One million Argentines make direct sales, and more than 25% work with Natura

During 2020, the direct or catalog sales business enrolled one million Argentines, 10 percent more than a year ago, according to data from the Argentine Chamber of Direct Sales (Cavedi).

In this huge universe of people, at least 25 percent sell Natura, the brand of personal care products of Brazilian origin.

This is deduced from the latest data provided by the firm: today its network of consultants includes 230,000 people who work under the "traditional" format (they offer products to their network of contacts through the digitized magazine ) and also 100,000 digital consultants (they sell to their clients through electronic commerce).

As only a part of these two universes –not specified by the firm- coincides, since there are “hybrid” consultancies that operate with both modalities; the total number of the network exceeds 230 thousand, and confirms Natura as the leading player in direct sales in the country. It is worth remembering that the Natura & Co also controls Avon since 2020, a fact that positions it first in that market.

The data on the network was presented to the media by company executives digitally. In this context, they highlighted that growth comes hand in hand with the increase in its sales force and the advancement of digitization. Upon entering the pandemic, Natura had 50,000 digital consultants: the jump was 100 percent so far.

“Today our sales model is 100 percent digitized and omnichannel. And e-commerce is and will be a central lever in our growth in the coming years”, insisted Satiago Del Guidice, E-commerce manager of Natura Argentina. According to him, the general increase in digital sales for Natura since the pandemic was 380 percent in Argentina; well above the 200 percent that climbed the “beauty” category on that channel.

Behind this boost are new consumer habits and also changes in new sellers, many of them (an average 30 percent) under 30 years of age and very familiar with the use of technology.

Commissions to the saleswomen

The model implemented by the company maintains that technology advances through different means and tools, but maintaining the role of the salespeople and the centrality of its social network of clients.

For example, e-commerce has a format that allows each consultant to activate their digital store. This space acts as the gateway for that consumer to the Natura site, which enables each operation to be billed and commissioned by the person who owns the store; although the entire management and shipping process is assumed by Natura. The seller can boost her store by sending the access link to her entire network of contacts or by promoting it on networks, for example.

Guidice explained that the profit percentage for those who sell only digitally is lower than that of the traditional business (15 percent of what is billed on the web), but for the "hybrid" consultancies, which operate this channel combined with the use of the magazine, the latter is offered to them: it consists of a gradual scheme of commissions ranging from 25 to 40 percent of the invoiced depending on the volume operated.

Plaza Córdoba

Although the company does not provide regional or billing numerical data, Juan Salgado, Natura's commercial manager, highlighted that Córdoba is in the top five largest plazas in the country, and is growing at a rate similar to that at which the business expands in the country.

Camila Bacigaluppi, Sales manager in the region, highlighted that the firm's proposal includes a growth path for those who join the network: categorization of vendors by levels, free training of different types and training.

“Direct selling is flexible and allows each person to decide how much time they want to dedicate to it and how much income they will try to generate. Today we have people who make a living from selling Nature, and others for whom it is a complement”, added Salgado.

Bacigaluppi highlighted the attributes that the company considers a differential in its proposal -and that explain part of its growth: products that respect sustainability and seek positive social impacts, 100 percent free of animal cruelty, vegetarian and 80 percent vegan . Since 2007 the company has been carbon neutral and was a pioneer in the use of refillable containers in cosmetics; among other practices.

Regarding the consumer, the directors of Natura pointed out that the categories that sell the most in Córdoba continue to be soaps and perfumes.