Natura increases share in the domestic front
Valor Econômico
Cosmetics producer Natura, which shrank the expansion plans abroad, harvests two positive results in the domestic market. It managed to attract, until last week, more women to build up its sale force, beating the symbolic mark of 1 million of consultants, and increased its presence in the Brazilian households.
According to data of the Latin Panel, the company increased its penetration rate in nine points from June 2008 to June this year. This means its products are present in 50.4% of the Brazilian homes, told Valor Natura's Business vice-president José Vicente Marino. "This is the highest rate we have ever reached in this survey", said the executive. 8.2 thousand homes were surveyed, representing 81% of the population and 90% of the consumption potential of the country. "We grew in all social classes, but the highest growth rate was detected in the class C", said the vice-president of Natura, the biggest company of the cosmetics sector of the country which operates in the system of direct sale, without stores.
In his assessment, such greater presence at the consumer home is the result of a stronger sales force. "We have increased the number of consultants and the number of clients", said Marino. The plan to allocate 8 thousand consultants, as the company calls its sellers, and give them the mission of recruiting and training more women resulted in growth. Natura, he recalled, closed the second quarter with 938 thousand consultants. Last week, it reached 1 million, from which 851 thousand are in Brazil and 149 thousand are in the area called Latam (Latin-America). This region includes Argentina, Chile, Peru, Colombia and Mexico.
But it was the sales in the Brazilian market that brought good results from April to June this year. The consolidated net earnings amounted to little more than R$ 1 billion (US$ 581.4 million), with increase of 18.8% compared to the second quarter of 2008. The net profit increased 19.3% to R$ 168.3 million (US$ 97.8 million), in the same period.
The bet in the domestic market, which represented 93% of the sales of Natura from April to June, continues being strengthened by the strategy of developing regional products, like the Biografia Feminina cologne, which is also a deodorant. The 50 ml product has been recently launched in the Northeast for the consumer woman who could not pay for the 100 ml bottle. "That will continue", says Marino.