Growing in a competitive environment

This context reinforces our conviction that we have room and opportunities to expand our business in response to the challenge of winning in an ever more competitive market.

Alessandro Carlucci, executive president of Natura.

The cosmetics, personal hygiene and perfumery market grew 10% in 2013, according to Sipatesp (São Paulo Perfumery and Beauty Products Industry Association) and Abihpec (Brazilian Cosmetics, Fragrances and Toiletries Industry Association). Less sensitive to economic fluctuations, the sector is more associated with consumers’ disposable income, which continues to grow, but at a slower pace than in previous years.

With a more challenging environment in Brazil, Natura’s market share saw a retraction of 1.2 p.p. during the year. The loss in market share was concentrated in cosmetics and fragrances, while share in the personal hygiene market remained practically stable, driven mainly by the launch of the Sou sub-brand. In Latin America, the market continues to grow at rates above the global average.

The direct selling segment in Brazil is the fourth largest worldwide, accounting for 9% of global door-to-door sales volume. According to ABEVD, the Brazilian direct sales association, the model grew 7.2% in the year. In the other countries in which Natura operates in Latin America, the direct sales model is at different levels of maturity, with the company's NC network growing on average 24% per year since 2009.