Brazil is one of the most promising emerging countries such as India and China. With an 8,547 400 km² surface and a population of 191,043,661 inhabitants, Brazil is the fifth largest country in the world regarding surface and population. Also, Brazil is the 10th global economic power. However, it is one of the countries with biggest disparities in terms of wealth.
In this context LYDC, an English company specializing in high quality handbags wants to export its product lines to Brazil.
LYDC is one of the most famous handbag brands in London. Its chic products are of an exceptional quality with perfect design and great finish. The firm understands women's needs and its wide range allows the brand to be fit the cosmopolitan lifestyle of women across the world.
[...] Opening any sort of business in Brazil involves a number of paperwork, there are still numerous regulations and it is a lengthy process. According to the website ‘doingbusiness.org' and ‘peepatlife.com' Brazil, represented by Sao Paulo as the largest business centre, ranks 119 out of 155 in ease of doing business. This is behind other major emerging markets. For example, South Africa ranks 29, Mexico 73, Russia 79 and India 116. Starting a business is easiest in the states of Minas Gerais and Rio Grande do Sul. [...]
[...] According to Transparency International, Brazil stands at 70th place in level of corruption among 180 countries. Economic Due to large population and inflow of Foreign Direct Investment, Brazil has high potential for growth. Even if it's a country with huge disparities in terms of wealth, the gap between rich and poor is decreasing gradually, and there is a significant growth of middle class. Moreover, the Central bank controls the inflation and the risk of domestic currency devaluation is low. “Brazil's currency is largely seen as a success. [...]
[...] Concerning the distribution, the choice of LYDC for its business in Brazil could be to set up a franchise. For the company, the main advantage is speed to start a new business. It is much faster than to set up a joint venture and not much longer than to have a corner. The brand already exists; retailing activity can be launched in a short period of time in any continent. The risk is low, thanks to the limited investment; it is even cheaper than Joint venture. [...]
[...] Brazil has signed a bilateral agreement on avoiding double taxation with UK III Strategic Marketing Analysis The Marketing approach for LYDC in Brazil will be based on the assumption that more Brazilians are looking forward to adopt a sophisticated style through clothes and accessories like handbags, which can be used in the working environment as well as for leisure times, while offering excellent quality and European design. Our company will then compete on the basis of the value offered to customers by its products, in terms of image, quality and attractive price. [...]
[...] With already two main distribution partners in Germany and Taiwan, LYDC is setting up a distribution network and considers extending to Brazil. Why needs to go abroad? LYDC is always looking for dynamic sales agents or distributors to make the maximum use of the European and Worldwide opportunities. LYDC wishes to export its products for several reasons: - Increase sales - Exceed the saturation of the domestic market - Acquire prestige - Develop economies of scale - Diversify its market - Strengthen its competitiveness - Increase the number of potential clients Why the Brazilian market? [...]
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