For Patricio Jaramillo, regional vice president of mass consumption and innovation at Alicorpone of the keys to the success (and virality on TikTok) of Amarás, his new hair care brand, is that they are products specially designed for the needs of the local consumer. “One of our collections is called ‘Blessed Climate of Lima’ because it was developed taking into account our climatic and temperature conditions, which had been neglected until now. We combine global knowledge to satisfy a local need”comment.
Jaramillo sat down with Gestión to go over some of the keys to the company’s new flagship.
Why did Alicorp decide to re-enter the personal care business?
Several years ago we entered this market and we also had activities in geographical areas such as Brazil or Argentina, where, for example, we had the most important skincare brand in the country, Plusbelle. When we bought Intradevco, there was significant activity with brands like Dento or Aval, but on the scale of Alicorp, it was a small segment. We wanted to go back in search of spaces to grow. This is a category that can reach an estimated turnover of one billion dollars.
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How has the sector evolved since the acquisition of Intradevco by the group?
It is a dynamic market that has suffered a lot during the pandemic because, everyone at home, the daily concerns were different. However, with the return to normality, significant growth rates have resumed. We also realized that there was an unmet need, and based on that, we could create a large, fast-growing business.
How was the innovation process for the creation of the brand?
The first thing we did was look for an innovation agency that would help us identify the unmet needs of Peruvian consumers and we worked closely with the team at IDEO, an international design and innovation. Our team traveled to the mecca of personal care, Seoul, South Korea to understand the market and trends in order to develop concepts that we could possibly bring to identify what we needed to cover with Amarás.
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What was the reception from consumers?
We are amazed at this launch, it is one of the most successful the company has had in the past 10 years. The noise level, acceptance and compare What we’ve achieved in those first five weeks is something we haven’t seen in any of the categories we’ve ventured into. For several weeks we have been the “TikTok brand”, the number of users who have shared their experiences with the product has been incredible.
And it was a totally organic response…
We had invested in Google platforms and social networks like Facebook and Instagram, but TikTok has been organic and exponential. When we went to outlets, we found that people were asking for “TikTok shampoo” and it just kept generating more content. Receiving this positive response organically gave us a lot of credibility, it’s the best exercise in sampling What can you do in a mass consumer market?
What are your projections for this first quarter of launch?
If things continue as they are now, we will end the year selling three times the volume we originally planned to sell. At early modern chain readings, we have a nearly 10% hair care market share and have outperformed brands with years of presence on chains with a nearly 40% buyout rate.
Do you plan to expand into other personal care categories?
Today we are in the hair care platform, in the world of shampoo and conditioner with three collections, but we will enter with additional products in the category such as hair treatments or serums. We think living in this space has a lot of potential and we have two collections ready to launch in the next 6-8 months. The level of acceptance that the brand has had makes us see that we could expand into other categories, but now we are looking to consolidate in what is hair care.
What are the next growth targets for Amarás?
We have a big mid-term challenge, which is to become the leading personal care platform in the hair category within the next 3 years. It’s ambitious, but the feedback we’re getting from what we’ve launched on the market gives us great confidence to make it happen. We have tripled our expected growth. We are adding production capacity to achieve this growth, we will launch new collections and range extensions. If we want to be the leader, we have to double this market share and reach 20%, that’s where we’re going.