Nrf13 brasil varejo mercado emergente

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Nrf13 brasil varejo mercado emergente

  1. 1. 14/01/2013The More for Less Emerging Consumer Alberto Serrentino Senior Partner Scenario ScenarioDeclining unemployment rates+ Increase in household income, mass wage andpurchasing power+ High confidence level+ Credit expansion+ Consumption and retail sales growth= Massive demographic shift 1
  2. 2. 14/01/2013 The emerging middle class phenomenon 2003 2012 Wealthy A1 1 0.5 Upper A2 5 4 middle class 10 B1 9 B2 14 21.7 Enlarged emerging middle class* C 36 50% 48.8 70,5% Poor D 31 14.2 Extremely poor E 4 0.7Source: Target 2012 / GS&MD analysis The More for Less Emerging Consumers The More for Less emerging consumers 2
  3. 3. 14/01/2013 The More for Less Consumer Survey - 2012 320 personal interviews with Brazilian consumers who moved upwards in the SEG in the last 5 years The More for Less emerging consumers They are optimistic (86%)...Source: GS&MD Research “The emerging middle class consumers”, 2012 The More for Less emerging consumers …their life standards improved in the last 5 years (73%) and they believe they will keep improving over the next 2 yearsSource: GS&MD Research “The emerging middle class consumers”, 2012 3
  4. 4. 14/01/2013 The More for Less emerging consumers …they compare prices (66%) primarily in physical stores (63%)…Source: GS&MD Research “The emerging middle class consumers”, 2012 • 825 stores in Latin America • Sales 2011: US$ 15.6 bn 4
  5. 5. 14/01/2013 183 stores in Brazil HYPERCASH FORMAT  Hybrid model: cash & carry + discount retailing  +28% avg sales/sq-ft compared to supermarkets  +19% avg sales/sq-ft compared to hypermarkets The More for Less emerging consumers …they are shopping online (26%)…Source: GS&MD Research “The emerging middle class consumers”, 2012 5
  6. 6. 14/01/2013 The More for Less emerging consumers …their main aspirations are buying the house (42%), the car (32%), education (27%) and travelling (15%)…Source: GS&MD Research “The emerging middle class consumers”, 2012 • The largest tour operator in Latam • Vertically integrated • 665 Stores • Multichannel 6
  7. 7. 14/01/2013 The More for Less emerging consumers …product brands are a key driver to choose the stores…Source: GS&MD Research “The emerging middle class consumers”, 2012 The More for Less emerging consumers …the have not abandoned theirpreferred stores (66%), however they expect to shop in better ones (66%)…Source: GS&MD Research “The emerging middle class consumers”, 2012 7
  8. 8. 14/01/2013 Vertically integratedSource: GS&MD Research “The emerging middle class consumers”, 2012 8
  9. 9. 14/01/2013 The More for Less emerging consumers …stores drivers are proximity, service and credit…Source: GS&MD Research “The emerging middle class consumers”, 2012 70% of Brazilian women have curly or frizzy hair  12 beauty centers  Vertically integrated – R&D, manufacturing, retail, service, experience  1 million customers served in 2012 9
  10. 10. 14/01/2013 10
  11. 11. 14/01/2013 The emerging middle class consumers …stores lose them by providing poor service and high prices…Source: GS&MD Research “The emerging middle class consumers”, 2012 The emerging middle class consumers …the home is the epicenter of their lives…Source: GS&MD Research “The emerging middle class consumers”, 2012 The home is the epicenter of their lives 52% I spend time with my family at home 47% 41% I watch TV/movies at home 39% 23% I hang out with friends/boyfriend 35% 31% I go to my families home 21% 18% I stay at home alone 24% 12% I surf on the internet 11% 10% Work 8% 10% Shopping 2% 9% Books 3% 5% Women Study 2% Men 11
  12. 12. 14/01/2013 12
  13. 13. 14/01/2013 The emerging middle class consumers …the real revolution is yet to come.Source: GS&MD Research “The emerging middle class consumers”, 2012 13
  14. 14. 14/01/2013  736 stores  15 years among the best companies to work for 1.3 mn online customers 55,000 Facebook Stores opened by clients 14
  15. 15. 14/01/2013 Challenges and insights Business model’s challenges• Balance price and access with aspiration: make dreams come true• Cross channel: information, convenience, shopping• Enlarge the portfolio of services: tourism, residential, education, connectivity• Build a connection to the home The bottom line 15
  16. 16. 14/01/2013 The bottom line• Think simple• Define a clear and straight value proposition• Pursue cost efficiency• Integrate physical and digital channels• Execute Retail, Marketing and Distribution Channels Alberto Serrentino aserrentino@gsmd.com.br Thank you! Thank you! 16

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