I have slowly left behind my old visions of the skin care market in Latin America. After my 4-week trip to Mexico, Panama and Colombia I am able to understand the opportunities that American skincare brands may embrace.

While the market does appear to be attractive, it may be helpful to understand the Latin America consumer and the skincare business CULTTURE.

A growing middle class consumer

Middle class has become a significant portion of the population in these markets. They aspire to luxury skin care products and use more credit to fulfill those aspirations.

• Travelling more, and coming back home demanding the experience and the products that they have seen in the USA, Asia and Europe.
• Highly brand- conscious. They understand the differentiation that Luxury skincare provides.
• Thirsty for American skincare brands!!!

Skincare business CULTURE

Multinationals such as Unilever, L’Oreal and P&G dominate in all 3 countries but consumers are ready for fresh brands. The Internet has opened the door to information highway and consumers are indulging in exploring new brands. Technology is FANTASTIC!

Things are changing the usual one vertical sale “purchase skincare at your local pharmacy with your prescription from you dermatologist” has changed. Below I summaries new professional brands and distribution verticals:

Mexico

Mexico is one of the countries with the largest population of 114,975,406. This represents a fast growing opportunity for ‘American’ brands. Mexico’s consumer is a multi channels consumer. Purchase skincare at their Dematologist office, Skincare centers, Spa’s and the latest trend up-scale pharmacies.

Hero Products to control-Popular skincare concerns:

• Pigmentation
• Environmental Aging/Sensitivity
• Acne

There is a varied range of professional skincare brands (Obagi, ZO Skin Health, Demalogica, PCA Skin, ColorSicence, SkinMedica and Murad. I could honestly say that most ‘American’ skincare brands have entered the Mexican market. Why? 

Regulations

The regulatory environment is very easy and fast. Local importing challenges are easy to over come and importing taxes are reasonable. Mexico is an excellent country to launch your brand’s Latin America proof of concept.

Panama

Panama uses dollars as one of their official currencies, making it easy for distributors to do business with American companies. Panama’s consumer is  very loyal to their Dermatologist and skincare specialist. They like to purchase skincare products from professionals only and don’t like to see their brands at department stores or pharmacies.

Hero Products to control-Popular skincare concerns

• Oily / Dehydration
• Environmental Aging/ Sensitivity
• Pigmentation

I was surprise of the lack of professional skincare brand representation. In a country surrounded with Luxury brands like Gucci, Dolce & Gabbana and Cartier. Panama is booming with new development of retail malls and luxury stores. The low tax rate compare to other Latin Countries should make it attractive to ‘American’ Skincare brands.

Regulations

Regulatory environment is very slow “6+months” but a brand may ship sample orders with low dollar amount to its future partner during the regulatory process. It is important to have a robust claim package tailored towards meeting local importing regulations. I suggest getting your claim package translated into Spanish; it will speed up the registration process.

Colombia

Colombia has nearly 50 million people, and the third largest country in South America after Brazil and Argentina so a pretty large market to export skincare. With the middle class consumer growing and more foreign tourists and residents, skincare and professional services have seen a boom. Medical spas and Luxury skincare pharmacies are growing, like Starbucks in the USA. Colombian consumers purchase skincare at their doctor’s offices, skincare centers and Luxury skincare pharmacies.

Hero Products to control-Popular skincare concerns:

• Sensitive-Sensitize
• Environmental Aging
• Dehydration
• Dry
• Post Laser/surgery treatment products

The increase of professional service has driven the quest to importing professional skincare. Skincare brands in the Colombian market place Obagi, Dermalogica, ColorSciene and SkinMedica. If, your brand is ready to go global add Colombia to the top of your list.

Regulations

As market grows, so does the regulatory environment. Colombia is one of the countries that is banding with Chile and Peru to form an alliance called the Pacific Alliance with an objective of changing the regulations in these countries to create a template for global harmonization.

Having said, my old vision has defiantly changed!