In the past few decades, economic stabilization, followed by income distribution programs and policies to incentivize internal consumption, have enabled the expansion of the Brazilian middle class and the inclusion of 40 million new consumers. According to Data Popular, in 2003, 43% of the Brazilian population belonged to the lowest two social classes, D and E. After ten years, this number had fallen to 24%.
With strong internal consumption, Brazil is one of the largest markets in the world for cosmetics, personal hygiene products, beverages, cleaning products, and processed foods. Currently, 16% of the Brazilian GDP is composed of consumption by households, with predictions of growth over the coming years due to the country’s demographic dividend.
Even though the commercial relationship depends directly on the consumers, the government plays a decisive role in the sector due to the strong regulations, technical requirements, and safety standards it imposes, principally through ANVISA and a complex taxation system. Aside from monitoring the traditional procedures of the three branches of government, the growth of the sector depends on projections of the government’s critical agenda, such as restrictions on consumption, and the understanding of its effects in Brasília.
As Brazil represents a launching point for many companies’ South American exports, the consumer goods sector possesses a regional dynamic with common regulatory patterns, demanding adequate infrastructure, the reduction of import tariffs, and sophisticated logistics operations (both nationally and regionally). All of these factors demand constant negotiations between neighboring countries.
Prospectiva acts within the sector, combining expertise in government relations with a keen understanding of the general rules of international trade and international agreements. Among the services provided by Prospectiva are:
- Understanding of the political scenario concerning specific areas related to consumer goods;
- Defense of interests within the three branches of government and regulatory agencies;
- Proposal of public policies;
- Support in negotiations;
- Integration of markets through international negotiations;
- Support in tributary planning.