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Natura Cosmeticos: Latin American Cosmetics Giant Product Image

Natura Cosmeticos: Latin American Cosmetics Giant

  • Published: December 2012
  • Region: Latin America
  • 31 Pages
  • MarketLine

Introduction

Natura Cosmeticos develops, produces, and sells cosmetics, fragrances, and hygiene products. Its direct sales model is based on a network of more than 1.4 million consultants. Natura is the leader in the CF&T market in Brazil, with a market share of 14.5% and high brand recognition. Currently, the company is emerging as a cosmetics giant in Latin America.

Features and benefits

- MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions.

- Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

In 2011, around 82.9% of Natura's sales force was located in Brazil, and 17.1% internationally, growing on average by a CAGR of 34.4% over 2006–11. Natura has been able to grow revenues in the 2006–11 period by 14.2%. In 2011, its brand penetration in Brazil reached 61.8%, meaning more than three fifths of households bought the company’s products.

In 2012, Brazil is ranked 156th for the ease of paying taxes and 121st for the ease of starting a business. READ MORE >

OVERVIEW

- Catalyst

ANALYSIS

- Largest Latin American cosmetics maker
-- Natura Cosmeticos is the largest Latin American cosmetics maker, reaching 100 million consumers
-- Strong presence in Brazil and Latin America
-- Number of Natura’s international consultants is growing at 34.4% on average
-- Natura experienced average revenue growth of 14.2% in 2005–11
-- Almost 62% of Brazilian households bought Natura products in 2011
-- Brazil’s most environmentally friendly business of 2011

- Challenges and opportunities in the Brazilian market
-- Brazil is ranked 156th for the ease of paying taxes and 121st for the ease of starting a business
-- Only 1.1% of Brazilian GDP is spent on research and development, and the country ranks 58th in terms of innovation
-- Most innovators in the Brazilian market are foreign companies
-- The consumer fragrances and toiletries market in Brazil reached $43bn in 2011
-- Brazilian direct selling market is worth $12.3bn
-- Natura’s share of the Brazilian CF&T market reached 14.5% in 2011

- Green-focused point of differentiation
-- Natura invested BRL350m to facilitate its sustainable growth strategy
-- Sustainable entrepreneurship became a new priority for Natura
-- Natura pioneered the use of the Environmental Table
-- Investment in development of renewable raw materials and ban on genetically modified organisms
-- About 64.8% of Natura’s revenues come from products introduced in the past two years
-- ""Innovation incubator"" and strategic partnerships
-- The Natura Management System is designed to meet specific demands from various locations
-- Sales strategy shift: boosting Natura consultants’ productivity
-- New delivery network can meet up to 93% of orders within 48 hours
-- About 98% of Natura consultants placed orders online in 2011
-- Revista Natura has grown 30% in user numbers, reaching 300,000 unique users in 2011
-- Natura Campus recorded more than 4,400 hits in 2011, with more than 100 researchers newly enrolled
-- Drop in market efficiency in 2011 caused by lower economic growth and implementation of changes

CONCLUSIONS

- Resilient performance despite global economic turbulence

- Leadership in fast growing markets

- Focus on sustainability and innovation

- Remaining profitable in the face of increasing competition and lower economic growth

- Risk factors: limited diversification and weak market liberalization

APPENDIX

- Definitions

- Sources

- Further reading

- Ask the analyst

- About MarketLine

- Disclaimer

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