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A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Latin American consumers right now.

For prior Sales Leads LatAm editions, click here.

  • Despegar & Falabella

Despegar.com, Corp., the leading online travel company in Latin America, announced it has entered into an agreement with Falabella Financiero, a subsidiary of Falabella, through which both companies plan to establish a 10-year commercial agreement in Chile, Colombia, Peru, and Argentina, the term of which could be extended. Included in the transaction is the transfer of 100% share ownership of Viajes Falabella’s operations to Despegar.The acquisition of Viajes Falabella in Chile, Colombia, Peru and Argentina, together with the license to use the Viajes Falabella brand name has been agreed for a total consideration of US $27 million. The transaction assumes the transfer of these operations free of any financial debt.With this agreement, clients of both companies will have access to an enhanced travel and tourism product and service offering, through an omnichannel service model (online, call center and physical stores). In addition, customers will be able to access exclusive discounts, earn double CMR Points Falabella’s loyalty program, both at Viajes Falabella and Despegar, as well as an expanded product offering in exchange for CMR Points at Viajes Falabella.Viajes Falabella will maintain the brand, its network of physical stores and its digital platforms, to enhance the supply of products and services of Despegar.

  • Natura

Natura will take over the operations of The Body Shop in Latin America. Effective on May 2019, the shift is part of the Natura &Co group’s strategy to enhance synergies between its different brands and is in line with the transformation plan of the British cosmetics brand aiming to strengthen its presence in the region.Today, The Body Shop has about 160 stores in Latin America, including franchises and own stores, with presence in Brazil, Chile and Mexico. Natura’s Retail Director, Paula Andrade will also lead the operations of The Body Shop in the region, using the existing structures of the two businesses. A General Manager will be named in Brazil, where most of the stores are concentrated, as well as in Chile and Mexico.In Latin America, the plan includes: the adaptation of the global portfolio to regional specificities, with a greater emphasis on the fragrance and gift categories; a review of the store network management; the adoption of new systems to make The Body Shop retail more competitive; and increased brand awareness. In addition, the group wants to optimize The Body Shop production costs by using the Natura production facilities.Natura’s retail operation also continues to expand, with 37 own stores in Brazil and nine in international markets. In the second quarter, there are plans to open eight more stores in Brazil.

  • Santander

Santander has offered to take full control of its Mexican business through a 2.6 billion euro (£2.24 billion) all-share deal as the Spanish bank chases potentially higher returns available from Latin America. The deal proposed will unwind Santander’s listing of 25 percent of the bank on the Mexican stock exchange in 2012. The move is part of efforts to focus more on emerging economies while cutting costs to counter squeezed margins in mature European markets.The Mexico deal will also bring Santander head to head with Spain’s second-largest bank BBVA, which makes about 40 percent of its earnings from Mexico.Mexico is a highly profitable market, where Santander has set a mid-term target of 19-21 percent for the underlying return on tangible equity.Santander expects the transaction to have a return on investment of approximately 14.5 percent, to be neutral on earnings per share and to contribute positively to the group’s core Tier-1 capital ratio.

 

2019 NETWORKING SOLUTIONS. To find out about Portada’s new networking solutions targeting the decision makers of the above campaigns, please contact Sales Manager Isabel Ojeda at isabel@portada-online.com.

 

  • General Motors

General Motors has spent five years re-writing its playbook for making money in Latin America and the interior of China. Now, it’s show time for the first results of a project code-named GEM, for Global Emerging Market.The No. 1 U.S. automaker plans to unveil two small SUVs that will be part of a new family of sedans and SUVs the automaker forecasts will make up one in five of its global vehicle sales by 2023.This is just the opening salvo in a nearly US$5-billion bet by GM to sell up to 2 million technology-laden, modern-looking vehicles annually to consumers who today cannot afford GM vehicles designed for the United States, but may someday as their incomes rise.GM has finally found a way to make affordable vehicles in bulk for emerging markets, loaded with the technology that consumers want and still make a profit.The Chevrolet Tracker and the Buick Encore are the first tests of a new strategy for engineering vehicles to appeal to buyers in around 40 nations of the world’s middle class such as Brazil and Mexico.

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What: Chilean bricks-and-mortar retailer Falabella purchases Latin America online retailer Linio for US $137 million.
Why it matters: Online sales in Latin America will double to US $118 billion by 2021 and Falabella is preparing to be a major player, using its physical stores to key advantage.

Chilean bricks-and-mortar retailer Falabella is determined to be a major e-commerce player, and will likely use its physical stores to key advantage as it ramps up to compete with Amazon and MercadoLibre for online sales in Latin America. That’s how industry and regional experts explain Falabella’s recently announced purchase of online retailer Linio for US $137 million.

The word analysts keep repeating is “omnichannel.”

Omnichannel refers to the ability of bricks-and-mortar retailers to offer in-store pickup of goods ordered online.

It could become a key competitive edge for Falabella.

“This is congruent with a trend we are seeing of retailers getting smarter about e-commerce,” Lindsay Lehr, a senior director at the consultancy Americas Market Intelligence tells Portada.

One of the big stumbling blocks to e-commerce in Latin America is the inability of people to receive packages in their homes, which is why omnichannel purchasing is increasingly important, Lehr said.

The word analysts keep repeating is ‘omnichannel’.

Leveraging Stores to Boost Online Sales

Headquartered in Santiago, Falabella operates department stores, supermarkets, home improvement centers, malls and financial services in Argentina, Brazil, Chile, Colombia, Peru and Uruguay.

With the Linio purchase, Falabella’s online footprint expands to cover Mexico, Colombia, Venezuela, Ecuador and Panama.

The acquisition boosts Falabella to the #2 e-commerce spot in its home markets and begins the process of positioning it to take on MercadoLibre and the expansion of Amazon (Amazon Mexico’s Guillermo Rivera recently joined Portada’s Council System) in the region, Lehr says.

“They are getting prepared for what’s ahead.”

Betting on E-commerce

“The company is betting on e-commerce,” analyst and retailing expert Jorge Lizan tells Portada.

Even though online sales now only make up 14-15 percent of its business, Falabella is spending 80 percent of its development budget on the online channel.

Falabella will mine Linio’s database and leverage its e-tailing expertise to position Falabella to take on MercadoLibre and Amazon, Lizan says.

“Linio is very small. They didn’t acquire Linio for the size of the company or to be a big part of Falabella’s business. What Falabella is looking for in this acquisition is to get the infrastructure and expertise,” Lizan says.

Falabella will mine Linio’s database and leverage its e-tailing expertise to position Falabella to take on MercadoLibre and Amazon.

Getting ready to face Amazon

The Linio purchase is about protecting future market share from online competitors MercadoLibre, Amazon, Wal-Mart, and even Alibaba.

MercadoLibre is the undisputed leader in e-commerce in Latin America.

Amazon has taken second place in Mexico and reportedly has plans to expand its operations in Brazil. Its web services division has expressed a long-term interest in investing in Chile.

Wal-Mart is heavily invested in online sales in Mexico and Central America, according to Lizan.

Growing Digital to Offer More Products

With the permission of its shareholders, Falabella plans to raise US $800 million in capital to ramp up its efforts to go digital in Latin America.

“This increase in capital will allow us to accelerate our digitalization and grow regional services for our clients, offering our products across a diversity of channels,” President of SACI Falabella Carlo Solari said in an announcement of the Linio purchase.

“With this acquisition, the company advances its goal of being a leader in electronic commerce in the region,” said Falabella’s general manager Gaston Bottazzini.

Expanding product lines online

The Linio purchase gives Falabella something more than just an online presence. Online translates into the capability to offer customers a broader selection of products beyond the brands Falabella sells in its physical stores.

“They can have limitless numbers of brands which is something they can’t do in their bricks and mortar stores,” Lizan tells Portada.

Moreover, Falabella wants their stores to become fulfillment centers for online sales.

“The name of the game is omnichannel and will increasingly be in the future. Falabella’s brick and mortar presence will definitely give it an edge vs. MercadoLibre,” Lizan comments.

The name of the game is omnichannel and will increasingly be in the future.

Seeing a big online future

E-commerce in Latin America is expected to grow by 19% in the next five years – well above the global average of 11%.

Online sales in Latin America will double to $118 billion by 2021. And according to Lizan, retailing in Latin America is still under developed and under penetrated.

Falabella has the largest retail customer database in the industry; dominates its markets in key offerings such as grocery, home improvement and home and décor; and recently announced a partnership with IKEA in Chile, Colombia and Peru.

From 36,000 feet, the Linio purchase is “very small,” Lizan said. But the advantages on the ground are strategic.

“It’s a benefit for Falabella to have an e-tailer in their portfolio because they will learn from them and the learning curve will be shorter.”

“It is a very strong statement by Falabella.”

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the market and/or targeting Latin American consumers right now.

To subscribe to Portada’s Interactive Database of Marketers targeting LatAm consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com.

For prior Sales Leads LatAm editions, click here.

  • Falabella

descarga (7)Media agency GroupM will create a specific agency to serve retailer Falabella in Chile, Peru, Colombia and Argentina. The account was handled by StarCom.

 

 

  • China Southern Airlines 

descarga (8)China Southern Airlines inaugurated its first flight on April 11 on the Guangzhou-Vancouver-Mexico City route. This is the first route operated by a Chinese airline to Mexico,and the first-time China Southern Airlines has flown to Latin America.The inauguration of this new route demonstrates the importance that Mexican President Enrique Peña Nieto and Chinese President Xi Jinping give to increasing flights between the two countries.This new air route will play an important role in strengthening tourism, business and the exchange of people between Mexico and China, and this is the result of the Comprehensive Strategic Partnership, which is focused on obtaining concrete results in priority areas of the agenda that was agreed by the leaders in 2013.

 

 

  • Marriott

descarga (6)Marriott’s AC hotel brand is coming to the Caribbean with the new AC Hotel San Juan, Puerto Rico.The property will take over at the former Radisson Ambassador Plaza & Casino, following what Marriott called a “comprehensive renovation of the property.”The hotel had been acquired by Ashford 1369 Hospitality LLC, an affiliate of Interlink.AC Hotels by Marriott is planning a major expansion, with 91 hotels in the pipeline.

 

 

 

To get detailed contact information about the DECISION MAKERS BEHIND THESE CAMPAIGNS AND ACCESS AN INTERACTIVE DATABASE OF MORE THAN 2,500 MARKETERS targeting LatAm consumers, please contact Sales Research Manager Silvina Poirier silvina@portada-online.com to activate your subscription.

  • CD Baby

H1l6_Z3j_400x400CD Baby is expanding in Argentina hiring Martín Liviciche to open a local office. Already one of the largest distributors in Latin America, CD Baby represents 20,000 artists from Brazil, Colombia, Chile and Mexico.Martín Liviciche has been hired to open a local office of CD Baby in Argentina, expanding the D.I.Y. and indie music distributor’s already substantial Latin American presence. Livichiche founded his own label and publishing endeavor and has managed publicity for major government cultural initiatives and festivals in Buenos Aires.

 

 

 

 

  • Azul Linhas Aéreas Brasileiras

descarga (9)Azul Linhas Aéreas Brasileiras SA,  Brazil’s third-largest airline by passengers, has raised US$571.2 million in an initial public share offering Monday in Brazil and in the U.S., and shares began trading Tuesday morning.Azul sold 85.4 million preferred shares for 21 reais (US$6.70) each and ADSs for $20.06. Shares will trade on Brazil’s B3 stock exchange, until recently known as the BM&FBovespa, and on the New York Stock Exchange as “AZUL.” Azul investors sold 22.4 million shares, out of the 85.4 million. Azul said in IPO documents that it plans to use the net proceeds of the sale to cut debt of approximately 315 million reais and will use the rest for general corporate purposes.

 

 

  • CABIFY

descarga (5) Cabify, international transportation network company, is planning to invest US$200M on Brazil expansion. Cabify, the transportation app with a presence in 11 Latin American countries and Spain, announced plans to invest US$200m in Brazil to fortify its presence in the country. Investors in Cabify include Variv Capital, Rakuten, Seaya Ventures, and others. Over the past twelve months theapp has seen unprecedented growth in terms of share mobility and volume of rides in Brazil. Consolidating the presence there is a core part of its’ strategy.

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We have incorporated new features to the interactive database of corporate marketers and agency executives targeting LatAm consumers:
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A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Latin American market and/or targeting Latin American consumers right now.

CHECK OUT PORTADA’S INTERACTIVE DIRECTORY OF CORPORATE MARKETERS AND AGENCY EXECUTIVES TARGETING LATIN AMERICANS! If you want additional information or to acquire the database, please call Jennifer Chan  347-840-1311 or e-mail her at jennifer@portada-online.comSEE A DEMO OF THE DIRECTORY!

Click here for previous Latam Sales Leads editions

  • Falabella

descarga (3)SACI Falabella, Latin America’s most valuable retailer after Wal-Mart de Mexico SAB, agreed to open home-improvement stores in Mexico in a joint venture with Organizacion Soriana SAB. Shares in Soriana rallied.The two companies will invest US$600 million to open 20 Sodimac stores over five years, according to a filing Friday on the website of Chile’s securities regulator. Santiago-based Falabella will offer its CMR credit card through the venture with Monterrey-based Soriana, Mexico’s second-largest grocer. They expect to sign definitive contracts within three months.Mexico becomes Falabella’s seventh market in Latin America, where the company also operates department stores, supermarkets and malls. It has been using its Sodimac brand to spearhead its most recent expansion and profit from a growing middle class in the region.Soriana rose as much as 6.1 percent in Mexico City, extending gains after the announcement, which was made after close of regular trading in Santiago. Soriana has 682 stores throughout Mexico with 3.2 million square meters of sales space, according to its website. The company’s shares have traded on the nation’s stock market since 1987.

  • Air Canada Cargo

26D4Qt5X_400x400Air Canada and Cargojet Airways Ltd., a subsidiary of Cargojet Inc (“Cargojet’) have announced they are finalizing a commercial arrangement that will result in Air Canada Cargo introducing dedicated freighter services from Canada to Latin America and Europe with Boeing 767-300ER freighter aircraft operated by CargojetAir Canada Cargo will become the only provider of direct scheduled freighter service between Canada and Latin America.The new Air Canada Cargo flights are scheduled to begin June 9, 2016, subject to obtaining the necessary regulatory approvals.

 

 

 

  • Schweppes

2TaYCK_V_400x400Under Juan Pablo Lufrano, Rafael Santamarina  and Ariel Serkin general creative direction, Del Campo Saatchi & Saatchi Buenos Aires has introduced its latest work for Schweppes, for which it has teamed up with Coca-Cola South Latin. The campaign “Algún día lo van a entender”(“Someday you will understand”) is aimed at men and women around 40, who vindicate themselves against millennials. The effort will come out in the Southern Cone.

  • ICBC

descargaUnder the “ICBC, SI” concept, agency DON has developed ICBC bank’s new  annual campaign in order to empower their customers through its benefits and rewards program ICBC Club. Argentinian model Iván de Pineda will star in different spots pointing out how in different situations being part of ICBC brings the best benefits. The integrated campaign includes 8 spots that will go out on TV, print, outdoor, radio and digital.