26 October, 2005

Retailer Watch - 1 : Casas Bahia

        World's top revenue earning company is a retailing firm (Wal-Mart). The revenue and growth potential even beats the petrochemicals industry. Last year, I read Sam Walton's "Made in America". The inspiration and management philosphies followed in retailing firm are very attractive. Growth potential is limitless;Your thoughts are your only limit. In Indian scenario, FoodWorld and Pantaloon's success shows the hidden potential of retailer market. In India, regional players and local players dominate the scene in their market. I wish to write a series of blogs on top world retail leaders' business strategy. This is about CASAS BAHIA, Brazilian.
        Heard about Casas Bahia from "Fortunes at BOP" book by CK Prahalad. Casa Bahia's business model revolves around easy financing. They are market leaders in Brazilian retailer market. Its finance arm extends credits to all commoners, not based on their earning potential. BOP customers see casas bahia as way to achieve their aim and not as a capitalist icon. (Lucky!). Passbook and EMI schemes are used extensively. The credit history decides their buying limit. Cross-selling for existing customers when they checkin for EMI payment also adds up revenue. Same kind of business plan is emplyed by retailers in Indian local market too with lesser scale. Wal-mart style discount shops with Casas Bahia style easy financing will be sur-shot business model for retailer in India.

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