In crisis and facing the threat of recession in developed economies, it would be logical to think that, for profiting, multinationals would have to go where the money is. Today, the preferred destination responds to the name of emerging markets, among which stands out Brazil.
The economist Goldman S. J. O’Neill, the one who invented the buzz word BRIC, states that Brazil is the place to be in nowadays. However, not everyone agrees on that. There are big companies that, for many different reasons, decided not to take part of this market slice.
VEJA Magazine had made a selection of worldwide well-known companies - with a lot of ardent fans in Brazil - that decided to exclude Brazil of its ...view middle of the document...
Brazil is a growing and interesting market, but there is still no concrete plan to establish ourselves there", she said.
Such absences, in an isolated form, do not represent a big loss for Brazilian customers, seeing that domestic economy is well-served when it comes about the services segment. Meanwhile, when one analyzes comparatively, the scenario is, at least, weird. All the companies that VEJA Magazine had researched are in all the other countries, represented by the letters of BRIC (Russia, India, China) and even in regions less developed, such as Middle East and Latin America.
It's a fact that, for each case, there's a specific reason for not being in Brazil: since the expansion strategy focused elsewhere until the shortage of capital to invest in times of crisis. The problem is that the country, either, facilitates this scenario.
In the case of retail clothing, high taxes, real state valuation, the cost to import parts from China or produce them internally, cause the companies to have to mobilize a very large capital to enter the domestic market. To achieve satisfactory margins, they end up with prices much higher than those prevailing in other markets and the risk of making mistakes in strategy and closing the doors is increased, as with brands like Ralph Lauren and Miss Sixty.
For these and other reasons, popular fashion stores, as H&M, prefer not to risk themselves. "Many years ago,...