Retailing in Brazil– Market Summary & Forecasts; Comprehensive overview of the market, consumer, and competitive context, with retail sales value and forecasts to 2020

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The Brazilian economy is suffering a downturn, which is mostly due to its internal issues of scams and corruption. However, the retail sector is expected to grow at a CAGR of 6.9% over 2015 to 2020. On the other hand, high Internet penetration and very high smartphone penetration is expected to fuel the online retail channel. Overall, the economy is struggling to repair the damage; however, with a high young population coupled with historic high GDP growth rates, Verdict Retail expects an optimistic retail environment in the next few years.

Scope

• Online retail is gaining traction in the country, due to high smartphone penetration, fast Internet speeds, and expanding 4G connectivity

• The Rio carnival, 2014 FIFA World Cup, and the upcoming 2016 Rio Olympics are major boosters for retail sales in all categories

• Consumer passion for smartphones is rising while the market for computers, laptops, and notebooks has declined significantly due to the inclination towards mobile Internet and ease of operation

• Food and grocery is the largest category group by retail sales while health and beauty will be the fastest-growing category group

Reasons to Buy

Gain comprehensive knowledge on 26 products across 12 product sectors in Brazil’s retail market and develop a competitive advantage around consumer behavior trends from the start of your supply chain

Explore novel opportunities that will allow you to align your product offerings and strategies to meet demand by analyzing the vital economic and population trends, and key consumer and technology trends influencing the retail market

Investigate current and forecast behavior trends in each category to identify the best opportunities to exploit

Analyze the recommended actions to align your marketing strategies with the crucial trends influencing consumer behavior

Understand the fastest-growing categories in the market with insights on the performance of individual product categories, across key channels from 2010, with forecasts until 2020

Analysis of key international and domestic players operating in Brazil’s retail market — including store counts and revenues that give you a competitive edge and identify opportunities to improve your market share

Lojas Americana's
Hering
Marisa
Riachuelo
Renner
C&A
Zara
Comprafacil.com
Dafiti.com.br
Alpargatas
Arezzo
C&A
Centauro
Via Uno
Netshoes
Dafiti.com.br
Adidas
Vulcabras
Kalunga
Saraiva
Livraria Cultura
fnac.com.br
technospub.com.br
submarino
Amazon.com.br
Magazineluiza
Casas Bahia
Lojas Americana's
Pontofrio
Ricardo Eletro
Citylar
Fast Shop
Ampm
Carrefour
Dia
BR Mania
Walmart Brasil
Extra
Cencosud
Supermercados BH
Sonda supermarcados
Savegnago
Angeloni
B2W Digital
O Boticário
Lojas Americana's
Extra
Carrefour Comércio e Indústria Ltda
Água de Cheiro
Eudora
Avon
Favab
pontofrio.com.br
Dafiti.com.br
Sephora
Natura
Casas Bahia
Pontofrio
Dell Anno
Tok & stok
Etna
Oppa
Casas Bahia
Insinuante
Dell Anno
Citylar
Dicico
Camicado
Casa & Construção (C&C)
Telhanorte
Leroy Merlin
Saraiva
Fnac
Comprafacil
Submarino.com
billboxrecords.com
Centauro
By Tennis
Decathlon
Netshoes
Adidas
casadepedra
Vivara
Le Lis Blanc Deux
H. Stern
Amsterdamsauer
Dufry
Delsey
Michael Kors
Samsonite
Roncato

Table of Contents

1 Introduction

1.1 What is this Report About?

2 Executive Summary & Outlook

3 Market Context

3.1 Brazil is an economy with many questions

3.1.1 Retail sector will experience a change in game plan

3.1.2 Consistent decline in savings rate is a good sign for retail spending

3.1.3 Service remains the dominant sector for employment

3.1.4 Fluctuations in unemployment rate are expected to continue

3.1.5 Roaring inflation is a cause of concern

3.1.6 Household consumption expenditure is driving the retail market

3.2 Steady increase in population is a healthy sign for the retail market

4 Brazil Shoppers

4.1 Olympics, FIFA World Cup and Carnivals- There’s always a reason for retail sales to get bigger in Brazil

4.2 The strength of the Brazilian online commerce

4.3 Tourism and opportunities in Brazil’s retail sector

4.4 The rise and fall of the best-selling electronics in Brazil

5 Doing Business in Brazil

5.1 Summary

5.1.1 Bureaucracy

5.1.2 Business culture

5.1.3 Geography

5.1.4 Infrastructure and logistics

5.2 Key taxation policies

5.2.1 Corporate income tax (IRPJ – Imposto de Renda sobre Pessoa Jurídica)

5.2.2 Withholding tax

5.2.3 Value added tax (VAT)

6 Internet and Technology

6.1 Internet infrastructure in Brazil is the best in South America

6.2 Fixed broadband penetration is growing at slow pace

6.3 Mobile commerce has increased due to high smartphone penetration

6.4 Technology Trend

6.4.1 Pag Brasil’s Boleto Bancario easy payment

7 Retail Topline

7.1 Total Retail

7.1.1 Online sales & growth

7.2 Summary of Product Sectors

7.2.1 Share of key product sectors

7.2.2 Key product sectors

7.3 Summary of Channels

7.3.1 Spend per channel

7.3.2 Online penetration of key product sectors

8 Retail – Product Sectors

8.1 Product Sector Analysis

8.1.1 Clothing

8.1.2 Footwear

8.1.3 Books, News, and Stationery

8.1.4 Electrical and Electronics

8.1.5 Food and Grocery

8.1.6 Health and Beauty

8.1.7 Furniture and Floor Coverings

8.1.8 Home and Garden Products

8.1.9 Music, Video, and Entertainment Software

8.1.10 Sports and Leisure Equipment

8.1.11 Jewelry, Watches, and Accessories

8.1.12 Luggage and Leather Goods

9 Retailers

9.1 Clothing

9.2 Footwear

9.3 Books, News and Stationery

9.4 Electrical and Electronics

9.5 Food and Grocery

9.6 Health and Beauty

9.7 Furniture and Floor Coverings

9.8 Home and Garden Products

9.9 Music, Video and Entertainment Software

9.1 Sports & Leisure Equipment

9.11 Jewelry, Watches and Accessories

9.12 Luggage and Leather Goods

10 Appendix

10.1 Definitions

10.1.1 This report provides 2015 actual sales; while forecasts are provided for 2016–2020

10.2 Summary Methodology

10.2.1 Overview

10.2.2 The triangulated market sizing method

10.2.3 Industry surveys in the creation of retail market data

10.2.4 Quality control and standardized processes

10.3 About Verdict Retail

10.4 Disclaimer

Table

Table 1: Brazil Clothing Retail Sales (R$ bn), by Product Sub-Category, 2010–2015

Table 2: Brazil Clothing Retail Sales (R$ bn), by Product Sub-Category, 2015–2020

Table 3: Brazil Footwear Retail Sales (R$ bn), by Product Sub-Category, 2010–2015

Table 4: Brazil Footwear Retail Sales (R$ bn), by Product Sub-Category, 2015–2020

Table 5: Major Domestic Retailers in Brazil

Table 6: Major International Retailers in Brazil

Table 7: Key Clothing Retailers in Brazil

Table 8: Key Footwear Retailers in Brazil

Table 9: Key Books, News and Stationery Retailers in Brazil

Table 10: Key Electrical and Electronics Retailers in Brazil

Table 11: Key Food and Grocery Retailers in Brazil

Table 12: Key Health and Beauty Retailers in Brazil

Table 13: Key Furniture and Floor Coverings Retailers in Brazil

Table 14: Key Home and Garden Products Retailers in Brazil

Table 15: Key Music, Video and Entertainment Retailers in Brazil

Table 16: Key Sports & Leisure equipment Retailers in Brazil

Table 17: Key Jewelry, watches and accessories Retailers in Brazil

Table 18: Key Luggage and Leather Goods Retailers in Brazil

Table 19: Brazil Exchange Rate R$–US$ (Annual Average), 2010–2015

Table 20: Brazil Exchange Rate R$–US$ (Annual Average), 2016–2020

Table 21: Verdict Retail Channel Definitions

Table 22: Verdict Retail Category Definitions

Figures

Figure 1: GDP Values (Current US$) billion, 2010–2015

Figure 2: Growth Rate of GDP (Constant US$), 2010–2015

Figure 3: GDP Value and Growth (R$ billion, %), 2010–2015

Figure 4: Forecasts for GDP Value and Growth (R$ billion, %), 2015–2020

Figure 5: Personal Savings (%), 2005–2015

Figure 6: Share of Employment by Sector (%), 2005 and 2015

Figure 7: Unemployment Rate (%), 2005–2015

Figure 8: Inflation rate (annual %) 2005–2015

Figure 9: Household Consumption Expenditure of Brazil (R$ billion), 2005 and 2015

Figure 10: Household Consumption Expenditure of Major Countries (US$ Billion), 2015

Figure 11: Growth of Household Consumption Expenditure (%), 2005–2015

Figure 12: Total Population and Growth Rate (Millions, %), 2005–2020

Figure 13: Population Split by Gender (%), 2015 and 2020E

Figure 14: Population Split by Age Group (%), 2015 and 2020E

Figure 15: Per Capita Spend on Retail (R$), 2005 and 2015

Figure 16: Per Capita Spend (R$) on Retail by Age Group (%), 2005 and 2015

Figure 17: Rural and Urban Populations (% of total population) 2005, 2015E and 2020E

Figure 18: Major cities with high spend on retail

Figure 19: Doing Business in Brazil

Figure 20: Total Number of Internet Users and Penetration (Millions, %), 2006–2015

Figure 21: Total Number of Fixed Broadband Users and Penetration (Millions, %), 2005–2015

Figure 22: Total Number of Mobile Phone Subscriptions and Penetration (Millions, %), 2005–2015

Figure 23: Pag Brasil’s Boleto Bancario – It’s easy and secure

Figure 24: Retail Sales Value and Growth (R$ billion, %), 2005–2015

Figure 25: Retail Sales as % of Total Consumer Spend (%), 2005 and 2015

Figure 26: Total Retail Sales and Growth Rate (R$ billion, %), 2015 and 2020

Figure 27: Online Sales and Growth Rate (R$ billion, %) 2015–2020

Figure 28: Share of Key Product Sectors (%), 2015 and 2020

Figure 29: Growth Rate of Key Product Sectors vs. Growth of Total Retail (%), 2015–2020

Figure 30: Value Growth of Key Product Sectors (R$ billion), 2015–2020

Figure 31: Spend Per Channel, 2015 and 2020

Figure 32: Online Penetration of Key Product Sectors (%), 2015

Figure 33: Online Penetration of Key Product Sectors (%), 2020

Figure 34: Share of Clothing in overall Retail 2015 and 2020

Figure 35: Retail Sales Value and Growth (R$ billion, %) of Clothing 2015–2020

Figure 36: Spend-per-Head on Clothing 2015 and 2020

Figure 37: Share of Clothing by Women’s Wear, Men’s Wear and Children’s Wear 2015 and 2020

Figure 38: Childrenswear Sales Value and Growth (R$ billion, %) 2015–2020

Figure 39: Menswear Sales Value and Growth (R$ billion, %) 2015–2020

Figure 40: Womenswear Sales Value and Growth (R$ billion, %) 2015–2020

Figure 41: Online Spend in Clothing 2015–2020

Figure 42: Online Share of Total Clothing Spend 2015 and 2020

Figure 43: Spending per Channel in Clothing (%) 2015 and 2020

Figure 44: Share of Footwear in Total Retail 2015 and 2020

Figure 45: Retail Sales Value and Growth (R$ billion, %) of Footwear 2015–2020

Figure 46: Spend-per-Head on Footwear 2015 and 2020

Figure 47: Share of Footwear by Women’s Footwear, Men’s Footwear and Children’s Footwear 2015 and 2020

Figure 48: Women’s Footwear Sales Value and Growth (R$ billion, %) 2015–2020

Figure 49: Men’s Footwear Sales Value and Growth (R$ billion, %) 2015–2020

Figure 50: Children’s Footwear Sales Value and Growth (R$ billion, %) 2015–2020

Figure 51: Online Spend in Footwear 2015–2020

Figure 52: Online Share of total Footwear Spend 2015 and 2020

Figure 53: Spending per Channel in Footwear (%) 2015 and 2020

Figure 54: Share of Books, News and Stationery in Total Retail 2015 and 2020

Figure 55: Retail Sales Value and Growth (R$ billion, %) of Books, News, and Stationery 2015–2020

Figure 56: Spend-per-Head on Books, News, and Stationery 2015 and 2020

Figure 57: Online Spend in Books, News, and Stationery 2015–2020

Figure 58: Online Share of total Books, News and Stationery Spend 2015 and 2020

Figure 59: Spending per Channel in Books, News, and Stationery (%) 2015 and 2020

Figure 60: Share of Electrical and Electronics in overall Retail 2015 and 2020

Figure 61: Retail Sales Value and Growth (R$ billion, %) of Electrical and Electronics 2015–2020

Figure 62: Spend-per-Head on Electrical and Electronics 2015 and 2020

Figure 63: Online Spend in Electrical and Electronics 2015–2020

Figure 64: Online Share of total Electrical and Electronics Spend 2015 and 2020

Figure 65: Spending per Channel in Electrical and Electronics (%) 2015 and 2020

Figure 66: Share of Food and Grocery in overall Retail 2015 and 2020

Figure 67: Retail Sales Value and Growth (R$ billion, %) of Food and Grocery 2015–2020

Figure 68: Spend-per-Head on Food and Grocery 2015 and 2020

Figure 69: Online Spend in Food and Grocery 2015–2020

Figure 70: Online Share of total Food and Grocery Spend 2015 and 2020

Figure 71: Spending per Channel in Food and Grocery (%) 2015 and 2020

Figure 72: Share of Health and Beauty in overall Retail 2015 and 2020

Figure 73: Retail Sales Value and Growth (R$ billion, %) of Health and Beauty 2015–2020

Figure 74: Spend-per-Head on Health and Beauty 2015 and 2020

Figure 75: Online Spend in Health and Beauty 2015–2020

Figure 76: Online Share of total Health and Beauty Spend 2015 and 2020

Figure 77: Spending per Channel in Health and Beauty (%) 2015 and 2020

Figure 78: Share of Furniture and Floor Coverings in overall Retail 2015 and 2020

Figure 79: Retail Sales Value and Growth (R$ billion, %) of Furniture and Floor Coverings 2015–2020

Figure 80: Spend-per-Head on Furniture and Floor Coverings 2015 and 2020

Figure 81: Online Spend in Furniture and Floor Coverings 2015–2020

Figure 82: Online Share of total Furniture and Floor Coverings Spend 2015 and 2020

Figure 83: Spending per Channel in Furniture and Floor Coverings (%) 2015 and 2020

Figure 84: Share of Home and Garden Products in overall Retail 2015 and 2020

Figure 85: Retail Sales Value and Growth (R$ billion, %) of Home and Garden Products 2015–2020

Figure 86: Spend-per-Head on Home and Garden Products 2015 and 2020

Figure 87: Online Spend in Home and Garden Products 2015–2020

Figure 88: Online Share of total Home and Garden Products Spend 2015 and 2020

Figure 89: Spending per Channel in Home and Garden Products (%) 2015 and 2020

Figure 90: Share of Music, Video, and Entertainment Software in overall Retail 2015 and 2020

Figure 91: Retail Sales Value and Growth (R$ billion, %) of Music, Video, and Entertainment Software 2015–2020

Figure 92: Spend-per-Head on Music, Video, and Entertainment Software 2015 and 2020

Figure 93: Online Spend in Music, Video, and Entertainment Software 2015–2020

Figure 94: Online Share of total Music, Video, and Entertainment Software Spend 2015 and 2020

Figure 95: Share of total Music, Video, and Entertainment Software Spend 2015 and 2020

Figure 96: Share of Sports and Leisure Equipment in overall Retail 2015 and 2020

Figure 97: Retail Sales Value and Growth (R$ billion, %) of Sports and Leisure Equipment 2015–2020

Figure 98: Spend-per-Head on Sports and Leisure Equipment 2015 and 2020

Figure 99: Online Spend in Sports and Leisure Equipment 2015–2020

Figure 100: Online Share of total Sports and Leisure Equipment Spend 2015 and 2020

Figure 101: Spending per Channel in Sports and Leisure Equipment (%) 2015 and 2020

Figure 102: Share of Jewelry, Watches, and Accessories in overall Retail 2015 and 2020

Figure 103: Retail Sales Value and Growth (R$ billion, %) of Jewelry, Watches, and Accessories 2015–2020

Figure 104: Spend-per-Head on Jewelry, Watches, and Accessories 2015 and 2020

Figure 105: Online Spend in Jewelry, Watches, and Accessories 2015–2020

Figure 106: Online Share of total Jewelry, Watches, and Accessories Spend 2015 and 2020

Figure 107: Spending per Channel in Jewelry, Watches, and Accessories (%) 2015 and 2020

Figure 108: Share of Luggage and Leather Goods in overall Retail 2015 and 2020

Figure 109: Retail Sales Value and Growth (R$ billion, %) of Luggage and Leather Goods 2015–2020

Figure 110: Spend-per-Head on Luggage and Leather Goods 2015 and 2020

Figure 111: Online Spend in Luggage and Leather Goods 2015–2020

Figure 112: Online Share of total Luggage and Leather Goods Spend 2015 and 2020

Figure 113: Spending per Channel in Luggage and Leather Goods (%) 2015 and 2020

Figure 114: The Triangulated Market Sizing Methodology

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