Buyers rely on higher sales this semester
Product developments, innovations, and strong dates for trade stimulate consumption.
Most Brazilian buyers believe that sales will rise by up to 30% this semester, although trade performance over the past 12 months is weak according to them. They expect a rebound in consumption, so much so that, at the Eletrolar Show & Latin American Electronics, many made larger orders compared to the previous edition, to some extent for the ease they found in negotiations.
Considered a market showcase by buyers, the show had launches in every area, including artificial intelligence for connected houses, wide high-resolution smart TVs, robots, cell phone accessories including induction and turbo chargers and a film cutter machine. Xiaomi’s presence positively impacted many buyers.
Repressed demand, product developments and big dates boost sales, buyers said, but emphasized that service needs to be very special to captivate consumers. Today, consumers think twice before buying. Choosing products is not always very easy, buyers commented, because of the large number of options.
Times have changed
The days when you just had to use your business judgement to equip a store are gone, buyers said at the trade fair. Today, good traders should only go to the field knowing their spreadsheets and their consumer, and competitor’s behavior. They should also research a lot to pass on the information to sellers, as the current consumer, for the most part, already knows everything about the product when it arrives at the store.
“In the past, the buyer acted with their tact because they did not have complex reports, but now the situation is different. They always need to be knowledgeable about technology, because evolution is constant,” said Sérgio Rech, the President of Lojas Becker, one of the largest groups in the southern, with 250 stores in Rio Grande do Sul, Paraná, and Santa Catarina.
At the trade fair, the releases linked to artificial intelligence and televisions with larger screens caught the President’s attention. This year, expecting sales growth of 10%, Sérgio is betting on good sales of ventilation and cooling products due to heat, such as fans and split air conditioners.
“The buyer has to get out of their chair and seek information. Sometimes the customer has a lot more knowledge than we do. Staying still means stagnation,” said Celso Ricardo Szesz, commercial operations and purchase manager of Lojas MM, a retail chain with 220 units in Paraná, Santa Catarina, Mato Grosso do Sul and São Paulo, and a frequent visitor of the fair. “It’s a very good showcase, it surprises us every year, and we do some networking there.”
At the trade fair, he approved 8k televisions and new phone launches, with new brands. “They generate good competition in the domestic market,” said Celso, who expects increased sales of televisions and the gamer line. In addition to physical stores, the retail chain operates in wholesale and, for 11 years, in e-commerce. “Partnership with other platforms is very important,” said Celso Ricardo. In physical retail, furniture, consumer electronics and white goods are the most sold. The on-line channel sells more white goods and cell phones.
Director of IFix Tecnologia, which has seven stores in Belém (PA), Hiago Gabriel, said he closed many deals at the fair and is optimistic. “I expect
30% higher sales over the same period in 2018 until Christmas.” He praised the quality and durability of products, such as metal and copper data cables. “They are more expensive, but the consumer prefers it. Today, they also invest in film to further protect their smartphones.”
Value of the news
Buyer of Casa e Vídeo retail chain, with 100 stores, mostly in Rio de Janeiro and the others in Espírito Santo and São Paulo, Diego de Souza Ferreira appreciated seeing Xiaomi at the fair. “It was a pleasant surprise. It is a new brand in the cell phone world. We come to the trade fair to understand manufacturers’ product perspectives, market trends and business opportunities,” he said, that was also interested in induction chargers.
Due to the need of the profession, the buyer needs to update frequently. So, it is important to be close to the manufacturer, noted Diego, who this year made good deals, larger than the previous edition of the trade fair. “It evolved a lot, and brands were better prepared for new
business. The trade fair has to be a mix of these two scenarios: presenting the product and providing business,” he noted.
Owner of Discultura, the largest store in Itaberaba, in the interior of Bahia, Gervison Queiroz sells, on 6,000 m², small appliances, consumer electronics, white goods, including cell phones and computers. “To leverage sales of the computer line, we are entering in the online market and will put the products in marketplaces,” he said at the trade fair. His principle is that a good buyer purchases well when there are better cost and longer term, and understands the needs of the consumer.
Online sales are more active
With 90 physical stores in the state of Rio Grande do Sul, the TaQi retail chain also operates its own e-commerce and marketplaces. “Online sales are much active than those of physical stores. There has been quite satisfactory growth,” said the network buyer, Thiago Gilberto Paulo dos Santos.
The company’s portfolio consists of several categories of home appliances, consumer electronics, cell phones and air conditioning. “This semester, we bet a lot on the gamer lines. We believe that sales in this segment will continue to grow, so much so that we are investing more deeply in it,” said Thiago, who expects, in 2019, sales growth of 10% in each channel compared to last year.
Tecnovos, which has three physical stores in Natal (RN) and has been in e-commerce for six years, works with 25 product categories and believes in the good performance of cell phones and computer items. “We expect to increase sales this semester, and the main bet is on consumer electronics.
The expectation is that demand will keep getting warmer until the end of the year,” said the company’s President, Dennis Alves da Silva, who was at the trade fair in search of launches and new suppliers.
In the mobile accessory’s category, film, and case are strong items. “Before, people didn’t invest so much in it, but now they do, because they add more value. In addition, changing the cell phone screen became very expensive,” said Ygor dos Santos, the purchasing analyst at Cellairis Network, with 50 stores in Rio de Janeiro, São Paulo, Santa Catarina, Paraná and Minas Gerais. He went to the trade fair to meet new companies and products and review partners.
The buyer Pedro Paulo Toledo from Mobiliadora Novo Lar, which has 34 stores in the states of Minas Gerais and Espírito Santo, visited the Eletrolar Show & Latin American Electronics for the first time and confessed being “impressed” by what he saw. In his opinion, sales this semester should focus on refrigerators and televisions. “It will be the best sellers, and our expectation is an increase of 5% compared to last year.”
Also, from Espírito Santo, Cachoeiro Eletro, which sells white and brown goods, small appliances, computers, and cell phones, visited the fair, as they have done for six years. “Always looking for news, technologies, launches and to see where retail is heading,” said Jorge Luiz Chamon, managing partner of the company. With two stores, in Cachoeiro do Itapemirim and Marataízes, he closed deals at the Eletrolar Show & Latin American Electronics. “It is the opportunity to negotiate directly with those who manufacture or distribute. This makes it a lot easier; the negotiation is better.
Operating exclusively in online market, via its own e-commerce and in marketplaces of major retailers, MegaMamute Comércio Eletrônico sells 5,000 items, including consumer electronics, computers, cell phones, large and small home appliances. “Currently, the hottest category in sales is the television, accounting for 70% of revenues,” said the buyer Jonatas Luiz de Almeida. In the first half, the company earned BRL 250 million, 80% higher than the same period of 2018.
The company is trusting on Black Friday, Christmas and the 13th salary payment, said Jonatas, who worked in a physical store for many years. “In e-commerce, the sales dynamics are much faster and very dependent on good disclosure, right price, and good shipping value.”
Good sales are also the bet for Márcio Souza, owner of the Distribuidora RioCell, established in Rio de Janeiro. “Our expectation is very positive; we believe in a 30% increase in sales of cell phone accessories this semester. It’s a trend.”
Janaina Meneses’ Grupo Angeloni buyer of small appliances believes that vacuum cleaners and espresso machines will be the most sought-after products by consumers in this semester. “Blenders should sell well.” The group has 26 physical stores in Paraná and Santa Catarina and also operates in e-commerce.
Buying and selling in line with the market is what the buyer needs to do to avoid being overstocked, she says, who has been in the profession for 11 years. “Today, negotiations are more difficult. There are a lot of players fighting over who has the best price. The buyer also needs to have a business feeling and have good relationships.”
Sales expectations are positive this semester also for cases, chargers and films, said Leilane Toffoli, the partner of Capinhas Fofas, which has three stores in the state of Bahia and has been in e-commerce for eight years, where the company started. It also acts in the marketplace. “At the trade fair, we closed good deals, strengthened relationships with the companies we already had contact with, and expanded the range of suppliers.”
Lojas Volpato, which has 43 physical stores and is starting its own e-commerce operation, operates in the states of Rio Grande do Sul and Santa Catarina with all lines of appliances, cell phones, sound, image and furniture. The network is optimistic for this semester, said Lenirce Agostinetto, purchasing manager. “The cell phone and consumer electronics lines are warm, and this movement should intensify. We expect consolidated growth of 10% in 2019, compared to 2018.”
The company was at the Eletrolar Show & Latin American Electronics to prospect new business opportunities, seek launches and meet suppliers. They liked the result and the structure of the trade fair. “It is an event that should be visited by everyone who works in the consumer electronics market,” reported Lenirce.
With eight stores in Brotas (SP) and acting in e-commerce, Marciu’s Magazine works with furniture, home appliances and gifts. “Physical stores sell more, but the virtual ones helped a lot of products. Maybe in 10 years the opposite will happen,” said the director of the company, Márcio Levoratto, who believes in the feeling of the buyer. “But they need to be very alert for products not to pile up. Today is difficult, models change very fast, and it’s important to know who they’re buying for.”
Crisis in the end
Rede Morelar, which has 10 stores and a distribution center in Espírito Santo and works with cell phones, home appliances and consumer electronics, believes sales in the second semester will be better than those in the first. “The crisis is beginning to show that it is over,” said the co-owner Ronaldo Moreira.
From the products, the most sought are cell phones. “They are essential for the consumer, but the white goods and the small appliances also have
good sales,” said Ronaldo, who went to the trade fair looking for business and products. “The Eletrolar Show & Latin American Electronics is fundamental.”
Specialized in audio items and mobile accessories, HR, from São José dos Campos (SP), operates in physical and online stores. “E-commerce sales represent 50% of our revenues,” said the owner Hélio César. For him, the ease of consumers researching prices within the store stimulates online sales. “It is harder for physical retail compete with e-commerce, which has lower costs.”
Gamer on the rise
Retail network in the computer segment, with 13 physical stores in Rio Grande do Sul, Digimer Produtos de Informática operates with e-commerce and telesales, and is confident in sales this semester. “Especially from the gamer segment which is very active and our flagship printer cartridges,” said the buyer Aline Duarte.
The company has a very strong partnership with its suppliers, which often help them make a choice that is as assertive as possible. When buying
gamer line, the young people are added to the dialogue, says Aline. “I already made a purchase with feedback from teenagers and it worked very well. We need to always be prepared and updated.”
With 11 stores in the interior of Bahia, Thalisson Alves dos Santos, partner of the Rede Casas Ramalho, which focus is computer, cell phones and audio, bought 30% more than last year at the fair. “The Eletrolar Show & Latin American Electronics is the best showcase I know, always following the technology. The buyer, today, should be cautious, as billing begins at the time of purchase. Only then we can sell better.”
Five months ago, a group of retailers from Bahia and Pernambuco, representing 44 stores in total, came together to create the Rede Casa. For this shopping network, they created a single CNPJ. Together, they negotiate product, value and transportation, according to the region and the profile of the consuming public.
“It was the way we found to get out of the disadvantage position against the big networks,” said Luciano Cavalcante Leal of Eletroleo, which sells
white goods and small appliances. “We all grew an average of 20% after the union. This is the way,” said Laércio Nopa Azevedo of Casa Petrônio. For now, the group operates with physical stores, but is already studying the opening of an e-commerce in Paraíba, where the tax incentive is better.
Selling 30% more this semester compared to the same period of 2018 is what Carlos Martins expects, owner of the Distribuidora Eletroimport, Porto Alegre (RS), which serves medium and small retailers. “Today, with the range of offerings, the buyer needs to know trends, packaging and finishing. A plus point is the quality of the products, which has improved. Enough of the disposable products.”
Owner of Okay Soluções em Tecnologia, in São José do Rio Preto (SP), Danielle Singolani bought at the trade fair 20% more accessories than the previous edition. “These products sell, people use their cell phones a lot and they want evolution in everything. Slim news, with smaller and lighter devices, is very welcome,” said Danielle.