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Unformatted text preview: y expanding through the opening
of new stores or the acquisition of other retailer chains, the fact is that an
intense development in retail activity is expected in future years, including
medium-sized players challenged to enhance efficiency.
Most of the major retailers have announced relevant investment plans which
include, in addition to the expansion mentioned above, investments on
existing stores, the introduction of new technologies on supply management,
marketing and targeting of selected groups of customers. Reading and connecting
consumer patterns As a result of globalisation and information technology realities, change has
become an abiding feature of the retail and consumer industry.
Interacting within this context and also affecting it are the consumers with
specific particularities; many of whom are considered to be driving forces
which determine trends in the retail industry.
The variety of these consumer groups and habits require the proper response
from retailers to address specific customer needs. Being the best and most
efficient is no longer enough, as it is also important to be different in order to
be part of the customer recognition and connection process. OPPORTUNITIES
Increasing purchasing power The perspective of a purchasing power increase based on sustainable
economic growth will certainly boost the Brazilian retail and consumer
industry. A very significant part of the population which is currently considered
to be on the border of the consumption market would have a strong impact on
the demand and production levels when it enters this market.
The expansion of credit and the decrease of interest rates are both fuels for
the consumption market. In terms of volume, the Brazilian consumer credit
market is still small in comparison with developed countries. Credit penetration
have increased since financial institutions began entering operational
agreements or joint ventures with retailers. 22 2006/2007 FROM SÃO PAULO TO SHANGHAI
New consumer dynamics: the impact on modern retailing* Brazil
Steady growth of shopping
centres Shopping centres have long been a part of the retail landscape in Brazil.
Customised to attend to the needs of more or less sophisticated customers,
these places normally offer many options of leisure and convenience activities
such as cinemas, restaurants, etc.
Some expansion projects are currently in progress in the main cities and new
investments are expected to be made in the second and third tier cities, as a
consequence of the growth potential consumption.
According to ABRASCE, Brazil has 263 malls, most of them in the main
metropolitan areas, with more than 6 million square metres of retail space and
42,363 stores. São Paulo and Rio de Janeiro states account for 134 shopping
centres, but 69 of them are located out of the capital cities. EMERGING TRENDS
Consolidation in the retail
and consumer sectors Consolidation in the Brazilian retail market is expected to continue, although
at a lower intensity in foo...
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This document was uploaded on 02/14/2014 for the course MBA MBA at SPSU.
- Spring '08