Supermarkets bet on classes D and E to grow
Folha de S. Paulo
The growth in the supermarket sector has been driven by class C in recent years, but the segment already sees change in the scenario. The forecast is that as of 2011 the growth comes from the classes with lower income. "The economic levels of the base, such as classes DE [average household income of up to R$ 680/US$ 425], are still deprived of the consumption of some categories of products", says Claudio Czarnobai, of Nielsen, that developed the "2011 Changes in the Brazilian Market" survey.
According to Czarnobai, in 2010, the growth in the consumption of 139 categories of products (foods and beverage, hygiene, health and cleaning) came from Classes C1 and C2 (household income from R$ 962/US$ 601 to R$ 1,459/US$ 912). In 2011, it will come from classes C2 and DE, and in 2012 it will basically result from DE. "The classes in the pyramid base take over a key role". Martin Paiva, Economist of the Apas (São Paulo Association of Supermarkets), says the sector has been noticing the change and seeking to adapt to it.
The large supermarket chains have undergone transformations. The Pão de Açúcar group has identified the change in the habit of the emerging consumers. "We're seeing a much more consistent class C and a class D mixing to it", says the Vice-President of the group, Hugo Bethlem.
One of the strategies to cater to the public was to convert the CompreBem and Sendas brands into Extra Supermercado, which features a wider array of products and services.
Carrefour also claims to have identified growth in the participation of classes C, D and E and it has diversified its business model. "In Brazil, Carrefour features in its portfolio the formats of Hypermarket, Neighborhood market, E-commerce, Atacadão (wholesale) and Day%, and the last two have greater presence of customers of those classes", he informs.