Brazilian Retail News Year 09 - Issue # 372 - São Paulo, January, 31 h , 2011 Phone: (5511) 3405-6666 Brazilian retail news 1 01/31/2011 DIY sales rise 10.6% in 2010Data reported by the National Building Supplies Retail Association (Anamaco) say the segment’s sales rose 10.6% in 2010 year-on-year, to R$ 49.8 billion (US$ 27.67 billion). In December alone, sales went up 2.5% over the some month in 2009. For 2011, Anamaco forecasts sales to grow in the 11% range, much above the expected 4.5% GDP expansion. Supermarke t sales end year on the rise In São Paulo state, supermarket sales rose 7.61% in 2010 year-on-year, according to local trade group Apas. In December, there was a 4.56% growth over the same month in 2009. In Minas Gerais state, the local trade gr oup (Amis) also reported growth: 8.15% in 2010 and 4.61% in Decemberyear-on-year. Last year, the segment’s performance was leveraged by the population’s increasing income and by the falling unemployment. Nivea doubles size in Brazil2010 ended a cycle in Nivea’s Brazilian branch. The cosmetics giant reached its goal of doubling its size since 2005 in the country, now the 6th most important market forthe company (it was the 11th ve years ago). Today, Nivea is the leader in skincare and second best-selling brand in deodorants and solar lters. For the next years, the company plans to continue growing in the double digit pace and to increase its market share in the several categories it is in. To do so, will increase its investments in new products, be present in fashion events, do point-of-sale initiatives and bet on innovations. Pão de Açúcar invests R$ 110 million in logistics Pão de Açúcar, Brazil’s largest retailer, has a challenge of managing a 1,080 store chain, after it has purchased Ponto Frio and merged with Casas Bahia electronics chains. Last year, the group invested R$ 110 million (US$ 61.1 million) to increase in 30% its logistics capacity. One of the main changes regards the storage philosophy. For the rst time, the company is storing high and low turn goods in separate distribution centers. In a DC near São Paulo, there are only the fast-turning goods, in a move to improve the retailer’s efciency and to improve the availability of these goods in the stores’ shelves. Economy rises 0.5% in NovemberData reported by Serasa Experian show the economic activity had in November a 0.5% rise month-on-month, in real terms. The 1.3% rise in industry and 0.5% of services segment leveraged overall gures. Over November, 2009, the economy rose 5.2%, leading year-to-date gures to a 7.7% growth.
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Some of these apps will adapt to the mobile environment what has been available on the internet and it, alone,has a relevant transformation power, allowing, for instance, real-time price comparison, inside a store, with other channels and brands, before the actual purchase, giving more negotiation power to customers.
The same way it allows customers to look for new ways to use the desired goods when shopping or by updatingand supporting a consumer’s personal shopping list in a supermarket, bringing more convenience to consumers.
In this rst age of the mobile revolution in retailing, the promotional and personal relationship elements are the
ones most likely to be added to the consumers’ habits and wishes. Offers, gifts, promotions and activations done
through mobile phones tend to be well received if offered in an innovative way, with real added value to customers.
The operational apps, bringing in or replacing functions before done in other ways, in the in-store price captureand change; inventory management; monitoring of physical elements of the stores and distribution centers; performancemeasure; shopper evaluation; trafc, conversion and satisfaction measures, and much more, bringing a new dynamic
to the entire retail business.
In a short time, to provide a mobile website, useful, updated, interactive and running in all platforms, as GrupoPão de Açúcar has launched recently in Brazil, will be the least consumers will demand. With the challenge of turningit into an innovative and pivotal element in the relationships of brands, products and services with consumers.
Mobile coupons, directing consumers’ attention to some product or service in a store, tend to be a hit amongnew apps, due to its real-time and measurable return characteristic, with some initiatives already in place in Brazil.
And in this aspect, the retail (and industry) advertising will be affected by the budget redirected from brandawareness initiatives to other more targeted and able to be promptly measured, reshaping a new scenario in theadvertising and promotion media mix.
It’s not hard to imagine that, due to its transformation power, many large companies will have a CMOO, or Chief Mobile Ofcer, coordinating and integrating all these mobile activities.
Brazil deserves a bright spot in this scenario, once it has gradually become a benchmark in this revolution,with more than one mobile line per person (although 80% of the base is made of pre-paid phones); the presenceof younger consumers, more prone to try new things; the creativity of developers and mobile operators; and thedynamism of the Brazilian market.