Company formed by Arezzo&Co and Soma is born with an estimated market value of R$13 billion
The market has just witnessed two movements that leave clues about the future of brand management. In January, car manufacturer Stellantis, owner of Fiat, Jeep, Alfa Romeo, Chrysler, Citron and Peugeot, among other brands, purchased 70% of the shares in the DPaschoal automotive service and maintenance network. At the beginning of February, Arezzo&Co merged its footwear empire with the clothing group Soma, which has Hering among the brands in its portfolio.
With its own characteristics, each business seeks to strengthen its proximity, perception and engagement with consumers in a market where it is no longer enough to simply sell quality products. Complementing offers has become vital to surpass the competition.
Stellantis is moving towards assistance in search of differentiation, analyzes Marcos Bedendo, professor of branding at ESPM. The automaker market, previously led by North American brands, began to compete with the Italian Fiat, followed by French, Japanese, Korean and, more recently, Chinese manufacturers.
With opponents skilled in guaranteeing innovations, disputes became increasingly tied to the territory of price, neutralizing brand differences. The offering of services is occurring with many companies selling products, notes the brand consultant.
From a larger set of offers, Stellantis will be able to extend its relationship beyond the purchase of the car, which is not as frequent as the need for vehicle maintenance. The brand now has a constancy and greater presence in the lives of drivers, says Bedendo.
The operation comes from Stellantis to a retailer in the sector, a business considered small compared to a giant in the automotive sector. The deal between Arezzo&Co and Soma involves two companies of similar size. Together, they will form a conglomerate of 34 national and international footwear, accessories and clothing brands, more than two thousand stores, including their own and franchises, and 24 thousand direct employees.
Revenue reaches around R$12 billion, according to the respective gross revenues for the third quarter of 2023, and the market value is estimated at R$13 billion. The current leader in the sector is gacha Renner, which reaches the amount of R$14.4 billion, according to data from B3. C&A gets R$2.1 billion and Guararapes, owner of the Riachuelo brand, gets R$2.4 billion.
Read the full article in the propmark February 19, 2024
