Analysis of Natura cosmetics in to french market

1. A Brazilian Cosmetic
Company
In French Market
Sanjay godabanahal prasannakumar

2. Company Overview:
 Established in 1969 as a small chemical laboratory in Brazil
and over the years as become a leading manufacturer of
cosmetics toiletries and a major player
 Founded by luiz seabra and became a public company in 2004
 Second largest Brazilian company by revenue
 Company has 16% market share in the Brazilian cosmetics
 market with annual revenue of 3 billion as of 2013
 Natura is a founding member of union of ethical bio trade
Sustainable development has been the company's guiding
principle since it was founded in 1969

3. Company Overview:
 In 1974, Natura adopted direct sales as a sales model
In 2012 it had more than 1.2 million consultants
 Natura is well known for its commitment to corporate social responsibility.
Pioneered the use of ingredients extracted or produced from local Brazilian
flora (oils, seeds, resins, and pulps)

4. Products or services provided:
Mother & Baby
Child
Skin treatment
Make-up
Perfumery
Hair
Health
Natura Ekos

5. International Activities:
Using the Natura Ekos Line concept,
seeks to spread its international operation
to the European market.
Natura Ekos line states as one of the main projects
to valorize Brazilian flora
 Natura is already present in Argentina, Chile, Peru
Mexico, later in France
The starting point for the European spread is France

6. Operating in French Market:
 France was chosen to be the starting point
for the European spread
 Natura perceives that the success in the French
market will lead the success European countries
The French operation will differ from the Brazilian one
by the setting of a physical store in a strategic place in Paris
 There will be no sales done by consultants

7. Constraints faced in French Market:
 To set a local team experienced in the cosmetic sector
 The cultural difference was a fact that was not took into
consideration.
 Such cultural difference had a minimum impact
when opening operations in Argentina, Chile, Peru have
more similar habits with Brazil

8. Adaptation to French Market:
The lack of knowledge of the French market
The main adaptation, is the creation of a physical store,
A different approach from the Brazilian operation.
Natura believed that the French market does
not fit sales via consultants
 Regarding the workforce, there are serious concerns
regarding labor’s right and the social security benefits

9. Conclusion:
Have people with experience in the French market
Know in advance the impact of the social benefits in the company
Develop a strong business plan, aligned with the French culture
and French market