Products 6x More Expensive in Brazil

“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)

Advertisements

8 thoughts on “Products 6x More Expensive in Brazil

  1. Oh man, don’t take this newspaper too seriously. It’s too biased. O Globo (G1), Folha de S. Paulo, Veja and Estadão are newspapers and magazine you can’t rely on much.
    Look for other sources too.

  2. I agree with article. I was browsing in shopping Dom Pedro yesterday. A car seat for a new born is way below quality of the U.S.. A super great car seat can be bought on Amazon, for about 150.00 u.s. and delivered to your house for free. While something under par, in shopping Dom Pedro is 800.00 heais, basicly top of the their line. Yet it still can’t compare. One Graco high chair is 800.00 heais and I don’t think Graco is the best price for quality baby stuff in the U.S.. There maybe better shopping in Americana, but I am not pregnant nor have a baby nor. So I am not complelely sure. But Dom Pedro is the biggest mall in South American and tends to have really good quality. All though I prefer Shopping Iguatemi. I had a miscarriage at 5 months in the U.S., after the 3 month go ahead I started baby shopping. I bought the top of the line car seat. I know. Here the modern craddles, are not child proof. Many models have the possiblity of a baby hanging it’s self. I am not talking about the tradition wood cribs. But the new play pens/crib combos many people are buying. And their pricy. I can’t say the actual math is correct that global did was right. But Brazil is super expensive for baby stuff, shoes, clothes, and school materials (and cars).

  3. These items have always been cheaper abroad. What I referred to is the tone of the article. “Cristina Madeira, from Brasília, is just one of dozens of recent mothers that opted to buy baby accessories for her children outside of Brazil”. Is just one of dozen? C’mon! How many people in Brazil can take a plane just to buy things in the US? 1%?
    I agree that such things are more expensive in Brazil. But read between the lines. I am pretty that this newspaper wouldn’t publish such article if the president were from a right-wing party.

    • Saquei. It would be like me saying I’m going to Europe to go shopping…to a point, because the article also says that the woman spent less (presumably travel costs included) in the US than she would have in Brazil buying locally. If a car was $20,000 here but $5,000 in Canada, I definitely take a trip to Canada to get a car. What seems to be important here is the products being purchased and if people really are spending less on basic items by going abroad for a few days.

  4. I do know of a young woman that lived in Marrietta, GA USA, who for two years or more saved her money and purchased everything from the states that you can think of to furnish a house. I mean fridge, stove, dishwasher, beds, furniture, everything, and shipped it back to Brazil. She was able to do this by living with her Mom and her Mom did not charge her anything for room and board cause her Mom understood what she was trying to do. True story.

    The first time I went to Brazil I have to admit I was taken aback by all the eletronics that Brazilians were bringing back from the US, on the plane! Then I found out the tax rates when purchasing electronics, cars or anything else in Brazil. Sheeesh!

  5. People who are upper middle class go shopping in the U.S. from Brazil all the time(and to tavel Brazilians love to travel). And I think there would be a lot more Brazilian travelors to the U.S., but most people in Brazil are underclass or working class economic classes. They simply can’t afford traveling to the U.S. for shopping. My husband bought a shipping container. A lot of Brazilians do in fact. Shipping containers are hardcore.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s