Strong Real stimulates the popular commerce
DCI
The entrepreneurs of the so-called popular retail, which focuses on classes C, D and E, are enthusiastic with the possibility of increasing by 15% the earnings of the sector, between this end of year and the beginning of 2010, with the return to school. In 2008, the commerce of these products sold nearly R$ 12 billion (US$ 7 billion), and this year it intends to grow 15%, according to estimates of the organizers of the "1 a 99 Brasil" fair, which ends tomorrow, at the Expo Center Norte, in São Paulo. The expectation of the segment is that the appreciation of the Real in relation to the Dollar reduces the importation costs of items like: home appliances, tools, articles for decoration and school material for the first half of next year.
For Eduardo Toldres, director of the "1 a 99 Brasil" fair, the expectation of the exhibitors is that this year, during the four days of the event, the profits grow 100% in relation to the edition held at the end of 2008, and reach R$ 2 billion (US$ 1.16 billion), with the sales of national and imported products, and focused on the low income public. For Toldres, the growth is a reflex of the tax incentives created, such as, the Bolsa Família, for instance, of the Federal Government. "The popular retail has benefited from the new programs of distribution of income of the Federal Government, than give purchasing power to the low income public", explained the director of the fair.
The president of the Brazilian Association of Importers of Popular Products (ABIPP) commented he believes in the appreciation of the Brazilian currency in order to help at the time of getting products with better quality to offer the retailers. "With less expensive dollar, it is important for us to qualify the product. In other times, the importer brings products of not so high quality", he declared.