Insights about business in Brazil
According to the World Bank Group, Brazil ranks 124 globally, in ease of doing business. It is still considered a developing nation, which means there is scope for some of the industries to grow rapidly. Foreign investment in Brazil has easily doubled from 2008 to 2011, making it an attractive place for your international business.
Facts to consider before expanding your business
Before building your business expansion strategy, you need to know the economy, business laws, legal framework, and the working culture of Brazil. ServiAp offers you high-level facts to understand the opportunities and risks of doing business in Brazil.
The Economy in Brazil
Brazil has a developing mixed economy that is the twelfth largest in the world by nominal Gross Domestic Product (GDP) and eighth largest by purchasing power parity in 2020. The country has an estimated $20.18 trillion worth of natural resources which includes vast amounts of gold, uranium, iron, and timber, showing an enormous human and natural capital.
Brazilian consumers: New market 2021.
After facing one of the worst recessions in its history, Brazilian consumers are now more cautious and conservative. 3 out of 4 consumers are dedicated to saving more, actively looking for the best discounts and competitive prices for goods before making a purchase.
Almost 35% of Brazilians are loyal to brands but prefer to buy the most affordable or cheapest goods under the trusted brand. Almost 21% of consumers are willing to trade-down or switch brands for savings, as opposed to the global rate of 12%. This provides a huge potential for competitive goods, especially because Brazilian consumers do not tend to switch back, after the trade-down.