Nrf13 brasil varejo mercado emergente
16
14/01/2013 1 The More for Less Emerging Consumer Alberto Serrentino Senior Partner Scenario Declining unemployment rates + Increase in household income, mass wage and purchasing power + High confidence level + Credit expansion + Consumption and retail sales growth = Massive demographic shift Scenario
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Transcript of Nrf13 brasil varejo mercado emergente
14/01/2013
1
The More for Less Emerging Consumer
Alberto SerrentinoSenior Partner
Scenario
Declining unemployment rates+ Increase in household income, mass wage andpurchasing power+ High confidence level+ Credit expansion+ Consumption and retail sales growth
= Massive demographic shift
Scenario
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The emerging middle class phenomenon
Wealthy
Upper middle class
Enlarged emerging
middle class*
Poor
Extremely poor 4 0.7
31
14.2
36
48.8
1421.7
910
5 4
10.5A1
A2
B1
B2
D
C
E
50%
70,5%
2003 2012
Source: Target 2012 / GS&MD analysis
The More for Less Emerging Consumers
The More for Less emerging consumers
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320 personal interviews with Brazilian consumers who moved upwards in the SEG in the last 5 years
The More for Less Consumer Survey - 2012
The More for Less emerging consumers
Source: GS&MD Research “The emerging middle class consumers”, 2012
They are optimistic (86%)...
…their life standards improved in the last 5 years (73%) and they believe they will keep improving
over the next 2 years
Source: GS&MD Research “The emerging middle class consumers”, 2012
The More for Less emerging consumers
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…they compare prices (66%) primarily in physical stores
(63%)…
Source: GS&MD Research “The emerging middle class consumers”, 2012
The More for Less emerging consumers
• 825 stores in Latin America• Sales 2011: US$ 15.6 bn
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183 storesin Brazil
HYPERCASH FORMAT
Hybrid model: cash & carry + discount retailing
+28% avg sales/sq-ftcompared to supermarkets
+19% avg sales/sq-ftcompared to hypermarkets
…they are shopping online(26%)…
Source: GS&MD Research “The emerging middle class consumers”, 2012
The More for Less emerging consumers
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…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 More for Less emerging consumers
• The largest tour operator in Latam
• Vertically integrated• 665 Stores• Multichannel
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…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 their preferred stores (66%), however they
expect to shop in better ones (66%)…
Source: GS&MD Research “The emerging middle class consumers”, 2012
The More for Less emerging consumers
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Source: GS&MD Research “The emerging middle class consumers”, 2012
Vertically integrated
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…stores drivers are proximity, service and credit…
Source: GS&MD Research “The emerging middle class consumers”, 2012
The More for Less emerging consumers
70% of Brazilian women havecurly or frizzy hair
12 beauty centers
Vertically integrated – R&D, manufacturing, retail, service, experience
1 million customers served in 2012
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…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 emerging middle class consumers
I spend time with my family at home
I watch TV/movies at home
I hang out with friends/boyfriend
I go to my families' home
I stay at home alone
I surf on the internet
Work
Shopping
Books
Study
The home is the epicenter of their lives
2%
3%
2%
8%
11%
24%
21%
35%
39%
47%
5%
9%
10%
10%
12%
18%
31%
23%
41%
52%
WomenMen
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…the real revolution is yet to come.
Source: GS&MD Research “The emerging middle class consumers”, 2012
The emerging middle class consumers
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736 stores
15 years among the best companies to work for
1.3 mn online customers
55,000 Facebook Stores opened by clients
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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
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• Think simple
• Define a clear and straight value proposition
• Pursue cost efficiency
• Integrate physical and digital channels
• Execute
The bottom line
Alberto [email protected]
Thank you!
Retail, Marketing and Distribution Channels
Thank you!
