The examples are endless. And there is no sign of a retreat.
In a scenario where services are irreversibly taking up an increasing share of household spending on a global scale, the challenge is to find ways to add services to products and brands, offering complete solutions.
It is worth remembering that, among the five largest economies in the world, services represent, on average, 80% of GDP — with the exception of China, where this share is 54%, but is also growing.
In Brazil, the retail sector was a pioneer in offering financial services integrated into business, with credit, insurance, cards, payment methods and other options. Carrefour, Pão de Açúcar, Magalu, Renner, Riachuelo, C&A and others have moved forward with their own banks or strategic partnerships. However, there is still timid progress in other areas — a reflection of a business model excessively focused on the resale of products — which opens space for brands and suppliers to take the lead.
The vision of the future
The future points to retail based on integrated solutions — products combined with services — in response to structural changes in consumer behavior. This is an irreversible trend: the more developed a society is, the greater the weight of services total spending.
In the food sector, the transformation is particularly evident. The share dedicated to food prepared outside the home (foodservice) is growing. In the US, spending on ready-to-eat food already represents almost 60% of total spending on food.
This change has led the main supermarket chains in Europe, the US, Korea and China to expand their areas of ready-to-eat food, both inside and outside their stores. Walmart, Whole Foods, Dominick’s, Coop, Fair Price, Carrefour, among others, are examples of this movement. Furthermore, in the convenience and proximity segments, the supply of ready-to-eat food has a growing share of revenue.
A similar phenomenon is occurring with pharmacy chains such as CVS, Boots and Watsons, which have been expanding their operations with medical exams, hearing and eye services, vaccinations, health monitoring and even telemedicine in the United States, England and Asia.
In Brazil, despite legal limitations, the progress of some pharmacy chains is also notable, with services such as vaccinations and others. What stands out is what RD, Pague Menos, Araújo, Panvel and others have offered.
Brands are moving faster
While retailers are still hesitant about the ambition of this integration, brands and suppliers are accelerating. They combine products, services and experiences into complete solutions for consumers.
An early milestone was P&G, which launched the Mr. Clean Car Wash chain in 2007, with its own stores and franchised operations. Although it only has 18 units in the US, the concept was a significant pioneer.
Today, Sherwin-Williams operates around 4,800 stores in the Americas, offering consulting, training, custom color mixing and its painting by itself. In Brazil, Unilever is expanding its 3,500 Omo laundries, both corporate and franchised, and has recently also started to integrate cleaning products and services into a new platform. JBS, the largest global animail protein vender, is following the same path with its Swift stores. There are already 600 units, including corporate stores, insite supermarkets operations and mobile stores, offering meat in different categories and cuts, as well as customized solutions. Portobello among the largest tile producer is integrating stores, customized projects and installations.
Apple itself, on another level, is an example with its stores offering free services to differentiate and develop customer loyalty, as well as paid services such as training, subscriptions and repairs. Or even L’Oréal, with its Perso app for customizing makeup and skincare formulas.
No return path
The growth of services is directly linked to the maturation of societies. For retailers, differentiation and loyalty will come from offering integrated solutions — ideally with their private brands.
Suppliers and vendors also recognize that connecting with consumers requires strategic repositioning: integrating products, services, distribution channels and experiences, with a focus on generating value and improving profitability. And with the privilege of direct relationship and real-time information on market behavior.
The competition for relevance by integrating products, brands, services and solutions will be increasingly intense.
For all players, there is no turning back.
Marcos Gouvêa de Souza is the founder and CEO of Gouvêa Ecosystem and publisher of the Mercado&Consumo platform.
*This text reflects the author’s opinion and does not necessarily reflect the position of Mercado&Consumo.This text was translated with AI.
Image: Shutterstock
