Clipping of news on Brazilian Culture, Law and Citizenship
31/03/2015
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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Brands. Research shows that 40% of customers can exchange 'leaders' for 'alternative'
Two economic indicators released last week - the prediction that inflation may stay above 8% this year and the highest unemployment rate for February since 2011 - reinforce the more cautious consumer behavior. To hold spending, time to go to the supermarket, he is more willing to experiment, as shown in a survey by the Data Popular Institute. Behaviour change can benefit companies investing in cheaper products, and increase the share of private labels of major retailers.
Among the companies that are seeking to grab market share in these times of crisis is the manufacturer of Hypermarcas consumer goods. "It is time the smart choice," says the president of Claudio Bergamo company. "It is time to improve the cost-effectiveness of products. And we have a number of proposals."
Hypermarcas market dispute in segments in which Unilever, Procter & Gamble, Johnson & Johnson are considered "premium" brands. In diapers segment, for example, launched a line of Pompom brand that "ensures sequinho baby for 14 hours" - money that will be used to fight on par with more expensive options on the shelves of pharmacies and supermarkets.
Over the past year, remember Bergamo, the company "repaginou" brands like Monange (female beauty), Bozzano (male beauty) and Carrot & Bronze (sunscreens). The enamels Risqué also gained new formula, which now is hypoallergenic. "We have come to this view (offer good value for money). We found that in 2015, this will become more widespread."
Hypermarcas is not the only one who is moving to offer options that fit the consumer's pocket. The Pão de Açúcar Group is investing heavily in expanding its portfolio of own brands - especially in Extra supermarkets and hypermarkets, geared flag to class C.
The company has offered since 2008 to Qualitá brand, also present in the Pão de Açúcar stores, at a lower 15% than the average price of the leaders of the categories in which it operates. Since last year, the group created two exclusive brands for the Extra having a proposal even more aggressive: reduction of 30% off the leaders. The label Pra Valer offer an extensive line of products - from food to cleaning products - while Liss will have cheaper options in products such as liquid soap and items for manicure.
"The goal is that the tags themselves are more attractive not only the price point of view, but also because they are always present on the shelves - which is not always possible for other brands of intermediate position," explains Rafael Berardi, manager private label GPA.
The focus of the group controlled by the French Casino in exclusive brands is justified: the labels themselves represent 10% of company sales in its food retail stores. The strength of private labels also appear on the competition. According to Euromonitor, the Carrefour brand already occupies the fifth position in the Brazilian market in the segment of processed meats, behind only Sadia, Aurora, Seara and Perdigao.
The Chilean group Cencosud, network controller as GBarbosa, Bretas and Prezunic, are new to private label experience and has the push of the macroeconomic scenario to make this segment take off. The first products with Prezunic brand appeared on the shelves for a year and now total 128 items. The goal is to reach 300 by December. "This is the time of own brand," says Samuel Ramos, manager of this area in Brazil Cencosud. "In the Brazilian market, they represent 5% of the total, while in the UK reach 40%. Outside, this expansion occurred precisely in times of crisis."
Cost versus benefit
The global history shows that in low seasons in the economy, the trend is consumers become more aware of price, says Ana Paula Tozzi, president of consulting at retail GS & AGR. This, she said, is the time to premium brands seek a rapprochement with the consumer using their alternative brands (and cheaper).
In the case of companies that already operate in a more intermediate segment, the trend is the emergence of more aggressive offers, with the creation of special packages. After all, is the chance that these manufacturers have to win a customer that, in good times, not experience their products.
The success of the brands of middle ground in convincing the client to try them varies according to the "stickiness" of the consumer to each category. The behavior is not uniform. In general, however, a survey by Nielsen shows that the customer is more willing to save on food and alcohol and less likely to switch brands that chose as preferred in their health and beauty products.
Source: Estadão
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This article was translated by an automatic translation system, and was therefore not reviewed by people.