Brazil’s O’Boticário Bets Big on Colombia

BOGOTA — “There are 150 shopping malls in Colombia. If we can be in each one of them, that gives you an idea of the potential,” declared Nicolas Borrero, O’Boticário’s country manager, when asked how many shops the Brazilian beauty giant could open here — a top growth market amid sluggish sales at home. “Colombia is our only direct operation in Latin America where we are opening our own stores,” Borrero said, adding that the firm won’t sell through catalogs in Latin America’s third-largest beauty market. “It is a much bigger market than Ecuador or Peru, retail is developing rapidly and there are many attractive cities.” Despite its promise, O’Boticário has had a tough time seducing Colombian consumers away from heavyweight rivals such as Peru’s door-to-door seller Belcorp and MAC Cosmetics, which has taken the market by storm. Following a big launch investment in 2014, sales were disappointing, making then-country manager Andres Giraldo’s previous forecast that the chain could install 100 stores and hit $90 million in sales by 2016 look overhyped. In fact, the 4,000-strong-door beauty retailer has managed to open only nine stores in Bogotá. It also has delayed plans to enter Medellín and other big Colombian cities like Cali or Cartagena. Borrero, who acknowledged that Giraldo’s views

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