Conquering LatAm’s Beauty Market – FragranceNet.com Case Study

FragranceNet.com is a leading international beauty retailer, featuring an extensive catalog of 40,000 genuine, brand-name fragrances, skincare, makeup, haircare, aromatherapy, and candles. Founded in the United States in 1997, they have over 25 years of experience in the beauty industry and more than 350 employees spanning North America and Asia. Their track record includes shipping over 30 million packages and achieving sales exceeding $3 billion in beauty products.

Conquering the Latin American Beauty Market

FragranceNet.com originated as an online retailer in the United States. As the company underwent substantial growth, it strategically devised plans for expanding into new markets. Since 2018, the company has concentrated on international expansion beyond North America, effectively penetrating e-commerce markets globally, such as Australia, China, the Middle East, the Netherlands, and South Korea. While FragranceNet.com initially had aspirations to extend its reach to Latin American markets, it encountered significant barriers to entry.

The Challenges

The beauty and fragrance industry in Latin America is among the world’s largest, especially in countries like Brazil. Brazilian consumers effortlessly include perfumes, skincare, makeup, and haircare in their daily routines, linking beauty with health.

However, this thriving industry is not without its challenges, particularly in the realm of international e-commerce. Regulatory hurdles and taxation issues pose significant obstacles, impacting the smooth flow of beauty products across borders. Certain beauty products face import restrictions, leading to delays in customs clearance and, in some cases, preventing them from reaching the end consumer.

“FragranceNet.com was in the process of expanding its e-commerce presence to Latin American markets, but when exploring opportunities to sell in the region, we encountered numerous challenges. The first and foremost challenges were related to compliance and logistics. There are a lot of different types of duties and taxes and when we figured it out, it turns out the costs are unexpectedly high. The fact that most of our products are considered as “dangerous goods” made it even more challenging. Also, the lead time for shipping from the U.S. to Latin America is long and that puts us in a bad position against the competitors. All these things together withheld us from entering the Latin America market.”

Bas Bruijninckx, Director for International eCommerce at FragranceNet.com

The Solution

Bas Bruijninckx and their team met with nocnoc in 2022, seeking a local partner to navigate the challenges of selling in Latin America. After a simple integration with nocnoc’s system, Fragrance expanded its catalog to 15 marketplaces in Brazil, Mexico, Colombia, and Chile without the need for a legal entity in those countries or having to open individual accounts on each marketplace.

“The integration with nocnoc was fairly easy. First, we had to connect our product assortment with their system, which was an easy thing to do. After that, we could already start selling. The most important thing is that we only have to ship the order to nocnoc’s warehouse in the US, just like we do with any other order. nocnoc takes care of shipping it to Latin America and takes care of last-mile delivery. This has taken all compliance and logistics challenges away for us.“

Bas Bruijninckx, Director for International eCommerce at FragranceNet.com

nocnoc’s solution remains simple for sellers yet exceptionally seamless, covering everything from catalog optimization to last-mile deliveries, cancellations, payments, and customer support. Once Fragrance integrated with nocnoc, our team conducted a thorough catalog analysis, identifying products with higher sales potential in LatAm.

We then published their catalog across nocnoc megastores, well-regarded in LatAm. By leveraging nocnoc megastores, FragranceNet secured special placements for marketplace campaigns, banner ads, and enticing discounts, facilitating a competitive edge and winning the Buy Box.

Results

“After the integration with nocnoc we immediately started selling and sales have been growing month by month. nocnoc is helping us by sharing sales opportunities and making the process as smooth as possible. The support from nocnoc’s team has been great. With their knowledge and insights in the markets, they share opportunities with us that can help to boost sales. Furthermore, they help us monitor the logistics process to make sure all orders arrive on time. “

Bas Bruijninckx, Director for International eCommerce at FragranceNet.com

From day one, we’ve collaborated closely with FragranceNet to enhance their sales in Latin America, providing regular market and catalog analysis along with opportunities for their product range. Our regular efforts involve spotlighting products with higher chances of success, suggesting competitive prices, and ensuring visibility through banner ads and appealing discounts. Additionally, we negotiate with marketplaces to secure prime placement in banners and campaigns, including events like HOT Sale, Black Friday, or Dia Dos Namorados.

In a pivotal moment, our collaboration yielded remarkable results. Recognizing an opportunity in Brazil, we advised a strategic discount on a specific Perfume for Women, aligning with competitive market prices. The results were outstanding, witnessing a 253% increase in sales from September to November. To amplify impact, we integrated the product into high-profile marketplace campaigns, securing banner features and ‘Deal of the Day’ promotions. Additionally, by streamlining fulfillment through our warehouses, we eliminated the need for FragranceNet.com to handle individual packages. This optimization led to a further 35% sales increase in marketplaces with stringent delivery timelines.

Would you recommend nocnoc?

“I would recommend partnering up with nocnoc if you have plans to expand into Latin America. Nocnoc has made it very easy for us to get to know the Latin American market by selling via their platform on the large marketplaces in the region. They have taken away the challenges that we encountered around compliance and logistics which stopped us from entering that market before. Through an easy integration on the platform and with great support from the team the collaboration has been great so far.”

Bas Bruijninckx, Director for International eCommerce at FragranceNet.com