Identifying the top retail chains in Brazil where you can sell your products is relatively easy. Approaching and convincing them is a much bigger challenge.
It may be a better strategy to find a distributor first who can help you to get your products in smaller chains or individual stores, and then help you to get to the big names. Or to start online.
In this article you will find more information on the retail market and guidance on how to convince retailers and distributors to work with you.
Brazil, the largest country in South America, boasts a population of approximately 213 million as of 2023. It is celebrated for its diverse culture, vibrant festivals like the Carnival, and natural landmarks such as the Amazon Rainforest and Iguazu Falls.
With a GDP per capita of around $7,000 USD in 2023, Brazil’s economy is the largest in Latin America. The country is a significant agricultural exporter, leading in products like soybeans, coffee, and beef. Additionally, Brazil has a substantial industrial base, producing automobiles, steel, and petrochemicals. The service sector, including finance, retail, and tourism, is also a major contributor to the economy.
Key cities include São Paulo, the largest city and economic powerhouse; Rio de Janeiro, known for its beaches and Carnival; Brasilia, the capital and a masterpiece of modernist architecture; Belo Horizonte, a major urban center; and Salvador, noted for its Afro-Brazilian culture.
Grupo Pão de Açúcar (Companhia Brasileira de Distribuição): Founded in 1948, Grupo Pão de Açúcar is a major player in the Brazilian retail market, controlled by the French Grupo Casino. The group includes a variety of store formats such as Extra (hypermarket), Pão de Açúcar (supermarket), Assaí Atacadista (cash-and-carry), and several household appliance and e-commerce stores.
Carrefour Comércio e Indústria Ltda.: This French group has been in Brazil since 1975 and is well-known for bringing the concept of hypermarkets to the country. Carrefour’s operations in Brazil include hypermarkets, supermarkets, convenience stores, cash-and-carry stores, pharmacies, gas stations, and various services like photo printing and technical support.
Wal-Mart Brasil Ltda.: The American retail giant entered the Brazilian market in 1995 and operates across various regions in Brazil. Their operations include hypermarkets, supermarkets, wholesale supermarkets, pharmacies, gas stations, photo printing services, and restaurants.
Cencosud Brasil Comercial Ltda.: Originally from Chile, Cencosud has been operating in Brazil since 2007 and has shown aggressive growth throughout South America. It includes several Brazilian supermarket chains such as Bretas, G. Barbosa, Mercantil Rodrigues, Prezunic, and Perini.
Companhia Zaffari Comércio e Indústria: A Brazilian group founded in 1935 in Rio Grande do Sul, it remains under the control of its founding family. The group operates Zaffari Supermercados and Bourbon Supermercados, as well as Bourbon Shopping malls.
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If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.
You should put a lot of emphasis on drafting a good distributor pitch. Even if you already have great sales materials for your end-users, this often does not make clear what the benefits are for a potential agent, distributor or retailer to work with you.
When you approach potential sales channels with your standard documentation, chances are high that they are holding of. If you make it crystal clear what are the benefits for them, like in the example presentation, you will get a much higher response rate.
Please note that it helps to put concrete data in your presentation. You may think it is sensitive, but just know the secret is in how you achieve the rotation or the low returns level, not in the data itself. So share it here, in order to get the right attention.
Distributors are risk averse, they know the portfolio they have and tend to be happy with it. They can’t just add a product or service to their range, since it will cannibalize on others: