Brazilian subsidiaries gain room and even sell more than headquarters
O Estado de S. Paulo
Brazil has gained relevance in the sales of the multinationals installed in the Country. From cosmetics to trucks to soft drinks, chocolates and televisions, the Brazilian subsidiaries have become the main world market or have stepped up in the ranking of the countries with most sales. The faster growth of consumption in the emerging markets compared to that of the developed countries was a trend that was being outlined in the past years. But this movement strengthened with the crisis since the last quarter of 2008. Besides that, it should work as a "magnet" in the attraction of new investments of those companies, interested in exploring the potential of the local market.
For the first time in 56 years, the Brazilian subsidiary of Mercedes Benz in 2009 surpassed the German headquarters in the sales of trucks. That turned the Country into the main market of the company in the world. From January to September 2009 23 thousand trucks were sold in Brazil. The same happened with cosmetics sales giant Avon. The company informs that Brazil was its main market between July and September 2009. Since 1958 in the Country, it was the first time Brazil surpassed the USA, which has always led the sales volume ranking, a trend that should be maintained in 2010.
At Swiss Nestlé, Brazil has not reached the top yet, but is almost there. According to the company, judging from the partial performance of 2009, the company remains in the vice leadership in sales volume, "but it is on the verge of going from fourth to third place among the major earnings of the group, taking the place of France". At Coca-Cola, Brazil is the fourth biggest market in sales volume, behind China. But, in the third quarter of 2009, the amount of soft drinks, juices and teas sold in Brazil grew 3% compared to the same quarter of 2008. The world average of growth was 2%.
The Central Bank projects foreign investment of US$ 45 billion in the production in 2010, an 80% increase compared to 2009. According to the BC (Brazilian Central Bank), there is a structural change underway. The Brazilian subsidiaries are no longer seen as second class units. "Brazil has become a strategic market for the multinationals", says a source of the BC.