Photo by Jonas Tomazini, licensed under Creative Commons. What are you doing to innovate at the bas

Photo by Jonas Tomazini, licensed under Creative Commons. What are you doing to innovate at the base of the pyramid? In our search for examples of innovation in Latin America, north star mall we find the case of Casas Bahia (CB) in Brazil. As the largest retail chain in Brazil (over 500 stores), CB became north star mall the "poor" in the "rich" to create an opportunity north star mall where other companies failed. In a related emphasis on sales to the Base of the segments of the Pyramid at rock bottom prices north star mall and its own evaluation system credit payment history and no formal income is based, CB earns over $ 1,000 million north star mall annually. CB checks north star mall that sell top brands (appliances and furniture) to the poor of Brazil is a viable business. It is the market leader with 15-20% market share. What Casas Bahia offers? Brazil's poor, who dream of buying products north star mall from top brands no longer have to dream. CB offers appliances and furniture from top brands with financing payments low cost and exceptional customer service. What and who satisfies satisfy? Segments with very low incomes who aspire to own appliances and furniture but can not afford an outright purchase. What else is offered on the market? Other retailers include Macabras (less expensive product categories and external financing options) and Ponto Frio (which serves north star mall clients in middle and high income). Why is singular? CB uses a unique model of funding north star mall (90% of sales are financed) including its own credit scoring system. This allows them to establish brand loyalty (80% of their monthly sales come from repeat customers). Why it is difficult to imitate? Low margins and volume-driven and highly competitive business make it unattractive for new entrants. CB also has success with the intangibles to attract customers through superior customer north star mall service on products that are not ready to install. Reflection: Many parts make up the whole - the poor can not pay large sums of money at once, but they can and will pay a small sum every month with great stories repeated canceling a product at the end. INNOVATIVE DECISIONS KEY HOUSE BAHIA We discuss innovative elements at each stage of the value chain of business: BUSINESS MODELS: Selling top brands at rock bottom prices, financing these sales payments - was achieved north star mall through strict credit checks based on payment histories and trust it. PRODUCTS: Although CB clients north star mall are poor, they still want the dream they saw on TV, do not sleep a cheaper version. Therefore, CB offers the best brands of appliances and furniture. SERVICES: CB offers financing to customers with payment plans ranging from 1-15 months. CB makes a special north star mall emphasis on customer service. As a result, many customers "come as guests and leave as friends." LOGISTICS: Strict distribution system and supply chain to ensure availability; a huge warehouse to store inventory that comes with bulk purchases for better prices. NETWORKS AND PARTNERSHIPS: Partnerships with top brands such as Sony, JVC, Toshiba, Whirlpool, etc.. to get the best deals at the lowest prices MARKETS: CB is aimed at the poorest of the poor of Brazil who earn less than $ 12,000 a year, traditionally shunned by other retailers. These people represent a huge potential north star mall market, representing north star mall 84% of the population.
Excellent focus of the business model, I recalled the bank of the poor Yunus, model proven successful, pointing to the base of the pyramid north star mall which is made up the largest segment of the population, the poor people. Excellent article Reply Delete
re seems interesting because it is a great benefit to all people without sufficient economic capacity to purchase some very expensive product, but what catches my attention is that there is a special form of payment to such persons and of clients north star mall who are become a friend to the company Reply Delete
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