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    Features

    Tecnocosmesi Meets the Challenge in North America

    A new plant in Canada—and more.

    Tecnocosmesi Meets the Challenge in North America
    Tecnocosmesi
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    Jean-Yves Bourgeois, European Correspondent12.12.18

    The Italian company Tecnocosmesi is set to celebrate 40 years in the trade and the third year in operation of its North American plant. An outstanding track record for this discreet family business.

    Overview with Federico Fausti, in charge of North America.

    Jean-Yves Bourgeois: You had announced last October the start of your new plant in Canada, which had occurred a year before. You also announced a second development phase in view of increasing its capacity early 2019. What is the situation like today exactly?

    Federico Fausti: Commissioning a new plant successfully is always a big challenge, and we are very satisfied with this first phase: The plant has already doubled production outputs compared to the first year, and chances are good that the next phase will be completed by the end of next year. Investing in Canada is always easy and convenient, and construction times are also very short—fortunately for us, because flexibility at this stage is fundamental.
     
    Bourgeois: Until now you only focused on pressed powders but with an aim of producing all the products of the Tecnocosmesi range. Is this the case now and what are the next steps?

    Fausti: In Canada, we started by producing powders because they are very popular products on the North American market and they are also specific products, but we are now working to bring our full product range to the Canadian market as of next year. Demand for full service is also very important, but even here, the assembly of packaging lines is an important investment for a company.
     
    Bourgeois: The challenge of opening a plant in Canada was daring. A couple of years later are you happy with that choice and if so, why?

    Fausti: One year after the opening, I can say that Canada was undoubtedly the best possible choice, as I have already said, investing here is practical and easy. We are not only very close to all our North American customers, but Canada is also a country that offers the opportunity to easily find skilled labor and advantageous logistics, because the country—unlike its neighboring country—offers a proactive and more open trade policy, a fundamental factor for an international company who, like us, does business with Europe, the Americas and Asia.

    In addition, in the near future, we expect very strong growth in the U.S. and Asian regions, favored by more dynamic economic policies, quite different from those in the EU where the situation has now become difficult because of the significant divisions between countries within the EU and— consequently—due to timid social and economic policies, which have only generated modest and unsustainable growth in Italy in particular, but also in France and Germany ... the three biggest European markets.

    Bourgeois: Unquestionably, competition in this makeup niche has intensified in recent years in the world. But you are not just a makeup manufacturer. How do you position yourself today on the market and what are your assets?

    Fausti: Indeed competition has increased considerably across the world and especially on the American and Asian continents, where we have also seen many new brands emerging and therefore new opportunities, especially in the area of makeup. With our 40 years of experience in the trade, we can testify that makeup products require a great deal of specialization that some of our other competitors do not have. They are also the most in-demand products by our customers, who do not have the opportunity to invest in this area that requires a lot of know-how and technology—unlike other segments like skincare, for example, where brands already developed skills and infrastructures. Thus, we believe that there is a magnificent opportunity to seize to develop and broaden the services a company like ours can offer to all our customers, especially regarding packaging solutions.
     
    Bourgeois: In the wake of North America have you planned to settle in other parts of the world?

    Fausti: After Canada—where some extensions are still planned in the coming years—we have not considered settling elsewhere. In the current economic context, investing carefully is the key, to avoid duplicating and end up with excess production capacity. In being present on two different continents and given current economic agreements—which can change quickly—it allows us to easily and competitively serve our customers whatever the market in the world and with the best quality.
     
    Bourgeois: 2018 will close in a few weeks. What was your progression like compared to the previous year and what is your insight on 2019?

    Fausti: Looking over our 40 years in operation, 2017 and 2018 have been to-date, our best years in terms of results. In 2019 Tecnocosmesi will celebrate its 40 years of existence in the profession, and in my opinion, very few companies can boast such a successful track record. For next year, we have many surprises in the pipeline, our stand at the forthcoming Cosmoprof will therefore be really "special," and on the sidelines of MakeUp in NewYork, we will organize an exclusive event in our office at Rockefeller Center. My family and I want to continue this saga driven by the same state of mind.
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