Natura &Co Holding S.A. (NTCO): Business Model Canvas

In the dynamic world of beauty and personal care, Natura &Co Holding S.A. (NTCO) stands out with its innovative approach to sustainability and ethical practices. Their Business Model Canvas reveals a multifaceted strategy that integrates eco-friendly products, robust customer engagement, and strong partnerships with environmentally conscious retailers and NGOs. Discover how this Brazilian giant creates value in a market that yearns for responsibility and quality, making a captivating case for modern business practices.

Natura &Co Holding S.A. (NTCO) - Business Model: Key Partnerships

Sustainable suppliers

Natura &Co prioritizes collaborations with sustainable suppliers to ensure ethical sourcing and environmental stewardship. Key statistics include:

• In 2022, Natura &Co sourced 24% of raw materials from suppliers with sustainable certifications.
• The partnerships with over 10,000 smallholder farmers in the Amazon contribute significantly to the local economy.
• Investment in sustainable practices led to a reduction in CO2 emissions by approximately 22% since 2018.

Retail distribution partners

Natura &Co collaborates with various retail distribution partners to expand its market reach:

• The company has over 1,600 retail points across Latin America.
• Online sales contributed to 38% of total revenue in 2022, up from 30% in 2021.
• Natura &Co's partnership with Avon allows the brand to leverage Avon's extensive global distribution network, reaching over 6 million representatives globally.

Retail Partner	Geographical Coverage	Contribution to Sales (%)
Avon	Global	25%
Physical Stores	South America	35%
eCommerce Platforms	Global	38%

Environmental NGOs

Strategic partnerships with environmental NGOs are critical for Natura &Co's sustainability goals:

• Collaboration with organizations like the World Wildlife Fund (WWF) focuses on biodiversity protection.
• The partnership with Instituto Ecofuturo has facilitated reforestation projects, leading to the planting of over 1 million trees since 2020.
• Natura &Co invests approximately $5 million annually in environmental initiatives through these partnerships.

Research institutions

Natura &Co collaborates with research institutions to innovate and enhance product development:

• Partnerships with universities such as the University of São Paulo focus on sustainable agriculture and new product formulations.
• The R&D budget for 2022 was approximately $50 million, a 15% increase from previous years, facilitating various research projects.
• Funding over 30 research projects related to sustainable cosmetics in the past three years.

Research Institution	Focus Area	Funding (in $ million)
University of São Paulo	Sustainable Agriculture	20
University of Campinas	Cosmetic Formulations	15
Federal University of Rio de Janeiro	Environmental Impact	10

Natura &Co Holding S.A. (NTCO) - Business Model: Key Activities

Sustainable product development

Natura &Co emphasizes sustainable product development across its brands, including Natura, Aesop, and The Body Shop. The company has committed to 100% of its products being formulated with sustainable ingredients by 2030. In 2022, Natura reported that 26% of its product formulas were already sourced sustainably.

The company invested approximately $25 million in research and development for sustainable technologies in 2021.

Marketing and branding

Natura &Co allocates a significant portion of its budget to marketing and branding activities. In 2022, marketing expenditures reached $450 million, representing about 12% of total revenue. The company focuses on digital marketing, leveraging social media channels to engage customers effectively.

In 2021, Natura’s digital sales grew by 42%, accounting for approximately 40% of total sales, with a customer acquisition cost of around $15 per new customer.

Global supply chain management

Natura &Co operates a complex global supply chain with over 2,300 suppliers worldwide. In 2021, the logistics and supply chain costs accounted for about 19% of the total operational expenses. The company's goal is to reduce logistics emissions by 30% by 2030, working towards achieving carbon neutrality by 2030.

The revenue generated from e-commerce channels in 2022 reached $1.2 billion, highlighting the efficient management of global supply chains through digital platforms.

Customer engagement initiatives

Natura &Co implements various customer engagement initiatives to strengthen brand loyalty. In 2022, the company launched a customer loyalty program that attracted over 4 million members within its first year. Engagement metrics revealed that members of the loyalty program had a purchase frequency that was 2.5 times higher than non-members.

The company achieved a customer satisfaction rate of 87% in 2021, enhanced by robust service and engagement in digital formats. Social media platforms saw an engagement rate of 6%, exceeding the industry average.

Key Activity	Details	Financial Metrics
Sustainable Product Development	Investments in sustainable R&D	$25 million (2021)
Marketing and Branding	Marketing expenditures and digital sales growth	$450 million (2022), 42% growth
Global Supply Chain Management	Supplier base and logistics costs	2,300 suppliers, 19% of operational expenses
Customer Engagement Initiatives	Loyalty program and customer satisfaction	4 million members, 87% satisfaction rate

Natura &Co Holding S.A. (NTCO) - Business Model: Key Resources

Brand Reputation

Natura &Co has established a strong brand reputation through its commitment to sustainability and social responsibility. The company ranked 2nd in the Global 100 Most Sustainable Corporations in 2021. Additionally, 91% of consumers recognize the Natura brand, underpinning its strong reputation in the market.

Extensive Retail Network

Natura &Co operates through an extensive retail network comprising over 3,000 retail points and more than 1.8 million sales consultants globally as of 2023. The company’s brands, including Natura, Aesop, and Avon, have significant retail presence in key markets such as Brazil, where it holds approximately 30% market share in the cosmetics industry.

Region	Number of Retail Points	Market Share (%)
Brazil	1,600	30
Latin America	1,200	15

Skilled Workforce

Natura &Co employs a talented and diverse workforce of over 10,000 employees worldwide, emphasizing recruitment and retention of individuals skilled in sustainable practices. This workforce is integral in driving innovation and maintaining the company’s values across its markets.

Intellectual Property

Natura &Co holds numerous patents related to eco-friendly cosmetic formulations and sustainable sourcing practices. As of 2023, the company has secured over 300 patents across its brand portfolio, which comprise exclusive rights to key product innovations. The value of these intellectual assets is estimated to be in the range of $50 million based on their market influence.

Brand	Number of Patents	Estimated Value ($ million)
Natura	150	25
Aesop	100	15
Avon	50	10

Natura &Co Holding S.A. (NTCO) - Business Model: Value Propositions

Eco-friendly products

Natura &Co is committed to producing eco-friendly products that are aligned with environmental preservation. The company’s offerings range from skin care to cosmetics, with a notable emphasis on using natural ingredients. In the year 2022, Natura reported that 80% of its products are formulated with natural ingredients.

Additionally, the company has a goal to achieve a 100% sustainable packaging initiative by 2030, aiming to eliminate plastics and promote recyclable materials.

High-quality beauty solutions

Natura &Co positions itself in the premium segment of the beauty market. As of 2022, the average price per unit of Natura's beauty products was approximately $20, compared to competitors with an average range between $15 and $25. This pricing strategy is justified by the emphasis on quality and customer satisfaction.

In 2021, Natura's commitment to quality was underlined by a 4.5/5 customer satisfaction score from various surveys encompassing over 10,000 participants across different regions.

Ethical sourcing

Natura &Co implements a thorough ethical sourcing strategy that involves direct relationships with suppliers and communities. As of 2022, over 33% of raw materials were sourced from sustainable communities, ensuring fair compensation and practices. This strategy not only supports the local economy but reduces the carbon footprint associated with supply chain logistics.

The company's initiatives in ethical sourcing are supported by certifications such as the Fair Trade Certified label on 25 of its product lines, indicating compliance with strict criteria for ethical sourcing.

Commitment to sustainability

Natura &Co has made significant strides in its commitment to sustainability. In 2022, the company reported a 30% reduction in carbon emissions across its operations since 2018. Furthermore, 50% of its manufacturing facilities are powered by renewable energy sources.

The company was recognized by the Corporate Sustainability Assessment by S&P in 2022, earning a score of 85, placing it in the top 10% of companies for sustainability practices in the cosmetics industry.

Year	Percentage of Natural Ingredients	Average Price per Unit	Customer Satisfaction Score	Percentage of Ethical Sourcing	Carbon Emissions Reduction
2021	78%	$19	4.5	32%	-
2022	80%	$20	4.5	33%	30%

Natura &Co Holding S.A. (NTCO) - Business Model: Customer Relationships

Customer loyalty programs

Natura &Co has implemented various customer loyalty programs to enhance customer retention. The company has reported a significant increase in customer engagement through its loyalty initiatives, with over 11 million members in its loyalty program as of 2022. This represents a growth of approximately 25% compared to the previous year.

Year	Loyalty Program Members	Growth Rate
2020	8 million	-
2021	9 million	12.5%
2022	11 million	22.2%

Personalized beauty consultations

The company offers personalized beauty consultations, which have increased in demand. According to a report, Natura &Co has conducted over 1 million personalized consultations in 2022, a notable increase from 700,000 in 2021. This service not only enhances the customer experience but also contributes to higher conversion rates.

Year	Personalized Consultations	Increase from Previous Year
2021	700,000	-
2022	1,000,000	42.9%

Community engagement

Natura &Co is heavily invested in community engagement, particularly focusing on sustainability and social responsibility. The company has supported over 900 community projects through its various initiatives, impacting approximately 250,000 lives annually. Furthermore, Natura &Co reports that their sustainable initiatives have generated a revenue of R$ 2 billion in 2022 alone, underscoring the effectiveness of community involvement.

Year	Community Projects	Lives Impacted	Revenue from Initiatives (R$)
2021	850	230,000	R$ 1.8 billion
2022	900	250,000	R$ 2 billion

Social media interaction

Social media plays a pivotal role in Natura &Co's customer relationship strategy, with the company gaining over 20 million followers across various platforms by the end of 2022. Engagement on their posts has seen an average interaction rate of 5%, which is significantly higher than the industry average of 2.5%. This high engagement level reflects the effectiveness of their strategies in connecting with customers.

Platform	Followers (Millions)	Average Engagement Rate
Instagram	12	6%
Facebook	5	4%
Twitter	3	3%

Natura &Co Holding S.A. (NTCO) - Business Model: Channels

Physical retail stores

Natura &Co operates a variety of physical retail outlets, which play a critical role in its business model. As of 2022, the company had a total of 1,198 stores in Latin America, primarily located in Brazil. The physical retail channel accounted for approximately 27.5% of total net revenue in 2021. These stores not only serve as points of sale but also enhance brand experience through personalized customer service.

E-commerce platforms

The company has significantly invested in its online distribution channels. In 2022, Natura’s e-commerce sales soared to account for approximately 25.4% of its total sales, reflecting a growth rate of around 35% year-on-year. This growth has been driven by improvements in its online infrastructure and partnerships with various digital platforms. Natura's e-commerce platform generated approximately R$ 1.2 billion in revenue in 2022.

Direct sales force

Natura utilizes a robust direct sales channel with a vast network of consultants. In 2021, the company reported having approximately 1.7 million consultants across Latin America. This segment represented around 46% of the total revenue. The sales force is equipped with comprehensive training programs, which increased their effectiveness and contributed to an 18% increase in sales productivity per consultant in 2022.

Beauty salons

Beauty salons are another important channel for Natura &Co, where products are directly sold and demonstrated to consumers. Approximately 4,500 beauty salons in Brazil use Natura products exclusively. The salon channel contributed about 17% of Natura's total revenue in 2021. This model not only boosts sales but also fosters loyalty through personalized beauty experiences.

Channel	Number of Outlets/Consultants	Revenue Contribution (%)	2022 Revenue (R$)
Physical Retail Stores	1,198	27.5%	Not disclosed
E-commerce Platforms	N/A	25.4%	1.2 billion
Direct Sales Force	1.7 million	46%	Not disclosed
Beauty Salons	4,500	17%	Not disclosed

Natura &Co Holding S.A. (NTCO) - Business Model: Customer Segments

Environmentally conscious consumers

The demand for sustainable products has been increasing significantly. According to a 2021 Nielsen report, approximately 73% of global consumers are willing to change their consumption habits to reduce their environmental impact. Natura, with its commitment to sustainability and use of natural ingredients, effectively caters to this segment.

Beauty and personal care enthusiasts

The beauty and personal care market is expected to reach USD 800 billion by 2025, with a strong emphasis on product quality and innovation. Natura's product lines include a wide array of beauty and personal care products that attract enthusiasts seeking premium options.

Market Segment	Projected Market Size (2025)	Growth Rate (CAGR)
Global Beauty Market	USD 800 billion	5.5%
Personal Care Market	USD 750 billion	4.5%

Urban professionals

Urban professionals are increasingly seeking convenience and quality in their beauty products. In 2020, urban consumers accounted for 60% of personal care spending in major cities worldwide. Natura's eco-friendly packaging and product formulations appeal directly to these customers' lifestyles and values.

Millennials and Gen Z

Approximately 42% of Gen Z and 49% of Millennials consider sustainability when making purchases, according to a 2021 McKinsey survey. This demographic is projected to drive spending in the beauty sector upwards of USD 100 billion by 2025. Natura's brand positioning and initiatives resonate well with these younger consumers.

Demographic	Sustainability Awareness (%)	Projected Spending (2025)
Gen Z	42%	USD 50 billion
Millennials	49%	USD 50 billion

Natura &Co Holding S.A. (NTCO) - Business Model: Cost Structure

Raw materials sourcing

Natura &Co focuses on sustainable sourcing of raw materials, ensuring a balance between cost efficiency and ecological responsibility. In 2022, Natura reported that approximately 70% of their raw materials were sourced from the Amazon region, emphasizing their commitment to sustainability.

The company's expenditure on raw materials in 2022 totaled approximately R$ 3.5 billion, representing about 27% of total operational costs.

Production costs

Production costs for Natura &Co include expenses related to manufacturing, labor, and overhead. In 2022, the total production costs were about R$ 2.8 billion, reflecting a 12% increase from the previous year, primarily due to increased labor costs and overhead associated with new production facilities.

The breakdown of production costs is highlighted in the following table:

Cost Type	Amount (R$)	Percentage of Total Production Costs
Labor	R$ 1.2 billion	43%
Materials	R$ 1.5 billion	54%
Overhead	R$ 100 million	3%

Marketing expenses

Natura &Co invests significantly in marketing and brand positioning. In 2022, marketing expenses were around R$ 1.1 billion, which constituted approximately 8% of total revenue.

• Digital Marketing: R$ 450 million
• Traditional Advertising: R$ 300 million
• Sponsorships and Events: R$ 200 million
• Promotional Discounts: R$ 150 million

Distribution logistics

The logistics costs for Natura &Co include expenses related to warehousing, transportation, and distribution. In 2022, logistics costs amounted to R$ 900 million, accounting for 6% of total sales.

The following table illustrates the breakdown of logistics costs:

Logistics Type	Amount (R$)	Percentage of Total Logistics Costs
Transportation	R$ 500 million	56%
Warehousing	R$ 300 million	33%
Packaging	R$ 100 million	11%

Natura &Co Holding S.A. (NTCO) - Business Model: Revenue Streams

Product sales

Natura &Co generates a significant portion of its revenue through direct product sales. In 2022, the company reported a net revenue of approximately BRL 10.3 billion, with product sales being the primary source. The company offers a wide range of products across its brands, which include Natura, Aesop, and The Body Shop.

In terms of product categories:

• Skin Care: BRL 5.8 billion
• Fragrance: BRL 2.1 billion
• Makeup: BRL 1.4 billion
• Hair Care: BRL 0.8 billion

Online sales

Online channels have become increasingly important for Natura &Co, especially in light of the rise in e-commerce. The company achieved online sales amounting to BRL 3 billion in 2022, representing approximately 29% of total revenue.

Natura &Co has robust online platforms that facilitate direct-to-consumer sales, including:

• Official websites across different brands
• Online marketplaces such as Amazon and others

Subscription services

Although Natura &Co's primary business model revolves around product sales, it has been exploring subscription services. The company launched a pilot subscription service in 2021 that allows customers to receive monthly product boxes tailored to their preferences. This initiative is still in its early stages, with an estimated contribution of BRL 150 million to revenue in 2022.

Licensing and partnerships

Natura &Co has established various licensing agreements and partnerships that contribute to its revenue streams. In 2022, revenue from licensing and partnerships was approximately BRL 680 million, accounting for about 6.5% of total revenue.

These partnerships include:

• Collaborations with cosmetic brands for exclusive product lines
• Licensing agreements for retail distribution in various international markets

Revenue Stream	2022 Revenue (BRL)	Percentage of Total Revenue
Product Sales	10.3 billion	100%
Online Sales	3 billion	29%
Subscription Services	150 million	1.5%
Licensing and Partnerships	680 million	6.5%