Differentiation, Brazilian style

Differentiation is in business terms defined as making your product or service different from others, to make it more attractive to whoever it is you want to sell it to. Brazilian shops are a great example how not to do it.

When driving through the villages of the Brazilian hinterland, we often see all kinds of artisan products on sale: wooden kitchen ware, straw hats, puppets or clothes, stone pots, etc. However, in any given village, you only see one of its kind, e.g. 5 small shops with carefully laid out wooden kitchen ware – all in exactly the same style, from the same material, for the same price.

Another example are the Tapioca stands on the beach. Tapioca is a regional specialty; a kind of pancake made from manioc flour filled with coconut, cheese and other stuff. It seems to be an unwritten law, that there can never be just one Tapioca stand. No, there have to be four if not five stands, one next to the other, selling the same food, for the same price and with the same slow service.

Even in the city centers, it is not rare to find clusters of shops all selling identical products. On the contrary, some streets are known for having dozens of bike shops, car repairs, furniture or household appliances shops. At least there, it comes to the advantage of the customer: With only a little bit of negotiation skills, it is possible to get a really good bargain.

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