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What has also occurred in recent years, because of the crisis, is a diversification of the sector
The home and construction sector started 2019 with good news. According to a survey conducted by the Brazilian Franchising Association (ABF), the segment registered 12.9% growth in its sales compared to the same quarter of 2018. These numbers, however, can not be considered as a trend that will be reflected during the year.
“This growth was probably driven by the sub-segment of reforms, gardening, and decorating. It does not mean a direct relationship with civil construction, “says Paulo Ancona, managing partner of Ancona Consultoria.
“The end consumer was lacking in care and invested in reforms. The services of maintenance and cleaning are with the market more heated by the perception of the corporations of the need of preventive management in what concerns the electrical, hydraulic maintenance, of air conditioned, etc. The one who was asleep, because of lack of hope in the reheating of the economy, seems to have awakened. Let’s see for how long, “says Ana Vecchi, a franchise specialist.
This is what Lara Rossete, operational manager of the Zaiom Group, owner of the franchise, Doutor Faz Tudo, says. “The crisis ended up helping the network. Because of it, people are looking for more and more reforms, rather than taking the risk of buying new real estate.”
Francisco Maciel, franchisee of the Builder’s House, a network that specializes in the leasing of construction equipment, agrees. Partner of the franchise since 2009, he says that the crisis has affected very little of his business by acting in the retail niche of construction. According to Maciel, “if the person did not buy a new apartment, it will reform what it has.”
Maciel, 69, decided ten years ago after retiring to enter the home and construction franchise business along with his wife, Wilce Maciel, 67. For 37 years working in the financial market, he says that he has always liked the area and, by appointment of an old client, ended up opting for the House of the Builder after conducting research on the subject. With an initial investment of R $ 400,000 to open its first store, today it has three establishments, one in Santana and two in Santo André, in the ABC of São Paulo.
Variety. What has also occurred in recent years, because of the crisis, is a diversification of the sector, with the insertion, for example, of products from other areas, such as gardening and cleaning, which has generated a change in the profile of customers. If before they were mainly from the construction area, they started to incorporate people and companies from outside the sector, such as condominiums.
About this, Maciel points out: “We have been diversifying the product line. You had four or five building products that were the boss cars, but the growth that occurred in the period took place in other lines, such as cleaning and conservation. There was a big change when we started to see customers migrating, which were connected to the building. Suddenly, we had more physical and legal people not attached to the buying area. ”
IGUi, the only construction company to be included in the ABF ranking of the 50 largest franchises in 2018 units, also diversified its portfolio, creating pools for a lower purchasing power public.
“Our consumer profile, which was more of the A and B classes, changed because we created new products, incorporating Class C as well,” says Philip Sisson, founder and CEO of the network.