brazil report 2007

Multinational companies like unilever avon colgate

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Unformatted text preview: he most representative market-share. However, some important local players like Natura and Boticario also have very significant presence even being niche or regional market leaders. Electronics A well developed base for electronics The Brazilian electronics and home appliances market recorded sales of around BRL16 billion in 2005, an increase of 5% over 2004. With a locally wellinstalled industry base, predominantly formed by multinational companies like Philips, LG, Whirlpool, Samsung and others or Brazilian companies such as Semp Toshiba and Gradiente, most products are manufactured or assembled locally. The Brazilian home appliances sector has different levels of market saturation depending on the product, for instance, stoves show the highest rate of saturation, 98%, followed by video and audio equipment and refrigerators at around 90%. Washing machines, freezers and microcomputers have lower rates of saturation, between 20-30%. 14 2006/2007 FROM SÃO PAULO TO SHANGHAI New consumer dynamics: the impact on modern retailing* Brazil Clothing and shoes A strong clothing and shoes segment Brazil is the third largest footwear producer and the fifth largest footwear market in the world in volume terms. The clothing industry is also strong and competitive and the presence of local brands and manufacturing plants is significant. Companies like Vicunha, Coteminas, Alpargatas, Grendene, among others, have in fact steadily increased their domestic and foreign sales. MAJOR RETAIL PLAyERS Retail Sales The Brazilian retail industry grew by around 9% in 2005 with food retail increasing by 7.8% over the previous year. E-commerce continued to climb, despite its small participation in the total retail market, reaching BRL9.9 billion, up 32% from 2004, influenced mainly by the sales of audio and video equipment. Retail sales growth 2003 2004 2005 155,273 180,933 237,662 -2.3 3.9 2.3 Retail sales: food (USD m) 85,940 99,282 129,302 Retail sales: non-food (USD m) 69,333 81,651 108,360 Retail sales (USD m) Retail sales growth (% pa in BRL) Source: EIU, July 2006 Large retail companies are actively looking for new expansion opportunities and were involved in acquisitions, such as the purchase of the supermarket chain store, Sonae, by Wal-Mart. 15 2006/2007 FROM SÃO PAULO TO SHANGHAI New consumer dynamics: the impact on modern retailing* Brazil Top 15 retailer companies Company name Major category 2005 Gross Sales (USD m) Controlling Shareholder Companhia Brasileira de Distribuição Food retailer 6,890 French-Brazilian Carrefour Food retailer 5,098 French Specialty store 5,078 Brazilian Wal-Mart Food retailer 4,226 American Makro Food retailer 1,665 Dutch Ponto Frio Specialty store 1,652 Brazilian Atacadão Food retailer 1,389 Brazilian Lojas Americanas Food retailer 1,170 Brazilian Food wholesaler 1,165 Brazilian Casas Pernambucanas Specialty store 1,130 Brazilian Lojas Riachuelo Specialty store 921 Brazilian Magazine Luiza Specialty Store 747 Brazilian Insinuante Specialty Store 683 Brazilian Renner Specialty Store 657 “pulverized” D Paschoal Specialty Store 654 Brazilian Casas Bahia Grupo Martins Source: Exame Melhores e Maiores Food retail channels Market-share by retail formats (%) Hypermarkets Supermarkets Convenience stores 2005 39 60 1 2004 56 43 1 2003 44 55 1 Source: ABRAS; AC Nielsen 16 2006/2007 FROM SÃO PAULO TO SHANGHAI New consumer dynamics: the impact on modern retailing* Brazil Major food retailers Number of stores Ranking Group...
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This document was uploaded on 02/14/2014 for the course MBA MBA at SPSU.

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