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commercial model

Evolution in direct selling In a project that will be extended in 2014, Natura seeks tools to complement the work done by NCs with a view to boosting sales and finding new ways of interacting with consumers

A major transformation is underway in Natura’s commercial processes. The goal is to extend the concept of direct selling to new platforms, enabling consumers to choose how and when to experience the brand and to acquire company products, as well as to leverage relationships – one of the Natura brand’s key attributes – through the intensive use of technology. The Natura Network is the first experience in this strategy, with each consultant having her own internet page through which she may relate to consumers and sell products. “We are connecting the offline and online worlds. We maintain the fundamental role the consultant plays in the sale, based on the relationship she establishes with her customers, while offering consumers yet another alternative”, explains João Paulo Ferreira, Natura’s Commercial vice president. In 2013, a pilot program was run in Campinas and then extended to São José dos Campos in a second phase. Both are large cities in São Paulo state. In 2014, work will begin on extending the initiative nationwide. The example of Rosi Da Dalto illustrates the new tool’s potential. A Natura representative for more than 20

years in the Campinas region, she increased her customer base and income by 50% using the internet to complement her work. “The other day I asked a friend of mine who had bought a product via my virtual space to publicize the novelty among her contacts. Soon after, a friend of hers became my customer”, says Rosi. In São José dos Campos, the trial evolved to attract new NCs, with no prior Natura consulting experience. This led to the incorporation of younger consultants more at home in the digital universe into the sales network. With this model, the consultant no longer has to worry about logistics and charging her customers; she is free to focus all her attention on the relationship and is thus able to serve a larger number of customers in her network. In addition to being able to place the order whenever they like via the internet, consumers can now choose to receive the product via direct delivery from the company’s distribution centers. Expanded since 2010 and equipped with high technology, the Natura logistics system is prepared to receive this new order flow and speed up delivery times for consumers.

Greater productivity In 2013, average NC productivity grew by 1.4% and by 6.2% in the last quar ter.This increase was driven by investments in information technology, by a series of actions to gradually increase the range of products consumers buy, by product and concept innovation, as well as changes in sales force incentives, among other initiatives. This effor t will be maintained in 2014, with the development of new cellular telephone applications to assist in business management and to map the practices used by the most productive consultants and disseminate them to the rest of the network, among other measures.

Two-day delivery More than 35% of the orders placed in Brazil are now delivered to the NC in up to 48 hours. The average delivery time has decreased from 5.1 to 4.5 days. This rate is the result of investments that have been undertaken since 2010. In 2013, the new Natura administrative and distribution center was inaugurated in the city of São Paulo. The high technology used in the distribution center enabled the company to pick a record 4.5 million items in a single day.

Order delivery in 48 hours (%)

15% 2011

27% 2012

35% 2013

Sandra Hidaka relationship manager Erica Santos de Moura Natura employee and consultant

Natura Report 2013  
Natura Report 2013