New competition

Faced with giants in the hardware trade and DIY retailing like Home Depot and Lowe’s, Mexican hardware dealers both medium-sized and small have begun to introduce what is for them a new sales concept: self-service. Even though it is very wide­spread in other countries and in big stores, this is still a novel system in Mexico, where sales tend to be made over the counter. This is the situation that can be found in the self-service hard­ware outlet opened last year by Ferreterías Cravioto. Implementation of the new system makes it possible for customers to choose their products independently and make comparisons in person, while at the same time being able to fall back upon traditional over-the-counter selling if they would like some advice about special products. The shop, which is situated in the hardware quarter per se, namely the historic old town in Mexico City, aims its offer of the most popular hardware products and tools on the market at the general public and specialist users alike. Its new concept allows customers to see the products, to investigate their features with the aid of the packaging, but also to turn to the specialist advisory personnel in order to obtain exactly the product that they need; what is more, they can ask for advice on DIY projects or repair jobs as well. The self-service system is not only new to the industry. It has also attracted a new competitor to the scene: the Mexican stationery chain Dabo, which specialises in everything to do with the office, school or computer, has also opened a hardware department with ironmongery, electricals and garden products. This department was set up in the Calzada de Tlalpan outlet in the Mexican capital. There customers can do their shopping as in a supermarket. The product assortment covers everything necessary for working at home or in the office, from half a dozen nails to a circular bench saw. There are hammers, screwdrivers, shovels, wheelbarrows, hoes, helmets, sledge hammers and all kinds of electrical materials including small petrol-operated transformer stations. Customers can touch the products and take a close look at them, make comparisons, then choose their desired article from a great variety of brands, qualities and price categories. Dabo’s idea is simple: not to relax for a moment, to approach the potential customer and persist until he has bought everything he needs for his home, office or school. For, to quote a customer as he paid at the checkout, “You see, I needed this…