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Atacado Brazileiro da Construcao is making construction easy. In the fast-growing small cities of Brazil’s interior, Tiago Mendonça has implemented a scalable model that provides construction supplies to DIY homeowners and small builders. In doing so, the young CEO has turned his grandfather’s business from a stagnant local chain into a high growth business with national potential.
Established in 1990, ABC became a reference point for the people of Juiz de Fora: a successful construction supply retailer. Tiago attended the Federal University of Juiz de Fora, and received an MBA from Pontifica Universidade Catolica do Rio de Janiero and another MBA from IAE in France. Upon his return to Brazil, he tested his management ability by running several franchises of Portabello, a Brazilian construction material producer.
Tiago was excited to take over his family’s business, and returned to his home city in 2006. He began working for the company and established an integrated ERP that reduced transportation costs. Further, he implemented a uniquely proactive sales strategy.
ABC’s showrooms offer only high mark-up finishing materials such as flooring, tiles and paints. This allows them to maintain stable margins. Moreover, Tiago’s model is unique: every weekday, a salesman from each ABC showroom explores the city to seek out new construction projects. The employee offers homeowners and small builders a brief consultation on the best materials and describes relevant products.
Over the past years, ABC has proven that it can expand quickly, with new locations and renovated stores.
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