Inside Magazine Luiza, the Brazilian fashion giant
What: A close look at a fashion giant and a digital pioneer.
Why it is important: The brand embodiment through a virtual influencer has created a close proximity between the retailer and its customers (also fuelled with the super-app ecosystem) which helped to navigate through the Covid-19 crisis and consider expansion abroad.
Magazine Luiza was founded in Brazil 65 years ago, and has become a national giant in fashion retail. They have 1,300 physical stores across the country selling a mixture of international brands and private labels, and are also present digitally with "Lu", a virtual influencer with 25m followers on Instagram.
The strategy pursued with Lu has evolved with time: launched in 2003, it was initially a virtual sales associate for the online channel (which was launched in 1991), but now she has evolved into a character that is known by customers, is mentioned in the annual report and is even features on Vogue's cover.
The company posted a total turnover of $7.7 bn in 2020, 59% more than in 2019, thanks to its e-commerce advance and capabilities, as well as the possibility to use the store fleet to fulfil orders. Marketplace has been launched in 2018 and already includes 120,000 sellers. The whole ecosystem is made available to customers via its super-app, which includes 30mn active users.
Cosmetics is the next category that the retailer is looking at.
Inside Magazine Luiza, the Brazilian fashion giant