Based on natural products Colombian businesses take on Mexican male cosmetics

(Bogota, February 14, 2008).- Colombian businesses in the cosmetics and personal care chain will take on the Mexican market with articles based on natural products prepared exclusively for men, Minister of Commerce, Industry and Tourism Luis Guillermo Plata said.

This business penetration is the result of an associativity project known as "Colombia the natural advantage in cosmetics and personal care products," led by the Ministry of Commerce, Industry and Tourism, the Chamber of the Cosmetics and Personal Care Industry of the National Association of Industries (ANDI), the Colombian Association of Cosmetic Science and Technology (ACCYTEC) and Proexport, with the financial backing of the CAF Competitiveness Support Program and participation of the nine companies that formed the Colombian Beauty Group SA business network on the basis of this project.

Colombian Beauty Group SA is formed by the companies: Marliou París, Laboratorios Pal Pluss, Esko Laboratorios, Productos de Belleza Ana María Ltda, Laboratorios Brissé y Cía. Ltda, Laboratorios M&N Cía Ltda, Tecser Laboratorios Ltda, Yoquire Ltda. and Total Protection S.A, which thanks to the results of this study plan to conquer the Mexican male public.

Considering that Colombia is one of the 12 countries with highest biodiversity in the world, that its natural resources are its main strength and comparative advantage, and that natural products are in growing demand on international markets, the cosmetics industry aims to increase its use of quality natural ingredients, while the final consumer is looking for healthy and reliable products, Plata said.

To develop the project, in April 2006, the Ministry signed a non-reimbursable technical cooperation agreement with CAF for co-financing with matching funds from the companies themselves.

By supporting this initiative, the multilateral organization continues stimulating competitive advantages for the region which increase economic growth rates and improve the quality of life of inhabitants.

"This exercise of business associativity required a competitive intelligence study of the male line of cosmetics based on natural products, a system of strategic information and a web portal of the cosmetics and personal care chain, along with a feasibility study for a Technology Development Center (TDC) with the aim of adopting new technologies and adapting products to the requirements of the identified customers," said Jaime Concha, director of the Camera of the Cosmetics and Personal Care Industry of ANDI.

The results of this associative project were presented yesterday in a competition in the Ministry of Commerce, Industry and Tourism.

The minister said that this exercise of business associativity - generator of confidence, commitment, persistence, optimism, and public private cooperation - showed that it was possible to build clusters like this one for cosmetics in Colombia. The CB Group businesses, which will soon be located in a free zone, will continue their business and commercial strengthening with new associative projects to further improve their productivity and competitiveness, he added.

The ministry also commissioned a study of technological industrial prospects for the chain with a view to designing the strategies to be followed by the industry on international markets. The study will be published in March.

IN FIGURES

The cosmetics and personal care industry generates 17,000 direct jobs and income for 600,000 people through direct sales, as well as 120,000 hairdressers and beauticians as distributors.

As of November 2007, the sector exported US$509,844,961, while production was 5 billion pesos.

Exports are expected to increase by 20% a year until 2012 with exports of US$1.20 billion.

The sector hopes to double domestic market sales from the current 5 billion pesos to 10 billion pesos at constant 2006 prices.