Brazil is already a major destination for foreign retailers such as Wal-Mart and C&A and has some very sophisticated home-grown retailers. The result of this scenario is a retailing industry advanced and consolidated, especially if compared to other emerging markets. The retail industry has developed faster than the overall economy and the country is now in a period of strong growth combined with a high degree of confidence on the part of the business community.
Brazil is a huge market of over than 190 million people, the fifth most populous country in the world. If measured based on purchasing power, per capita income in Brazil is the double that of China and 20% of households have a standard of living comparable to that in the U.S. or U.K.
Retail Sales in Brazil increased 1.6% in April of 2013 over the same month in the previous year. Historically, from 2001 until 2013, Brazil Retail Sales year-over-year averaged 5.35% reaching an all time high of 15.7% in March of 2010.
Brazil is currently the third biggest world market for companies that work in the direct sales industry. Direct selling continues to grow at a fast pace and attract the attention of new players and brands. In 2011 the sector’s revenue reached US$15 billion with a 5,4% increase if compared to 2010. The numbers of 2012 are still being finalized by the World Federation of Direct Selling Associations (WFDSA).
Agribusiness GDP represented 22.3% of Brazilian GDP of US$2,2 trillion and is the main responsible for the Brazilian trade balance surplus, representing 37% of total exports.
The United States is the second main destination of Brazilian agricultural exports. Brazil is the world leader in the production of many commodities, has a diversified agriculture, available area to expansion, huge water availability, diversity of climates and sunlight. The production is carried out with a low level of subsidies and grants legal rights to intellectual property (trademark and patents). Brazil offers big opportunities as the potential growth of the internal market, use of high technology in the main crops, adoption of improved agricultural practices, new technologies for the use of biofuels, diesel from sugarcane, biokerosene, ethanol of second generation.
Brazilian consumption decreased in recent years due to the various crises internationally. but already it is possible to observe a slight GDP growth (small to what was actually expected by experts in the area).
On the other hand, even if GDP growth is not expected, ha certain markets that have overcome international crises, and became true areas attractive for new investments.
An example is the Companhia de Bebidas das Americas – AmBev, which generated sales of approximately 1.3% higher than the same period analyzed in 2012.
One of the most favorable, is part of the fact that the Brazilian economy is heated, attracting many investments in all sectors of the economy, in addition it should be noted that many Brazilians have become part of the middle class, increasing their economic power.
Studies show that the Brazilian real estate market had some oscillations over the last few years. In 2007, the Brazilian real estate market had a high development index due to heating of the Brazilian economy and the relative stability of inflation.
However, due to the U.S. crisis, there was a significant slowdown in following years, this period represented by the years 2008 until mid-2009. The index of development in the year 2009 until the year 2010 proved to be quite satisfying when seen in the market situation with the international crisis spread around the globe.
For the year 2013 and beyond, we expect a favorable growth in the Brazilian real estate market. Specifically for the period of 2013, experts believe in growth between low to moderate, however will increase with the years, due to the increased purchasing power of the population.
According to a report released by the World Economic Forum, Brazil returned to rise in the ranking to 60th position. This brand eh a victory for the country as in 2011 occupied the 56th position, but the following year suffered a severe drop coming to occupy the 65th position in the ranking, with it showing signs of improvement in that sector for the current period.
The various improvements are the result of heavy investments in infrastructure and training both government and companies, besides the increased access, available to the population.
However, the country compared to countries in the region, is not prominent in Latin America, behind countries such as Chile, Uruguay, Puerto Rico, Panama, possessing no great difference on the global map of technology.
For some experts the biggest challenge of the Brazilian government is investing heavily in education and training of professionals to work in a virtual environment, besides promoting closer ties between universities and private companies.
In recent years several initiatives have been taken in the area of public security, and criminal justice in Brazil. Are invested about $ 100 billion dollars (data from the State of São Paulo, which has the largest investment in public security in Brazil) per year in investments to reduce and control the level, criminality in Brazil.
However, even considering this investment high, it represents something around less than 5% of the wealth, so the federal government should review the capital expenditure in this area
Brazil is a pioneer in the systematization of information security. With the adoption in 2012 of the National System of Public Safety and Correctional Drug, and will join the Regional System of Standardized Indicators in Peaceful Coexistence and Citizen Security, a group of countries in Latin America and the Caribbean aimed at sharing information and programs about public security.
When talking about new investments in other countries, one of the main points that we analyze is the local health care. In recent times, Brazil showed good rates of development in the health area.
The Brazilian health care showed significant progress, we realize such development with the reduction of infant mortality rate and life expectancy, which is now projected at 73 years to Brazilian population.
We also see that the Brazilian average age is about 40 years, so expect an aging population, a fact that should be placed in prominent government for future investments.
A survey on the average spent on cosmetics, showed that, in Brazil, the average spent by Brazilians in beauty products is approximately $ 250 U.S. dollars per year, an amount comparable to markets like the U.S. and Europe in general.
The heating of the cosmetics market in Brazil is due to the fact that there was in the last decade, an enrichment of the whole population, thereby generating increased production and sales of various sectors of the economy.
Another interesting data show that in the coming years, the Brazilian cosmetics market will surpass developed markets, including the U.S. But are already equating to markets such as Japan, the second ranking, positioning Brazil with a prosperous place for investments in this sector.
Brazil still has a b barrier on your market, in relation to the other. The barrier commercial found in Brazil is the high rate of taxes incidents products from other countries.
However the Brazilian government has invested huge sums for modernization of airports and ports, thereby facilitating the transport of goods, yet need review its fiscal policy on the importation, to attract more investors and multinational corporations in the country.
In Brazil e-commerce is growing up increasingly in the last few years. Research (made by Forbes) shows that, over the years, e-commerce has increased much more in comparison with other countries (mainly in Latin America).
The main reason for this spectacular increase is, the growing Brazilian middle class, which according to the indices, made at least, one purchase, using e-commerce. Another point to note is the bigger access to internet of all the Brazilian population in recent times.
In numbers, e-commerce has generated an annual income in order of $10 billion dollars, this index increase every year .Also Brazil possesses the highest rate of e-commerce in Latin America.
Brazil is one of the largest consumers of energy in the world. This fact is evidenced due to the progressive sustainable growth of Brazil, having accomplished this great and o remarkable advance in both, production and consumption, oil and ethanol.
We analyzed that, the industry related to various existing types energy (wind, oil, hydroelectric, nuclear and another’s), it is a broad in expansion of Brazilian market.
With the discovery of pre-salt, Brazil took a prominent position in the international scenario, attracting the possibility of several investments in the energy area.
Moreover, nowadays we must always think of the sustainable development, therefore we cannot forget that, Brazil is a fertile field for investment in renewable energies, such as solar and wind.