São Paulo and Rio – No Longer The Lords Of Brazil

For most foreign companies and investors, when they think about doing business in Brazil, the two cities that immediately come to their minds are: Rio de Janeiro and São Paulo.  Although these two cities do account for a larger share of the financial, retail and energy markets in the country, there are other rising “stars,” which include cities spread out throughout the country – and each with its own advantages to offer new businesses.

As this quote from the article highlights,

“It’s not that demand is shrinking in São Paulo and Rio. It’s just not growing as fast as it is elsewhere.

Purchasing power in those cities is projected to slow overall. But Brazil’s interior cities are bucking this trend. Consumers there will account for increasing retail growth and new sales, based on government data and BCG analysis. If you’re private equity interested in Brazilian retail, this is what your crystal ball is showing you. If you’re an investor in equities, companies that garner too much of their profits from one city will no longer be attractive as those who are truly national.”

Yet, of course, there are still many challenges that companies need to face when moving to cities in other regions of the country.  As mentioned in the article, “Distribution and logistics is also a problem. These are underserved, poor cross-sections of Brazil that have been ignored for generations.  Local talent is hard to find.”

To read more about these exciting opportunities in Brazil, and to see examples of Brazilian and foreign companies that are already expanding throughout Brazil, click here to read the complete article.

Occasio team




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