The transformation of nature in Peru to recover from the pandemic and give new impulse to direct sale

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“Somos otros pero con la misma esencia”, sostiene Eduardo Eiger, gerente general de Natura Perú, al referirse a los cambios que han impulsado en estos meses desde que se iniciara la pandemia y golpeara al sector de cosméticos y a la venta directa, el corazón de negocio de la compañía brasileña.

After the initial impact, Natura has managed to adapt the portfolio, recover - and increase - consultants, as well as bet on an omnichannel strategy, always hand in hand.Today it has 50 thousand purely digital consultants and, despite the context, it has won points of ‘Market Share’ on its way to the dream of leading the market.In this interview, Eiger details this process.

-What were the effects of pandemic for nature?The cosmetics and beauty sector has been one of the ones that felt the most impact, especially in the first months.

We certainly had a contraction in our activity due to the confinement and restrictions that there were, in addition to accelerating many transfers of our business model.But now, a year later, we are not only recovering consultants but increased by 7.2%.Somos an important alternative to generate income and we had a large highlight in online sale: now we have more than 50 thousand digital consultants.The direct sale was always a social network with their customers, now they [consultants] can transform those ability to generate their businesses through networks.Our model is now omnicanal but always with the consultant at the center to reach our final customer.They have their official online store, their digital magazine and we take care of the distribution to the final customer.

- ¿Cómo lograron tener esos resultados para recuperar a las consultoras?

In the second quarter we all had to reorganize ourselves, we provide care for consultants and all people in the Natura Network.The first was to sustain them financially, offering facilities with new tools and from there we were renewing our value proposition, establishing communities for greater closeness and care with the consultants to recommend how to take care of them, with training, which also generated us that we win record records recordsof loyalty to not only recover but add more people: young people and men too.In addition, we brought products for this first moment as soaps, gel alcohol, and well -being (daily care, facial creams, fragrances, freshness, natura ekos) because the main categories were among the most beaten as makeup with a 41%drop.But our care lines were enhanced.

- Did they have to innovate starting to produce alcohol in gel for this punctual need? What other releases designed at the juncture made and remained in the portfolio?

We already had the alcohol in Brazil since before the pandemic and we brought them.We are always seeing innovations, this year we will bring many releases, about 482 launches in 2021. We have innovation among all categories, for example in the capillary line with the light line, an important expansion with new fragrances in lines of care and the relaunch ofThe Ekos line, with a more powerful formula, when using it you will take care of the Amazon.The 2020 made us accelerate the objective that in each product we can continue supporting our causes.

- What is the profile of the consultants and consultants who have joined Natura in these months?

This situation [the pandemic] has accelerated many transformations and behaviors that had already been giving little by little.We had already launched an online sales model so that each consultant has its virtual store, we already had our applications and the strategy to concentrate the ‘social Selling’.We had already created digital advertising, but with the pandemic this was developed much more and today we have many consultants that seek us.We have the ability to support them.

- Is it still direct sale?

Yes, direct sale has the ability to add sources of income and provide development possibilities.We have a lot of responsibility to boost this path of prosperity and a space was opened to this safe, flexible and agile omnichannel growth with digitalization.Every month we add more than 3 thousand digital consultants, on average.Depending on who adds up to sale, they bring the level of connectivity of their contacts.But there has been a change in behavior of clients and consultants to experience more in digital.

- How do you handle the logistics process to deliver the products to the final customer?

The consultant relates to us through the digital media from her home or from her cell phone with the orders made by customers and nature is responsible for the delivery of the orders.We prepare them with all the protocols to offer the safe option and according to the profile of how the consultant chooses to deliver the products directly.Before the pandemia, Natura already had an important distribution network and with that same network we attend the omnichannel sale.We have only reinforced its architecture to cover orders.

- Last year they commented that they would open a new distribution center south of Lima.Have you also helped reinforce your logistics architecture?

Yes, we keep investments in the country strong, we have a fundamental role here.This new distribution center not only allowed more customers to have a sustainable architecture.

- How much have they invested for the distribution center?Do Natura investments in the country maintain?

I cannot comment on the investment, but the investment rate of 2020 continued on 2021, but we continue to invest in the business, especially if we talk about the value proposal.With belonging and being propositive to give more benefits.I think investment rhythm will continue.

- How do you see the Natura consumer in this new form of normality?

Consumers continue to have beauty rituals, which generate that care.I believe that they are more connected and have a greater awareness that what is better is life, with a new behavior prioritizing the sustainable and being more demanding with the products you choose.

- ¿Cuánto ha cambiado su poder adquisitivo? En más de un año desde que se inició la crisis sanitaria, muchos han tenido un fuerte impacto en sus ingresos.

There are people who have spent more time at home have changed their consumption and look for better products, also those who prioritize the most accessible products and those who see our products as a gift option.That is why we have lines for all types of people and needs.For example we have options from S/20 to S/180.There is amplitude in nature.

- ¿Cuánto ha avanzado la integración con Avon?, ¿se culminó el proceso?

Sin duda, la pandemia también aceleró la integración y nos ha ayudado en fortalecernos. Ahora es parte del grupo de Natura & Co, Aesop y The body shop, crecimos 24% en ventas. Todavía no termina la integración, pero sí se está dando. El proceso avanzó durante la pandemia.

- How did they close 2020 in Peru?

We finished the last quarter with a double digit growth in the country, at the level of Latin America it was 44%.The growth rate was positive for the impulse of the ‘social Selling’ and the improvement in sales and consultants during the last quarter.In Peru we grew 7% more consultants, today in total there are 100,000.

- What changes were in the market during the last year?In a COPEHOH report it is observed that, in the middle of the context, there were brands that managed to grow in ‘Market Share’.

We have the dream of being the best company for Peru, chasing the leadership of the market and in 2020 we could accelerate this dream because we managed to advance in our ‘Market Share’.Being a brand with purpose, transforming ourselves to impact people, we have had importance as a company in this context and we manage to grow.

- When do they estimate that they could achieve that dream of having leadership?

In several countries in the region we are already market leaders.It is a matter of seeing times for the feasibility of our dream.

- Se ha retrasado el plan de expandir su presencia en el ‘retail’?

We have accelerated the omnichannel strategy in a collaborative environment.I cannot say that the strategy for the ‘retail’ has been delayed, but the strategic definition of where to follow and today is the expansion plan that has been most transformed.It is part of our strategy to be in all channels.

- How has the inventory and calculation change to see what products should import during these months while changing the level of consumer purchase?

With the ability we have as a company, we have managed to sustain it stable and not let the situation impact the business.What was energized were the rapid changes of products that the consumer most demanded.The main challenge occurred in 2020, when we had to estimate the sales volume because consumption became as reliable as before and we had to ensure that the entire portfolio and consumption habits that were given were available.

- ¿Cuál es la proyección que tiene Natura para este año?

So far we are fulfilling our expectations.We continue to pursue the growth of the double digit by adding more consultants.We have had many learnings, now we are others but with the same essence and more prepared to sustain this moment.We see a great opportunity. At the level of the sector, we have some data from the Peruvian guild of cosmetics and hygiene (Copeco), where we see that direct sale is 38% of the market, which is one of the highest figures in the region.

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