BBR9 Thought Leader Q&A: Cesar Arellanes from the Center for Int’l Trade Development “Emerging Markets Demand U.S. Cosmetics”

“Did you know that in Turkey, business is done over meals?” 

This interesting tip from Beauty Biz Roundtable BBR9 Thought Leader, Cesar Arellanes, was just one of many words of wisdom that many BBR9 attendees enjoyed learning from Arellanes’s roundtable.

BBR9 Thought Leader, Cesar Arellanes – the Director of the Center for International Trade Development (CITD)

Cesar Arellanes has directed the Long Beach – Center for International Trade Development since 2009. With over 12 years of international business experience: stemming from an internship at the US Department of Commerce, to holding positions of leadership exporting furniture manufacturing machinery throughout Mexico to establishing and operating his own international real estate development company. Under Arellanes’ direction, The Long Beach – Center for International Trade Development provides technical assistance and training in international trade to small- and medium- sized companies throughout Southern California and has contributed to over $75 million in trade transactions.

In addition, the Long Beach – CITD hosted a group of 28 California-based beauty brands under the “California: A State of Beauty” Pavilion, at COSMOPROF, Bologna  and also exhibited 19 companies at Beauty World Middle East in Dubai earlier this year.

Arellanes presented his views on how “Emerging Markets Demand U.S. Cosmetics” during his BBR9 Roundtable. For beauty brands entering the international market, he emphasized the importance of having a well-thought out strategy, sales plans, having talented and trusted employees and international contacts, and also understanding a country’s culture and customs.

For those of you who didn’t get a chance to sit in Arellanes’s roundtable, here are excerpts from our Q&A interview with him:

Please share 3 key points from your Roundtable presentation/discussion.

• By 2025, annual consumption in emerging markets (China, Vietnam, Indonesia, Russia, India, Turkey, South Africa, Brazil, Mexico) will reach $30 trillion— Making it the biggest growth opportunity in the history of capitalism. To compete, companies must develop a strategies and disciplines to enter these markets.

• Success in emerging markets come from all-around excellence across multiple fields including: focus on city centers, hire local talent, Innovate to deliver value and price, Build brands that resonate and inspire trust as well as manage and control the route to market.

• Emerging markets offer the best hope for growth in the beauty industry and business leaders need to ask themselves whether they are making the changes required to win.

Who is today’s [beauty] consumer? How are they changing?

Today’s consumers want functionality rather than indulgence. Opportunities will grow in the “Mass Luxury” sectors as the world economy improves – specifically in emerging markets- and consumers they will be substituting domestic product purchases with imported products driven by functionality and quality.

What do you see as the latest trends in your industry?

International Trade will continue to grow, specifically in the emerging markets and By 2025, more than half of the world’s population will have joined the consuming class, driving annual consumption in emerging markets to $30 trillion, from $12 trillion. Emerging markets could account for more than 70 percent of global economic growth during this period.

While executives recognize that winning in emerging markets is the key to long-term growth, many companies remain reluctant to commit resources and talent at scale. McKinsey research shows that the largest companies headquartered in developed economies currently derive only 17 percent of their revenues from emerging markets, even though these markets already represent 36 percent of global GDP. Moreover, despite advantages in scale, technology, and access to capital, multinationals often lose out to more nimble local competitors.

What kinds of qualities do you look for in an employee/when hiring a candidate/someone to join your team?

I look for someone who is:

1. Energetic, he/she must be a highly motivated person who is ready to take on new challenges with a can do attitude.
2. Smart, a confident candidate with exceptional communication skills. Must possess the ability to learn quickly, provide new ideas and resolve challenges.
3. Loyal, someone who can demonstrate knowledge about the company.  An ideal candidate must have goals beyond a paycheck and a plan for what they want to achieve in the position.

Thank you Cesar for a riveting BBR roundtable!

Read about other BBR9 Thought Leaders like Dan Obegi (CEO of DermStore Beauty Group), Maria Rush (Purchasing & Brand Development at Beauty Collection), Jennifer Goldfarb (President of ipsy), Scott-Vincent Borba (Founder of Scott-Vincent Borba, Co-Founder of e.l.f cosmetics), Amy Liu (VP of Marketing for Josie Maran Cosmetics), Eleanor Keare (President of Circle of Friends) and Fabrice Croise (Global Business Development Director for SelectNY)

Click here for more details about BBR9

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About Beauty Biz Roundtable BBR
Hosted by Mazur Group in Los Angeles, the Beauty Biz Roundtable (BBR) series brings together 100 Mid to Senior Level Beauty Executives in a roundtable format that fosters networking and idea sharing. Attendees are given the opportunity to sit down in small group settings with industry peers. Past BBR attendees and Thought Leaders have come from every major beauty company here in the West Coast. For more details, visit:https://mazurgroupla.com/wp/bbr-events/