By clothing-bag, 30/03/2022

Renner, the Brazilian clothing giant: "We learned what Cordovans like"

The landing of Renner –the largest Brazilian fashion store chain by billing level– was one of the latest good news to impact retail in the country. And even more so in Córdoba, a square in which it opened its first two stores in December 2019, a few days before the two it opened in the City of Buenos Aires. Renner, la gigante brasileña de ropa: “Aprendimos qué le gusta al cordobés” Renner, la gigante brasileña de ropa: “Aprendimos qué le gusta al cordobés”

Just a few months later the Covid-19 pandemic struck and all that it brought: generalized quarantine, the closure of shopping malls for months (the two local Renner branches are in Patio Olmos and Paseo del Jockey), radical changes in consumption of clothing, an even deeper economic crisis in the country and strong restrictions on imports due to the dollar deficit.

In this scenario, more than new landings, there were novelties of impact, but in the opposite direction: the strongest, Falabella's exit –considered one of the most challenging competitions for Renner– from Córdoba and the country.

What balance do you make in the Brazilian giant of these almost two years that you have been in Argentina? Is your interest in such a challenging market reinforcing?

“We can say that Renner's value proposition is in line with the Argentine market. We have a clear and consistent business model, an appetite for growth and we know that the local public likes the fashion that Renner offers. For this reason, we continue to believe in the country's potential”, Fabiana Taccola, director of operations at Lojas Renner, assures La Voz from Brazil.

In the so far only interview that the company that owns 635 stores in three countries has given to the Argentine media since the arrival of the pandemic, the directive drew up a balance of the time that has passed since its landing.

–How was the opening and growth plan modified in the country due to this new context?

–When the Covid-19 pandemic began, Renner had just opened its first stores in Argentina. Our intention was to consolidate and develop our operation in the country. I think we have met this goal. We had time to get to know Argentine consumers better and adjust our offer of products and services. As I mentioned, we believe in the potential of Argentina and we intend to grow in the country, but there is no opening planned at this time.

–You mention the pandemic, how did it impact your business?

Renner, la gigante brasileña de ropa: “Aprendimos qué le gusta al cordobés”

–In Argentina, we were impacted by operating limitations and even the closing of stores in certain periods, as was the case of our operations in Uruguay and Brazil. But the pandemic also represented a learning opportunity. We have evolved the way we work and come out of 2020 much stronger, more agile and more resilient. We quickly developed new communication channels, such as WhatsApp, which helped us maintain contact and relationships with customers, and became an essential tool, even after the reopening of stores.

–Did you manage to connect with the local consumer?

-We know that Renner is delighting the Argentines. We see this, for example, in the repo rate. Another indicator is the level of the charmometer, our tool that captures the feeling of customers when they leave the store. In Argentina, the satisfaction index measured by the charm meter is the highest we have in the entire company, with 98 percent of customers who feel very satisfied, and that the Argentine consumer is very critical and demanding.

-What did you learn about Argentine taste?

–Our value proposition really aligns with Argentine taste, so all product categories sell well. Women's and men's clothing is undoubtedly the most demanded. Beachwear and lingerie are also in high demand, as is the entire children's line.

–What about the Cordovan buyer? Did you accept them too?

–Cordovan consumers are extremely demanding, they look for quality products at a good price, which is very much in line with what Renner offers. Although we had the perception that the Cordovan public would like more basic items, such as jeans and t-shirts, we discovered that they also look for what we call “fashion” products, with more information on fashion.

-So we are fashion ...

–This was definitely a learning experience. Even the swimsuits and lingerie with a Brazilian cut are a great success. In short, it is a demanding public that values ​​quality. Although we already knew that, we were positively surprised by the good acceptance of articles with a more fashion and trend component, in addition to the more classic models.

Renner looks for his slice in Córdoba, a local market of $ 70 billion

–Did they have to adapt products designed in Brazil to the Argentine taste?

–We do not adapt the product, but rather the mix of products offered for each market. Even in Brazil, the selection of parts received by stores in the south of the country is not exactly the same as what we send to stores in the north and northeast. This does not mean that we design articles specifically for one region or another. The collections are universal, what we always adapt is the selection of products.

–Do we buy jeans like Brazilians?

-We have been learning what works best in Argentina. Brazilians are very fond of skinny jeans, while Argentinians prefer straighter pants. Vests are another piece that sells well in Brazil, but we realized that it had no outlet in Argentina. Based on these perceptions, we adjusted the product mix.

–You sell 20 own brands of clothing, footwear and accessories, and the bulk is produced in Brazil and Asia. Do you have many difficulties importing products into Argentina?

-We have to live with the limitation of import quotas, like the other companies that are in the country. Over time, we are learning to manage this challenge, adjusting our operation to local market conditions.

–Have you managed to develop local suppliers?

–At the same time, we are doing it; developing Argentine suppliers so that they can supply all the countries where Renner operates, not just Argentina. The restrictions imposed by the Covid-19 pandemic slightly delayed the search and development of new suppliers, but we are committed to continuing this process.

–With WhatsApp they managed to develop a digital sales channel in a pandemic, where is it going now?

–The sale by WhatsApp began in 2020 due to the need to intensify the relationship with customers, who were at home. Today people return to stores, but they also continue to buy through this digital channel. Consumers have become omnichannel. This modality has grown from last year to the present. WhatsApp builds customer loyalty and has a high conversion rate, especially in Argentina, where this channel was very well accepted.

–Why do you think it worked better in Argentina?

-We attribute this to the closeness of the public to this tool and also to the differentiated service offered by our highly attentive and efficient Argentine collaborators. Although it has a strong technological component, sales via WhatsApp depend a lot on personalized service, something that our Argentine teams do very well. We can say then that Argentina served as an example for Uruguay and Brazil in terms of the quality of the work done with WhatsApp.

Local fashion: the map that Renner arrives at

–Most of your business is in Brazil and you have eight stores in Uruguay. How is demand evolving in our country compared to the region?

–Both in Argentina and in Brazil we are experiencing a moment of resumption of the search for clothing. Demand is growing and is even exceeding pre-pandemic levels. Barring new restrictions, we believe this growth trend should continue. We are attentive to the scenario and continue to act in a committed manner with the health of employees, customers and suppliers, prioritizing the well-being of all.

$1.2 billion

It was the global liquid turnover of Lojas Renner SA in 2020. The number applies to the four chains of the group (Renner, Camicado, Youcom and Ashua) in three countries (Brazil, Uruguay and Argentina). It employs more than 24 thousand people, about 120 in Córdoba directly. Here, in his two stores, he invested 12 million dollars.

Tags: