BW Confidential - Issue #13 - March/April 2013 - (Page 22)
Interview
Natura Cosméticos executive vice president José Vicente Marino
Natural growth
Brazil’s largest beauty direct seller Natura is looking to build its
position domestically, while expanding its reach in Latin America.
Natura executive vice president José Vicente Marino tells
BW Confidential how the company is putting these plans in motion
by Renata Ashcar
D
espite Natura’s number-one ranking in Brazil’s beauty
industry and its dominance of the market for so many
years, the group still sees much room for growth domestically.
The group claimed a 23.6% share of Brazil’s beauty market
in 2011, which was down from 24.1% in 2010. But with
the high growth of the country’s beauty industry (the market
saw a CAGR of 12.3% between 2006 and 2011,
according to Euromonitor), rising incomes and the
growing middle class, Natura is confident that
it can reach many more consumers. It plans to
do this through “filling white spaces” in terms
of price points and product categories, as well
as increased investment it its sales force and in
new digital initiatives.
The company, which in the past few
years has seen problems with the
productivity of its sales consultants, has
already upped investment in this area,
as well as in logistics and supply chain
(it now says that its new logistics network
enables 93% of orders to be delivered
within 48 hours).
Stepping up investment in Brazil has
perhaps become all the more important, given the
number of foreign companies looking to develop in the country
and potentially eat away at the direct-sales giant’s market
share. This is true both on the brand side, and also in terms
of distribution, with more players such as perfumery chain
Sephora and Grupo Boticário opening up new sales channels
for Brazilian consumers.
While investment in Brazil will remain key, Natura is well
aware of the need to develop beyond its borders. The company
has made growth in Latin America a priority, with a strong
focus on Argentina, Chile, Peru, Mexico and Colombia. Natura
says that its share of international business has risen from
5.9% of sales in 2008 to 12% in 2012 and that its number of
22
sales consultants in international markets now stands
at 300,000.
Also part of its international strategy is acquisitions. At the
end of last year, Natura announced that it would take a 65%
stake in Australian plant-based skincare and haircare brand
Aesop for US$71.24m (Aesop is expected to report sales of
US$66.81m in the fiscal year ending June 2013). The group
hints that more purchases may be on their way.
Natura has suffered from operational
problems in the past few years. Have
these now been resolved? How will
you get back to growth?
First of all, we have overcome these
problems and are now seeing better-thanever results in operations. We invested in
several areas, including distribution and logistics
and we are seeing the results of that: in the third
quarter of 2012 we saw a 14% increase in net
sales and a 15% rise in EBITDA margin.
In terms of growth, we have three major
sources: Brazil, Latin America and international.
For Brazil, we are already the market leader.
Our most important strategy here is to increase the
productivity of our beauty consultants. Due to our position in
Brazil, in order to grow, we need to defend our main territories
and undertake additional investment to increase marketing
and product innovation. We want to gain more share in Brazil
and there is room for that.
In Latin America we are seeing surprising growth and we
have achieved a critical mass of 300,000 sales consultants,
which makes business easier. We do have a lot to conquer in
other countries but we are gaining share in the door-to-door
channel and the consumer perceives our brand as relevant.
For international, we have a new, redefined strategy, which
led to our acquisition of Aesop. Our strategy for international is
March-April 2013 - N°13 - BW Confidential
Table of Contents for the Digital Edition of BW Confidential - Issue #13 - March/April 2013
Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Natura Cosméticos evp José Vicente Marino
Insight: Make-up
- Category overview
- The latest trends
- Social media
- Retail viewpoint
- Retail case studies
- Increasing usage
Retail
- European perfumeries
- Store concepts
Digital Mobile strategies and brand case studies
Strategy spotlight Trends to inspire
Market watch: US
- Country overview
- Department stores
- Specialty stores
- Industry viewpoint
Emerging markets Company profile: Jequiti
Radar A profile of six up-and-coming beauty brands
Travel retail: Brazilian travelers
- Overview
- Passenger profiles
Packaging Designs for travel retail
Last word The Beauty Company’s Alisa Marie Beyer on new ways to converse with consumers
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