84% of the beauty companies in Latam are run by women

84% of the beauty companies in Latam are run by women

In our country, this activity directly generates 500,000 jobs and the same amount indirectly, according to the Mexican Chamber of the Physical Landscaping Industry. Likewise, Market Data estimates that there are 190,000 salons, beauty clinics and hairdressers, of which only 10% belong to large companies, the rest are small businesses.

80% of their income is for the services they perform, the remaining 20% ​​is attributed to the sale of products; However, a big problem for these businesses is that big product brands only supply 15% of factories and have the disadvantage of asking entrepreneurs to place bulk orders, according to a survey by Morado.

So the flow of your money is blocked for about 15 days, which most of them cannot afford,

“Beauty centers, being in quite distant places, end up stocking up on nearby neighborhood shops and buying products at final consumer prices. So in Morado we have wholesale prices that thousands of hairdressers cannot access, “said Ángela Acosta in an interview for Forbes Women.

Colombian Ángela Acosta became aware of these problems during her research process to start her Morado business, for which she spoke to many people in the industry, learned about the daily life of hairdressers and even became a certified manicurist.

Startup Morado is a beauty industry-wide store with a B2B model, focused on offering products at wholesale prices without the need to stagnate your money. This company began operations in 2022 in Colombia, where it managed to bring the brands of the sector to 50,000 hairdressers. Acosta plans to begin its international expansion with Mexico.

“We have a plan to enter the 50 largest cities in Latin America, which of course includes Mexico City. Because Mexico, in addition to being an extremely attractive market, is the second largest beauty market in Latin America, ”admits Ángela Acosta.

Morado raised a $ 5 million pre-seed round, which was attended by companies Tiger Global, H20 Capital, QED Fontes, Latitud, A16z and Village Global, the latter backed by Jeff Bezos, Bill Gates and Mark Zuckerberg. Various angelic entrepreneurs and investors also participated in this investment round.

This money will allow them to grow their inventory management and logistics technology in order to make profitable products within their market that beauty entrepreneurs demand in their business at wholesale prices and providing more alternatives. payment and next day delivery.

“We don’t sell ourselves as a cheap beauty company, but rather we are the 360 ​​store and all. In Morado, hairdressers buy beauty products, furniture, chairs, uniforms, cleaning products. So we are an interesting proposal because instead of looking for 8 or 10 suppliers to get supplies in Morado, they find everything “.

The startup will have a full operation in Mexico by the last quarter of 2022: “By the end of this year we would like to serve more than 40,000 hairdressers in Mexico and help all of these establishments diversify their businesses and grow,” Acosta says.

Morado’s long-term plan is to bring beauty brands to more than 180,000 Mexican establishments.