Brazilian shoppers demand more
Shoppers in Brazil feel the retail sector is not keeping up with their desire to get involved, and is behind the other sectors in the study. Ironically, this is most noticeable in an area retailers should be able to engineer better than any other category: that of brand experience. But the exceptions point to what is possible.
6 of the bottom 15 Brazlian brands in the overall Index are from the retail category. Overall consumers strongly disagree that retail is delivering the kind of experience they want or expect. Brands are seen as lacking distinctiveness and consistency of experience. Worst of all, there’s a sense that they are not trusted by other people. Perhaps as a result people are less interested in what the brands do next than for brands in other categories. As a result consumers are not willing to pay a premium for many of these retailers. The exception is the one retail brand in the overall top ten: Boticario. 76% of consumers see it as a provocative, challenging and ultimately interesting brand and so are willing to engage with and spend more with.
The strong performance of the retail sector in other markets suggests that Brazilian retailers are struggling to keep up. Consumer expectations are accelerating rapidly and brands need to work harder to keep up if they want to keep their customers. The top retail performer, Boticário, shows it’s possible to break the category mould and stand out as a more relevant Participation Brand.