Marching in brazil’s retail sales market, merchants should set food in advance
Marching in Brazil’s Retail Sales Market, Merchants Should Set Food in Advance Brazil’s retail sales in March rose for the fifth time in seven months, as President Dilma Rousseff cuts interest rates and taxes to bolster consumer demand that has been the engine of the world’s sixth-largest economy. The volume of sales rose 0.2 percent after zero growth in February, the national statistics agency said today in Rio de Janeiro. Economists had predicted an increase of 0.3 percent, according to the median estimate from 37analysts surveyed by Bloomberg. Sales jumped 12.5 percent from a year earlier, thelargest increase since March 2010.Policy makers have reduced the benchmark Selic rate by 350 basis points sinceAugust, while public banks last month said they would cut their lending rates by asmuch as 21 percent to help boost economic growth that slowed to 2.7 percent last yearfrom 7.5 percent in 2010. The Rousseff administration has also extended tax cuts forappliances to stimulate consumer spending and eliminated payroll taxes for industriesincluding textiles and shoes."There is great potential for global apparel retailers to succeed in Brazil," said HanaBen-Shabbat, a partner with A.T. Kearney. "Brazil is the most attractive apparelmarket for reasons of demographics and demand. “Brazil’s clothing market is growingat more than 7 percent annually and is estimated at $37.2 billion. The country isyoung, with more than 60 percent of population below the age of 29, and itsconsumers spend $402 annually on apparel — six times more than the averageChinese consumer. Brazilian consumers use credit for apparel purchases far morefrequently than in other emerging markets. In addition, small, local retailers make upmore than 60 percent of a highly fragmented domestic retail apparel market.However，In Brazil, local online payment system is perfect; Boleto pay has become apopular payment gateway which accustomed to the local payment habit. This situationmakes the internationally popular payment collection like PayPal less popular inBrazil. It is difficult for foreign trade investors to enter into Brazil market throughelectronic commerce, even if it has a firm foundation, its own development has alsobeen bound layers. To get rid of the obstacles, merchants are bound to use aninternational payment gateway which has close link with the local payment becomeimperative programs. To solve the payment inconvenience, GlobeBill(www.globebill.com) payment and Boleto has reached a strategic partnership programwhose related services will soon be officially launched in mid-May when the currentsituation of Brazils embarrassing foreign trade receivables can be settled down.