In the past months we've been researching brands that have entered Brazil and succeed. The Italian group Luxxotica owner of Ray Ban and Oakley stood out because of their patience, product differentiation, unpredictable marketing and "local growth teams" earning market leadership.
Luxxotica, is the world's largest eyewear company, best known for the Ray ban, Persol and Oakley brands. They began operation in Brazil in 1992, but their jump of 40% in sales was between 2011 and 2013, from €168 million to €235 (Luxxotica Report). In a country of instability both economically and politically how can a company grow with a "luxury" product? We believe the answer lies in three points:
1. Brazilians are buying less and better. Brazilians love brands and design, spending in overseas trips has be larger than ever, but people like the convenience of buying in Brazil when the price is right. Their strategy of producing in Brazil and offering at a better price point and in installments makes the purchase barrier less intimidating and more attractive to buy locally.
2. Product obsession of Ray Ban and Oakley. In a sea of "sameness" Ray Ban and Oakley thrive. Product development and innovation have been pillars of these brands since their birth, never complacent, they understand the need to offer emotional and physical benefits. See earlier post about Oakley's innovation.
3. Local presence. I have a fascination for brands that get it right, and this last point is crucial because Brazil is large, logistics and distribution are complicated, having a local presence accelerates the learning curve and local adaptation. Incremental improvement are many when you have a great team locally: time to market, retail nuances, and strength in the right investments in PR and marketing are only possible with a "local growth team" that drives the brands energy and visibility.
How does your company plan growth in Brazil? Does it link the three points above?
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