“Cristina Madeira, from Brasília, is just one of dozens of recent mothers that opted to buy baby accessories for her children outside of Brazil:
– I bought it abroad because the quality of the products is better and the prices, a lot less. I bought a stroller, clothes and a child seat for the car. Everything that I brought for Rafael, who is about to turn 1 year old, is good for another year.
Cristina spent R$5,000 on shopping. In Brazil, just the stroller would have cost her R$2,500.
– There’s something really wrong when it’s worth it for someone to take a 9-hour flight to go shopping in the wealthiest country in the world just to save money. To have a stronger currency, the country needs to go through hard reforms and invest in infrastructure – asserts the president of the Brazilian Association of the Textile Industry (Abit), Fernando Pimentel, whose sector has sufferred in light of import competition, but is readjusting.
Brazilians are subject to a US$500 quota in purchases when they go through customs. But many consider it worth paying the 50% tax on anything extra.
Tourism operators have already identified the new niche and they plan to create shopping routes dedicated to young mothers with their packages to the U.S. CVC, for example, one year ago launched a package called “Shopping in Buenos Aires” and just started to include their Las Vegas route with a tour of outlets with which they’ve made arrangements to assure good discounts are given to their clients.
To please consumers, companies are going to have to decrease their profit margins. Specialists say that it is starting to change the culture in Brazil when companies realize they can have a margin of 100%, while in countries such as the U.S., companies have margins of only 5% to 10%. ” – O Globo (in PT)