Big brands and small businesses
Posted: Tue Dec 03, 2024 10:45 am
Small retailers highlight the value of leading products on the shelf, but disapprove of relationships with companies, according to a survey by WMcCann
A survey conducted by WMcCann showed that a large portion of small entrepreneurs feel that their potential as sales partners is something that is overlooked by large brands. Called “Truth About Street – In the Trench”, the study was based on data from Sebrae, which shows that 99% of businesses in Brazil are owned by small entrepreneurs. This large portion of the market represents 25% of GDP, 40% of wages and 70% of new jobs.
According to the interviewees, L'Oréal and Coca-Cola are more profitable and with whom they have a better relationship. However, they state that brands, in general, are only interested in their business, not in the progress of the enterprise. Only 11% of participants said they form a true team with suppliers.
Almost a quarter (24%) of small entrepreneurs feel the need to offer certain brands in order to maintain the quality of service. Those that feel the greatest need are beauty salons (28%), restaurants (25%), grocery risk managers email lists stores (24%) and bars (20%).
But brands are not the only villains. As a highlight in the relationship with suppliers, interviewees reported that the greatest help they receive from brands during sales hours is investment in advertising (28%), followed by payment methods (23%), incentives to keep products in the catalog (19%), sales force and furniture and merchandising material (15% each).
The WMcCann survey was conducted in 22 cities in 20 countries in Latin America. In São Paulo and Rio de Janeiro, 51 neighborhoods participated. 3,500 owners of small businesses in the food and beauty sectors were interviewed, almost half of them in Brazil, where there are 151,000 beauty salons, 60,000 bars and 54,000 grocery stores. The countries that collaborated were, in addition to Brazil, Argentina, Paraguay, Uruguay, Chile, Bolivia, Venezuela, Colombia, Peru, Ecuador, Guatemala, Nicaragua, Costa Rica, Puerto Rico, Panama, Trinidad & Tobago, Honduras, El Salvador, Dominican Republic, Honduras and Mexico.
A survey conducted by WMcCann showed that a large portion of small entrepreneurs feel that their potential as sales partners is something that is overlooked by large brands. Called “Truth About Street – In the Trench”, the study was based on data from Sebrae, which shows that 99% of businesses in Brazil are owned by small entrepreneurs. This large portion of the market represents 25% of GDP, 40% of wages and 70% of new jobs.
According to the interviewees, L'Oréal and Coca-Cola are more profitable and with whom they have a better relationship. However, they state that brands, in general, are only interested in their business, not in the progress of the enterprise. Only 11% of participants said they form a true team with suppliers.
Almost a quarter (24%) of small entrepreneurs feel the need to offer certain brands in order to maintain the quality of service. Those that feel the greatest need are beauty salons (28%), restaurants (25%), grocery risk managers email lists stores (24%) and bars (20%).
But brands are not the only villains. As a highlight in the relationship with suppliers, interviewees reported that the greatest help they receive from brands during sales hours is investment in advertising (28%), followed by payment methods (23%), incentives to keep products in the catalog (19%), sales force and furniture and merchandising material (15% each).
The WMcCann survey was conducted in 22 cities in 20 countries in Latin America. In São Paulo and Rio de Janeiro, 51 neighborhoods participated. 3,500 owners of small businesses in the food and beauty sectors were interviewed, almost half of them in Brazil, where there are 151,000 beauty salons, 60,000 bars and 54,000 grocery stores. The countries that collaborated were, in addition to Brazil, Argentina, Paraguay, Uruguay, Chile, Bolivia, Venezuela, Colombia, Peru, Ecuador, Guatemala, Nicaragua, Costa Rica, Puerto Rico, Panama, Trinidad & Tobago, Honduras, El Salvador, Dominican Republic, Honduras and Mexico.