brazilian retail news, january, 31st

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Brazilian Retail News Year 09 - Issue # 372 - São Paulo, January, 31h, 2011

Phone: (5511) 3405-6666

Brazilian retail news 1 01/31/2011

DIY sales rise 10.6% in 2010

Data 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.

Supermarket 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 group (Amis)

also reported growth: 8.15% in 2010 and 4.61% in December

year-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 Brazil

2010 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 for

the 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 November

Data 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.



Brazilian Retail News Year 09 - Issue # 372 - São Paulo, January, 31h, 2011

Phone: (5511) 3405-6666

Brazilian retail news 3 01/31/2011

Gouvêa de Souza & MD Desenvolvimento Empresarial Ltda.

Av. Paulista, 171 - 10º oor

Paraíso – São Paulo – Brazil – Zip Code: 01311-904Phone: (5511) 3405-6666 – Fax: (5511) 3263-0066

E-mail: [email protected] Home-page: www.gsmd.com.br

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.

Momentum

brazilian retail news, january, 31st

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