Japanese Giants begin fight for the Brazilian market of cheap items

São Paulo-On the broad acceptance of the Japanese retailer Daiso among Brazilian consumers, now is the time to face your rival Miniso of expansion in the Country. With the goal of combining the quality an offer accessible, both networks are investing to conquer space in the Brazilian market.
Founded in Japan in 2013, the Miniso saw an opportunity to exploit an audience eager for affordable prices in Brazil. Example, the network barely landed in Sao Paulo and already promises to inaugurate at least 50 stores in the State by the end of this year; initial investment estimated at R $4.8 million. "We developed an expansion project for Brazil since last year, since this is one of the largest countries in the world and has huge market potential for the Miniso. We believe that we will have much success in the country, "commented the President of the Brazil Miniso, Frank Wei to the DCI.
Despite the bold plan for the first few months of the Miniso in Brazil, it is a mistake to think that the company will stop there. In order to earn $100 million R and open about of 50 stores in Sao Paulo until the end of 2017-the two first units were opened in recent brand 15 days-multinational network promises to spread operations by the major Brazilian cities. For 2018, for example, the Miniso designs at least four units in Rio de Janeiro. In all, the retailer's expansion plan aims to end 2020 with 2000 operations in Brazil.
"We sell items of R $3 R $200 in our stores, but most products priced at R $10. Innovation is in our DNA and every month we launched more than 70 different products in our portfolio. The Miniso has 12 departments, eight of which have already arrived to Brazil, including day to day, wellness, sport and fitness, stationery, accessories, clothing, seasonal products and handbags, all of his own brand, "says Wei. For the future, for expansion franchises are on the radar.
Challenge accepted
Not to Miss retail space, Daiso Japan promises to usher in a unit every 15 days until the end of this year, and an operation per month in 2018. According to the General Manager of Daiso in Brazil, Reginaldo Gonçalves, the secret to the acceptance of the brand in the country, representing the eighth best company in the world market, is coupled to a greater freedom in the creation of products that add value to the brazilian culture.
"We are advancing every day, understanding that the Brazilian consumer likes. We have a commitment to deliver the best product, with the most democratic possible price to the customer ", confirms. With 28 stores in Sao Paulo today, in addition to spaces in nine supermarkets Hirota, Daiso's goal is to double turnover seen by brazilian operation in 2016, registering $200 million at the end of this year R.
Known as affordable option for consumers, looking for cheap domestic utility items, Daiso presents a average ticket R $37. Recently, the network had to rethink the model of shops, after the success of the unit opened at Shopping Cidade Jardim, Sao Paulo. "Today, we invest $1.5 million to inaugurate a power R shop", he says. As option to propagate the brand in the country, the e-commerce of Daiso hasn't took off.