Even during the desperate economic times currently afflicting Venezuela, quality personal care products remain vital to its consumers. “Beauty is part of the culture,” said Jean Clauteaux, President of LOréal’s Venezuela section. Unlike neighbouring markets, he said a key characteristic of Venezuelan consumers is their strong demand for high end products. Regardless of price and/or income, Clauteaux noted, “its almost compulsory" for Venezuelans to purchase them.
Indeed, market analyst Euromonitor International confirmed that Venezuelans spent more per capita on beauty products (US$147.70) than almost every country in Latin America in 2013, coming in third behind regional economic giants Chile and Brazil. And despite the anti-business rhetoric of the late President, Hugo Chávez, the market has grown almost threefold, from some $1.50bn in 1999 to nearly $4.50bn last year, according to Euromonitor.
The late socialist leader capped the price of staple personal care items – such as shaving creams, shampoos and various soaps – many of which are now the hardest to find. Business leaders in Venezuela, however, say producers struggle to cover costs as they cope with almost 60% inflation and price controls on select products. Maritza Dorta, President of the Venezuelan Chamber of Cosmetics and Related Industries (CAVEINCA), pointed out that recently, deodorants and hand soaps have been in particularly short supply: “With such forced low prices it’s very hard to fill demand.”