Mexican Beauty Market Proves AttractiveTue, 09/06/2016 - 11:45
Q: From 2014 to 2015, Sesderma’s consolidated sales reached 38 million euros (US$42.19 million). What role did the Mexican market play in these numbers?
A: Since we entered the Mexican market three years ago, sales have shown positive growth. In 2014 business in Mexico doubled and we are hoping that 2016 will follow the same trend. Our sales derive from two areas: doctors and pharmacies. Sesderma prioritizes practitioners as the company is made by and for dermatologists.
The company collaborates closely with doctors to solve common dermatological issues centered on beauty and health for both men and women. We have earned the trust of doctors who feel comfortable prescribing our products.
The most attractive aspect of our brand is our OTC product range that can be found in pharmacies. Our products range from medical peels that need to be applied by professionals to complimentary products such as face washes and creams found in pharmacies. Our OTC products have active ingredients and basic concentrations that doctors prescribe for continuous treatment.
The world and Mexico in particular is starting to pay more attention to the skin as it is the most exposed organ to external factors like pollution and stress. The country is starting to worry more about spots, wrinkles and aesthetic issues.
Q: As mentioned Sesderma has two distribution channels, pharmacies and doctors. Where is the market driving these channels?
A: Mediderma and Sesderma are our two lines. Despite the fact that practitioners are our main pillar, we make sure that our retail market is as strong as our medical one. Pharmacies have a strong drive as not all doctors provide medicine at consultancies and rely on prescriptions. Sesderma accounts for 70 percent of our sales while Mediderma represents 30 percent, because our OTC products have a general purpose like hydration, night treatments and face washes while our medical products serve a more defined purpose such as peels.
Q: Which products have had a bigger impact in the Mexican market?
A: So far, our genocosmetic products have had the most impact in 2016. This treatment draws from DNA to prolong the life of telomeres and consequently cells. Sesderma’s biggest innovations of the year include our retinol development that stimulates elastin and collagen to reduce wrinkles with few applications. Reti Age and Factor G were launched last year at the Dermocosmetic Congress and have been particularly successful in terms of volume. Factor G incorporates plant-based growth elements. Reti Age reduces wrinkles up to 80 percent and causes almost immediate changes upon application.
Q: What is Sesderma’s strategy for points of sale?
A: Overall, we have added 20 points of sale since last year. The growth is not massive and carefully adapted to the preferences of practitioners. Sesderma has had to lower pharmaceutical points that were no longer profitable such as Sanborns, which was dropped from 40 to 20, and San Pablo, cut from 50 to 30. On the other side, Derma is a consistent sales outlet and we make sure to be present in as many branches as possible. Our marketing objectives are targeted to medical practitioners as they do 80 percent of the work in sales. Practitioners are our forte as people trust and believe their recommendations.
Q: Transnational companies tend to use Mexico as a platform to enter Latin America. What other countries in the area is the company interested in entering?
A: Sesderma is already widely spread in the region. We affiliated with the US at the same time as we entered Mexico. The brand opened branches in Panama, Dominican Republic, El Salvador, Costa Rica, Ecuador, Guatemala, Peru, Guatemala and Brazil. The company is participating in even more countries as a distributor. Sesderma entered Panama, the Dominican Republic and Ecuador. These branches were recently turned over to their country managers. We believe that our Mexican branch will be as big as our Colombian one in two years. It is an ambitious goal considering that Colombia has a 10-year advantage and a double-digit market.