Growth on Tap for Natural Beauty Products

Q: What inspired you to create IM Natural, a Mexican cosmetics company that creates its products with natural ingredients?

A: Twenty-five years ago, natural ingredients became the newest market trend. As a result, creating a cosmetics brand with natural raw materials was something we felt a strong pull toward but we also understood that adding preservatives was necessary. IM Natural and its staff also worry about nature and its integrity. What we first thought would be a passing trend actually became a way of life for consumers as can be seen in the market’s consumption habits. Back in the day, only a few nature shops could be found in the city, making for our first commercial clients. In fact, the well renowned brand Nutrisa became our first partner, later becoming the chain that it is today. Natural shops have since multiplied, opening up commercialization channels across the country. What is undeniably true is that natural, organic and vegan trends have overtaken the market and companies with a long trajectory in these types of activities are one step ahead of the curve.

Q: As of today, international brands take up most of the world’s cosmetic market share. How is IM Natural positioning itself to overcome these challenges?

A: Through a few star products IM Natural has captured an important share of the market. This is especially true in our mascara range considering it is the leading portfolio in the natural arena. Consumers in our line of business not only know what they want but also understand the intricacies of a solid cosmetic product. Keeping this in mind, IM Natural’s biggest challenge has been securing sustained growth. Rather than investing heavily in marketing our strategy has been to develop high-quality products and let consumers spread the word. Granted, transnational companies with long histories lead the way. But IM Natural’s strategy has divided the Mexican market into different segments mostly based on their consumption capabilities. The brand can be found in multiple supermarket chains, from Walmart to Farmacias Benavides, and everything in between. Finally, we have a presence in natural cosmetic shops, as we did from the beginning.

Catalog sales are also an important commercial channel for the company representing a good portion of its business. It is necessary to point out that through these efforts we are helping segments of Mexican society activate the economy. The multilevel program has proven to potentiate sales in the cosmetic and wellness industry.

Q: How are market trends shifting considering cosmetic products are now also demanded by males?

A: Male consumption of cosmetic products is on the rise. In fact, our mascara portfolio has a transparent eye liner for men that want to improve their features. Even though this is a product that we export, for the most part Mexican consumers are also joining the trend. There is an uncanny amount of male-directed cosmetic products and they vary in type and application. IM Natural’s transparent mascara was released in Mexico but it was not well accepted by consumers. Contrarily, its demand in Costa Rica continues to grow, making for our largest consumer market.

Q: How are IM Natural’s products reaching larger population segments and helping increase natural product awareness?

A: It is predicted that in a five-year period the cosmetic market will grow exponentially and IM Natural will certainly secure some of the growth. Even though the pharmaceutical industry has only reached singledigit growth in the past few years we believe the tide will change. Although this may be true there is a huge difference between the pharma and wellness industry, as well as in the challenges that they face.

Q: What future goals and ambitions does IM Natural expect to fulfill in the short term?

A: By analyzing available market data, we can foresee future market trends. We know that Mexico’s beauty industry employs 250,000 professionals. By 2019, the segment will grow by 11 percent with an overall market value of MX$154 billion (US$8.3 billion). Multiple research efforts are being channeled into finding new ingredients and solutions. The quality and effectiveness of our products will grow.