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Whole Foods in Brazil
Transcript of Whole Foods in Brazil
Marcus Sousa Why Whole Foods? And NOT BRIC Countries The retail market in the BRIC countries is mainly unorganized The supply chain and the infrastructure supporting the retail industry are being updated
The credit lines are becoming more accessible for people with low income BRIC consumers are changing their purchasing habits
Low cost of labour
2010 Global Retail Development (GRDI) country attractiveness BRIC Countries and Organic Food BRAZIL
Organic market growing among 35% to 45% yearly
5th place in total area for organic production
Internal organic certification and organic laws
Pro Organic Plan, officially stimulating organic production
Organic catering at the World Cup in 2014 INDIA
High premium price for most of Indian population
Small potential domestic market (3 million estimated) CHINA
1.85 million hectares of organic farmland
CNCA is responsible for all types of certification
Imported organic products have to be certified under Chinese organic standards
market saturation in some organic products (rice, fresh vegetables) RUSSIA No domestic organic-certification process
Organic food importation-many logistical barriers
Insignificant organic farm area (57.000 Hectares) Risks and MiTIGATIONS Failure to achieve significant scale
- Large cities vs. small towns
- One stop shop
Competitive advantage is not fully transferablE
- Network of suppliers Business environment
- Financial instability
- Currency exchange devaluation
- Ease of starting / doing business
Low acceptance of organics
- Perception as boring
- Weak regulations and risk of contamination EXPANSION STRATEGY Model Why not buying Previous UK experience Concept Lifestyle food needs Growing Middle class Fair trade + sustainability TARGET MARKET Health Seeking mothers Future Mothers Health industry workers Lifestyle-seeking-hippie Adults 50+ Internal migrants ?