So I'm a person who is always seeing the future. I have a lot of difficulty, unlike Silvio, in putting into words what I'm feeling, but I keep doing it. I'm very much a doer, and only after that do I codify what I'm doing. I even got a book from that friend of mine there, you know, Back to the Future. He hangs out with me, so he gave me a book where I go to the future, take a pill so I don't feel tired, see it, and come back to be able to talk about it.
What I'm feeling is that in the past year we've been having very fast changes since digital came in, and after digital came in here, the change was even faster. Agree or not? Very fast. But what I'm feeling is that we are going through a very big transformation, a really big one. And the transformation is also in the consumer. I'm a very customer-focused person, because the customer is the one who pays for all this, right? My aunt was, I am, I keep my social media open for the customer to complain. I have 10 people in our call center in Franca, and there are many people who only handle my complaints, and people go through four or five people before complaining to me. You see how there are still failures in service, even though we're maniacs, right?
So I'm very connected. I wanted to show you a film, because retail is also changing, the consumer is changing, and the consumer hasn't realized yet that they are changing.
So, digital is a reality, it's a culture, but people want to meet in person. Just look at how many people are here. The event venues in São Paulo have no room because there are so many events with so many people. By the way, you must have attended some event with 5,000 or 10,000 people. Agree with me or not? So, deep down, even though digital is a culture, people want to meet.
And people kept asking me whether physical stores would disappear or not. Magazine Luiza never believed physical stores would disappear, but always believed they would change, that they had to be one — what people call multichannel — meaning a person could go to the physical store, buy, receive, and look on digital, buy in the physical store, buy on digital, receive in the physical store. So we always believed in that.
Our installers have used mobile since 2012, and many of them barely have a fourth-grade education. They already go to the customer's house with mobile. In 1991 we created an electronic store, Luiza, in a small city that didn't even have products on display. Imagine Magazine Luiza bringing to your city the store of the year 2000, a very small town in the interior. We hadn't even arrived in São Paulo yet. We arrived in São Paulo in 2008.
And imagine what it was like for a city to get a store that I saw through TV and video, because there was no multimedia yet. Multimedia came after we already had the electronic store.
So I'm always on the cutting edge, I'm always with the end consumer, I'm always attentive to the end consumer. And first, what did I want to say with this? You used to seek out the consumer and offer the product. Was that it or not? Now what happens? You take the product to offer it, to bring the consumer to us.
So if you look at these Chinese sites, they're doing a lot. They show a dirty roof, people trying, trying, trying. Suddenly they show a product you want to buy. By the way, I'm on Instagram, right? I have over 700 thousand followers. I can't get them off my Instagram because products keep appearing. I only don't buy because I only buy from Magazine Luiza, right? But every hour I feel like buying. So I've been working with and helping the buying department. In fact, next week or even this week I'm going to offer a drill with two batteries, 18 pieces in a little case this size, for R$199. And the woman will go along with it, because today women also drill walls and do things. We're going to offer a 1000-power motorcycle, because the 500 one can't climb hills, right? For R$1,590, by the end of the month we should have sold about 4,000. What am I doing? I'm offering the product to bring the consumer in. Are you following me? No? And this little motorcycle, for those who have a country house, kids can ride it from 15 years old, no license needed. Did you like the product?
In our stores we'll have 100 kits, which is a woodworking shop — it's not made of wood, but it rolls around everywhere. It has everything you can think of for woodworking, everything is a woodworking shop at home. I, for example, love woodworking, right? I love working with woodworking. Too bad I don't have much skill. So why am I telling you this? I'm very involved in the buying area, I love the commercial area, so we can see that it's the product that brings us in, it's the product today that brings the consumer to the store. It's no longer you attract the consumer and offer the product. Are you following me or not? Good.
So I want to show you our gallery store. At the gallery we receive 60, 70 people a day to visit — students, university students, foreigners, from everywhere. When did I ever think in my life that I would have a retail store with a theater and a museum? Answer me. I don't think it ever crossed my mind, because retail is very immediate. And what's more focused there? The experience with sales. So we have 10 partners, five of which are ours, with experiences of all kinds. There's a piano playing when no one's there, and whoever plays piano goes there. Suddenly our staff there decided to hold a piano contest, and the theater was packed with people who came to play piano. Suddenly you arrive at the theater and there are 10-year-old boys with an orchestra playing. Suddenly you arrive at Electrolux and there's a brigadeiro for you to eat — yes, but selling the pan right next to the brigadeiro, very discreetly. There are two popcorn carts, popcorn for everyone. You leave the theater and you have popcorn.
During the day, our theater is YouTube, it's influencers. At night it's a regular theater play. So it's old with new. On one side you enter through the Pinacoteca, on the other side you enter through digital. Everything is digital, there's even a place to take photos for social media. So it's like that — and you fall into Lu's house, and Lu talks to you and sells. So that's the change. I'm saying all this to get to the cloud now, got it? No? So you're noticing, right, that I'm a salesperson, right? Let's see then. Want to take a look at our manifesto for this store? Want to? Then let's go.
I see the future repeating the past. I see a museum of great novelties.
I see time, transformations, people, portals, connections, windows through the galleries from digital to real and vice versa. In a world trapped in a screen, I see an invitation to step out of the search field and seek a meeting space. Because meeting is more than a need. Meeting is a revolution.
Netsho, Cabum, Época, Estante Virtual, Magalu — together, where different algorithms climb onto the same stage, where fashion meets beauty, sport, technology, literature, games, influencers, the public where the unlikely meets new passions and goes beyond. Experience, feel, discover, live. I see the future meeting the past. I see a gallery of great novelties. Galeria Magalu.
And we also felt that it was a moment of meeting, that people, even without much awareness, want to meet. So you'll see a lot of places to sit, a lot of places for people to stay, because there are stores, even high-end ones, where you don't have a single chair to sit in, right? Especially men when accompanying women have nowhere to sit. So there you have the food court where you can eat, and there's a square. And that square changes its activity every 3 months. So during the World Cup it had everything World Cup. Now it's having Harry Potter. Then it will have everything about wellness. Then everything about Christmas, but with activities, with children able to enter.
And one of the things I also felt, anyone from São Paulo knows how much the Livraria Cultura marked people when they were children. Agree or not? And what did they think? That when we were going to buy a retail store, we were going to make that big boxy retail store, right or not? But we surprised them because we did — we are the owners of Estante Virtual. At the theater door there's an Estante Virtual that launches books. All the railings became the bookstore, all the stairs became the bookstore, the kangaroo became the bookstore. So where it said 'livraria' (bookstore) carved in the wood, when you scrape the wood like that, it became Livraria Cultura. So people are very grateful that we improved the story rather than erased it.
So I'm telling you all this to say that things changed. And one of the things responsible for the change was COVID. COVID marked many people. Today's young people say they don't care about anything, but they don't want to work at a company that has no purpose, that doesn't give, that works nonstop. Agree with me or not? They want to work, but they don't want to. Tell them you stayed 20, 30 years at a company — it even scares them, right? Because they have a different mindset. In a while that will come back too.
So what's changing a lot? Today I was at a board meeting — I won't say which one — a board I participate in, and the person was talking about social media. What's changing a lot is the consumer's visit to social media, to information networks. Agree with me or not? In the past, Google was a sign of control, of vocabulary, of search. Right or not? Anything. I still love Google, but it was alone. Right or not?
Today, what is artificial intelligence? I, at least, am searching everything on AI. And I'll tell you a very interesting story. Artificial intelligence and this moment took the gerund out of us. 'I'm doing, I'm looking, I'm seeing.' I'm already for right now. I had already launched that in the company a long time ago. It's for right now. And now if someone comes at me with a gerund, it gives me chills.
So I've been committed to causes since 2013, to inequality, since I read about slavery, I'm committed. Then they say I'm left-wing, I'm this. If being committed to inequality is left-wing... But I never joined a political party. I never joined, but I am a politician because I fight for public policies. Understand what I'm saying? And a thorough politician, because I believe we launched the first program — we train everything. So we've had a women's program for a long time, I have a women's group that she's part of with 150,000 women. We just held the first summit of women in professions. So we really believe in the strength of civil society to mobilize.
People right now are saying: 'I'm afraid for democracy.' The people won't let democracy be destroyed. Agree with me or not? Agree, everyone, or not?
Right or not? No. Regardless, we won't let it. Today I told people, we won't let it — I'm always with the people. So the people today have a different vision, and a lot of it is because of COVID.
So thinking about that, do I need to have a cloud or not? Answer me. If artificial intelligence is the main thing, I have to have a cloud, there's no way around it.
So I was telling — I have an NGO in Franca that has been in Brazil for over 20 years. And over 15 years ago, my husband and I, when he was alive, we set up the Click da Educação. We took used buses, transformed them, connected them to schools in the outskirts to teach technology to children and at night to adults. Fatala knows it well. But then the bus started aging. I told the person in charge, let's see what we can do with artificial intelligence. Every time I went back to Franca, she'd say: 'I'm looking, I'm analyzing, I'm doing this,' giving me chills. I said, 'Sit here next to me.' I asked the AI, there's a bus. In 5 minutes — no, 2 minutes — everything came back. Even how much I would spend to renovate the bus, who the sponsors of the bus were that I should look for, and which courses I wanted to have. It even asked me: 'Do you want the course content?' I said: 'Thank you, I'll ask you in 5 minutes.'
But I'll tell this story, it doesn't get much engagement, but I have a house in Franca and there's a pool there. And I do my hair once a week, twice at most. I don't like to get it wet on Sundays when I'm leaving for here. So I wrote: 'Give me four exercises I can do in the pool without getting my hair wet,' and in a second it came back even with a little drawing. That gets more engagement than your bus, right? You guys started laughing. Why can I do this? Because I have a cloud, because I have a cloud and its speed is greater.
Now, what I've been saying in my talks is this: it's a Brazilian cloud, it's a cloud that costs up to 60% less, it's a cloud that you know where it is, and you know that in this mess the world is in, at any moment we could be left without our databases, which are totally outside Brazil. Agree with me or not? So, at least the minimum. Magazine Luiza billed 65 billion last year. I'm not saying this to brag, because I myself couldn't believe we billed 65 billion. Even someone like me, who thinks big, was stunned. But can you imagine what a retail company has to deal with? It has installment plans, insurance, promissory notes, it has this, it has different payments, it has who knows how many thousand partners. Have you ever imagined, Fatala, what our technology structure behind all that is? With this revenue and a thousand things? It's a retail company, and we've always been careful to change technology, right, Fatala, so as not to stop the company, because it's very hard to change.
So we're already at 50%... 55%, how much?
80% of the basics we're already on our own cloud, which besides saving money, gives us security. We have over 3,000 clients. So what I want to tell you is this: no one is telling you to move everything over. Right or not? I'm just selling this here. I'm a sales spokesperson because I hate selling something I don't believe in. Got it? I'm not going to say that it won't fail, but I will say that I'm here, Fatala is here, we are here. My networks are open, my cell phone is open. You have someone to complain to, okay? Are you following me or not? You have someone to complain to, we are here. So I ask you to help us.
And now I was thinking, I want to set up a team of external salespeople. I already have someone in Fortaleza to sell the cloud. Do you accept my person making money? It's to pay... to pay. And whoever wants to be a salesperson, talk to them right away. But you have to use it first. I'm serious.
So what I'm telling my colleagues wherever I give talks, see if I'm not right. At least people have to go deeper. Agree with me or not? If it's cheaper, if it's Brazilian, if it has security, they'll technically show you. I think at least you have to go deeper. True or not? I at least think so, because it has security, it's cheaper. If there's any problem, you have someone to talk to, even to switch back and forth, got it? We're putting our face out there to take the hits. Right or not?
So there are owners here — I'm not saying who the physical owner is, who owns the business here. Fatala is here all day, the guys are here all day, and I'm committed because I think it's going to be good. The ones who should buy this are the federal government, which needs to have the data. Right or not? It's the only Brazilian cloud. Now, the only thing I'm afraid of selling is that people will say I'm PT. So... but in reality, true or not? Regardless of being or not, it's national security, right? Right or not? Answer me — having the database. I don't even think we should fight with the others, the others can do it, but at least the basics must be under a guarantee of data sovereignty. Sovereignty. I can't be depending on another sovereignty. Do you agree with me or not? So, please, buy the cloud and buy at Magazine Luiza.
Well, everyone, they gave me few minutes, but I'll open for one or two questions for whoever wants. Let's go, quickly.
