11.07.12
12. Natura Cosméticos S.A.
São Paulo, Brazil
www.natura.net
Beauty Sales: $3.1 billion
Key Personnel: Antônio Liz da Cunha Seabra, co-chairman, founder; Pedro Luiz Barreiros Passos, co-chairman; Guilherme Peirão Leal, co-chairman; Alessandro Giuseppe Carlucci, chief executive officer.
Major Products: Cosmetics, fragrances and toiletries, including Natura Fotoequilíbrio sunscreen; Natura Mamãe e Bebê; Natura Plant; Natura Ekos; Natura Faces, Aquarela and Una makeup; Chronos skin care, Natura Naturé baby care; Vitaplant hair care; Natura Kaiak.
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Kaiak Urbe was a new launch for Natura men’s line. |
Comments: With all the economic uncertainty in the world, direct seller Natura’s primary markets—Brazil and Latin America—stand apart as growth continues to bloom—though 2011 was not its greatest growth to-date. Still, Brazil is expected to expand faster than the industry as a whole. According to Natura—and many others—Brazil is positioned to become the second largest market in the cosmetics and toiletries industry.
Sales at Natura reflect the trend, rising 8.9% last year to over $3 billion. In Brazil, sales increased 6.8% to $2.7 billion. The company notes that during the past five years, Natura has nearly doubled sales and its consultant base—and all while pursuing a sustainable business model. The company’s 1.4 million consultants serve nearly 100 million consumers, and annual product orders nearly doubled from 9 million to 17 million over the period. Natura now serves 60% of Brazilian households. In 2011, the company made its biggest investment ever—more than $210 million to expand production, develop logistics and improve technology. With this effort, Natura hopes to get products to sales reps, and thus consumers, more quickly and efficiently. Natura is also intent on increasing local manufacturing and distribution.
Natura estimates that the size of the cosmetics, fragrances and toiletries market it operates in was worth $65 billion last year (compared to $63 billion for the U.S.).
In the coming year, the company plans to focus on incorporating digital technology and social media into its marketing mix.
For the first half of 2012, sales of products and services reached nearly $1.7 billion. Revenue was again strongest in Brazil, followed by Argentina, Chile and Peru. Growth was more robust in the second quarter than it had been for the same period in the previous year. The number of consultants also increased.
