-2013 Table 22 Forecast Sales of Baby Care by Subsector: % Value Growth 2008-2013 Table 23 Forecast Baby Care Premium Vs Mass % Analysis 2008-2013

Summary:

Cosmetics And Toiletries in Brazil Executive summary Economic growth and higher levels of income drive strong performance The market for cosmetics and toiletries demonstrated a robust performance between 2002 and 2007, with double-digit annual growth, outperforming annual GDP growth by a factor of four over the period. Brazil confirmed its third position in the global market in total value terms, behind only the US and Japan. Beyond Brazil’s large population of 192 million (as of 1 January 2007) and its increasingly noticeable consumer propensity to spend heavily on cosmetics and toiletries products, factors such as recent sustained economic growth and rising purchasing power, particularly among consumers in the lower C and D socioeconomic groups, have underpinned this strong performance. Natura shows moderate performance whilst Avon takes the opportunity to gain ground Natura’s saw a decline in share in 2007, due to a lack of innovative new products, tough competition from Avon and pressure to improve margins from stockholders. However, the company is rethinking its strategic plan for the next few years, whilst continuing to pursue its mid-to-long term strategy of international expansion. Avon, meanwhile, has invested heavily in its Brazilian subsidiary, which held third position in value terms in 2007. Multinationals increase spending on advertising Product innovations coupled with intense advertising campaigns have been the main strategies adopted by top five companies in the cosmetics and toiletries market. Unilever, Procter & Gamble and Colgate-Palmolive have concentrated their marketing efforts on the key sectors of hair care, oral hygiene and deodorants, while Natura and Avon continued to focus on fragrances, skin care and colour cosmetics. Avon’s strategy to use Brazilian television stars to endorse its products has proven effective, and other manufacturers are likely to follow suit. Pharmacies/drugstores the most dynamic store-based channel Pharmacies/drugstores are expected to register the most dynamic performance in cosmetics and toiletries retailing over the forecast period. Fierce competition in this channel is set to boost investment in a wide assortment of products and services to increase sales, with retailers working hard to cultivate customer loyalty. Growth should be supported by several factors Sales of cosmetics and toiletries are expected to see substantial growth between 2007 and 2012. Among the most important factors that will contribute to a strong performance over the forecast period are new product development, aggressive advertising campaigns and increasing disposable incomes, allied to a continuing propensity to spend on cosmetics and toiletries products, a young population and an increasing number of women working outside the home.

Companies Mentioned

- AVON COSMéTICOS LTDA - BELOCAP PRODUTOS CAPILARES LTDA - BONYPLUS INDúSTRIA E COMéRCIO, IMPORTAçãO E EXPORTAçãO DE COSMéTICOS LTDA - BOTICA COMERCIAL FARMACêUTICA LTDA - COLGATE-PALMOLIVE INDúSTRIA E COMéRCIO LTDA - INDUBRASCOM INDúSTRIA BRASILEIRA DE COSMéTICOS LTDA - JOHNSON & JOHNSON INDUSTRIAL LTDA - NATURA COSMéTICOS SA - NIASI SA - PHIOTERAPHIA BIOFITOGENIA LABORATORIAL BIOTA LTDA - PROCTER & GAMBLE DO BRASIL SA - UNILEVER BRASIL LTDA