Internationalization strategy and foreign distribution channels: analysis of the brazilian cosmetics company Natura

Abstract

This paper describes the internationalization process of the Brazilian company Natura Cosméticos S.A., whose competitive differential is the development of products based on the biodiversity of Brazilian flora. We specifically focus on the company's different choices of distribution channels in foreign markets. The study is exploratory, relying on content analysis of secondary data. The results indicate that the company's internationalization process has followed the model of the Uppsala school (learning) and that the company has maintained the same distribution strategy (direct sales) in markets with similar cultures (Latin America), but for the European market (Paris) it preferred to establish a physical store because of the cultural differences of that market. The change of the distribution channel model in the European market led the company to develop new organizational competencies.

Country of Origin Image and Foreign Markets Strategy: Analysis of the Brazilian Cosmetics Company Natura

“…Another element of the Brazilianness used by Natura and that is part of the company's philosophy is sustainability. According to Zilber et. al, (2010)…”

“…With its direct sales model, Natura defies its major competitor Avon and becomes the leading cosmetics brand in Latin America (Interbrands, 2013). Natura also competes against O Boticário, Beiersdorf AG (owner of Nívea), L'Oréal, Unilever, Monange, Colgate-Palmolive and Johnson & Johnson (Zilber, Mora Júnior, & Silva, 2010).…”

Motivations for a sustainable ethos: evidence from the globally present Brazilian multinational Natura &Co

“…It also adds to cases previously published about Natura &Co. Earlier sustainability studies and reports focused on different aspects, including product (Dalmarcoet al, 2015;Vilha and Quadros 2006) and supply chain development (Francke & Castro 2013;Le Tourneau & Greissing 2010;Veiga 2013), internationalization (Sutter et al 2015Zilber et al 2010), and business strategy (Isaac et al 2017;Lombardi et al 2010). The present study focuses on corporate sustainability engagement, and results suggest that it is a tool for competitive advantage.…”

“…Secondary sources of analysis consulted Source: prepared by the authors Journals-case studies and reports Brazilian business review(Zilber et al 2010) Picmet proceedings(Vilha and Quadros 2006) Environmental quality management(Dalmarco et al 2015) REMark(Sutter et al 2015) Harvard business school publishing(Jones and Pinho 2012) …”