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Retail & Consumer Goods, Sectors & Regions Article, how retailers serve brazil shoppers
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How big retailers can serve Brazil's mass-market shoppers

  • For years, modern-format food retailers in Brazil have focused on serving its wealthiest consumers.
  • To keep growing, they will have to set their sights on a bigger target: 130 million mass-market consumers, who account for almost 70 percent of food consumption.
  • Serving these consumers will be difficult, since they expect the combination of value, convenience, selection, and service they find among Brazil’s informal retailers.
  • Recent McKinsey research sheds light on the shopping behavior and attitudes of Brazil’s mass-market consumers and offers retailers clues about how to redesign products, services, and formats to suit them.

Note: This article includes translations in Portuguese and Spanish.

This article contains the following exhibits:
  • Exhibit 1: Mass-market consumers represent nearly 70% of total food consumption in Brazil.
  • Exhibit 2: Retailers can offer choice without SKU proliferation.
  • Exhibit 3: High levels of promotional activity confuse Brazilians.
About the artwork:

Figo, 2006
Beatriz Milhazes

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