Brazil’s family-owned business has restructured its governance and its portfolio. With a new positioning, the direct selling company intends to develop its activities on a global level.
Like other Brazilian beauty giants, Hinode was born in a garage: the one of wife and husband Adélaïde and Francisco Rodrigues. At that time, Adélaïde was a seamstress and supplemented the family income by selling beauty products. Within a few years, it happened that she was earning more than her husband, a metallurgist. The couple then began to work together, before launching their own brand in 1988.
Exponential growth
Hinode’s entry into the country’s list of leading cosmetics companies has its roots in 2008, when the company - which then had an annual turnover of around 8 million reais - when it shifted its business model to a multi-level marketing (MLM) strategy. The growth became exponential with a turnover reaching 2.7 billion reais in 2018.
“However, we faced growth difficulties,” explains Erica Pagano, Vice President Product Innovation and Branding. "It was time to reorganize the entire house," she says. Product shortage, lack of sales advisers and the difficulty of measuring business performance were among the difficulties to overcome as the company’s turnover fell to 1.6 billion reais in 2020.
From 2019, the company began to change its governance: the members of the Rodrigues family gradually move towards seats on the board of directors and the management of the company was entrusted to Marilia Rocca, the current CEO, and experienced executives were appointed to top management positions.
A new product portfolio
In parallel, the entire product catalogue also had to be reshuffled. The number of SKUs was reduced from 1000 to 350 - most of them being manufactured at the company’s 12,000 m2 industrial site, which opened in 2017 in Jandira, in the metropolitan area of São Paulo. “Our portfolio was very large and had no clear direction. Today, we offer a portfolio centred on beauty and healthy lifestyles,” says Erica Pagano. “We want our sales advisors to be real specialists and to be able to provide the best possible product demonstrations,” she adds.
The offer was not only refocused, it was also radically renewed. "Our motto is that nothing is that good that it cannot be improved", continues Pagano. The new Routine Dermo skin care line thus succeeded Age Reverse with products featuring the Skintelligent exclusive technology, which facilitates the penetration of active ingredients. And as for the Joli PreciOus Oils body care line, it is now made from essential and vegetable oils.
Perfumery, which accounts for 50% of Hinode’s sales, has also been enriched with new products. Fragrances in the Life collection, were co-created with Firmenich and feature their H-Emotions technology, which uses neuroscience to create emotions.
“In addition to keeping an eye on global trends and what the consumer is looking for, one’s have to invest in technology so as not to be overwhelmed,” insists the innovation manager.
Eco-designed packaging
Packaging is also a key issue. One of the brand’s best-sellers, the Hands cream, is now packed in green plastic derived from sugar cane. And the Dazzle makeup line offers many products in cardboard packaging. “We want to deliver the best products with the least environmental impact”.
A few months ago, the brand presented its new positioning. The distinction between the name in Brazil (Hinode) and the international name (HND) was abandoned for Hinode Group, due to be used on a global scale.
Currently available across eight countries in Latin American (Brazil, Bolivia, Chile, Colombia, Ecuador, Mexico, Peru, Paraguay), the company is now targeting new territories. “Our ambition is to be present in 30 countries by 2030,” concludes Erica Pagano. For 2022, Hinode Group forecasts a turnover of 1.9 billion reais (about USD 397.8 million or EUR 371 million).
