By Jay Forte, Contributing Reporter RIO DE JANEIRO, BRAZIL – Retailers and consumers are seeing a wave of imported products in Brazil, mainly due to the favorable exchange rate of the Brazilian real to the U.S. dollar. However while this is a welcome turn for those looking to purchase imported beverages, electronics or garments in Brazil, analyst warn of the negative effect on the domestic markets. Wine and olive oil are some of the leading import products taking an increased market share in Brazil, photo by José Goulão/Flickr Creative Commons License. In a report by O Globo, Antonio Correa de Lacerda, a professor at PUC-SP explained: “The pace of imports is no longer as healthy for the Brazilian economy. This is because many [imports] substitute products manufactured domestically.” According to LCA Consulting, today about twenty percent of industrial products consumed in Brazil are imported, as opposed to 2008 when 16.6 percent were. This increased market share of products from other countries appears at stores like Center Perfumaria. In the retailer chain, the branches that sell perfumes and cosmetics, the presence of imports grew on average five percent per year. And those that sell hair products, the annual growth reaches twenty percent. In the market for infant and childcare, the products manufactured in other countries are also present. At Très Jolie, eighty percent of toys are imported, but these represent only five percent of sales from the store. In the food and beverage industry, there is a growing phenomenon of imported items. Leonardo Fajardo, a partner at delicatessen Zona Zen, told O Globo that, “The sale of imported wines and olive oils, rose thirty percent this year alone.” Fajardo had just imported forty boxes of French wines to complement the stock, as: “This period give the oil and wine as we know that the return is certain, because of Easter.” Despite heavy import taxes on products manufactured outside of Brazil, the demand for imported products is also certainly related to Brazil’s strengthened economy, growing middle class, and increased consumer spending, even if much of it is credit-based. Read more (in Portuguese). * The Rio Times Daily Update is a new feature we are offering to help keep you up-to-date with major news as it happens. 4 Responses to "Brazil Sees More Imported Products: Daily" Tj March 24, 2012 at 3:39 PM Good… most things that are made here and expensive and of inferior quality. We need more imported products here, the government need to lower the import taxes and let people live a better life, being able to buy high standard goods at fair prices like any other civilized society in this world. Cameron March 24, 2012 at 5:13 PM I am a beer enthusiast and when I go to my favourite beer selling stores/bars I see Brazilian craft beer along side imported beer. I’d like to drink more Brazilian stuff but for some reason, most of it is the same price or even more expensive than a lot of the imported stuff which is mostly better. So why would I drink the local stuff? Tj March 24, 2012 at 7:55 PM @Cameron – I totally agree, and the same goes for Wine/Cars/Electronics and many more… Its a grate shame the home made stuff is not considerably cheaper like it should be, maybe then we would consider buying it. Pingback: Opinion: Latin Trade, Investment Prospects and the U.S. Election | The Rio Times | Brazil News Leave a Reply Cancel Reply Your email address will not be published.