NATURA: GLOBAL BEAUTY MADE IN BRAZIL
Founders: Luiz Seabra. Guilherme Leal, Pedro Passos
L’Oréal, world´s largest beauty company.
Possibilities for growth included moving to Internet sales, selling products in duty-free shops in airports, and creating retail chains in certain countries. •
Natura had become Brazil´s biggest domestic cosmetics company. •
Leading company in sustainable use of Brazil´s biodiversity. •
Natura was a unique company with a growing vision for humanity (according to Brazilians)
The Brazilian Beauty Market
Beauty Premium: Physical Attractiveness appeared to exercise a major impact on individual lifestyles. •
In 2004, beauty was a US$231 billion global business.
Brazil had one of the highest levels of income inequality in the world. •
In Brazil, the lighter the person’s skin, the richer they were likely to become.
Brazilian Market Main Trends
Brazilian beauty industry: 12.9 billion Brazilian reais (R$) in 1999 to R$28.5 billion in 2004. •
By 2004 females made up 22% of the workforce.
The cultural importance of self-image in Brazil helped boost pharmaceutical sales of products and services than enhances attractiveness and self-confidence. In 2004, Brazil was reported as the second biggest market for Botox and Viagra. •
Brazil is a country of contradictions.
Established in 1969 by Antonio Luiz da Cunha Seabra
Direct selling model in 1974.
Door-to-door distribution system
Initial Natura system into a single company: Natura Cosméticos, in 1989 (Leal, Seabra, Passos). •
Natura decided to pursue a new international business and opened an operation in Argentina.
Product Lines and Brand
Market: middle and upper class segments in Brazil.
600 products and seven main product lines
In 2005, L’Oréal spent US$587 millions on research and development. •
Natura acquired patens and technology from universities and research centers in Brazil and abroad. •
Natura´s products are aspirational.
Natura focused on particular research efforts on skincare products and on the sustainable use of ingredients from Brazil´s biodiversity. •
Partnerships with NGO´s and the attainment of international certifications were also important for successful sustainability and dissemination. •
Natura´s products based on “well-being/ being well” (harmonious pleasant relationship between oneself and one´s body, combined with the concept of rewarding, empathetic relationships with others and with nature). •
In 1999, Natura acquired Flora Medicinal, boosting Natura´s research and raw materials gathered from Brazilian biodiversity.
Facility and location: “Espaco Natura”, an integrated production, logistics, and R&D center situated in a replanted green area on the outskirts of Sao Paulo. •
In 2005, Natura had an installed annual manufacturing capacity for 209 million items. •
Product manufacturing: separation of raw materials, mixture of materials in accordance with the company´s formulas, bottling, and wrapping. •
Natura received and average of over 40,000 orders per day and shipped approximately 98%. Natura used 26 different delivery companies as well as the Brazilian postal service to transport products to its representatives.
Sales and distribution
483,000 active sales representatives in Brazil and 36,000 agents in other countries. •
Mainly middleclass housewives selling to their friends, independent professionals, secretaries, and staff personnel at all kinds of companies. •
30% of sales force sells products from Natura´s competitors. •
Selling network composed of market managers, sales managers, sales promoters, and sales representatives structured in hubs and knots covering specific geographic regions. •
Natura´s catalogues became and important sales tool, and frequent updates provided the consultants with a reason to pay repeated visits to their clients. •
Natura´s focus on sales allowed consultants to place orders at any...
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