Brazilian retail has become more international, mature, formal, multichannel, professional and relevant. In the last ten years, it has jumped from an era of a lot of informality, teenager professionalism, low representation in the economic scenario, a national presence and with low maturity level, going to a very different situation, with remarkable evolution in all these aspects, due to their own merit and huge transformations in the economic and business environments.
Brazilian retail has become more international, mature, formal, multichannel, professional and relevant. In the last ten years, it has jumped from an era of a lot of informality, teenager professionalism, low representation in the economic scenario, a national presence and with low maturity level, going to a very different situation, with remarkable evolution in all these aspects, due to their own merit and huge transformations in the economic and business environments.
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Brazilian retail has become more international, mature, formal, multichannel, professional and relevant. In the last ten years, it has jumped from an era of a lot of informality, teenager professionalism, low representation in the economic scenario, a national presence and with low maturity level, going to a very different situation, with remarkable evolution in all these aspects, due to their own merit and huge transformations in the economic and business environments.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as RTF, PDF, TXT or read online from Scribd
* Marcos Gouvêa de Souza, CEO, GS&MD - Gouvêa de Souza
Brazilian retail has become more international, mature, formal, multichannel,
professional and relevant. Respect is good and one deserves it. In the last ten years, Brazilian retail has jumped from an era of a lot of informality, teenager professionalism, low representation in the economic scenario, a national presence and with low maturity level, going to a very different situation, with remarkable evolution in all these aspects, due to their own merits and the huge transformations in the economic and business environments. The evolution of the presence of women in the economy went up from 32.4% in 1985 to 40.7% in 2009 and added to aging population and the economic development of the country, leading to the rise of lower income classes and the growth of smaller markets, as the North, Northeast and Midwest, have created a more consistent country. These elements have helped shaping a new market reality, with the need to serve new consumer demands, as they became more informed and, mainly, disputed. And there are more consumers today. The growth of the emerging midclass, who accounted for 50% of the population in 2003 and now are 68.1%, is also a pivotal issue in this process. On the economic view, stability and low inflation have made all the difference, allowing the GDP to continue to grow, in spite of the 2009 hiccup, small when compared to the global turmoil. The evolution of the families’ real income and the growth of employment, in spite of the global financial crisis, have led to changes in the quality, availablity and structure of the products and services sales. The significant rise in the consumer credit offer, that jumped from 5.9% to 15.7% of the GDP in the last ten years, was another element leading to a deep market transformation, to the family spending growth and, therefore, to changes in the retail behavior. On the product offer side, there have also been huge transformations, with a significant rise in the consolidation in many segments to answer to a more competitive scenario, larger foreign presence and growing investment in the launch of new products, brands, direct distribution channels and technologies. New store formats, expansion of relationship and sales channels, new media in- and out-of-store, different supplier relationship models and growth of the private label presence in retailing. At the same time, new store fascias, new services incorporated and the faster evolution of the store openings and chain’s organic expansion, it all has been and is part of the mix used by retailers to use the never-seen positive stream that has spread on the market. In this period the segment has also noticed its growing importance, as it has become the largest private employer, only behind the government, and noticed it had not yet been represented accordingly. Thus, looked for larger spaces in the political and economic scenario and took responsibilities according to it representativeness. Among the actions, the Institute for Retail Development (IDV) was created and in five years has coordinated or took part on many important issues to help shaping the new market momentum, as the tax cuts for furniture and electronics; the revision of the part-time retail policy; the extension of BNDES credit to retailers; new credit policies; and, mainly, a new government approach on informality and the reduction of the tax burden. Much has happened and much more will happen in the next years, as the companies that have grown and developed based on tax evasion will not be competitive anymore. But the best is yet to come. In the next years, retail will consolidate even more, specially in segments as drugstores, apparel, DIY and foodservice. It will also become more global, as the share of international companies in the Brazilian market goes up, through venture capital companies and private equity funds. It will also be more mature, as operations improve and responding to more prepared and demanding consumers. But the main change will be in the way of strategically thinking and acting. Everything that has happened in the last ten years has not planned this way, but the retail’s ability to react quickly to the market changes has made it happen. For the next ten years, one can foresee the continuity of growth and stability and the structural, economic and behavioral changes to be leveraged in this process. One is able to plan with a long-term view and act on the perspective of what lies ahead can bring even faster growth to organizations, depending only on each company’s ambition, propositions and ability to execute. A beautiful view of higher dreams.