Security and property protection are services provided by the GR Group.
São Paulo – The retail sector has increased its demand for outsourced security services. As a result, it is likely to become one of the main clients of the security and cash-in-transit logistics sector in the coming years. According to companies consulted by DCI, with the decline in services for financial institutions, the market's main focus until now, the solution is to diversify.
One of the major players in the segment, Prosegur launched two solutions for the retail sector last year: CataMoedas and the Caixa Fácil online transaction system (smart safes that count and deposit the value into the user's account). "We want to diversify into retail and use technology to our advantage," explains Alessandro Abrahão, general director of cash logistics and cash management at Prosegur.
The company says it has increased the number of vehicles for transporting special cargo – medicines, electronics, and other high-value devices – from 17 to 29. According to the executive, demand among retailers has increased due to their search for cost reduction, which with private security can reach 15%. "Previously, retailers had to make 4 or 5 separate hires for freight, armored car teams, and other services."“
Another indicator of the sector as a potential niche, according to him, is due to the growth in claims (the relationship between risk and transportation costs) in the logistics of special goods. Despite the greater demand from retail, according to the executive, banks continue to have the largest share of revenue. However, to overcome the market contraction and the drop in the volume of cash handled, the strategy will be to increase the participation of the retail sector in the client portfolio. "The expectation is to launch two more products [for retail]," says Abrahão. In 2016, the company forecasts a 6% increase in revenue.
Challenge
According to Marcelo Baptista de Oliveira, president of the Protege Group, the main reasons for the drop in demand in the banking sector are the shrinking of the sector (in terms of the number of branches) and the decrease in the flow of money in the Brazilian market as a whole, due to economic instability. "Banks are shrinking the market, and this is a major concern. In fact, many [security] companies have gone bankrupt over the last decade," the executive points out.
As a market leader, Grupo Protege also intends to increase revenue through its participation in the retail sector. Currently, this area represents 15% of the company's clients, and the expectation is to reach 40% in two years. "What the bank is failing to move, we will seek in the retail sector."“
Despite being a lucrative market for the security sector, there is still a barrier in retail, as it is a relatively unexplored and unknown market. “In the past, we never considered entering this sector. But now it's growing and demanding more security.” Regarding the industrial segment, Oliveira believes it should remain among the area's main clients. “But growth will be slower,” he believes. To increase its clientele, the group's president points out that he is focusing on trade shows. The forecast for this year is to participate in at least nine.
Commercial focus
At Grupo GR, the focus is a little different. The participation of financial companies among clients is small. "Our portfolio is very diversified; it's part of the strategy," says Ricardo Franco, national commercial director of Grupo GR. Thanks to diversification, he says, the company managed to grow 18% in 2015, compared to the previous year.
GR's main services are property security, concierge services, access control, and electronic security. Its main clients are shopping centers, educational institutions, commercial buildings, and industries. Franco assures that these markets have not experienced a drop in orders, but rather an adjustment in staffing levels. For this year, the executive predicts a 18% increase in revenue. "We are being cautious," he points out. The executive intends to seek new contracts to offset the reduction in services for the same clients. "Many companies are ceasing to use their own teams and hiring a third party."“
Trend
“Those who don’t innovate their products won’t grow,” says Rimantas Sipas, commercial director of Cipa Fiera Milano, organizer of Exposec. He believes the market will grow, even if with a different product profile. According to the executive, technology not only increases product efficiency and safety but also reduces operating costs. “The more technology, the more accessible it becomes for small retail businesses.”
The rise in crime has led retailers to seek out the service more, but it is up to security companies to offer products for this niche, he points out. In addition to small and medium-sized businesses, large companies such as banks should also demand innovation. "If on the one hand they stop consuming something, on the other hand it increases the demand for services against counterfeiting money."“
The Exposec – International Security Fair, with the largest number of exhibitors, is scheduled for May. The 19th edition will be held from May 10th to 12th at the São Paulo Expo Exhibition & Convention Center in São Paulo. More than 800 exhibiting brands and 42,000 visitors are expected.
Vivian Ito
Security and property protection are services provided by Grupo GR (Photo: Press Release)
Photo: Photos: Press Release
Source: DCI Online – Featured
Date: 14/03/2016
