J.P. Ferreira: Determining how we complement each other in the eyes of consumers and their customers while protecting the identity and originality of each of those brands. Many of our associates don’t belong to any particular brand anymore – for example, some of our factory workers are producing products for all four brands, and our back-office functions … legal, finance, supply chain, HR, operating services for all of the companies. I think the pandemic helped quite a lot in terms of our culture. At the beginning of the pandemic, we pushed ourselves to go back to our roots and our purpose—that people come first. We didn’t know what would happen to the business.

We decided on three things. First, work to contain the compassion, and we did that by redirecting all of our production capacity to essential items for donations across Latin America. We’ve donated millions of units of those products. Second, protect our people—not only our own associates but moreover our huge network of consultants, 4.5 million in Latin America. We created emergency funds for them to support the most vulnerable with food, to provide telemedicine and, unfortunately, assistance for funeral services. Third, maintain the economy active because most of those consultants lost their jobs and didn’t have any other alternative to feed their families if not for their beauty consultant activity. So, we accelerated all of the digital features we’d been building for years and trained those consultants so they could continue to serve their clients remotely, which was a huge success. Because of that, during the pandemic, right after the arrival of Avon, everyone stopped asking “Where do you come from?” because the purpose was much higher than that. This is what connects all of us. We won’t lose the identity of the individual brands, but we come together to do good for society.

Q: Are there any plans to continue to build the Avon brand independent of the Natura &Co brand even though Natura &Co is now the parent company?

Angela Cretu: Natura &Co is a company for the world, but in terms of individual brand expression, we have the resources to express our uniqueness. Avon is all about women’s empowerment—our dignity, financial independence and equality. The identity of our brand will continue to evolve … the beauty of this group is its diversity. But we’ve created a stronger and more cohesive voice as Natura &Co.

Q: What have you learned during the last 16 months?

J.P. Ferreira: What I’ve learned is that people come first – that’s it. We have only Latin America, but we mapped the number [of COVID deaths] among our network of reps, and we’re counting 1,200 so far. If you look at the number of associates, it’s 20. We have some of the countries most affected by the pandemic here. So, what’s the sense of talking about this year’s sales or profit projections? We need to focus on people first and what we can do internally and externally to try and support and influence public policy as well. But let me tell you one thing I experienced through that period, and I hope it will be a unique experience in my professional life. Our business improved tremendously. Our brands in Latin America have been rewarded as the strongest brands for society, and our company has the best reputation among all sectors—over Amazon, Facebook, Google— we’re ahead of them. Consumers value the way we act. Consultant loyalty also is at its highest because consultants value and reward our loyalty. Similarly, our internal engagement surveys with our associates are well above internal benchmarks. So, in hindsight, it may sound obvious, but doing the right thing bears good results in the end for everyone because people are here for a higher purpose. In the toughest moment, we didn’t hesitate and forgot all of those short-term internal targets and did the most that we could for people, and that’s practical learning that I hope never to experience again.

Angela Cretu: People should always be the focus. That became obvious for everyone in this game. I hope that learning changes the way companies connect and nurture their own people. As a leader, I’ve learned that life is so dynamic—the market is changing at a fast pace, and as leaders, we should ask ourselves every morning, “Why would she choose me today?” I want to make sure I’m adding value to my own environment. It’s not an easy challenge, but it’s mine every day. I see my role as an enabler, not a dictator.

Q: How have the last 16 months changed Avon?

Angela Cretu: We were looking before to adapt our business model to meet trends in the marketplace, increase our omnichannel access and provide instant gratification. The pandemic completely changed the pace of that, but we still need to keep that high-touch relationship. We stepped up our digital tools so beauty advisors s felt comfortable nurturing their customer relationships as much as possible, even when they couldn’t leave their homes.

Initially, people were trying to process the pandemic and were paralyzed. By acknowledging all of those fears, we were able to find solutions. We engaged beauty advisors in the discussion so they felt included as partners, and they rose to the challenge more than I could have ever imagined. It was a great reminder of the power of direct selling to create relationships no matter the crisis. We’ve received feedback from thousands of women that they felt unbearable pressure to hold multiple roles without knowing what tomorrow held, and they felt alone and isolated. So, we launched a “global gallery” and asked them to share their stories of how they were overcoming adversity—juggling motherhood and career, surviving breast cancer, overcoming domestic violence—and we received over 450,000 responses. Women tell us that “Whenever I doubt myself, I go there and just read one story from Saudi, from Germany, from Australia,” and it’s amazing to see how women around the world are united. This is the uniqueness of our industry.

Q: How do you think Avon will continue to distinguish itself in the direct selling industry?

Angela Cretu: Online tools will always be part of the game, but one thing that won’t change and is more relevant than ever is our ability to offer so much more than products. We’ll continue offering tools so that our consultants can operate in an online environment, but what will distinguish Avon are the relationships that create value for the community, not just stakeholders. We can tap into those trusted, authentic relationships and continue to build on that legacy. And we need to remain humble and open to learning new ways to connect with beauty advisors and customers.

From the August 2021 issue of Direct Selling News magazine.

The post Q & A with J.P. Ferreira, President of Natura and CEO of Natura &Co in Latin America and Angela Cretu, Global CEO, Avon first appeared on Direct Selling News.

Founded:
Natura 1969 and Avon 1886

Headquarters:
São Paulo, Brazil

Top Executive:
João Paulo Ferreira, President of Natura and CEO of Natura &Co in Latin America
Angela Cretu, Global CEO, Avon

Products:
Cosmetics and Personal Care

Fifty-two years ago, Luiz Seabra was building the foundation of a direct selling company before he even realized it. He was working in a small cosmetics laboratory when he began to notice the false promises of eternal youth with which cosmetics were marketed. What if, he wondered, cosmetics could be used as a powerful instrument not for achieving aspiration, but rather embracing reality? What if cosmetics could enhance self-perception and confidence? Those experiences and revelations inspired Seabra to found his own cosmetics brand, Natura, in 1969 when he was just 27 years old.

His new company had a three-fold mission: first, offer skin care and body products made of natural and active ingredients; second, serve as trusted advisors to customers; and third, provide them with products specifically formulated for their unique needs. Seabra opened Natura’s first shop in São Paulo, Brazil, in 1970. He soon developed a reputation for highly personalized product recommendations and empathic customer relationships. That combination actually “shaped the ethos of Natura. Two passions—the cosmetics and the relationships—and the belief that this combination had the power to transform individuals,” says João Paulo Ferreira, President of Natura and CEO of Natura &Co in Latin America. “Those are the elements for anyone required to build empathy—for their families, loved ones, communities, society, and the world … and that’s what ended up being called ‘bem estar bem,’ or well-being/being well—an empathetic relationship with oneself, with others and with nature, which is the purpose of Natura.”

Seabra joined forces a few years later with a partner whose background in direct selling proved beneficial. The pair sought to replicate the Natura experience and determined that the most effective way to do that was through independent representatives.

Four brands, united by purpose

Today, what began as Natura is a connected network called Natura &Co and comprised of four brands­— Natura, Aesop, The Body Shop and, most recently, Avon. The Avon acquisition, announced Jan. 6, 2020, created the world’s fourth-largest “pure-play” beauty company; the term pure play is one referenced by investors to describe a publicly-traded firm that focuses its resources on a single business line.

Roberto Marques serves as Group CEO of Natura &Co and heads a Group Operating Committee comprised of the CEOs of each of the four businesses.

Collectively, these four autonomous yet interconnected brands have a presence in more than 110 countries and represent more than 8 million independent consultants and representatives, more than 35,000 associates (employees), and over 3,700 stores and franchises. Latin America is the only region in which all four brands operate in an integrated way. Ferreira, as Natura’s president, serves as CEO of Natura &Co in Latin America and is responsible for all four brands’ operations in the region.

Founded in 1969 by Luiz Seabra in São Paulo, Brazil, Natura’s body care, skin care, hair care and fragrance products currently are present in 10 countries through a network of 2.1-million independent representatives, almost 600 company-owned and franchised stores and a growing online platform. In 2014 Natura became the first publicly traded company to be certified as a B Corp. Carbon neutral since 2007, Natura received the UN Global Climate Action Award in 2019.

Founded in 1987 by hairdresser Dennis Paphitis in Melbourne, Australia; acquired by Natura &Co in 2013. Aesop manufactures and sells skin, hair and body care products at storefronts throughout the world. The company remains headquartered in Melbourne and is led by CEO Michael O’Keefe.

Founded in 1976 by Anita Roddick in Brighton, England, The Body Shop operates around 2,800 retail locations in 70 countries and was acquired by Natura &Co in 2017. Its naturally inspired skin care, body care, hair care and color cosmetics also are sold through The Body Shop At Home, its network of independent distributors established in 1994 by Roddick. The Body Shop maintains a strong commitment to social activism, particularly around animal testing and environmental sustainability. David Boynton serves as CEO.

Founded in 1886 and considered one of the most democratic beauty brands in the world, Avon connects people in more than 70 countries through its network of 6.3 million independent representatives, called beauty advisors. With the exception of its operations in the United States and Japan, Avon was acquired by Natura &Co in 2020. Avon has donated more than $1.1 billion to eradicating gender-based violence and breast cancer. Angela Cretu serves as CEO of Avon International, is responsible for the business outside of Latin America and the oversight of the Avon brand globally.

What they share: Values—namely, a shared commitment to sustainability, animal welfare, human rights, and product integrity. While each brand has the resources to operate independently, “the whole is greater than the sum of the parts,” Ferreira says. The depth and breadth of this alliance enables Natura &Co to enact more impactful economic, social and political change.

To date, Natura, Aesop and The Body Shop all have individually earned B Corp certification, and Avon is expected to earn the designation within the next two to three years. Natura was, in fact, the first publicly traded company to be certified a B Corp. As of this year, the Natura &Co Group has its own certification, making it the largest B Corp in the world today. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose. Members demonstrate commitment and work to reduce inequality and poverty, promote a healthier environment, stronger communities and the creation of more high-quality jobs with dignity and purpose. In short, the designation represents a promise to generate value not just for stakeholders but for the society at large. During the pandemic, Natura &Co brands made R$121 million in donations divided among frontline domestic abuse services (on behalf of the Avon Foundation), essential products for NGOs, Red Cross and health organizations (Natura &Co Latin America), essential products in Australia (through Aesop and the Aesop Foundation 2020 Support Fund), and essential products for healthcare staff in emergency hospitals (on behalf of The Body Shop).

CEO of Natura since 2016, when the company only had Natura and Aesop under its umbrella, Ferreira led the charge to refresh Natura’s direct selling model when he first came into the role. “We learned that we had failed to modernize our operations model and the offering for our Beauty Consultants to make the activity more attractive, more fulfilling, so that they would make better profits, and so on. So, we redesigned our offering completely, moving from a one-size-fits-all to a segmented approach for the consultants, also offering progression into our commercial model, strengthening and modernizing our brand and the products we were offering consumers.” Additionally, Ferreira says, the company embraced digitalization as much as possible in an effort to “reduce the barriers in the transaction between consultants and ourselves and consultants and their clients and improve the quality of the offerings so they could have more information in their hands when doing business. And we succeeded in doing so. That’s what allowed us to invite other companies in such as The Body Shop and Avon.”

The Avon Acquisition

While it was then the world’s fifth-largest beauty company, generating $5.5 billion globally in 2018 through its network of more than 6 million independent beauty advisors, Avon had struggled to keep up with the ongoing evolution of consumer buying preferences and, subsequently, saw declining market share and revenues. However, the global brand had made an indelible impact on the lives of millions of women not only through its products and business opportunity but also its philanthropic commitments in excess of $1 billion. For Natura &Co, Avon was a natural fit.

“They basically invented our industry, didn’t they?” Ferreira says of Avon. “That legacy deserves respect, and we admired that a lot. We thought that our own experience could help its renaissance. How could such a well-known brand present in so many households for so long not do well? We understood that our own experience modernizing and upgrading our value proposition for clients and consultants would add a lot of value to Avon … modernizing the brand, strengthening it and adding digital tools to those relationships. Many Avon products are amazingly good, extremely high value for money, and yet people don’t know because we stopped telling those stories. We thought we could add value to Avon based on our own history and, of course, not only learn from them but achieve global scale through their enormous network.” In the short term, he says, Natura &Co is focused on resuming growth for Avon; and in the longer term, Avon will follow Natura’s steps to modernize the commercial offering for representatives, invest in the brand to make it younger and more modern, and build more robust digital solutions.

Angela Cretu, Global CEO of Avon, says the alliance couldn’t be better for the brand. “What excites me most is that this group has the ambition to be the best beauty company for the world,” she says. The primary focus of this purpose-driven organization, she adds, is “how to give more than we take. It was a very different experience to co-create with competitors in the past. This is a refreshing and empowering approach. We’re creating synergies while keeping our distinctive value proposition.” For example, “we can use each other’s geographic footprint to bring in other brands and gain faster access into new markets.” Each of the four brands under the Natura &Co umbrella, she adds, “cover specific customer preferences and, ultimately, can give the overall beauty industry and consumers more choice.”

Avon’s digitalization was already well underway when the global COVID-19 pandemic began. As stay-at-home orders became widespread, the company accelerated its timeline and quickly facilitated the expansion of digital tools to meet beauty advisors and consumers where they were and support online sales. Those efforts paid off; Avon International had a net revenue increase of 2.9 percent compared with 2019, and the four brands within Natura &Co achieved their highest market share ever in Latin America last year, “proving that this combination is very powerful,” Ferreira says. Avon’s integration, one of the group’s six priorities to boost value creation, represents a key component of the group’s growth projections. The group’s other five priorities are the acceleration of its omnichannel model and ongoing digitalization; creation of a unique beauty portfolio; expansion of its geographic footprint, especially in Asia; evolution of its business operating model; and its continued drive to create positive impact through its Commitment to Life. Natura &Co’s objective is for those six priorities to lead the company to high single-digit growth for the next couple of years.

Commitment to Life for 2030

Last year, Natura &Co unveiled its Commitment to Life, a comprehensive 10-year sustainability plan which will step up the group’s actions to tackle some of the world’s most pressing issues, including the climate crisis and protecting the Amazon, the defense of human rights and ensuring equality and inclusion throughout its network, and embracing “circularity and regeneration,” or increased sustainability in packaging and formulas and greater investment in developing solutions like biotechnology and regenerative agriculture. Natura has a 20-year history of building sustainable economic alternatives in the Amazon and currently preserves two million hectares of land, an area equivalent to half of the Netherlands. The company works with 34 local communities in the Amazon region, including more than 7,300 families, to help them develop sustainable business models that benefit the rainforest. It plans to expand its reach to 40 supplier communities and increase revenue streams with the use of 55 bio-ingredients, up from 39, a move which is expected to share at least R$60 (Brazilian Real) million with local Amazon communities. The Commitment to Life, Cretu says, represents a promise from shareholders not just to embrace a culture of sustainability and inclusiveness but to “step up and create a wave of change in society.” 

With J.P. Ferreira, President of Natura and CEO of Natura &Co in Latin America and Angela Cretu, Global CEO, Avon

Q: What are the challenges associated with running such a large entity with four companies under its umbrella?

J.P. Ferreira: Determining how we complement each other in the eyes of consumers and their customers while protecting the identity and originality of each of those brands. Many of our associates don’t belong to any particular brand anymore – for example, some of our factory workers are producing products for all four brands, and our back-office functions … legal, finance, supply chain, HR, operating services for all of the companies. I think the pandemic helped quite a lot in terms of our culture. At the beginning of the pandemic, we pushed ourselves to go back to our roots and our purpose—that people come first. We didn’t know what would happen to the business.

We decided on three things. First, work to contain the compassion, and we did that by redirecting all of our production capacity to essential items for donations across Latin America. We’ve donated millions of units of those products. Second, protect our people—not only our own associates but moreover our huge network of consultants, 4.5 million in Latin America. We created emergency funds for them to support the most vulnerable with food, to provide telemedicine and, unfortunately, assistance for funeral services. Third, maintain the economy active because most of those consultants lost their jobs and didn’t have any other alternative to feed their families if not for their beauty consultant activity. So, we accelerated all of the digital features we’d been building for years and trained those consultants so they could continue to serve their clients remotely, which was a huge success. Because of that, during the pandemic, right after the arrival of Avon, everyone stopped asking “Where do you come from?” because the purpose was much higher than that. This is what connects all of us. We won’t lose the identity of the individual brands, but we come together to do good for society.

Q: Are there any plans to continue to build the Avon brand independent of the Natura &Co brand even though Natura &Co is now the parent company?

Angela Cretu: Natura &Co is a company for the world, but in terms of individual brand expression, we have the resources to express our uniqueness. Avon is all about women’s empowerment—our dignity, financial independence and equality. The identity of our brand will continue to evolve … the beauty of this group is its diversity. But we’ve created a stronger and more cohesive voice as Natura &Co.

Q: What have you learned during the last 16 months?

J.P. Ferreira: What I’ve learned is that people come first – that’s it. We have only Latin America, but we mapped the number [of COVID deaths] among our network of reps, and we’re counting 1,200 so far. If you look at the number of associates, it’s 20. We have some of the countries most affected by the pandemic here. So, what’s the sense of talking about this year’s sales or profit projections? We need to focus on people first and what we can do internally and externally to try and support and influence public policy as well. But let me tell you one thing I experienced through that period, and I hope it will be a unique experience in my professional life. Our business improved tremendously. Our brands in Latin America have been rewarded as the strongest brands for society, and our company has the best reputation among all sectors—over Amazon, Facebook, Google— we’re ahead of them. Consumers value the way we act. Consultant loyalty also is at its highest because consultants value and reward our loyalty. Similarly, our internal engagement surveys with our associates are well above internal benchmarks. So, in hindsight, it may sound obvious, but doing the right thing bears good results in the end for everyone because people are here for a higher purpose. In the toughest moment, we didn’t hesitate and forgot all of those short-term internal targets and did the most that we could for people, and that’s practical learning that I hope never to experience again.

Angela Cretu: People should always be the focus. That became obvious for everyone in this game. I hope that learning changes the way companies connect and nurture their own people. As a leader, I’ve learned that life is so dynamic—the market is changing at a fast pace, and as leaders, we should ask ourselves every morning, “Why would she choose me today?” I want to make sure I’m adding value to my own environment. It’s not an easy challenge, but it’s mine every day. I see my role as an enabler, not a dictator.

Q: How have the last 16 months changed Avon?

Angela Cretu: We were looking before to adapt our business model to meet trends in the marketplace, increase our omnichannel access and provide instant gratification. The pandemic completely changed the pace of that, but we still need to keep that high-touch relationship. We stepped up our digital tools so beauty advisors s felt comfortable nurturing their customer relationships as much as possible, even when they couldn’t leave their homes.

Initially, people were trying to process the pandemic and were paralyzed. By acknowledging all of those fears, we were able to find solutions. We engaged beauty advisors in the discussion so they felt included as partners, and they rose to the challenge more than I could have ever imagined. It was a great reminder of the power of direct selling to create relationships no matter the crisis. We’ve received feedback from thousands of women that they felt unbearable pressure to hold multiple roles without knowing what tomorrow held, and they felt alone and isolated. So, we launched a “global gallery” and asked them to share their stories of how they were overcoming adversity—juggling motherhood and career, surviving breast cancer, overcoming domestic violence—and we received over 450,000 responses. Women tell us that “Whenever I doubt myself, I go there and just read one story from Saudi, from Germany, from Australia,” and it’s amazing to see how women around the world are united. This is the uniqueness of our industry.

Q: How do you think Avon will continue to distinguish itself in the direct selling industry?

Angela Cretu: Online tools will always be part of the game, but one thing that won’t change and is more relevant than ever is our ability to offer so much more than products. We’ll continue offering tools so that our consultants can operate in an online environment, but what will distinguish Avon are the relationships that create value for the community, not just stakeholders. We can tap into those trusted, authentic relationships and continue to build on that legacy. And we need to remain humble and open to learning new ways to connect with beauty advisors and customers.

From the August 2021 issue of Direct Selling News magazine.

The post Natura &Co / Avon: Strength in Numbers first appeared on Direct Selling News.

The only Brazilian organization on the list of 132 companies from 21 countries, Natura is featured for the tenth time in the Health & Beauty category.

“Our vision of ethics goes beyond compliance with norms and legislation. It is a responsibility that permeates all levels of the company and our relations with different audiences,” said João Paulo Ferreira, CEO of Natura &Co Latin America. “After ten years of recognition, we reaffirm our commitment to best governance practices and integrity in our actions, agendas inherent to sustainable development.”

The classification of the most ethical companies in the world is based on the Ethisphere Institute’s Ethics Quotient (EQ) structure, a quantitative methodology for measuring a company’s performance in an objective, standardized way. The evaluation process with more than 200 questions serves as an operational structure for capturing and codifying organizations’ leadership practices in all sectors worldwide. Inclusion in the list depends on the score achieved in five main categories: ethics and compliance program, an ethics culture, citizenship and corporate responsibility, governance and leadership and reputation.

“I would like to congratulate everyone at Natura for achieving this recognition,” said Ethisphere Executive Director Timothy Erblich. “It is time to recognize that the organizations which adopt a long-term vision, with a purpose-driven strategy, not only exceed expectations, but also last longer.”

The post Natura Named One of Most Ethical Companies in World first appeared on Direct Selling News.

The only Brazilian organization on the list of 132 companies from 21 countries, Natura is featured for the tenth time in the Health & Beauty category.

“Our vision of ethics goes beyond compliance with norms and legislation. It is a responsibility that permeates all levels of the company and our relations with different audiences,” said João Paulo Ferreira, CEO of Natura &Co Latin America. “After ten years of recognition, we reaffirm our commitment to best governance practices and integrity in our actions, agendas inherent to sustainable development.”

The classification of the most ethical companies in the world is based on the Ethisphere Institute’s Ethics Quotient (EQ) structure, a quantitative methodology for measuring a company’s performance in an objective, standardized way. The evaluation process with more than 200 questions serves as an operational structure for capturing and codifying organizations’ leadership practices in all sectors worldwide. Inclusion in the list depends on the score achieved in five main categories: ethics and compliance program, an ethics culture, citizenship and corporate responsibility, governance and leadership and reputation.

“I would like to congratulate everyone at Natura for achieving this recognition,” said Ethisphere Executive Director Timothy Erblich. “It is time to recognize that the organizations which adopt a long-term vision, with a purpose-driven strategy, not only exceed expectations, but also last longer.”

The post Natura Named One of Most Ethical Companies in World first appeared on Direct Selling News.

The landmark transaction creates the world’s fourth-largest pure-play beauty company. According to the company press release:

• This marks a major new step in building a purpose-driven group committed to a different way of doing business. Natura &Co, which trades on the B3 stock exchange in Sao Paulo, also expects to begin trading through ADRs on the NYSE (NTCO) on January 6.
• The combination of Avon, Natura, The Body Shop and Aesop significantly amplifies the reach of a multi-channel, multi-brand group that will be an unparalleled leader in the direct-to-consumer space, bringing beauty to over 200 million consumers across the world anytime, anywhere, every day through multiple channels, touchpoints and iconic brands.
• Natura &Co will hold leading positions in relationship selling, on and offline, through both Avon and Natura, with over 6.3 million Consultants and Representatives.
• The group will also have a strong position in retail with more than 3,000 stores and an expanded digital presence across all the companies.
• Natura &Co will have combined annual gross revenues of over US$10 billion, more than 40,000 associates, a broad and complementary product portfolio across key categories and a global footprint in over 100 countries.

“Natura has just finished celebrating its 50^th anniversary, and there could be no better way to open this next chapter in our history than to welcome Avon into our family,” said Luiz Seabra, co-founder of Natura. “We are united by a shared vision and a passion for beauty and relationships, and together, we will be an even stronger force for good, striving to build a fairer and more beautiful world.”

Natura &Co also announced the appointment of organizational structure and management team, subject to applicable corporate approvals:

Roberto Marques, who became executive chairman of the Board of Directors of Natura &Co in 2017, will also serve as group chief executive officer. Marques joined Natura Board of Directors about four years ago. During this period, he championed the global, multi-channel, multi-brand approach, leading the acquisition of The Body Shop in 2017 and now the combination with Avon. He has extensive global experience and a strong transformation track record in the consumer goods industry, having held, prior to Natura &Co, various senior leadership roles at Johnson & Johnson and Mondelez International for over 30 years.

Marques will continue to head a diverse and experienced Group Operating Committee (GOC), which includes the CEOs of each of the four businesses and brands as well as key functional positions. The four business units have been organized based on the Group’s strategic priorities at this stage:

• Natura &Co Latin America, encompassing responsibility for the P&Ls of Natura, Avon, The Body Shop in the region and Aesop in Brazil. This role will also have responsibility for the innovation and stewardship globally of the Natura brand
• Avon (excluding Latin America), responsible for the P&L of all the market clusters in Europe, Africa, Middle East and Asia. This role will also be responsible for the Avon brand innovation and stewardship globally. Additionally, in the future, it will have responsibility for the Natura brand’s international expansion outside of Latin America
• The Body Shop
• Aesop

Joao Paulo Ferreira is assuming the role of CEO Latin America of Natura &Co. The new organization in Latin America will allow the group’s four brands to maximize their potential, capture significant synergies and accelerate growth across their footprint and multi-channel presence. Ferreira successfully led Natura’s revitalization of its direct selling model since becoming CEO in October 2016, energizing the new commercial model and digitalization. He had previously been vice-president of Operations and Logistics and vice-president of Commercial at Natura after a long career at Unilever.

Angela Cretu is appointed CEO of Avon, responsible for the business outside of Latin America and for the oversight of the Avon brand globally. A native of Romania, Cretu has over 20 years of experience at Avon in various senior executive roles, most recently as group vice president and general manager, Central Europe, responsible for 18 countries. Before that she successfully led the Eastern Europe and Africa/Middle East clusters and Global roles. She has a passion for Avon, its employees, Representatives and customers. On top of her recognized management skills, international perspective and industry experience, she has been deeply involved in Avon’s drive for women’s economic empowerment, all of which will be major assets to take Avon and Natura forward.

Jan Zijderveld, Avon’s chief executive officer, will step down following the completion of the deal.

David Boynton will remain CEO of The Body Shop, continuing driving the transformation and brand revitalization which is underway and already yielding positive results. He was formerly CEO of Charles Tyrwhitt and CEO for Western Markets for L’Occitane. 

Michael O’Keeffe, CEO of Aesop since 2003, also remains in his current position, driving the high growth of this unique and prestigious brand and, with the support of the rest of the group, transforming it into a true triple bottom line business.

Roberto Marques, executive chairman of the Board of Directors and Group CEO of Natura &Co, commented: “Alongside the experienced, diverse and international senior management team we are announcing today, I am proud and privileged to lead Natura &Co’s next steps in its journey. Our aspiration is to build not just the best beauty company in the world, but the best beauty company FOR the world. With the addition of Avon, we have created a family of companies with unrivaled direct-to-consumer reach and a formidable platform for growth. I am looking forward to working together to drive further our triple bottom line approach and write the next chapter in our journey.”

The post Natura &Co Announces New Leadership Team as Avon Products Inc. Acquisition Closes Avon CEO Jan Zijderveld to Step Down first appeared on Direct Selling News.

The initiative, part of the company’s revitalization plan and the digitalization of its business model, will contribute towards “bankarization” as well as the increase in productivity and income for its Beauty Consultants, expanding sales and consolidating loyalty by allowing them to offer a better customer experience.

The fully digital account has an embedded interface with both the website and the Natura Consultant App, allowing access to banking services such as the Natura card, withdrawals, deposits and transfers, as well as a POS (point of sale) machine for credit and debit card payments offering exclusive conditions. The proceeds from sales (made via the webpage, the Rede Natura or the card terminal) will be paid directly into the account. The balance can be used to make purchases with the Natura card, to pay bills and to make transfers.

Beauty Consultants will also be able to access microcredit directly through the App, to be used solely for the purchase of Natura products. The new service also aims to offer credit to Beauty Consultants so that they can invest in the expansion and professionalization of their activity.

“This is yet another initiative to empower our Beauty Consultants, enabling them to offer better customer experience” said João Paulo Ferreira, Natura’s CEO. “Moreover, we are contributing to their “bankarization” and social inclusion. Our goal is to enable the Consultant to earn more, which in turn will increase our revenues. By enabling them to conduct more business transactions, it is a win-win situation for all. It is also another step towards further cementing their loyalty. New services like this pave the way for an ongoing increase in Consultant productivity.”

“Providing support for Natura Beauty Consultants means providing support for enterprise and financial inclusion, both fundamental needs in Brazil, where the most urgent challenge is to generate employment and income,” saids Sérgio Rial, president of Santander Brasil. “This partnership was only possible because we are a bank that has an integrated vision of the value chain. We are able to offer solutions both for large companies and for their suppliers, employees and partners.”

To develop the project for Natura, Santander integrated customized solutions offered by three of the group’s units: Superdigital, a digital payment account whose interface will be incorporated into the website used by the Beauty Consultants; SuperGet, a portable Getnet payment terminal, offering the best rates in the market; and Prospera Santander Microcrédito, the biggest and most efficient private guided production microcredit program in the country. The process will be 100 percent digital, and Beauty Consultants will not need a guarantor or support group.

Since 2016, Natura has been conducting a study to measure its Beauty Consultants’ Human Development Index (HDI). The study identified a high need for financial education. To address this, the Natura Account card will be pay-as-you-go; that is, the Beauty Consultant can only make purchases when there is a positive balance in the account. Natura will also be offering Beauty Consultants training in finance via WhatsApp.

The Natura Account initiative will be available to the network of 1.1 million Beauty Consultants in Brazil in the first half of 2019.

The post Natura, Santander Join Forces to Offer Exclusive Banking Services first appeared on Direct Selling News.

DSN: Tell us about your transition into the role of CEO. What do you want to continue? What do you want to change?

JF: I greatly admire the work that Alessandro Carlucci and Roberto Lima did at Natura, and I’m very fortunate to have succeeded them at a moment of great evolution in our business model. With the acquisition of The Body Shop, Natura is accelerating its strategy of expanding its international footprint and building a purpose-driven, multibrand, multichannel cosmetics group.

Notwithstanding this transformation, one thing remains unaltered: the central role of the Natura consultants, our sales representatives, in our every decision. Actually, we have strengthened our commitment to our consultants with a new value proposition, which will enable us to achieve better results in our main market, Brazil.

We are focusing on the revitalization of our direct sales efforts, the development of innovative product proposals with surprising technology and performance, portfolio rationalization and the development of new channels.

For sure, we have extremely challenging goals ahead of us, but it is very reassuring to work alongside a team as competent as the one we have today. In recent years, we have formed a very well prepared Executive Committee, with committed professionals and complementary talents.

DSN: How did you get into direct sales and what is your history with Natura?

JF: I came to Natura seven years ago as Vice President of Logistics and Operations, then I held the position of Commercial Vice President. These are very sensitive areas for the business, and they were essential in converting me into an advocate of direct sales. But there is no better way to understand the needs and the beauty of the business than maintaining direct contact with our consultants. I’ve learned a lot from them.

In these years I have also experienced very positive changes in my personal life, and I believe that I have become a better person since I started at Natura. Being at the forefront of a business that transforms the lives of so many people provides a tremendous sense of self-realization.

DSN: Natura has established retail shops and diversified its business, having purchased Australia-based Aesop and U.K.-based The Body Shop in recent years. What is your involvement in this business strategy? Please explain the new business model for direct selling.

JF: Natura has made decisive steps toward internationalization in recent years, with the growth of our Latin American operations and the acquisition of Aesop in 2013. It was a natural course to seek opportunities beyond Latin America. Since 2016, we’ve also been broadening our retail network as part of the effort to build a global, omni-channel approach in natural beauty. For these reasons, the strategic rationale behind the acquisition was so compelling.

The direct sales business, modernized by digital technology and offering higher-value opportunities for our sales representatives, is and will continue to be Natura’s main sales channel in Brazil and Latin America, with potential for expansion to other geographies. The Body Shop adds other significant channels to our structure, in line with our strategic aim. We believe that channel diversification promotes multiple purchase and experience opportunities with our brands.

DSN: With Brazil currently having an unpredictable economy, how has Natura navigated doing business in the country?

JF: Despite the crisis, we are experiencing a period of enthusiasm, a new cycle of expansion in Natura’s history, the revitalization of relationship selling and the acquisition of The Body Shop.

Of course, we are facing a very difficult situation in Brazil, but we can see our efforts beginning to stabilize the business. We have carried out a series of actions that will enable the recovery of our performance in the country. Among them, as I mentioned before, are the evolution in direct sales, the advance in the digitalization of our operations, the diversification of channels, especially in retail, and the growth of international operations.

The acquisition of The Body Shop expands Natura’s footprint and decreases Brazil’s participation in our revenue. Brazil’s share in our net sales will decrease from 68 percent to 47 percent after the acquisition of TBS.

DSN: Where do you see growth opportunities as you look out three to five years into Natura’s future?

JF: In the short term, we will be closely focused on executing the plan to revitalize direct sales in Brazil, with a different value proposition for our consultants. The rapid digitalization of our business is also strategic, with several different platforms for both consumers and consultants.
In the medium term, we see huge opportunities to accelerate international growth with the expansion of direct sales to other promising emerging markets in Asia and Africa, for example.

DSN: Natura has stood out in the global corporate world for its sustainability efforts and is considered a world leader in clean capitalism. How do you see innovating in an area in which your company is already exceptional?

JF: We have set ourselves the challenge of having a positive financial, social, cultural and environmental impact. These goals were consolidated in our 2050 Sustainability Vision, published in 2014. To accomplish these goals, we must be constantly innovating in our processes and products, and in the way we relate to customers, suppliers, consultants and the environment.

Our product development efforts combine sustainable design with traditional and scientific knowledge, using an open innovation model that involves a network of national and global partners. We work together with our suppliers to reduce the impact of our products, expanding the use of recycled materials, such as PET and glass. For a decade now, we have been a carbon neutral company.

In short, innovation in sustainability is an essential element to ensure Natura remains a relevant company for society.

The post Natura Builds Strategy, Focuses on Positive Social Impact first appeared on Direct Selling News.