Casas bahia 1
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Casas Bahia is the largest non-food retailer in Brazil, headquartered in Sao Paulo. It promotes luxury goods to lower income groups through innovative installment plans. Founded in 1952, it opened its first store in 1958 and pioneered credit evaluation and delivery/installation services to unlock purchasing power. Criticisms argue it exploits the poor by selling branded goods at inflated prices, but the company says its terms are comparatively generous and it empowers consumers by fitting products into their budgets.
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Casas bahia 1
- 1. Industry - Retail, Location - Brazil, Head Quarter- Sao Paulo Casas Bahia Slogan-Total Dedication to You
- 3. Promoting luxury goods among lower income groups
- 4. Innovative installment scheme – unlocked purchasing power
- 6. Credit
- 7. Delivery &
- 9. Samuel Klein came up with an idea of selling to BoP (1958)
- 10. Opened his first clothing and furniture store and named it -CasasBahia (Bahia houses)
- 11. Empire grew further in 1994 (Real plan by Brazilian Govt.)
- 12. Real plan :
- 13. Boost to purchasing power of poor
- 15. Stores kept on increasing at an average of 20 p.a. by 2002
- 16. 2002 – CB recorded annual sales worth R$ 410
- 17. 2004 – sales reached R$ 9b (50% growth as compared to 2003)
- 18. 2005:
- 19. 30,000 employees
- 21. 394 stores in eight states
- 23. CB - Credit Analysts evaluate customers
- 24. Series of Questions are being asked to assess clients’ creditworthiness
- 26. Concept of passbook – Cross selling
- 28. Area specific
- 29. Target - lower income group
- 31. Credit financing
- 33. CB’s Yellow Card (automatic credit, symbol of status among working class)
- 34. Identified the desire of luxury brands among the poor
- 35. Pardoned debts of million customers
- 37. CB was luring Brazil’s poor towards luxury items
- 38. Playing with poor people’s psychology
- 39. Prices of goods are being inflated
- 40. Interest – free programmers were business tactics
- 42. Doing business with poor means more risk
- 43. Role of sales personnel – selling a product which fits into budget
- 45. CB sets fine example for developing countries in terms of empowering poor
- 46. Innovative credit financing schemes in developing countries
- 48. More than 55,000 employees
- 49. Revenue 2007 6Bn $
- 50. Brazil’s top advertiser in 2005.
- 51. Among 250 largest Retail companies in the world-Current Position 131
- 52. 3062 trucks to stock the store and deliver the merchandise to the client
- 54. 80% of sales are from returning customers
- 55. 3.5 Millions Transactions Per Hour
- 58. Thank You Alok, Amit, Mandeep, Nikhil
Editor's Notes
- His terms were comparatively generous Doing business with poor means more riskRole of sales personnel – selling a product which fits into budgetHe refused to be labelled – no compromise with the quality