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    Top 20 Companies

    18. Natura

    ...

    Jamie Matusow with Joanna Cosgrove, Editor-in-Chief with Contributing Editor11.01.17
    Update: Natura &Co. ranks at #6 on our latest report Top 20 Global Beauty Companies 2021.

    Brazil
    www.natura.net

    Beauty Sales:

    $2.4 billion (est.)

    Key Personnel:

    João Paulo Ferreira, chief executive officer; Administrative Council—Antonio Luiz da Cunha Seabra, Guilherme Peirão Leal, Pedro Luiz Barreiros Passos (founders), Giovanni Giovannelli, Silvia Freire Dente da Silva Dias Lagnado, Roberto de Oliveira Marques, Carla Schmitzberger, Marcos de Barros Lisboa, Plínio Villares Musetti.

    Major Products/Brands:

    Chronos, Ekos, Humor, Una and Todo Dia skin care and cosmetics.

    New Products:

    Ekos Flor do Luar and Ilía fragrances; Natura Homem Essence men’s fragrance; Una Matific Liquid Lipstick, Una Blur instantaneous effect cosmetics; Natura Mamãe e Bebê baby care.

    Comments: 2016 was a year of broadened outreach efforts for Natura. Despite relatively flat sales from fiscal 2015-2016 due to a weakened Brazilian real, Natura maintained stable sales and its 30% growth rate in Latin America, where it earns 32% of its net revenue. The sales were no doubt boosted by another feat: Natura topped more than 500,000 sales consultants in the region.

    The company’s digital platform, Rede Natura, doubled in size in 2016, last year establishing itself in Chile and Argentina, and the company said it is considered to be one of the biggest digital sales channels for beauty products in Brazil. The platform is not only a resource hub for more than 100,000 digital Natura consultants who assist more than 1.7 million registered users, since April, Rede Natura also started selling directly to final consumers. The hybrid online system has boosted sales results and achieved its operational break-even point. Visits to the website grew by 78% in 2016 and the conversion rate increased by 58%. To a similar end, the company also relaunched its Natura app to give consumers the freedom to purchase products when and where they want.

    In April Natura opened its first eponymous store in São Paulo and four other store openings subsequently followed. The company also expanded its operational reach in Brazilian drug stores. The moves were to reach customers who indicated they weren’t used to buying products from consultants. In December, the company opened its first retail store in New York, where it sells the Ekos line and plans to also offer the Chronos and Mamãe e Bebê (Mother & Baby) lines in the future.

    In late 2016, Natura finalized the acquisition of Aesop, the Australian brand it bought in 2013. Since being taken over by Natura, Aesop’s business has quadrupled in size, tallying 41 new stores globally across 20 countries. At present, Aesop boasts a portfolio of 110 products with 80 different formulas, and launches an average of 10 new items per year.

    Finally, Natura extended its outreach inward. First, the company started implementing new methods to engage and retain its consultant sales force. Natura also began offering educational opportunities to consultants and their families, such as discounts and scholarships for university education. So far, more than 11,000 people have taken the company up on this program.

    News of Note in 2017

    This June, Natura announced it was in talks with L’Oréal to purchase British cosmetic and personal care brand The Body Shop. The deal, valued at about $1.1 billion,  recently closed, and will greatly extend Natura’s global product reach (the Body Shop products are sold in 66 countries) and at the same time, breathe new life into The Body Shop, which analysts say is in “great need of a turnaround.”

    Looking Ahead

    In 2016, Natura formalized its existing relationship with Brazilian startup companies, launching a program called Natura Startups. The aim is to create business opportunities in partnership with innovative companies, promoting an entrepreneurial environment and connecting startups to opportunities within the Natura company.
    In 2016, a total of 4.3% of all of Natura’s packaging was made using post-consumer recycled materials. The company is working toward a goal of at least 10% of all its Natura Brazil packaging will be made of post-consumer recycled material by 2020.
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