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The Internationalization Of Natura

Next step in the internationalization of Natura
• Natura was a well recognized personal and cosmetic brand
(native brand of Brazil)
• Have high brand loyalty and retention rate in cosmetic industry
• It is premium, high-margin sold to middle and upper class segment
• Internationalization in Latin America was not as successful as expected

Natura Operation and Philosophy
• Natura is driven under concept of well-being
• Promote the harmonious and pleasant relationship of individual with him/her body, with others and with nature
• Use direct sales force
• Company believe in its natural ingredients from Brazil biodiversity
• 177 million units sold in Brazil and abroad in 2004 (33.5% increased on 2003) and cumulative growth over previous 3 years was 117%

Cosmetics Market
• Cosmetic and personal care products industry has grown significantly since 1998 when a wave of acquisitions began leading to global organization.
• Ten largest companies controlled 54% of the market (Exhibit 1)
• The strategic priority for most players was to develop and promote global mega brands, ex. Olay of P&G and Nivea of Beiersdorf to expand market share through acquisition and joint venture. R&D is the key.
• Industry is divided based on sales channel and price which are 1) premium brand sold in dept.store and specialized boutiques; 2) the mass-market brands sold in drug stores and supermarkets; 3) the direct sales brands targeted the low-end, mass customer, sold door-to-door

The Premium Sector
• L’Oreal is the largest player
• All players focus on selling products that imply certain status and technological innovation.
• Focus on massive marketing investment and promotion to the niche.
• Distribute through outlets including perfumeries, dept.store, beauty store.

The Mass-market Sector
• With the rise of globalization, mass-retail market becomes the most important segment in the...