During the pandemic, Magalu adhered to social isolation and was one of the few companies that did not carry out layoffs. It also made a commitment to preserve jobs and donated to philanthropic organizations that prioritized schools, women’s police stations, hospitals and APAEs.
Trajano’s efforts on this front paved the way for new revenue streams.
1. Easy to use
Magalu Marketplace allows sellers to sell their products in their physical stores as well as online. To get started, they must register on the Marketplace website and complete a form. They must then wait to be evaluated and approved. After that, they must log in to the system Integra Commerce, which manages their marketplace accounts.
Luiza Helena Trajano has a very human management policy, respecting the individuality of her employees. This has resulted in one of the best companies to work for in Brazil.
The company also adhered to social isolation during the pandemic and donated to philanthropic organizations, prioritizing schools, women’s police stations, hospitals, and APAEs. In addition, they have partnered with Linx to promote a real Omnichannel experience for their customers. This has helped increase sales and improve productivity.
Magalu’s omnichannel strategy, marketplace expansion, and focus on social impact have given them an edge over competitors and made them one of the top retailers in Brazil. By focusing on customer needs and embracing technology, Magalu has created an incredible shopping experience for its customers.
Magalu Marketplace is the virtual mall of the Magalu store chain in which thousands of merchants can sell their products to consumers who use the Magalu app. The platform can be used by individuals, MEI, and small retail chains to create a new digital channel and improve sales.
The super app enables users to make payments, buy and sell Magalu products, get insurance, and take advantage of cashback all in the same place. The app is designed to be lightweight and won’t overload a user’s phone or slow down their internet connection.
3. Free shipping
Magalu is also investing in the development of omnichannel services, including physical service points focused on developing relationships by showing human warmth to each customer. Moreover, it has created LuizaLabs, a technology and innovation laboratory that focuses on developing products and services with a retail focus.
Prior to the COVID-19 crisis, Magalu was well positioned in the market environment. It had several partnerships with philanthropic organizations (prioritizing schools, women’s police stations, hospitals, and APAEs); it engaged employees in social actions; and it inserted a clause on corporate responsibility into contracts with suppliers that guaranteed compliance with legislation, preservation of the environment, and respect for people and human rights. This teaching case examines how these non-market strategies impacted Magalu’s behavior during the crisis. It is suggested that students explore the integration of market and non-market strategies to identify improvements as well as other strategies to face crises.
4. Fast delivery
In order to keep the flow of orders during the COVID-19 pandemic, Magalu implemented a platform called Parceiro Magalu to attract small retailers to the online market. The platform allows sellers to register their products, track orders through Correios and offers a section of business intelligence unifying physical and digital sales and management data.
Magalu’s click to WhatsApp ads allowed potential sellers to start a chat with the company through WhatsApp, providing them with explanatory videos and directing them to specialists that could answer their questions. This helped Magalu keep a strong retention rate, even during the pandemic.
Students should examine the integration of Magalu’s market and non-market strategies. They should highlight improvements and suggest new strategies that the group could implement to face the crisis.
5. Easy to manage
Magazine Luiza’s purpose is to bring “to many what was accessible only to a few.” To ensure that her customers are satisfied, she listens closely to them. She even has an ombudsman program in her retail network, and she personally answers their questions.
She also implements a digital philosophy within her company, turning the physical points of sale into large digital platforms and incorporating e-commerce into its structure. This has enabled her to achieve one of her goals: democratizing access to the product categories that Magalu offers.
Managing such a large ecosystem requires scalable zero-trust security solutions to protect Magalu against threats like DDoS attacks and malicious bots. To do this, they count on Azion to evolve their defense posture through edge-native real-time firewalls and analytics, providing their SOC team with granular access control, fine-grained bot management capabilities, and automated threat blocking.