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The Multichannel Challenge at Natura in ...

Guissoni, Leandro,...

Case

The Multichannel Challenge at Natura in Beauty and Personal Care (C): Digital Transformation and Toward a Fintech Business

Guissoni, Leandro; Moraes, Trícia Karla Lacerda; Cernev, Adrian Kemmer

M-1023 | | 18 pages Case

Collection: Darden School of Business

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In 2021, the world’s fourth-largest beauty group, Natura &Co, was in the middle of a digital transformation process. Originally a direct-selling company, Natura transitioned to a multichannel business through online and offline channels, while acquiring strong brands such as Aesop, The Body Shop, and Avon. In the A case, the challenge for Natura CEO João Paulo Ferreira’s challenge was to find the right balance between the direct-selling and other channel formats to market Natura, thus enabling it to thrive in the face of intense competition in the beauty and personal care market in Brazil. In the B case, Natura’s business was back on the growth track as the company successfully aligned the new digital channels with its door-to-door operations, but the details of the omnichannel transformation and digital transformation were still complex. In this C case, Natura’s executive team decided to make progress in its digital ecosystem and undertake a digital transformation process by developing a financial-technology (fintech) business. Their choices were mainly between partnering with an existing fintech, buying a solution created by an existing fintech, or creating their own fintech. Meanwhile, the COVID-19 pandemic was spreading. The case set is appropriate for use in an MBA, Executive Education, or undergraduate course on marketing, digital transformation, financial services, distribution channels, brand management, or marketing metrics, and it would work well in any course module focused on sales management.

Identify the links between multi- and omnichannel management and the digital transformation process. Determine whether a company should build a platform business. Learn what’s involved in the transformation to a platform business and development of fintech solutions. Discuss business adaptations to COVID-19.