Natura Cosmeticos Latin American cosmetics giant

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Natura Cosmeticos develops, produces, and sells cosmetics, fragrances, and hygiene products. Its direct sales model is based on a network of more than 1.4 million consultants.

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Natura Cosmeticos: Latin American cosmetics giant :

Natura Cosmeticos : Latin American cosmetics giant Introduction Natura Cosmeticos develops, produces, and sells cosmetics, fragrances, and hygiene products. Its direct sales model is based on a network of more than 1.4 million consultants. Natura is the leader in the CF&T market in Brazil, with a market share of 14.5% and high brand recognition. Currently, the company is emerging as a cosmetics giant in Latin America. Features and benefits * MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions. * Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends. Highlights In 2011, around 82.9% of Natura's sales force was located in Brazil, and 17.1% internationally, growing on average by a CAGR of 34.4% over 2006–11. Natura has been able to grow revenues in the 2006–11 period by 14.2%. In 2011, its brand penetration in Brazil reached 61.8%, meaning more than three fifths of households bought the company’s products. In 2012, Brazil is ranked 156th for the ease of paying taxes and 121st for the ease of starting a business. Only 1.1% of Brazilian GDP is spent on research and development, and the country ranks 58th in terms of innovation. The consumer fragrances and toiletries market in Brazil reached $43bn in 2011. The direct selling market is worth $12.3bn.

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OVERVIEW Catalyst ANALYSIS Largest Latin American cosmetics maker Natura Cosmeticos is the largest Latin American cosmetics maker, reaching 100 million consumers Strong presence in Brazil and Latin America Number of Natura’s international consultants is growing at 34.4% on average Natura experienced average revenue growth of 14.2% in 2005–11 Almost 62% of Brazilian households bought Natura products in 2011 Brazil’s most environmentally friendly business of 2011 Challenges and opportunities in the Brazilian market Brazil is ranked 156th for the ease of paying taxes and 121st for the ease of starting a business Only 1.1% of Brazilian GDP is spent on research and development, and the country ranks 58th in terms of innovation Most innovators in the Brazilian market are foreign companies The consumer fragrances and toiletries market in Brazil reached $43bn in 2011 Brazilian direct selling market is worth $12.3bn Natura’s share of the Brazilian CF&T market reached 14.5% in 2011 Green-focused point of differentiation Natura invested BRL350m to facilitate its sustainable growth strategy Sustainable entrepreneurship became a new priority for Natura Natura pioneered the use of the Environmental Table Investment in development of renewable raw materials and ban on genetically modified organisms About 64.8% of Natura’s revenues come from products introduced in the past two years Innovation incubator and strategic partnerships The Natura Management System is designed to meet specific demands from various locations Sales strategy shift: boosting Natura consultants’ productivity New delivery network can meet up to 93% of orders within 48 hours About 98% of Natura consultants placed orders online in 2011 Revista Natura has grown 30% in user numbers, reaching 300,000 unique users in 2011 Natura Campus recorded more than 4,400 hits in 2011, with more than 100 researchers newly enrolled Drop in market efficiency in 2011 caused by lower economic growth and implementation of changes

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CONCLUSIONS Resilient performance despite global economic turbulence Leadership in fast growing markets Focus on sustainability and innovation Remaining profitable in the face of increasing competition and lower economic growth Risk factors: limited diversification and weak market liberalization APPENDIX Definitions Sources Further reading Ask the analyst About MarketLine Disclaimer For more details on the product and ordering information please visit: http://www.aarkstore.com/reports/Natura-Cosmeticos-Latin-American-cosmetics-giant-135219.html More research report: http://www.aarkstore.com/publishers/MarketLine-118.html Contacts US: Aarkstore Enterprise customersupport@aarkstore.com Support: +91 92 72 852 585 / +91 80 80 852 585 Visit: http://www.aarkstore.com

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