Thursday, October 13, 2016

Brazilian retailer strayed from stores in Mexico

São Paulo-just about to register solid growth for the fifth consecutive year, the Mexican retail still attract Brazilian retailers interested in internationalizing their brands. The main desired destinations are still the United States and neighbouring countries of South America.
In 2015, the Mexican merchants sold 5.1% more than the previous year. It was the fifth year in a row. What, to experts consulted by the DCI, can mean a solidity not expected for this market, in addition to opportunities for companies from outside the country.
"Because of the proximity to the United States and of the growths, the Mexico retail has evolved a bit more agility than ours, which had a crisis of large proportions to worry about," explains the head of the retail area of the ASSA Group and a leading expert on Brazil and Latin America retail, Fernando Gamboa.
According to him, important factors such as multicanalidade have largely worked in Mexico in recent years. In Brazil, in his view, the crisis slowed this kind of advancement.
"Another point is that they replicate the North American consulting and management systems, which are also more advanced than ours. This creates simplicity and agility in time to meet the client.
Aware of that, the giant SACI Falabella, Chile''s largest department stores in South America, recently announced that it intends to invest more than $ 500 million dollars-in partnership with the Mexican network of supermarkets Organización Soriana-to open its first store in Mexican soil within the maximum period of five years.
According to data from the National Institute of statistics and Economic Calculations of Focus in Mexico (Inegi), in at least eight of the last 10 months the Mexican retail grew up five percentage points.
Latin adventure
Part of the fear with the Mexican retail sector can be explained by the failed attempt of Habib''s in acting in that market in the year 2000. The plan of the network of Arab restaurants was open at least 150 stores in Mexico until 2005 via franchising model. The end result was the opening of only six shops and the end of the operation in 2006.
"The mistake is export only the product and not its complete know-how. This way, the suppliers '' products acquire franchise by franchise or even his own brand. Outside, the logistical issues will require that you have a different system. They are already accustomed to it, but we don''t, "says franchise consultant Rizzo''s Franchise, Marcus Rizzo.
He recommends to stores that export not only items from success in the Brazilian market, but also to evaluate the possibility of implementing a professional operation that meets the consumer and the local franchisee.
American dream
Without the radar, Mexico the United States follow as the preferred destination for the Brazilian networks, especially in the field of franchising.
The Nutty Bavarian, for example, is one of the betting firm in the American dream. Currently, the company owns five kiosks in the State of Florida and plans to open three other operations in the country, one of them in the region of North Carolina. "The United States have an entrepreneurial system that you play naturally up. Despite a few months there, our shops are doing very well. We still have some challenges to be achieved and we hope we consolidate there to think in other markets, "says the Director of the Nutty Bavarian, Adriana Auriemo.
In Brazil, are 140 units in operation, with the opening of seven other stores by the end of this year.
Another who wishes to export its know-how to the Americans is Ofner.
At first, the company will take its products to there, in order to experience the acceptance of items. But, according to the Executive Director and responsible for the internationalization process of the network, Mario Costa Júnior, is part of the brand intended to open a store in New York by the end of 2018.
"We chose the United States for being a powerful market that is eager for news. Let''s take our Christmas pudding out there and evaluate the results. For now, we''ve done partnerships with emporiums, but we thought we''d open our store until 2018, "he says.
With three operations in Mexico, Chilli Beans watch the country market with good eyes, but as Ofner and Nutty Bavarian, will focus its expansion by South American and North American neighbours.
DCI News Item translated automatically
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