New cycle of expansion
Natura is entering a new phase of business growth, further exploiting the potential of its relationship network and extending the reach of well being well with new product categories, brands and ways of relating to consumers
The strategy drafted in recent years to drive a new growth cycle is based on Natura's major asset: its relationship network. The company's ambition is to expand its reach, exploiting the potential of the relationship network built up over the years through the use of digital technologies and connectivity. The mainspring of this evolution will be promoting well being well through the expansion of the company's value propositions for consultants and consumers.
In the short term, this strategy is aimed at reinforcing the strengths of the current business. In Brazil, sales expansion will be driven by increased consultant productivity. Many initiatives already underway will support this objective, including the implantation of new relationship and segmentation tools, significant innovations driving the constant evolution of the commercial model, as well as higher service levels and reduced delivery times, resulting from recent investments in logistics infrastructure. In the International Operations, the focus will be on maintaining the accelerated growth rate through an expanded consultant network and brand building, with ever higher service and profitability levels.
Natura is planning to expand the spaces in which its network acts through the introduction of new product categories and new brands, as well as new forms of relationship with customers. “We are about to enter a new era, with innovative models and ways of doing business which will help the network to increase sales. All company investments over the last five years have been aimed at this”, says Alessandro Carlucci, president of Natura. An example is the Natura Network, which enables NCsto sell products through their internet pages and gives consumers the flexibility to access company products through different purchase models.
In 2013, Natura concluded an important cycle of preparation and investment in logistics infrastructure which resulted in an impressive improvement in service qualityfor NCsand the reduction of order delivery times from 5.1 to 4.5 days, with 35% of orders delivered in up to 48 hours. This effort includes the inauguration of a new administrative and distribution center in São Paulo (São Paulo), and the Ecoparque industrial complex in Benevides (Pará), opened in March 2014 – as well as increased production capacity at Cajamar (São Paulo). From 2014, investments will be concentrated more on information technology.
Based on the belief that the value and longevity of a company depend on its capacity to contribute to the development of society, Natura also reviewed the role sustainability plays as a business driver. “We have already done a great deal to ensure that company practices reflect the inspiration of working towards a better society and sustainable development, but there is still a lot for us to do”, explains Denise Alves, director of Sustainability. For this reason, Natura has developed a new Sustainability Vision for its businesses, defining where it wants to get to and which impacts it intends to generate over the coming decades.
Going beyond offsetting impacts
Natura’s Sustainability Vision expresses its desire to go beyond simply reducing or offsetting the effects of its activities and ensuring that the company generates a positive impact on society. This means actively promoting social, environmental and economic welfare, rather than just neutralizing the impacts caused by the business. "We believe that a company’s reason for being is to build a better planet and society", says Natura’s executive president Alessandro Carlucci.
The vision is based on internal analyses, the review of global trends in sustainability and numerous dialogs with Natura stakeholders over recent years. Organized in three pillars (Our Brands and Products, Our Network and Our Management and Organization), the vision sets forth guidelines for the construction of positive impacts in 2050. It also encompasses public ambitions for 2020, which will challenge the company and provide a roadmap for the journey (read more here). From the launch of this strategy in 2014, Natura will engage its relationship network in a process of ongoing, transparent dialog to drive constant improvement throughout the company, and to update its materiality matrix based on these strategic internal choices.