During the late 90’s Brazil was just like any other growing economies of the globe which was growing at a less than a normal pace. However, slowly there was an emergence happening in the country which went unnoticed from the watch of other developed giants of that time. This emergence was the rise of the great Brazilian middle class which wasn’t there until then. This creeping up of the middle class bought in loads of changes into the way the country operated. Modifications to the economy happened in various sectors, the retail sector was one of them which had a major positive impact building in a new face for the nation in front of the world.
This new middle class mentioned here is a big brunch of Brazilians who earn in between $ 690 and $ 2,970 per month. This class is more of the young blood which is open to changes and more habitual into spending. Since the year 2000, over 30 million citizens of the country have climbed out of the poverty line and this population largely makes the newly formed middle class which is impressively productive.
Being the world’s fifth largest populated country, there is loads of potential for manpower, innovation and technological development in different sectors. Talking of the retail segment along, the region has gone pass all the predictions and recorded an unprecedented increase beating most of the other strong contenders. This sector has enabled the country to rank as the largest Latin American economy; the retail industry is believed to occupy around 661 million workers of the employed force of the country.
Moreover, this is trusted to grow to a GDP of 15.14 trillion by the end of 2025. Due to being the host for sports events like the 2016 Summer Olympics and the much awaited 2014 FIFA World Cup, Brazilian governing authorities have heavily invested in the nation’s infrastructure, this coupled with the growing middle class has benefited the economy as the retail sector has grown beyond expectations.
Factors like growing purchasing capacity and credit availability have fueled the enhancement of the sector. The current value of renowned retails giants such as Wal-Mart and Carrefour in the country is about a whopping $ 230 billion and it is anticipated to grow further as many eye great potential in the nearing future.
The present generation and the future generations to come are estimated to be extremely fashion conscious as local brands rule the market and people love wearing appeals suggested by their national icons. The retail sector is already stuffed with domestic and international players; Pao de Acucar the largest retail chain in this part of the world acquires about 18% of the country’s retail market. This is a diversified brand providing all things right from groceries, clothing appeals to home appliances both electric and manual.
Carrefour falls second in the list of retailers in Brazil with more than two decades of existence. It obtains a notable share of 14.5% followed the globally popular brand Wal-Mart which operates as Wal-Mart Brazil.
There’s more favorable news coming in, as there are two most watched sports events which are about to happen it is ought to bring in huge number of travelers from around the globe.
According to the market research findings of the world’s oldest and most trusted global management consulting firm A.T Kearney in 2013, Brazil sat on the top of the list for global retail development index, whereas it was at the fifth place the year before.
Some indication of what’s in store for Brazilian retail stores in times to come.