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    Industry - Retail, Location - Brazil, Head Quarter-Sao Paulo

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    Alok Mahajan
    Casas Bahia is the largest non-food retailer in Brazil, headquartered in Sao Paulo. It pioneered innovative installment plans to promote luxury goods among lower income groups. Samuel Klein started Casas Bahia in 1952 by selling goods directly to migrants. He opened the first Casas Bahia store in 1958, selling clothing and furniture. The store network grew significantly after a 1994 Brazilian government economic plan boosted purchasing power among the poor. By 2005, Casas Bahia had over 30,000 employees, 800 credit analysts, 394 stores, and 11 million customers, having increased annual sales to over $9 billion through its unique credit-financed business model.

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    Industry - Retail, Location - Brazil, Head Quarter-Sao Paulo

    Uploaded by

    Alok Mahajan
    456 views13 pages
    Casas Bahia is the largest non-food retailer in Brazil, headquartered in Sao Paulo. It pioneered innovative installment plans to promote luxury goods among lower income groups. Samuel Klein started Casas Bahia in 1952 by selling goods directly to migrants. He opened the first Casas Bahia store in 1958, selling clothing and furniture. The store network grew significantly after a 1994 Brazilian government economic plan boosted purchasing power among the poor. By 2005, Casas Bahia had over 30,000 employees, 800 credit analysts, 394 stores, and 11 million customers, having increased annual sales to over $9 billion through its unique credit-financed business model.

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    brazil's biggest retailer Casas Bahia

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    Casas Bahia

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    Casas Bahia is the largest non-food retailer in Brazil, headquartered in Sao Paulo. It pioneered innovative installment plans to promote luxury goods among lower income groups. Samuel Klein started Casas Bahia in 1952 by selling goods directly to migrants. He opened the first Casas Bahia store in 1958, selling clothing and furniture. The store network grew significantly after a 1994 Brazilian government economic plan boosted purchasing power among the poor. By 2005, Casas Bahia had over 30,000 employees, 800 credit analysts, 394 stores, and 11 million customers, having increased annual sales to over $9 billion through its unique credit-financed business model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    456 views13 pages

    Industry - Retail, Location - Brazil, Head Quarter-Sao Paulo

    Uploaded by

    Alok Mahajan
    Casas Bahia is the largest non-food retailer in Brazil, headquartered in Sao Paulo. It pioneered innovative installment plans to promote luxury goods among lower income groups. Samuel Klein started Casas Bahia in 1952 by selling goods directly to migrants. He opened the first Casas Bahia store in 1958, selling clothing and furniture. The store network grew significantly after a 1994 Brazilian government economic plan boosted purchasing power among the poor. By 2005, Casas Bahia had over 30,000 employees, 800 credit analysts, 394 stores, and 11 million customers, having increased annual sales to over $9 billion through its unique credit-financed business model.

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    Casas Bahia

    Industry - Retail, Location - Brazil, Head Quarter- Sao Paulo

    Slogan-Total Dedication to You


    Introduction – Casas Bahia
    • Largest non-food retail chain in Brazil
    • Promoting luxury goods among lower
    income groups

    • Innovative installment scheme – unlocked


    purchasing power

    • Services providing :
    –Credit
    –Delivery &
    • –Installation of goods
    Background
    • 1952 – Samuel started earning by selling
    blankets, bed linen and bath towels to
    migrants (directional marketing)

    • Samuel Klein came up with an idea of


    selling to BoP (1958)

    • Opened his first clothing and furniture


    store and named it -Casas Bahia (Bahia
    houses)

    • Empire grew further in 1994 (Real plan by


    Brazilian Govt.)

    • Real plan :

    • Boost to purchasing power of poor


    • Helped Casas Bahia store to spread
    his business
    Facts
    • Sales increased by 500% in six months (Real Plan)
    • Stores kept on increasing at an average of 20 p.a. by 2002
    • 2002 – CB recorded annual sales worth R$ 410
    • 2004 – sales reached R$ 9b (50% growth as compared to
    2003)

    • 2005:
    •30,000 employees
    •800 credit analysts
    •394 stores in eight states
    •11 million customers
    Q&A
    Q. Unique features of Business Model and Reasons
    of Success ?
    A. Credit financing - core of CB Business
    Model
    • Service of credit protection – credit bureau of
    Brazil->credit history customer
    • CB - Credit Analysts evaluate customers
    • Series of Questions are being asked to assess clients’
    creditworthiness
    • Centralized customer information
    • Concept of passbook – Cross selling
    • Comparatively low Default rate
    Marketing Strategy
    Strategies
    • Strong relationships
    • Area specific
    • Target - lower income group
    • Visual Merchandising
    • Credit financing
    • Aggressive Marketing
    • CB’s Yellow Card (automatic credit, symbol
    of status among working class)
    • Identified the desire of luxury brands among
    the poor
    • Pardoned debts of million customers
    • Introduced “unemployment Insurance”
    (forgo first six installments)
    Criticism leveled against Casas
    Bahia
    Critics say:

    • Exploiting the poor by selling the branded products


    • CB was luring Brazil’s poor towards luxury items
    • Playing with poor people’s psychology
    • Prices of goods are being inflated
    • Interest – free programmers were business tactics
    • Squeezed money by hiking actual price of goods
    Answer
    Casas Bahia’s view
    Samuel says:
    •His terms were comparatively generous
    •Doing business with poor means more risk
    •Role of sales personnel – selling a product which fits into
    budget
    •He refused to be labeled as “low baller” – no compromise
    with the quality

    Analysts say:
    •CB kept consumer spending active during recession
    •CB sets fine example for developing countries in terms of
    empowering poor
    •Innovative credit financing schemes in developing
    countries
    • To boost purchasing power and growth of economy
    Casas Bahia- Sustaining
    Success
    •states
    By 2010, more than 500 stores in eleven

    •More than 55,000 employees


    •Revenue 2007 6Bn $
    •Brazil’s top advertiser in 2005.
    •world-Current
    Among 250 largest Retail companies in the
    Position 131
    •merchandise
    3062 trucks to stock the store and deliver the
    to the client
    •http://www.casasbahia.com.br
    Launched online store –Feb 2009
    Continued..
    •active
    More than 22 million
    customers

    •returning
    80% of sales are from
    customers

    •Per3.5Hour
    Millions Transactions

    •theAncompany
    open platform helped
    avoid US $8
    million cost of proprietary
    solution
    Bottom of Pyramid
    The poor of India - source of innovation

    ITC-E-Choupal
    Bangladesh-Micro
    Credit Market
    Win -Win Situation
    Thank You
    Alok, Amit, Mandeep, Nikhil

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