Brazil becomes more attractive to global retail
Folha de S. Paulo
Brazil has moved up from 8th to 5th place in the 2010 Global Index of Development of the Retail (GRDI). The ranking, elaborated by the American management consulting firm A.T. Kearney, analyzes 30 countries under development, according to criteria such as attractiveness and market saturation. Ahead Brazil in the list are China, Kuwait, India and Saudi Arabia. With the crisis, the executives of companies in the retail understood the developed markets are not the drivers of the growth and that they should focus on the international growth, according to Marcus Stricker, the German partner of A.T. Kearney in Brazil. Counting on developing countries to assure growth is not only an option, but a need, affirms the consulting firm. According to him, size, consumption habits and little consolidated habits turn Brazil into a relevant alternative.
Nearly 80% of the retailers polled mentioned one or more than one Bric country (Brazil, Russia, India and China) as part of short-term international expansion plans. "Brazil is the first country for the clothing sector in which only C&A is a foreigner". Growth is also in the agenda of 92% of the retailers from emerging countries heard. "But, for the Brazilian companies, unlike the retailers of Latin America, the priority is to consolidate its great domestic market".