Magalu targets fashion

Magazine Luiza (also known as Magalu), famous for its huge success in the vast and complicated Brazilian market and for its embrace of a virtual influencer/brand ambassador, Lu, is now targeting fashion.

Why it matters

With 1,300 stores across Brazil, Magalu has the potency to enter whichever category it wants. Like some of the most powerful firms, it’s thanks to the underlying strength of the brand and retail formula that it continues to make such strident progress.

What’s happening

• Speaking to the Business of Fashion, Silvia Machado, fashion director at Magazine Luiza explained how the virtual influencer is an important “part of our fashion strategy”.
• Part of its strength as a retailer is how it caters to the most as well as least wealthy in Brazilian society, and understands that it must span from value to premium segments in order to win.
• In addition, the brand sees opportunities among the many third-party retailers that would be interested in working with Magalu to reach its vast user base.

Key quote

“Unlike other retailers, they are betting hard [on fashion] and they are investing significantly in artificial intelligence and data; they have been getting to know their customer like no other brand in Brazil” – Paula Merlo, editor in chief, Vogue Brazil.

Sourced from the Business of Fashion