Luxury companies from Europe eye profitable ventures in Brazil's market
The luxury market in Brazil is projected to grow by a significant 35% in the coming years, according to data from the European Alliance of Cultural and Creative Industries (Eccia). This promising outlook has attracted the attention of several European luxury brands, prompting a commercial mission to the Brazilian market.
Led by Antonio Tajani, Vice-President of the European Commission, and accompanied by Eccia, the mission held meetings with key figures in Brazil, including President Dilma Rousseff. The aim was to address issues such as import tariffs, intellectual property protection, and other entry barriers and taxes that could potentially hinder the growth of the luxury market in Brazil.
Carlos Falcó, President of Círculo Fortuny, a member of Eccia, expressed his belief that an injection of investment in the luxury sector in Brazil would result in a double beneficial impact on the Brazilian economy. He asserted that increased access to luxury products would not only stimulate domestic consumption but also replace purchases made abroad.
However, Falcó did not provide specific figures for the expected impact on the Brazilian economy from increased access to luxury products. Furthermore, his statement did not address the specific issues discussed in the commercial mission, such as import tariffs and intellectual property protection.
It is worth noting that the luxury market in Brazil is already estimated to be worth 2.3 billion euros and is home to sixty international brands. European brands represent a substantial 75% of the global high-end market, with 17 of the 25 international companies in the luxury sector based in the European Union.
The commercial mission in Brazil was not the first foray into the South American market for Eccia. The alliance, a collaboration between Círculo Fortuny (Spain), Comité Colbert (France), Fondazione Altagamma (Italy), Walpole British Luxury (UK), and Meisterkreis-Deutsches Forum für Luxus (Germany), has been actively participating in commercial missions across the globe to foster growth and collaboration within the luxury sector.
Despite the promising outlook for the luxury market in Brazil, there are still questions regarding the proportion of luxury product purchases by Brazilians made outside their borders and the source of the data supporting Falcó's assertions. These issues, along with the specifics of the commercial mission, are areas that require further investigation and discussion.
