Better mousetraps for the poor

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Magazine_luiza1 Frances Frei joins a growing group of scholars who provide evidence of substantial business opportunities at the "bottom of the pyramid." From her newest case study:

Magazine Luiza has made a business of targeting the bottom of the pyramid and is beloved as a company by employees and customers alike. I couldn't think of a service business that fit that description in the United States. We've been unable to crack that code of 'courting the poor' in any systemic way […]"

The Brazilian retailer managed to post profit for 12 consecutive years, and its customers have record-high loan repayments rates:

Magazine Luiza has also developed a flexible procedure for credit approval, using nontraditional metrics to enable customer with lower, less easily established incomes (a pushcart vendor, for example) to make purchases.

To get a feel of the store watch a 3-minute amateur video (in Portuguese, music included).

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