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Natura saw a decline in share in 2007, its first decline. According to Natura’s president, Alessandro Carlucci, the company had a drop in profit in the fourth quarter of 2006, which caused a fall in Natura’s stock prices. Natura faces strong competition from U.S.-based Avon, whose Brazilian subsidiary has received extra resources to invest in new products and marketing campaigns.
In 2007, acquisitions in the cosmetics and toiletries market included Hypermarcas’ purchase of DM Farmacêutica, which owns well-known C&T brands such as Monange, Cenoura & Bronze and Avanço.
In 2008, Ebel Paris, a multinational cosmetics company, is expected to commence activities in the Brazilian market through a direct-selling business. The Peruvian company has sales of $1 billion, and already has a presence in the U.S. and most other Latin American countries. The new competitor for Natura and Avon has a differentiating feature: its facial treatments and fragrances are produced and packaged in France, which has a reputation for high quality raw materials and suppliers, and reinforces as luxury positioning.
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