Landscape of Retail Market in Brazil. How can you capitalize from it?

retail, market, Brazil, investments, consumers, SPC, UFMG, taxation, technology, e-commerce A recent study from SPC, Serviço de Proteção ao Crédito, in Brazil, revealed an interesting landscape of the retail industry and its forecast for the future. Below are telling statistics for those considering investing in the Brazilian market and taking advantage of the needs created by growing consumerism in the country:

The following sectors were analyzed in 27 of the Brazilian capitals:
Grocery Stores – 21%
Fabric, Clothes, Shoes – 17%
Diverse articles – 13%
Pharmacies – 11%
Cars and accessories – 11%
Home appliances and furniture – 8%
Other – 6%

Annual revenue for the industry:
37% – up to R$ 120,000.00
29% – from R$ 121,000.00 to R$ 754,000.00

Challenges:
- Limited access to credit
- High interest rates
- High taxation
- Cost and quality of employment force
- Competitors

The most interesting fact is that the majority of these companies do not involve e-commerce or modern technology to support their sales: 85% do not have online store, and 65% do not use internet.

The good news is that 53% of entrepreneurs are planning in investing in their companies for the future. From these, 53% will use their own capital and 25% will go through loans.

So where should investors look to capitalize on the expansion of Brazilian businesses?

Investments will go to: installations, equipment, marketing, inventory, and training.

What conclusions can we draw from this?
- The retail market in Brazil is growing fast!
- Three issues that affect various industries throughout the country: taxation, credit, and interest.
- The majority of companies are investing, which creates lucrative opportunities for service providers thinking about entering the Brazilian market.

Let us know your thoughts about these facts!

It is important to remember that this study – commissioned by SPC – was done by Universidade Federal de Minas Gerais, UFMG, and published at Consumidor Moderno Maganize, a Brazilian publication.

There will be more detailed discussion about the retail market and consumer trends in Brazil at the third edition of Loyalty World Brasil, next September in São Paulo. Plan ahead and don't miss it!

About the Author

About the Author: General Manager, Terrapinn Digital. I know a lot about: Digital marketing, content marketing, photography, air crashes, film, online video, wordpress, social media. Google .

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  • http://www.retail.co.in/ CatherinaLucy

    The majority of companies are investing, which creates lucrative opportunities for service providers thinking about entering the Brazilian market.

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