This particular instance was created by Latin America Research Center's Senior Researcher, Ricardo Reisen de Pinho, and Professor Geoffrey Jones. HBS cases are designed for classroom discussion only and should not be used as endorsements, primary data sources, or examples of effective management. Copyright 2006, 2007 President and Fellows of Harvard College. To obtain copies or request permission to reproduce materials, contact Harvard Business School Publishing via their website or call 1-800-5457685. Without authorization from Harvard Business School, no portion of this publication may be duplicated, stored or transmitted. The swift consolidation of the global beauty industry put pressure on smaller companies to create new products, segment current markets and challenge the boundaries between mass-produced and luxury goods sectors. Despite observing stylishly dressed Russian women in Red Square while considering their home market consisting of Ama
...zon Forests, tropical beaches and a diverse population; Natura's three founders wondered about the similarities between both markets. Leal reminisced about how they initially struggled with everything starting with Cyrillic alphabets when they visited Russia’s business center. As they questioned whether globalization would benefit Natura - an exceptional company that has a vision for humanity - they questioned if expanding to Russia would prove too overwhelming for it to become a global business entity yet..Beauty has always been a source of economic and social benefits, despite cultural differences and historical periods. Economists agree that physical attractiveness plays a critical role in various aspects of life, including career advancements and earning potentials. The modern beauty industry began in the late 19th century with the widespread popularity of cosmetics, branding strategies, and mass production. As of 2004, this industry had a global
worth of US$231 billion with consistent compound annual growth rates of around 5% since 1999. It appeared to be recession-proof.
The cosmetics and toiletries industries have experienced significant growth due to aging baby boomers with higher disposable income in Western countries as well as the growing middle class in developing countries like Brazil. Future growth potential is seen among preteen girls, metrosexuals, and seniors. Exhibit 1 shows sales of cosmetics and toiletries by major markets.
As of 2005, Brazil ranked fifth in the world in terms of area and held 20% of the planet's biodiversity primarily located in the Amazon region in Northern Brazil. Its population totaled 180 million, while its GDP ranked as the tenth largest globally. About 80% of its population lived within 350 kilometers from the coast with urban areas containing eighty-three percent (83%)of its forty-seven million households.
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