Brazil, the Other “Land Down Under”

Brazil: A Unique Retail Paradise

 Lee Peterson

Estimated Read Time: 3 Minutes

We recently returned from a trip to Brazil's top retail conference, FBV (Feira Brasileira do Varejo – The Brazilian Retail Fair), and were thoroughly impressed. Not only by its content, but by the quality of the venue and the organization itself. Here's the surprising part though: virtually NO foreign retailers were to be seen. Brazil is truly "down under"… that is to say, WAY down under global retail's radar.

But why? Brazil is home to over 415,000 stores, with over 92,000 operators—HALF of which are independently owned and exclusive to Brazil. That's 200+ million people with a litany of innovative, fresh retail concepts all to themselves. You have to ask yourself: are we missing something? To us, the answer is a definitive YES, we are.

The sheer number of independent retailers alone gives you the sense that there's a lot of fresh thinking down under that has yet to be explored elsewhere. Most of us know about the success of flip-flop entrepreneur Havaianas, but that's about as far as it goes. There's an interesting retailer on just about every block (easy zoning laws).

Here are a couple of examples:

One of the most striking cases of "the way to do it right" that we saw was PanVel pharmacies. After strong debates while working with U.S. drugstores, it was refreshing to see a very successful version (over 500 stores, $1B and counting) of the many ideas we had advocated for with some of the larger players in the U.S. Notice the gondola height at five feet…notice too the clean tile floor (vs grimy carpets) and wide-open, glass storefronts that give a sense of safety from the street. Not to mention the lack of groceries, potato chips, beverages, and candy that can be a burden and low on the profit scale. In other words, Panvel is a pharmacy the way consumers feel most comfortable—especially with their core customer base: females. Given the state of the "Pharmacy Nation" here in the U.S., PanVel may well be worth emulating.

Another concept that struck us from a graphics perspective was Soneda. The fresh colors and "natural" vibe they gave off fit really well with their fragrance, skincare, and general health and wellness products. If you're all about the senses, maybe black and white isn't the only way to convey the richness of your store or graphics. Soneda is another emulator for the rest of us here "on the top".

All in all, it seems that Brazil is the one of the more unique retail environments, yet one of the most ignored as well. Go. You'll see. And for those that have been, you know what we're talking about.

As an aside, the Brazilian people in general are one of the friendliest, most welcoming, and ready-to-help groups we have ever met. Visiting the forgotten "other" land down under can be thought-provoking, interesting, and just plain fun. We highly recommend it.

P.S.: It's also a great place to speak (fun, appreciative audience).