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.

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