Comfort with debt in Brazil has fueled the spectacular expansion of their credit industry with revenue growth rates exceeding 26% a year since 2001.
The changing buying and selling trends
$450 billion retailmarket by 2015( = Italy) 300 million shoppers Larger tax 1.6 millions retail base jobs Lower waste via Lower consumer Add $3-4 billions price 3-5% more efficient in GDP of five supply chains years
3 Others 1% Unique Non-Travel Buyers per Quarter Cash Card 1% 2.00 2 e-currency 3% Rate of return 1.27 1.07 Cheque/DD on Delivery 10% 30 to 40% 1 0.62 0.64 0.68 0.41 Cash on Delivery 41% Net Banking 42% 0 JFM10 AMJ10 JAS10 JFM11 AMJ11 JAS11 OND10 Credit card 48% Debit card 58% Source: Juxt Quarterly Non-Travel Shopping Brand Track & Market Share Estimation Study (4000+ sample of online non-travel buyers) 0% 20% 40% 60% 80% 100%100% Credit Card Ownership • Of the 13million around 2million unique people transact in any given month 80% Net Banking Users • Credit card penetration among Internet users is relatively low and 60% remained stagnant 38% 38% 40% 29% 31% • Users use on an average 2 mode of payments, ‘Cash on Delivery’ is growing 20% and throwing unique challenges 24% 25% 26% 25% 0% 2008 2009 2010 2011
Factors affecting location Intended target market Type of products Suitability of site for customer access Characteristics of existing retail operations Three most important words in retailing: Location … location … location!
Free standing structure Central Business District (CBD) Shopping Malls (avg. age 23 yrs 2012) - Neighborhood shopping center - Community shopping center - Regional shopping center Non Traditional Shopping Center - Factory Outlets - Mini warehouse mall
Retail buyers must match their product selection, quality, price with constantly changing consumer wants. Scrambled merchandising- adding unrelated products to generate traffic & higher margins
- The retail store merchandise must change as consumer wants changeProduct Selling CyclesNB’s…..a relatively short term selling life cycle - (under 3 months)DT’s….a relatively enduring selling lifecycle - (over 3- 6 Months)
Store Location Store Store Promotions Hours Store StoreServices Layout/Image Store Personnel
The sum total of all store stimuli, interior & exterior physical characteristics that appeal to emotions (psychological field) Components: Ambient factors, Design and Social Factors. Ambient Factors (Perceptions) - lighting - sounds - smell
Social factors: In store service (sales personnel social & emotional labor) - Courteous Rude behavior - Knowledgeable Low information - Service Insincere - Employee dress norms (casual ??) Make it convenient & pleasurable for customers to shop and pay for merchandise
Personal Service Climate- Calls for a highly motivated, experienced & well paid work force - Retail jobs often pay poorly, are not challenging and produce high turnover Average length of employee tenure with retailers 7 - 12 months 8% 1 - 2 years 29% 30% 3 - 5 years 5 + years 33% Estimates: 2012
Location + Merchandise + Services + Atmospherics + ? Store Image Advertising Medium(s) Newspapers - Television - Radio - Magazine - Direct Mail - Videos-Web
Price and ValueQuality and Selection of Merchandise 44%Service 34%Shopping Environment 11% 11%
Retailers ResellersExclusive Distribution Intense DistributionStore Loyalty Brand LoyaltyHigh Markup +Volume Low Markup/High Volume Love - Hate Relationship