Brazil 2012 Global Report NAMM - Musical Instruments Market South America


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Brazil 2012 Global Report NAMM - Musical Instruments Market South America

  1. 1. 3/25/13 Brazil | 1/3Edit Profile | Sign OutContent About Contact Us FAQs Policies Affiliates Antitrust Compliance You are: erinbNAMM Global ReportMethodologyAcknowledgementsArgentinaAustraliaAustriaBrazilCanadaChinaFinlandGermanyIndiaJapanMexicoNorwayRussiaSouth KoreaSpainSwedenSwitzerlandUnited StatesView Edit OutlineBrazilInfrastructureWhen the crisis hit in 2008, many global companies began to change the way they viewed developing countries.Brazil wasnt an exception to this rule. Companies began pressuring Brazilian distributors to invest in marketing andgenerate more demand. This is still a reality today. This is also reflected on the structure of warehouses and salesteams.The recent article for the May-June issue of the journal Foreign Affairs portrays the situation of the Brazilian marketin 2012. The title "The Commodity Slowdown and the End of the Magic Moment" summarizes the dependence ofcommodities consumption as they appear in significant numbers over the country in the world media.A chief analyst at Citigroup, Willem Buiter, in an article on markets such as Brazil, China, Russia and India, said:"The prospects for world economic growth are worsening, reflecting the crisis in the euro area and deceleration inemerging markets", as he points out the report highlighting the outlook for 2012-2013.Trends 2012-2013The year 2012 has seen a visible change in the Brazilian retail market. Following the trends of the internationalmarket, especially the American market, major chain stores in Brazil have invested substantially in virtual stores. Asurvey conducted by the specialized magazine Latin America Música & Mercado (music & market), found that 42% ofBrazilian stores said they will invest in technology and build their online stores between 2012 and 2013.Another factor is the continuous direct imports by major retailers. This movement, which created a self-sufficiency inthe supply of entry-level products has encouraged distributors and factories to start their own stores, in order toexpand the distribution of their product lines. It is believed that this scenario will be well established in 2013 andbeyond.The price of products for the retailer has also been reduced- a new position given the price policy of the importersand increased competitiveness in Brazil.Over the past three years, the country has been constantly evaluated for the opening of subsidiaries by multinationalcompanies. In the areas of professional audio and musical instruments, some acquisitions have been completedsuccessfully, in addition to the opening of local offices, particularly among U.S. and German companies.For many foreign companies, however, the greatest obstacle is to understand the Brazilian tax system and the rulesof retail. This is definitely true for the entertainment industry, where there is a lot yet to be conquered with thecoming of the Olympics and the World Cup to be held in Brazil.Brazilian Real vs. American DollarThe Brazilian real depreciated on average 20% since January 2012. This change caused a deceleration amongretailers and also a new price policy among distributors in the country. Economy specialists explain that the lowestvalue the Brazilian real should have against the American dollar is: 1.90 reais (reais is plural for real).The following charts are based on import data from the Brazilian Bureau of Business Development,Industries and Trade, and the Ministry of Trade. Commentary by Daniel Neves, President of Música &Mercado.Membership News The NAMM Show Summer NAMM NAMM U Public Affairs Library NAMM RussiaSearch this site...
  2. 2. 3/25/13 Brazil | 2/3Total ImportsAmount2001 2003 2005 2007 2009 20110M50M100M150M200MUSDollarsStringed InstrumentsImportsAmount2005 2007 2009 20110M20M40M60MUSDollarsWind InstrumentsImportsAmount2005 2007 2009 20110M5M10M15M20MUSDollarsPercussionImportsAmount2005 2007 2009 20110M5M10M15MUSDollarsElectric Guitars and BassesImportsAmount2005 2007 2009 20110M10M20M30MUSDollarsSynthesizersImportsAmount2005 2007 2009 20110k2500k5000k7500kUSDollarsInstrument StringsImportsAmount2005 2007 2009 20110M2M4M6MUSDollars
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