Brazil emerged as the sixth largest economy over Britain in the world, according to a latest figure. For the first time, UK has fallen behind the South American nation as the seventh richest country in the world. Now rapidly growing Brazil is the power house of global economy. Luxury brands are considering Brazil and moving towards some very lucrative opportunities. The high fashion designs of Andrea Marques would be featured at a show in Rio de Janeiro and the city is getting ready for a five day long displays of winter 2012. Bottega Veneta and Prada opened their boutiques and are expected to open more through the year. The luxury goods consumption is booming among wealthier and middle classes in spite of the crisis of economy in United States and Europe.
Getting goods through customs in Brazil is extremely difficult. The stores of multi Luxury brands suffer from price inflation with epic proportions due to the sales taxes, import duties, and ticket prices can reach 18 times more than the wholesale price.
There is challenge for international brands with domestic clothing industry. Both Sao Paulo and Rio of the tropical country will have two fashion weeks, where local brands are apt for southern hemisphere where there are no seasons in the country, except spring-summer which poses complication for international labels.
Brazilian brands provide real stiff competition for foreign luxury labels. Sales tactics that work in other developing countries do not work in Brazil as sales staff’s friendly behaviour towards customer make him feel special. The customer’s confidence is strongly rooted whether it may be kitchen supplies, banking services or cars. Brazilian consumers have extravagant luxury tastes.