The beauty and cosmetics market in Brazil has been experiencing significant growth, with a 5.8% increase in sales in 2023, according to data from the Brazilian Association of the Personal Hygiene, Perfumery, and Cosmetics Industry (ABIHPEC). The forecast is that the sector will reach US$33.14 billion in 2024, with an expected expansion to US$44.03 billion by 2029, according to Mordor Intelligence survey.
Driven by the positive momentum of this market and inspired by values of holistic health and transparency, in 2008 Alva was founded to offer natural personal care products, based on the principles of purity, quality, practicality, and responsibility. Although it had clear advantages over other brands in the market, last year it faced major challenges in online commerce, as it was part of a highly competitive category dominated by large players.
To enhance their results on the platform, Alva decided to seek out a specialized Retail Media agency, a advertising strategy that promotes products in a targeted manner within marketplaces, with the aim of increasing sales directly where purchases are made. That's how he chose ProfitlogiQ, a Retail Media agency specialized in optimization through artificial intelligence.
“The partnership with ProfitlogiQ was a game changer for Alva. We were able to implement 360° strategies that not only increased our visibility, but also helped us reach new customers and retain existing ones,” says Alexandre Luz, CFO of Alva.
The outlined strategy was focused on increasing brand awareness, acquiring new users, and preparing for important seasonal events such as Black Friday. Alva had great growth potential that was unlocked; we went far beyond the niche in which the brand initially operated. This was only possible through the implementation of specific Retail Media strategies. Our goal was not only to increase sales but also to ensure that the brand had a significant return on investment," emphasizes Alexandra Avelar, Country Manager for Brazil at ProfitlogiQ.
The results were impressive. Compared to the previous period of August 2023, during Black Friday in November 2023, Alva saw its sales increase by 56 times and the number of orders grow by 70 times. During the campaign period, the brand stood out as the best-selling in the deodorant category, directly competing with major traditional companies in the market. Still recorded a 22-fold increase in product sales and a ROAS (Return on Ad Spend) of 183%. Furthermore, the cost per conversion was reduced by 53%, demonstrating the effectiveness of the adopted strategies. During Prime Week (Amazon's major promotion week), the results already surpassed Black Friday 2023, and the brand once again took the lead in the category, indicating that the brand still has a long growth path ahead.
Based on these results, Alva plans to continue expanding its Retail Media operations. The company is already preparing to launch campaigns with Amazon DSP and plans to introduce new product lines, including one for children and another for sun protection. This year, Alva will once again take advantage of Black Friday's seasonality, with even more aggressive expectations.
“The success we have achieved so far is just the beginning. We are excited to explore new opportunities and continue growing in retail media with the support of ProfitlogiQ,” concludes Alexandre Luz.
