At Estrela, princess (or warrior) day comes early
Toy brand wants to expand makeup network for children with franchises to reach 250 stores in the country
One of the most traditional toy brands in the country, with 85 years in the market, Estrela created a vertical of beauty and children’s perfumery, which defines itself as the first “play makeup” brand in Brazil. Estrela Beauty’s target audience is children from 3 years of age and, after testing the market with its own stores, it will start a franchise plan.
The brand’s proposal, as the company recognizes, can be interpreted with some controversy. “Our main concern is that the line is not seen as an incentive to early vanity. In our packaging and even in our service, there is always a stimulus for the child’s self-esteem and creativity”, explains Carlos Tilkian, CEO of the Estrela group since 1996. “Do you want to be a princess or a warrior? Or the right way to wear this lipstick is however you want. These are examples of phrases we use.”
Among the beauty products, there are from lipstick and nail polishes to micellar water and makeup remover wipes. The catalog also has more unisex-oriented items, such as perfumes, temporary hair dye and a shampoo that can be customized, with hypoallergenic formulas. The stores also sell accessories for children, such as headphones and backpacks. The dollhouse style resembles a mini American Girl, the store that is a phenomenon in the American market.
Prices are fixed in all units and in e-commerce, which for now only serves the greater São Paulo. A lipstick, for example, costs R$35, and nail polishes cost R$15. But there are eyeshadow palettes for around R$130 and backpacks that come close to R$200. A type of service is also being tested. to the brand: the sales team at Estrela Beauty stores participates in events, such as birthday parties, taking the products to interact with children.
The sale conversion rate for anyone who enters a unit is 70%. Tilkian says that the service in store is careful so that there is no pressure for consumption, appropriate to the age group of the target audience. “It’s a very modern retail concept, with a focus on experience. The child enters, can sit on the dressing table, can use the products and has no purchase commitment”, says the executive.
Until now, Estrela Beauty only had its own units in five malls in São Paulo, but it hired Grupo Bittencourt to format a franchise plan. The goal is to have 250 stores of the brand in five years, a strategy that will also allow the expansion of ecommerce, currently limited to the capital of São Paulo. By the end of the year, the group expects to open five stores in the new system — the most advanced negotiations are all for the interior of São Paulo.
As part of a diversification strategy, Estrela also opened its own publishing house for children’s books about five years ago – another bold move, considering the publishing market scenario. With a focus on bidding, however, the endeavor has been successful. Editora Estrela Cultural had six of its titles selected by the Fundação Nacional do Livro Infantil e Juvenil for the catalog of the Children’s Book Fair in Bologna – the largest international fair for children’s books that takes place in the world.
“With the pandemic, we felt that there was a rescue of the reading habit between parents and children. Changed the behavior. We entered a difficult moment in retail, but the change in routine made people have more family life, which helped the publishing house and also the toy business”, explains Tilkian. In 2021, book sales grew 20% and toys, 30%.
In the last fiscal year, the Estrela group recorded revenues of R$ 170 million. The company currently has 1,200 employees and three industrial units in São Paulo, Minas Gerais and Sergipe. If the five-year plan for Estrela Beauty comes to fruition, the company believes that the brand could be responsible for doubling its consolidated revenue.
Source: Value Pipeline