Brazil The Pet Sector. PIJAC Webinar November 2014

Transcription

1 Brazil The Pet Sector PIJAC Webinar November 2014

2 A World within a Country Countries with area over 2 Argentina Kazakhstan million km² Saudi Arabia Algeria Congo Australia Brazil India Russia China Bangladesh Japan Indonesia Pakistan Countries with population over 100 million Nigeria Canada USA Mexico Countries with nominal GDP over US$ 600 billion Italy South Korea Turkey U K France Germany Netherlands Spain Sources: IMF(GDP), UN

3 South America s Powerhouse Brazil represents 50% of South America s total GDP Brazil GDP: US$2.4 tri (2011) GDP per capita: U$12,696 Sources: Brazil - Banco Central do Brasil 3

4 Brazil Territorial Division Divided in 5 different regions (by the Brazilian Institute of Geography and Statistics) 1) North Region 2) Northeast Region 3) Central-West Region 4) Southeast Region 5) South Region

5 A Country of Contrasts NORTH POP 8,1% PP 5,4% NORTHEAST POP 27,6% PP 18% MID-WEST POP 7,1% PP 6,6% SOUTH POP 14,6% PP 18,4% SOUTHEAST POP 42,6% PP 51,6% POP=Population PP=Purchasing Power Globo presentation to MBAs

6 Increasing Buying Power Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular.

7 C a n a d a & B r a z i l

8 Brazil Canada s 10 th Largest Export Market

9 Top 10 Canadian Exports 9 Source: Statistics Canada

10 Source: Statistics Canada Top 10 Canadian Imports

11 Canada-Brazil Bilateral Investments 2011 CDI C$ 9.8 billion Sectors: Agriculture, Mining, Shopping Centres, Telecommunications, Software, Environmental Ind. Automotive Parts Brazil is the 12 th largest destination for Canadian outward investment FDI C$ 18.6 billion Sectors: Mining, Steel, Beverages, Cement, Software Canada is the 6 th largest destination for Brazilian outward investment 11 Source: Statistics Canada

12 Pet Market

13 Pet Market Highlights Ranks as the 2 nd largest pet market in the world (after the U.S.A.) Has the 4 th largest pet population in the world Growth of 8.2% in 2014 Revenues of R$16.4 billion (approx US$5.3 billion) Monthly expenditure vary from US$50.00 to US$150 Dog food expenses may represent from 4.5% to 11% and cat food 1.8 and 4.1 of families budget (C and D respectively) 50% of pet owners are estimated to still feed pets with leftovers. High tax structure, representing approx 50% of the price.

14 Industry Production of petfood is expected to reach 2.4 million tons in 2014 (increase of 4.5% over previous year) Half of the production comes form the states of Parana, São Paulo and Minas Gerais. Dog food represent 91.1% of the total volume, the equivalent of 470 thousand tons, São Paulo is the largest market in the country, with an estimated population of 14 million pets and petshops. 225 thousand direct jobs Source: Canadian Consulate Analysis

15 Strong competition from both local and foreign Language Logistics Tax system (impact on landed cost) Macroeconomic volatility (exchange rates, monetary) Transportation and infra-structure (roads, ports, etc) Regulatory enviroment

16 Challenges for Doing Business Source: World Economic Forum, Morgan Stanley LatAm Economics.

17 Challenges to Canadian Exporters Strong competition from both local and foreign Language Logistics Tax system (impact on landed cost) Macroeconomic volatility (exchange rates, monetary) Transportation and infra-structure (roads, ports, etc) Regulatory enviroment

18 Opportunities Large country with an expanding population, rising salaries and a favored market for foreign investment in the region, Brazil s medium-term prospects remain encouraging Increasing demand for value-added products Increasing exposure of Brazilians to foreign cultures and products Shophisticated and expanding retail sector

19 Pocket guide to understand Brazilians What Brazilians say: Yes (Sim) What Brazilians mean: Anything from yes through perhaps to no What foreigners hear: Yes What Brazilians say: Perhaps (Talvez) What Brazilians mean: No What foreigners hear: Perhaps What Brazilians say: No (Não) What foreigners hear (on the very rare occasion a Brazilian says it): No What Brazilians mean: Absolutely never, not in a million years, this is the craziest thing I've ever been asked What Brazilians say: I'm nearly there (Tô chegando) What Brazilians mean: I've left What foreigners hear: He's nearly here What Brazilians say: I'll show up later (Vou aparecer mais tarde) What Brazilians mean: I won't be coming What foreigners hear: He'll be here later What Brazilians say: Let's stay in touch, ok? (vamos combinar, ta?) What foreigners hear: He'd like to stay in touch (though, puzzlingly, we don't seem to have swapped contact details) What Brazilians mean: No more than a Briton means by: "Nice weather, isn't it?

20 What Brazilians say: A hug! A kiss! (Um abraço! Um beijo!) What foreigners hear: I've clearly made quite an impression we've just met but he/she really likes me! What Brazilians mean: Take care, cheers, bye What Brazilians say: You speak Portuguese really, really well! (Você fala português super-bem!) What foreigners hear: How great! My grammar and accent must be coming on a lot better than I thought What Brazilians mean: How great! A foreigner is trying to learn Portuguese! Admittedly, the grammar and accent are so awful I can barely understand a word... but anyway! A foreigner is trying to learn Portuguese! By Brazil-based journalists Andrew Downie and Dom Phillips, who contributed items, and Olivier Teboul, a Frenchman living in Belo Horizonte whose list of "Brazilian curiosities" (in Portuguese) has generated a huge response from amused, and sometimes bemused, locals.

21 Thank you! Merci! Obrigado! Consulate General of Canada Av. Das Nações Unidas, Torre Norte 16º Andar São Paulo, SP Brazil Web site: