The cosmetic company Equivalenza, specialized in perfumes at affordable prices, has once again activated its expansion plan, which also includes a brand repositioning focused on natural and sustainable products. The group, which after the departure in 2015 of one of the founding families, the Bermejos, concentrates its structure in l'Hospitalet de Llobregat, tries to get rid of the low cost label.
"In Spain we grew too fast, it is the market in which the brand has historically suffered the most," considers José María Fernández, CEO of Equivalenza, who joined the group in 2019 from Telepizza to lead the change in the firm.
His goal, he says, is for Equivalenza to grow in a "sustainable and consolidated" way. The beginnings of the company, which operates mainly under a franchise model, were explosive. Its journey began in 2011 and its size multiplied. But as soon as they went up, they shrank again, and in 2017 the sales that were recorded in the Mercantile Registry were 27 million euros. Shortly before, in 2014, he was involved in a conflict over the ownership of fragrances with Puig – resolved in favor of the latter – and was the focus of French companies in the field.
The company, emphasizes Fernández, has charted a new course to gain position and business. After having recovered the sales figures prior to the pandemic in the last year, it plans to close the 2023 fiscal year, which ends on June 30, with revenues of close to 30 million euros and profits, 20% more than in 2022. .
Within its strategy, in addition to improving the position of the brand, the opening of stores and the diversification of the product stand out. Although 70% of its turnover still comes from perfumes, Equivalenza has launched new ranges of cosmetics for skin care, makeup, a line for men and for the home. "This 2023 we will open 50 more stores in different markets," says Fernández. In total, they have some 600 stores that are being transformed to adapt them to their new concept of establishment.
Central Europe and, later, Latin America will lead its commercial growth. As for product, they develop a bio line. Equivalenza has 110 workers at the headquarters in l'Hospitalet de Llobregat, where they design the products and where their logistics center is located. 90% of the suppliers are located in Catalonia and Italy. “We have gone from being a perfume company to a global cosmetics company,” says Fernández.
