Photo: Inside Natura’s São Paulo, Brazil, retail store.
Consumer buying habits are prompting Natura Cosméticos to phase out its direct sales model in France.
The Brazilian cosmetics maker plans to wind down direct selling operations in the market by Dec. 31, a measure that will impact about 1,100 consultants. According to a statement from Natura’s Chief Financial and Investor Relations Officer, José Roberto Lettiere, the decision resulted from market analysis indicating that, on the whole, French consumers prefer to interact with beauty brands through other channels.
“Unlike Latin America where sales through relationships account for approximately 30 percent of the CFT [cosmetics, fragrances and toiletries] market, in France its participation is only 2 percent,” said Lettiere. “In Brazil and in Latin America, direct selling is and will continue to be the main channel for Natura.”
The company aims to strengthen its business in France, and in turn support its strategic objective of internationalization, or establishing Natura as an international brand. In developed markets, that strategy is focused on retail stores, e-commerce and “beauty specialists”—beauty industry professionals uniquely qualified to promote the brand’s core offerings. Currently, the company derives about 30 percent of consolidated sales from international markets.
