Number 6th /February 2013 Monthly Business Newsletter from the Commercial Section of the Embassy of Brazil in Islamabad
BUSINESS NEWSLETTER
EMBASSY OF BRAZIL, ISLAMABAD.
Number 6th / for the Month of: February 2013.
BRAZILIAN ECONOMIC INDEXES
Inflation Rate (IPCA) Exchange Rates: January 2013: 0.86% Dollar - 25/Fev Buy: BRL 1.9670 - Sell: BRL 1.9676 Accumulated 2013: 0.86% Euro - 25/Fev Buy: BRL 2.5992 - Sell: BRL 2.6002 Foreign Direct Investments: January 2013: 3.7 Billion USD IBovespa (IBOV) - Sao Paulo Stock Market Index: Accumulated 2013: 3.7 Billion USD 59.761 points- Trading volume (Dec 2012): International Reserves: BRL154 billion.
January 2013: 377.8 Billion USD
BUSINESS NEWS
Brazil's booming beauty market draws investors: (www.huffingtonpost.com)
Looking good has always been serious business in Brazil. Now it's big business, too.
A flush new middle class and a population strong on frizz. She finally plunked two deep-conditioning hair working adults is dropping major cash on designer masks into her basket. shampoos, lotions and cosmetics, rapidly turning this She's struggled to make rent in the past, but now has country into a beauty industry powerhouse. more work than she can handle. The bit of extra Sales of beauty products in Brazil hit $43 billion in cash, she said, she spends on herself. 2011, a growth of 142 percent in five years that puts "I can afford a little luxury every once in a while, a it on a pace to overtake Japan as the world's second- little something to make myself look good," she said. largest beauty market within a few years, according "I can try something new, like this, just because I to Euromonitor, a global market research company. want to see if it works." At the same time, Japan's beauty market grew by 40 The fastest growing segments of the market saw eye- percent and the United States' by 7.3 percent. popping jumps in sales between 2006 and 2011: This growth is fed by consumers just like seamstress Depilatories went up by 299 percent, cosmetics by Cidalia Maria de Almeida. On a quick lunch-break 281 percent and sun care by 230 percent. Consumers visit to a hair products store, she scanned rows of such as Almeida are buying more of what they've bottles and jars that promised to give her springy always purchased, and then are reaching back to the curls more shine, bounce, volume or freedom from shelves, hungry for novelty. Number 6th /February 2013 Monthly Business Newsletter from the Commercial Section of the Embassy of Brazil in Islamabad
"The potential in Brazil is really significant. The in Europe, Asia or Africa, Didillon said. demand is high and continuing to grow," said Hana "It's a big challenge but interesting for development." Ben-Shabat, a partner in the retail practice of A.T. "When you come from France and spend time in the Kearney, a global management consulting firm. "It's streets, in the metro, in the bus, it's amazing to see incredible because the consumption per capita is very the relationship between women here and their hair," close to what you're seeing in places like America and said Didillon. "They're always touching their hair. It's the UK. The population is very fashion-forward." not like that in France." Companies are responding. Sephora, owned by LVMH, Brazilian women tend to wear their hair long. the world's leading luxury products group, opened its L'Oreal's tests have also revealed that half of all first store in Brazil in July, and while the company Brazilian women smell their own hair at least once a can't give numbers, it was the most successful store day. opening in the company's history, said Paula The dedication to texture and scent also makes Brazil Larroque, senior vice president for Latin America. a prime testing ground for new products, he said. "Brazilians are truly beauty junkies," she said. "We "If we succeed in Brazil, there is a high potential to really see limitless potential." spread the technology outside Brazil, to Latin The success has spawned four other stores, and the America but also to India, the U.S., France," he said. company plans 30 to 35 more within four years, Another business opportunity lies in the Brazilian according to Larroque. Demand crosses all infatuation with smelling good. categories, she said: cosmetics, fragrances, skin Although Brazil represents less than 3 percent of the care, and hair care, accessories, served with a side of world's population, it makes up 12 percent of cutting-edge innovation. "Brazilian consumers are deodorant consumption with the highest use in the also very sophisticated, with a vast knowledge of world. Brazilians also spend more money on perfume beauty products and beauty trends," Larroque said. than any other nation. L'Oreal is already the world leader in beauty, topping "Other countries have more people or more international heavyweights such as Procter & resources, but don't have the habits we have," said Gamble, Unilever and Estee Lauder, and investing in Joao Carlos Basilio, president of the Brazilian Brazil is essential to staying on top, head of research Association of Personal Care, Perfume and Cosmetics and innovation for L'Oreal Brazil. Industry. "For us, having any kind of body odor is He said per capita spending on beauty and personal frightful, a lack of civility. For someone introducing a care products is around $260 a year in Brazil and that product here, it's essential to remember that." is leading companies to invest heavily in Brazil has seen at least one of its own beauty brands understanding Brazilian needs. take off as well: Natura has become a national In 2008, L'Oreal opened a lab in Rio to focus on hair – beauty phenomenon with its tropical scents and a national obsession. Human hair falls into eight flavors. Its reported profits in Brazil grew by 10 types depending on diameter, curliness, the number percent in 2012 to reach $2.8 billion. And now it's of waves, twists and other measures, and highly expanding abroad, where it already had $367 million multiracial Brazil has all eight, unlike most countries in revenue last year.
Number 6th /February 2013 Monthly Business Newsletter from the Commercial Section of the Embassy of Brazil in Islamabad
Brazil: The Social Media Capital of the Universe: (online.wsj.com)
When Barbosa family members botched their cover of average time spent on Facebook dropped 2% to 361 an old Brazilian gospel song last year on a family average minutes per user per month by September video, they thought it was pretty funny—funny 2012, compared with a year earlier, according to com enough to upload to YouTube. Score research. But in Brazil, Facebook time grew But they didn't expect the rest of Brazil to laugh 208% to 535 minutes over the same period. along with them. Within weeks, though, the video Meanwhile, the average time spent per YouTube was viewed and shared millions of times on YouTube visitor in Brazil grew 5% to 140 minutes, even as it and Facebook FB -1.38% .Parodies, including an dropped 3% to 161 minutes world-wide. animated version in which the Simpsons lip-sync the In Brazil "it's common for someone to start talking to family's mangled version, spread across the Internet. you in the elevator or in a restaurant just to start a The popularity of the Barbosas' performance reflects conversation," says Alexandre Hohagen, vice the growth of social media in Latin America's biggest president of Facebook's Latin America division. country. Brazil's expanding middle class is Brazilian users especially like to chat, almost increasingly going online, and social media are constantly, about TV shows, sports and news, he particularly popular because of Brazil's hyper-social says. "I think our culture…really makes people much culture, social-media executives say. more open to include and connect to friends." That makes Brazil a bright spot for social-media The rise of social media in Brazil has even helped companies as they seek more growth outside the U.S. propel some local Internet phenomena to and Europe. Brazil is particularly appealing because international stardom, including country singer China, the world's biggest emerging market, currently Michel Teló. His song "Ai Se Eu Te Pego," or "Oh, If I blocks sites like YouTube, Facebook and Twitter, Catch You," about meeting a pretty girl at a party, preventing the companies from cashing in on the has become No. 1 on iTunes in countries throughout nation's fast-growing economy. Europe and Latin America. Facebook Inc. has some 65 million users in Brazil, Famous athlete’s world-wide, including the Denver which makes it the company's second largest market Nuggets basketball team (along with former Brazilian after the U.S. by number of users, according to teammate Nenê Hilário) and Portuguese soccer social-analytics company Social bakers. By the end of star Cristiano Ronaldo have been captured on videos 2012, Brazil was also the biggest market outside the dancing to the song. U.S. by number of unique visitors "Brazilians have this passion to share information, to for Google Inc.'s GOOG +0.49% YouTube, and one of share pictures," says Álvaro Paes de Barros, director YouTube's top five markets by revenue. of YouTube content partnerships in Latin America. Meanwhile, Twitter Inc. says Brazil has become one Meanwhile, with the World Cup and Olympics coming of the micro blogging company's top-five active user to Brazil soon, he says, Brazilian content is spreading groups. Time connected to social-media sites. farther because "there's a lot of curiosity about Globally, the Brazil."
Number 6th /February 2013 Monthly Business Newsletter from the Commercial Section of the Embassy of Brazil in Islamabad
Twitter has recently launched operations in São Paulo particularly China and Brazil, according to Zenith and is hiring its own sales, marketing and business- Optimedia, a research firm. Zenith estimates Brazil development teams here, according to Shailesh Rao, will add $5.6 billion of the $76 billion in additional ad Twitter's vice president of international revenue spending, a bigger share than India, Russia and growth. Indonesia. "The size of the market made it important to have China is expected to add $12.5 billion, but sites like our own presence," he says. While the company is YouTube and Facebook won't benefit because they also growing quickly in Mexico, Argentina, Colombia are blocked by government Web filters. and Chile, he adds, in those countries it works The research firm eMarketer Inc. says that spending through a local sales representative. on online ads in Brazil will double to $4 billion over Com Score numbers show that Brazilian users spent the next four years. So far, Brazilian consumers have 41% more time on Twitter in September 2012 than in shown an unusual willingness to make purchases September 2011. Mr. Rao notes that Brazilians like to online using credit cards. use social media while watching TV, in particular People are buying everything "from a book to a car soccer matches and soap operas. online, which is not very common in other countries," Technology companies say Brazil represents a huge Mr. Hohagen of Facebook says. In markets like India, opportunity in terms of both users and revenue. The e-commerce, a key online advertising driver, is at an bulk of new advertising spending over the next three earlier stage of development. years is expected to be in emerging markets,
Brazil creates 1,163,847 formal jobs in the last 12 months: (www.brazil.gov.br)
In January of this year, 28,900 formal jobs were Report (RAIS) as a reference, covering those created in the country, corresponding to a growth of employed under the Consolidation of Labor Laws 0.07% over the previous month, according to data (CLT) as well as federal, state and municipal public from the General Register of Employed and servants and those in CAGED, 3,586,753 formal jobs Unemployed Persons (CAGED), released on Friday were created.
(February 22) by the Ministry of Labor and Sectors – Six of the eight sectors of the economy Employment (MTE). 1,794,272 admissions and demonstrated positive performance in January. With 1,765,372 dismissals were declared during the month, 43,370 new positions, the Processing Industry saw the highest figures for the period. higher figures than in January 2012 (up 37,462), In the last 12 months, 1,163,847 jobs were created, arising from the expansion of 11 of the 12 segments corresponding to a 3.03% increase in employment. that it comprises, one of which registered a record Taking the data from the Social Information Annual and two of which registered the best results for the
Period.
Number 6th /February 2013 Monthly Business Newsletter from the Commercial Section of the Embassy of Brazil in Islamabad
April 15th – 18th April, 2013 April 25th – 27th April, 2013 TECNOTÊXTIL BRASIL BIJOIAS (3rd Textile Industry Technology Fair) (61st International Silver, Stainless Steel, Plated City: Expo Center Norte Pavilhão Azul - São Paulo - SP Jewelry) E-mail: [email protected] City: Centro de Convenções Frei Caneca - São Paulo - SP Website: www.tecnotextilbrasil.com.br E-mail: [email protected] Website: www.b8-bijoias.com.br
April 16th – 20th April, 2013 April 29th - May 03rd, 2013 AUTOMEC AGRISHOW (11th International Auto Parts, Equipment, and (20th International Agricultural Technology in Services Fair) Action Fair) City: Pavilhão de Exposições do Anhembi - São Paulo City: Polo Regional de Ribeirão Preto - SP E-mail: [email protected] E-mail: [email protected] Website: automecfeira.com.br Website: www.agrishow.com.br
April 16th – 19th April, 2013 May 07th – 09th May, 2013 EXPOARROZ 2013 AES BRASIL EXPO 2013 (3rd International Rice Expo) (17th Technology Convention and Expo) City: Centro Internacional de Eventos - Pelotas - RS City: Expo Center Norte - São Paulo - SP E-mail: [email protected] E-mail: [email protected] Website: www.expoarroz.com.br Website: www.aesbrasilexpo.com.br
May 09th – 19th May, 2013 April 23rd – 26th April, 2013 EXPOINGÁ ELETROMETALCON 2013 (41st Maringá Agriculture, Industry, and Trade Expo) (9th Electronics and Civil Construction Fair) City: Parque Internacional de Exposições Francisco Feio City: SENAI Unidade de Londrina - Londrina - PR E-mail: [email protected] E-mail: [email protected] Website: www.srm.org.br Website: www.eletrometalcon.com.br
Brazilian Companies on the following fields would like to do business with Pakistan:
• Textiles • Poultry www.apexbrasil.com.br • Motor Bike equipment • Meat Import/Export • Beef Import/Export • Surgical Instruments • Exporter and Manufacturer of Denim • And more... www.brasilglobalnet.gov.br If you want more information, please, get in contact with the Commercial Section of the Embassy.