Executive Briefings

Brazil's Retail Sector Is Open for Business to Foreign Investors

Brazilian retail is still too fragmented and regionalized, and there are only a few really national chains, basically in apparel and supermarkets. So, there are many opportunities for companies willing to invest in private-owned or franchised stores. There are opportunities for green-field entrance, or by acquisitions.

As the market has several specific characteristics, however, foreign investors and retailers need to rely on local market knowledge, someone who understands the regional flavors, the country's complex tax system, the competitive environment and the consumer spending behavior.

By nature, Brazilians are flexible and innovative. So, Brazilian retailers share these characteristics and know how to deal with difficulties and fast changes. They also grew up in a very unstable environment, so they are aware that crises come and go. Another important fact is that Brazilian retail is very developed regarding credit and payment tools.

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Brazilian retail is still too fragmented and regionalized, and there are only a few really national chains, basically in apparel and supermarkets. So, there are many opportunities for companies willing to invest in private-owned or franchised stores. There are opportunities for green-field entrance, or by acquisitions.

As the market has several specific characteristics, however, foreign investors and retailers need to rely on local market knowledge, someone who understands the regional flavors, the country's complex tax system, the competitive environment and the consumer spending behavior.

By nature, Brazilians are flexible and innovative. So, Brazilian retailers share these characteristics and know how to deal with difficulties and fast changes. They also grew up in a very unstable environment, so they are aware that crises come and go. Another important fact is that Brazilian retail is very developed regarding credit and payment tools.

Read Full Article