Direct sale to mask the crisis

Direct sale to mask the crisis

Natura, the fourth cosmetic firm in the world

© Provided by Clarín
Natura, the fourth cosmetic firm in the world

Judging by its latest acquisitions, from The Body Shop to Avon, it could take a risk that Brazil’s Natura assumed a hegemonic role in the mass consumer cosmetics business. The Avon purchase was one of the largest transactions of 2019 as involve $ 3.7 billion.

Natura also has the control of Australian cosmetics manufacturer Aesop, with stores in Oceania, Asia, Europe and North America. Also The Body Shop. In this way, it became the fourth largest cosmetic firm in the world with a market value of $ 11 billion.

It is not a small thing for a company that made natural ingredients and the defense of the environment its leitmotif. It is defined as a company of principles and is very cCommitted to the proposals of the agreement on the Paris climate that the Brazilian Bolsonaro rejects.

His voice is heard in business forums in defense of the female empowerment in what is the vision of the so-called triple impact businesses, socially, economically and environmentally.

Natura breathes based on the direct sales system and exercises leadership in Argentina with 220,000 saleswomen about him record of a million people which joined direct sales this year in the country as a way to generate income in the face of the economic downturn. In the case of Natura, they grew by 70,000 people.

Verónica Marcelo is the brand new CEO of Natura in the country. She started as a salesperson 20 years ago. It is her turn to conduct and even tune that kind of orchestra in which women predominate.

With a degree in Tourism and Administration, she left her position as a salesperson when Natura summoned her for an executive position. He says direct selling often acknowledges efforts quietly. “It teaches us resilience, to accept many no to reach a yes“, loose. Of course, there are no miracles.

Legend has it that Natura was born in 1969, when Luiz Seabra opened a small store on Oscar Freire Street, in São Paulo. And throughout its 51 years it grew by acquisition. It is listed on Wall Street. They claim to serve more than 200 million consumers through 6.3 million consultants and resellers.

Lately it combines the retail format, with more than 3,000 stores on the planet along with direct sales. In Argentina it has just three locations, two in Martínez and another in Paseo Alcorta, “due to brand presence, which do not compete with our consultants,” according to Verónica Marcelo.

When Natura arrived in Argentina in 1994, they confused it with Natura oil. “We made a place for ourselves. A lot of work was done on the sales channel and we see that there is still a lot to grow. In direct sales, we are the same as Chile but we are barely 20% of countries like Colombia or Peru ”. the CEO lets go.

Argentina is the second most important country after Brazil. In 2016 it opened a modern distribution center in Garín. Logistics is key in the dynamics. In that center, robots assemble orders that can have between 15 and 20 different products for each consultant and order them to deliver in different parts of the country.

With the pandemic, they transformed manufacturing processes to produce gel alcohol, digitized the sales force at high speed so that operations from home could be carried out.

Here they produce the 50% of what they sell and from the Argentine plant they export to Chile, Colombia, Mexico and Brazil. This year the star product was hand cream. And, of course, the alcohol gel.

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