Natura Cultivates Regional Growth as Brazilian Market Slows

Natura

As Natura Cosméticos faces a stagnating economy and a growing field of competitors in the Brazilian market, the eco-friendly cosmetics and personal-care brand is targeting strategic growth across Latin America.

Despite the Brazilian government’s attempts to bolster the economy, consumer spending dipped from 1 percent in the first three quarters of 2012 to an average of 0.4 percent in the same period of 2013. The country saw inflation jump 5.8 percent in November, further diminishing the prospect of increased buying power among consumers.

In Brazil, Natura’s third-quarter sales grew just 5.5 percent in comparison to 40 percent in all other Latin American markets, which amounted to 15 percent of revenue. As it enters 2014, Natura is optimistic about the dynamic economies in the region. For example, estimates place Peru’s economy at 5.1 percent growth and Colombia’s at 4 percent for 2013, versus Brazil’s 2.5 percent increase.

According to CEO Alessandro Carlucci, Natura is looking to outpace the competition with innovative products across a wide price range, supported by faster delivery and an array of payment options. The company is also eyeing strategic acquisitions, such as the 65 percent stake it acquired this year in Australian company Aesop.

Read the full report from Bloomberg.

Advertisements

About Direct Selling News
Direct Selling News Magazine has been serving direct selling and network marketing executives since 2004. Each issue of Direct Selling News offers content on topics that shape the dynamics of our industry.

One Response to Natura Cultivates Regional Growth as Brazilian Market Slows

  1. Pingback: Natura Pursues Growth through Online Sales | Direct Selling News Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: