Luxury brands from Europe eye commercial prospects in Brazil
In a bid to expand their reach, a trade mission led by the European Alliance of Cultural and Creative Industries (Eccia) recently ventured into the Carioca market of Brazil. The mission, which took place on a specified date, aimed to explore business opportunities for Eccia's luxury member companies in the South American nation.
Eccia is a union of five luxury sector associations: Círculo Fortuny (Spain), Comité Colbert (France), Fondazione Altagamma (Italy), Walpole British Luxury (UK), and Meisterkreis-Deutsches Forum für Luxus (Germany). Some of the renowned European Union luxury companies active in Brazil include Gucci, Prada, Dior, Armani, Burberry, LVMH, Dolce & Gabbana, and Valentino, all known for their strong presence in the luxury clothing market. However, the specific founding dates of their Brazilian operations are not detailed in the available sources.
The luxury market in Brazil, estimated to be worth 2.3 billion euros, is projected to grow by 35% in the coming years, according to Eccia data. Carlos Falcó, President of Círculo Fortuny, believes that this growth presents a significant opportunity for European luxury brands. He stated that access to luxury products in Brazil would have a double beneficial impact on the Brazilian economy, as purchases in the local market would replace those made abroad. Falcó also noted that more than two-thirds of Brazilian luxury product purchases are currently made outside their borders.
During the trade mission, Eccia addressed issues such as import tariffs, intellectual property protection, and other entry barriers and taxes. The mission also included meetings with the President of Brazil, Dilma Rousseff, to discuss potential collaborations and partnerships. However, the mission did not provide specific details about the expected growth rate of individual luxury companies in Brazil or specific business opportunities for these companies.
The luxury market, which is expected to reach a global turnover of 191 billion euros in 2011, represents 75% of the global high-end market. In the opinion of Carlos Falcó, an injection of investment in the luxury sector would result from access to the Brazilian market. He believes that this investment would not only boost the luxury market in Brazil but also contribute positively to the Brazilian economy as a whole.
The Vice-President of the European Commission, Antonio Tajani, accompanied Eccia on their trade mission in Brazil, underscoring the European Union's commitment to fostering economic growth and trade relations with Brazil. As the luxury market in Brazil continues to grow, it remains to be seen how European luxury brands will capitalise on this opportunity and what impact this will have on the Brazilian economy.
