Brazil is a country undergoing economic and social growth for several years now, and it is also a part of BRIC (the acronym for four large developing countries at the beginning of the century: Brazil, Russia, India, China, which will represent over 20% of the total weight of the world economy in 2025).
It is a market full of opportunities for foreign investors, provided of course; it masters its rules and codes that are sometimes different from what a Western company is accustomed to see in Europe or the United States.
In this case, attention will be focused particularly on the luxury market in Brazil, a market that is supposed to be more and more important as the country develops and gets enriched.
The aim will be to see the current potential of the luxury market in Brazil and then to study its distribution, its regulations and the various existing legal status to identify the effective strategies for foreign companies wishing to enter the Brazilian market.
Luxury is a lifestyle characterized by large expenditures for the acquisition of property unnecessary for the simple pleasure of well-being.
The luxury does not therefore cover basic needs but needs related,incidental or cultural. It refers to belonging to a class, an elite, it meets the requirements for excellence and to create the account.
Thus, the middle classes now account for over half the population of the country and discover the joys of shopping. While the "rich " also remain relatively high. This increase of the middle class does not therefore at the expense of the rich but the poor and emerging middle class that does not hesitate to use its new "wealth" to eat and have fun. Today, Brazil has become the second largest market behind the deluxe continental United States, the tenth world.
Brazil is a veritable paradise for consumption "since credit is free and institutionalized, so it is not uncommon to see luxury boutiques offer its customers pay three, five or ten times in order not only attract customers but also the bourgeois middle class that can and do not exceed their monthly budgets.
The luxury market is growing so Brazilian at a rate of over 30% per year. It is obvious that this has an impact on distribution channels.
They develop and revitalize the industry by offering the opportunity to position themselves in different areas, whether the habitat, perfume,food, decorating, personal care, textiles, etc.
The luxury brand of choice for Brazilians is the Italian brand GiorgioArmani. This finding results from a survey done on 25,000 Brazilian consumers, with 37% of the vote so the Italian brand comes in ahead of Christian Dior (28%). This is followed by Calvin Klein, Diesel,Gucci, Chanel, Louis Vuitton and Versace.
In the end, almost all major luxury brands have settled in Brazil more or less recently. Lacoste is located in São Paulo, for example since the late 70s.
Most of these brands are also located in São Paulo in the "golden triangle"formed by the street Oscar Freire Street Haddock Lobo andAlameda Lorena. It includes Vuitton, Zegna, Hermes, Chanel, Dior,Cartier, Chopard, Prada, Armani, Gucci, Chloe, etc ... while Rio isconsidered more attractive to middle-of-brand ranges such as Zara.
Tags: Brazil, luxury market, luxury brands
[...] These Brazilian families spend on an average a $ 2 billion per year in the luxury market of that amount represents the State of Sao Paulo - The developing distribution channels The luxury market in Brazil is growing at a rate of over 30% per year. It is therefore clear that this has an impact on distribution channels. The ability to position itself in various fields such as housing, perfume, food, decor, personal care, textiles, etc helps in the growth of the sector. [...]
[...] The main Brazilian ports are: - Port of Recife - Port of Santos in Sao Paulo - Port of Rio Grande - Port of Salvador - Port of Rio de Janeiro - Port of Belem - Port of Paranagua - Port of Vitoria - Port of Itaqui - Port of Sao Sebastiao Airports (in the South East, the region most interesting in terms of luxury) are located in the following cities: - Espirito Santo - Minas Gerais - Rio de Janeiro - Sao Paulo - Parana - Rio Grande - Santa Catarina - Tips for French companies wishing to export to Brazil A company wishing to export luxury products in Brazil will have to pay attention to the following things: - The company will have to adapt its approach to that of the 26 Brazilian states it wants to target. [...]
[...] For Larousse, luxury includes everything that is expensive, refined and luxurious, and according to Petit Robert, luxury is a great abundance, a profusion. The luxury is a way of life characterized by significant expenditures for the acquisition of superfluous goods for the sake of well- being. The concept of luxury not only responds to the vital needs, but also responds to the incidental and cultural needs. It represents the elite and meets the requirements for excellence. To further explore and verify this intuition, we can refer to the five characteristics of a luxury items given by Danielle Allers : 1. [...]
[...] And according to the same study, the luxury market in Brazil represented $ 1.6 billion in 2007 and was 70% with respect to Latin America. State of finance in the Center There are about 1.2 million families in Brazil who have an annual income above 72,000 U.S. dollars per year and the number of such families have been increasing year by year. In of the country's population accounted for this segment and today it is over 3%. In addition, Brazil has been characterized by a very strong growth of its population between 2004 and 2008). [...]
[...] Conclusion of Part Two The luxury market in Brazil is growing but despite this, the largest European and American brands are already installed and the competition is already fierce. In addition, imports are not facilitated in this area and the local partners seem almost mandatory. Import of luxury products in Brazil is a difficult challenge that will require enormous efforts and a guaranteed return on investment. It is therefore recommended to a company to have sufficient financial windfall and time in front of it to tackle this market, and internet can be a first approach for this and an official website can also help. [...]
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