Beauty Sales: $2 billion
Key Personnel: Antônio Luiz da Cunha Seabra, founder and board member; Pedro Luiz Barreiros Passos, co-chairman and co-founder; Guilherme Peirão Leal, co-chairman and co-founder; Roberto Oliveira de Lima, chief executive officer; Andrea Figueiredo Teixeira Alvares, vice president of Marketing and Innovation
Major Products/Brands: Cosmetics, fragrance, hair care, skin care, body care, sold through a direct-selling model including brands Aesop, Amó, Aquarela, Chronos, Ekos, Mamãe e Bebê, Kaiak, Kriska, Natura, Tododia, Sou, Una.
New Products: Ekos Ucuuba and Murumuru, Natura Homem colognes; Esta Flor fragrances; Tez moisturizers, soap and multi-purpose wipes; Amis fragrance line for pre-teens; Una moisturizer and deodorant oil; Faces lip color collection.
Comments: Though Natura continues to keep its chin up, the stars did not align for a much-hoped 2015 turnaround. The company efforts were hampered by Brazil’s tax load increase and subsequent exchange devaluation. If that wasn’t enough, for the first time in 23 years, the Brazilian cosmetics, fragrances and toiletries segment shrank by 6%, which syphoned an additional 3.6% from Natura’s 2014 net revenue, dropping that total to $2 billion.
But it wasn’t all bad. The company continued its quest for international expansion, reporting that 2015 international operations already account for almost 30% of Natura’s net revenues. In the last five years, the average growth rate of the company’s international operations is 47%, in regions comprised of Argentina, Colombia and Mexico, as well as Chile, Peru and Bolivia. Natura also maintains direct sales and retail operations in France.
In 2015, Natura also branched out to introduce a multichannel sales model, tapping its daily beauty care line, Sou, as the test brand for commercialization in drugstores. The trial run was initiated in September and the resulting sales volume was higher than expected in the first months, with the Sou brand becoming the bestseller in specific categories, such as bar soap.
What’s more, Natura helped its more than 1.37 million direct-selling product consultants harness the power of technology when it rolled out Você Conect@, a suite of digital tools designed to manage product and client more efficiently.
On the new product front, Natura heralded the launch of its new Ekos Ucuuba line as a convergence of ecological and innovation work within the Amazon region. The moisturizing product line is formulated with the fruit of the ucuuba tree. While the tree is threatened with extinction due to increased exploitation for timber over the last 30 years, Natura’s commercialization of the ucuuba seeds has been essential for reducing the degradation of the species, with wood now being repurposed for stakes, broom handles, door frames and roofing.
The line’s packaging is also eco-efficient, comprised of 50% green PET bottles (made from renewable plant-based material), 50% post-consumer recycled PET; 40% of the cartons are made from post-consumer recycled paper.
In 2015, Natura conducted an Environmental Profit and Loss (EP&L) Accounting study to measure its impact on the environment. The study was based on factors such as GHG emissions, water, waste and land use and occupation.
While the company already implements environmentally conscious decisions, including the use of organic alcohol for all of its perfumery production and replacing fossil-based ingredients with plant-based substitutes (83% of the company’s formulations come from renewable sources), Natura expected the EP&L to drive a reexamination of company innovation, distribution and production processes to help achieve its 2050 Sustainability Vision.