Under new management, Natura tries to return to the origins

A month after an unexpected change of command, the order in Natura is back to basics. The manufacturer of cosmetics, which opened its first stores in 2016, now strives to show that the army of resellers, which accounts for the overwhelming majority of its sales, will not be left aside. The new President of the company, John Paul Ferreira, reinforced in Natura Day event that features their projects to investors, that the door-to-door sale will continue to be the center of the company''s strategy.
This arrest translates into numbers. In the first half, the total number of consultants of the company fell 3.4% over the same period last year. The company argues that the fall is small. However, his main rival in direct sales, Avon, announced the largest fund raising consultants of its history.
The American company has expanded its team of resellers in 220,000 people in September and October. In the third quarter, after several falls, Avon sales rose 14% from 2015-the revenues of the Natura in the country fell 7 percent on the same comparison.
Price. The retraction of all consultants and sales originate in another factor: the price of the products, which rose an average of 9% in the first half. As a result, Natura, that already practiced higher values than competitors such as the Apothecary and Avon, seen this difference increase, since the rivals held readjustments in 2016. It is expected to review prices and product mix, according to a source close to the company.
In front of the Natura Day last Thursday, Fernando, organization and name of confidence of shareholders, passed the message that the Group should focus on the resumption of consultants. The physical stores, who left the paper under the management of Roberto Lima, who got little more than two years in charge, will increase, but it''s not the main strategy. The total of Natura''s stores, in the meantime, comes down to five units in São Paulo and "other scores" will be opened in the next few years, according to the same source. Ever greater internationalization plan is not among the priorities.
Wanted by the report, Natura has confirmed that there is an intention to hold prices and focus on cheaper items. "We went through a time when consumers have stepped up the search for lower-priced products and, in this scenario, already set our promotions and product mix", reported the Press Office of the company.
For years considered a company focused on innovation, Natura now wants to be inserted in the digital world. The multi-channel strategy of the cosmetics company, which also includes the sale for e-commerce, aims to target the public by income range and age.
The target audience of the stores, which are approximately 40% of the portfolio sold on porta a porta and focuses on experimental items such as makeup and creams, are young people of classes A and B. The order is that the mass of consumers stay in the hands of the consultants. "In our strategic plan, this is the long-term horizon for Brazil and Latin America," says a source linked to Natura.
Climate. Despite the renewed discourse of Natura, the Analyst William Assis, Brazil Bank Plural, said, in a report, which does not see significant improvement for the company in 2017. "The recent results point to a long-term only recovery".
However, the air of change with the change of management, although it has not yet produced practical effects, it''s been the difference. "The team here got carried away because they know that someone inside was promoted."