Belcorp: A leading direct sales company in the beauty industry
BY María del Carmen Ramón
Five decades ago, Peruvian brothers Eduardo and Juan Fernando Belmont decided to continue the family tradition started by their grandfather and entered the beauty industry. In 1967, they formed the Yanbal company. A year later, Eduardo opted to separate and created his own company. He called it Belcorp. Today, it is one of the most successful companies in Latin America, with a business model focused on direct sales and with three well-known brands: Ésika, Cyzone and L’Bel.
Direct sales: Belcorp’s successful business plan
Since its creation, Belcorp has relied on direct sales as its main business strategy. This company works with independent saleswomen who market the catalogs of the three brands among acquaintances, friends and relatives. This retail marketing sees sellers obtain discounts from the company, between 25% and 40% of the value of the product, based on the volume of sales they achieve. The company’s philosophy is that the more they sell, the greater the rewards they receive.
The negotiation process involves each vendor placing an online order for the products she wants to sell from L’Ebel, Cyzone and Esika. The system returns an invoice, which can be paid online or at bank branches. Based on these requests, Belcorp sends the orders to the residence of these saleswomen, accompanied by the company’s new catalogs.
In addition, Belcorp offers other incentives to its affiliate network. These rewards range from household appliances to useful household items.
Online stores: The survival mode for direct sales
The COVID-19 pandemic had a significant impact on direct sales. Lockdown measures and social distancing placed limits on companies that use this business model.
In this complex scenario, Belcorp’s saleswomen used digital tools to move from door-to-door sales to marketing through the Internet. The company created its own platform, called “My online store.” Venders used it to share their catalogs, as well as social media to ensure their products reached a wider audience.
Belcorp’s three brands
The company has positioned its three brands very well. Perhaps the best known is Esika, which includes different types of products. Its extensive catalog covers everything from nail polish, eyeliners and lipsticks to handbags, moisturizers and perfumes for women and men.
Meanwhile, although their catalogs contain similar products to Esika, Cyzone and L’Ebel also allow saleswomen to create product combos. For example, deodorants can be combined with perfumes and shampoos. Purchases of these combos offer additional discounts for both vendors and customers.
Belcorp’s expansion and success
The most important market for Belcorp is Latin America. It has created a network of more than 800,000 saleswomen across the continent, distributed in 14 countries, and also operates in the United States.
Belcorp’s annual sales exceed 1.2 billion dollars, making it one of the 50 largest direct sales companies in the world. Its creator, Eduardo Belmont, has built a fortune estimated at more than $6 billion, making him one of the richest men in Peru.
In 2018, Belmont handed over the executive presidency of the company to Venezuelan Erika Herrero Bettarel, who had been working in the company for years. Today, this businesswoman, a graduate of the Metropolitan University of Venezuela, continues to lead Belcorp.
