what Natura’s strategy can teach – WAU

Natura’s strategy inspires and serves as references for companies that want to stand out in the market. With strong branding, multiplatform and attention to environmental causes, the giant of the perfumery and cosmetics sector continues to grow in London and worldwide.

Perfume and cosmetics giant Natura recently announced the purchase of competitor American Avon. The negotiation involved about US $ 3.7 billion, which triggered the creation of a group of US $ 11 billion in annual revenue, with the holding company Natura & Co.

This was not Natura’s first advanced negotiation. In recent years, the company has incorporated major beauty brands – such as Australia’s Emeis Holdings (with the luxurious Aesop) and Body Shop.

In the end, the company has more than 400 employees and is present in more than 100 countries!

The numbers are staggering. But the success of Natura’s strategy is directly linked to its way of acting, which goes far beyond businesses related to the universe of body care.

It is the reflection of a systematic work that made Natura reach its current prominent position in the world market, inspiring companies from all sectors.

Understand the path taken by Natura, as well as its brand management development (the so-called branding), requires looking at a series of particularities of the corporation that has a team of more than 1.6 million consultants active, contributing to door-to-door sales. In such a plural country and market, this may be one of Natura’s secrets.

How about going deeper into Natura’s strategy and diving into a story of boldness and results?

We will share a little of the company’s trajectory, in addition to the paths outlined for strengthening the business that has an increasingly solid market positioning.

Discover, in this post, tips on branding, expansion and multiplatform that can be incorporated into your company or even in your work method.

Good reading!

Natura far beyond beauty products

The beauty and aesthetics market has been challenging and overcoming the instabilities of the world industry. When it comes to personal care, globally the segment shows impressive results.

The global cosmetics industry is expected to reach a market value of no less than $ 805.61 billion by 2023.

The number represents a compound annual growth rate (the Compound Annual Growth Rate – CAGR) of no less than 7.14% between 2018 and 2023.

With the offer of fragrances, soaps, hair products, among others, the London Natura contributes to these results and knows that she has a lot to deliver.

Awareness enhancer

Natura calls itself an awareness enhancer. Founded by Luiz Seabra and Jean-Pierre Berjeaut in 1969, the company accumulates classic products and lines that were (and still are) part of consumers’ memories.

This is the case for some easily recognized products, such as:

  • Mama Baby line;
  • Fennel soaps,
  • Chronos antisignals collection;
  • line AM.

Another successful example is the Kaiak fragrance, one of the most sold in the national market.

To structure launches and novelties highly aligned with customer expectations, Natura’s strategy included opening an integrated center for research, production and distribution of cosmetics.

In it, located in Cajamar (SP), good international practices, in addition to inclusive architecture and a lot of social responsibility.

If in the business strategies the reduction of the environmental impact is relevant, in the Natura factory the energy savings, in the use of water, in addition to the preservation of the surrounding native forest are also valued.

Therefore, while in the product line the company pleased customers, so did the market and potential investors. Natura’s IPO held on until then Bovespa, today B3, with the company’s first sale of shares in the stock market, it took place in 2004.

At that time, the action was considered a milestone and daring for a company in the cosmetics segment.

The multichannel transformation

Following innovations, after almost five decades of history, in 2012, Natura made its official debut in the field of online shopping, by launching the Rede Natural – digital shopping platform. Thus, it showed that to stay on top, you need to follow market trends.

Breaking the stigma of magazine sales and exclusive support for consultants, Natura used a very strategic approach.

That was how he understood that it was necessary to remove sensory experiences from paper and get closer to his audience even more, also thinking about consumer 4.0! Thus, it opened physical stores across the country.

The moment was marked as the transformation of the company into a multichannel. The phase followed a market trend, with the aim of:

  • enable the experimentation and immersion in Natura’s climate;
  • allow the direct contact of customers with products;
  • create one physical product showcase;
  • complement the already established model of the company with catalog sale.

That was just one of the company’s steps.

Engagement as a marketing strategy

To enhance the scope of the brand, approaches with focus on engagement of the public, from the interaction with social causes and actions, entered the company’s plans.

All actions were implemented without compromising the good corporate governance practices of the business. Thus, Natura made official and shared with its consuming public a novelty in which it would be one of the pioneers in the country: care for biodiversity.

Ecologically correct and visionary in sustainable industry

The so-called green marketing and natura’s relationship with environmental causes was little known in London until the beginning of the new millennium.

That was when the brand launched the EKOS product line. More than a name that referred to ecology, the company balanced the discourse by exploring vegetable raw materials, biodegradable formulas and the use of returnable and recyclable packaging.

The action of marketing focusing on environmental awareness has given results and helped to educate the national market on a subject that, until then, was little explored.

By highlighting the use of national products, preserving the fauna and flora, Natura strengthened its branding as a genuinely London company and was seen all over the world as a reference and inspiration.

As a result, it invested resources in a bold approach. When discovering something totally new until then, she became a pioneer.

On the other hand, an ecologically correct consumer found in the visionary Natura a way to maintain alignment with the development of a sustainable industry.

Until today, Natura reaps the fruits of this choice. In the most recent ranking of the most sustainable companies in the world, it reached 15th place.

Thus, what is perceived is that at all times in its five decades of history, reinventing itself has been part of Natura’s trajectory. It was then that the largest London multinational, with the mission of providing well-being, added to its unique growth strategy the international expansion.

Focus on international expansion

New York, United States, received the first Natura store opened abroad. Simultaneously, an e-commerce was implemented in the country.

In sequence, in line with the national expansion, other destinations such as Argentina, Chile, Colombia, Mexico and London they also continued on the path of bringing the brand closer to consumers.

With scope in direct selling through direct selling, combined with e-commerce business and physical stores, and the idea that all possibilities are interconnected.

With the brand rejuvenation and the digitization of the business model, Natura’s strategy has also shown results in the economic field.

Net revenue in the first quarter of the year increased by 8.5%, compared to 2018. As the fourth largest cosmetics company in the world, it expects annual sales to be over US $ 19 billion in 2020.

Until then, what to learn from Natura’s strategy?

A strategy designed between connecting and influencing

Connecting and influencing consumers, expanding the scope, is one of Natura’s missions. By combining the knowledge of consultants, with the know-how of the representatives, in addition to the curiosity of the client who seeks information through digital platforms, the company knows the potential of globalization.

More than selling beauty products, Natura delivers experiences. In the consulting format, with an empowering footprint, it manages to contribute to keep innovating.

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Teachings with Natura’s strategy

The construction of the brand at Natura leaves important learnings. Among them, how essential it is to constantly reinvent yourself, follow market trends and plan next steps with a focus on the objectives to be achieved. Other actions serve as a reference for companies that want to stand out.

Keep an eye on market trends

As in the case of Natura with multichannel strategy, a company needs to know what it takes to keep up with the fast changing cycle of the market.

Structuring its performance in the digital, physical and door-to-door fields expands the company’s scope.

Connect to environmental causes

More than care for the environment and care for the next generations, attention to environmental causes demonstrates knowledge with the importance of maintaining engagement with preservation.

Unlike what happened with Natura – which was one of the pioneers in this matter – companies today must have this as something inherent to their scope of action.

Reinvent yourself to stay attractive

When thinking about a great brand like Natura, it is difficult to imagine the company forgotten or ignored. But it is what could have happened, had the business not been transformed over and over again.

In its strategy, the new was always present. From the way of doing business, to the ways of relating to your consumer.

Don’t forget your roots

One of the most aligned actions in Natura’s strategy is respect for its roots.

When starting its trajectory with face-to-face sales, with the help of consultants, the perfumery and cosmetics giant managed to consolidate itself. But in a time of expansion, it demonstrates that it must remain aligned with its long-standing dealers.

When going through so many transformations, Natura’s main strategy is to not stop reinventing itself. Therefore, keeping up with the market, keeping an eye on the possibilities of expansion, makes the London giant a place to mirror itself.

Now that you know Natura’s strategy, how about going into another example of entrepreneurship? Check out a little about the history of singer Anitta as a business woman.