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>> Amazon making a play for the Brazilian beauty market. Several sources telling Reuters' that the online retail giant is in talks with brands such as Groupo Boticario and Natura Cosmeticos, and is looking to sell their products on a new Amazon platform under development. Reuters Jeffrey Dastin.>> This is interesting because Amazon typically launches beauty later on when it has a marketplace for a country.
Even years later for say, its launch of beauty as a category in the US or the UK. And what this really indicates is that Amazon's hit a huge market here in Brazil.>> Brazil's roughly $30 billion beauty market is fourth in the world behind the United States, China, and Japan.
But Brazil's major cosmetics firms have so far taken a cautious approach with E-commerce as they try to protect profit margins and long-standing relationships in traditional sales channels. Partnering with the Amazon could accelerate their move online.>> The talks are ongoing. There was a meeting as recently as last week.
But it's still early stages and for instance Group oBoticario, which is one of the company's in discussions with Amazon, it's more interested in selling non-proprietary products. So say make up from Revlon via that Amazon marketplace in Brazil rather than kind of it's bread and butter proprietary products where it doesn't necessarily need Amazon's help in reaching customers online.
So it's kind of dance how each company can help each other.>> Privately held Boticario has a franchise network of 4000 stores, Natura has a network of more than a million direct sales consultant in Brazil sticking to a business model pioneered by Avon. In 2014, it began offering sellers tools for online sales.
In Brazil, Amazon has relied on third-party vendors to ship their own goods. But Reuters reported earlier this year that it was looking to lease a warehouse near Sao Paulo, and was in talks with Brazilian airline Azul suggesting it's ramping up its own logistics capability in the country.