Business Plan on Exporting LYDC (English Handbags) to Brazil

Résumé du document

Brazil is one of the most promising emerging countries such as India and China. With an 8,547 400 km² surface and a population of 191,043,661 inhabitants, Brazil is the fifth largest country in the world regarding surface and population. Also, Brazil is the 10th global economic power. However, it is one of the countries with biggest disparities in terms of wealth.

In this context LYDC, an English company specializing in high quality handbags wants to export its product lines to Brazil.

LYDC is one of the most famous handbag brands in London. Its chic products are of an exceptional quality with perfect design and great finish. The firm understands women's needs and its wide range allows the brand to be fit the cosmopolitan lifestyle of women across the world.

Extraits

[...] With already two main distribution partners in Germany and Taiwan, LYDC is setting up a distribution network and considers extending to Brazil. Why needs to go abroad? LYDC is always looking for dynamic sales agents or distributors to make the maximum use of the European and Worldwide opportunities. LYDC wishes to export its products for several reasons: - Increase sales - Exceed the saturation of the domestic market - Acquire prestige - Develop economies of scale - Diversify its market - Strengthen its competitiveness - Increase the number of potential clients Why the Brazilian market? [...]

[...] It is much faster than to set up a joint venture and not much longer than to have a corner. The brand already exists; retailing activity can be launched in a short period of time in any continent. The risk is low, thanks to the limited investment; it is even cheaper than Joint venture. However, earning can be not negligible in case of success in a country such as Brazil. The last advantage is the possibility to check how the business is progressing by making an audit. Nowadays brands are franchised like Levis, Wrangler or Lee. [...]

[...] This is behind other major emerging markets. For example, South Africa ranks 29, Mexico 73, Russia 79 and India 116. Starting a business is easiest in the states of Minas Gerais and Rio Grande do Sul. It is most difficult in Sao Paulo, Ceara, and Maranhao. Government is showing effort to provide help to investors by providing manuals and lists of necessary bureaucratic instruments needed to start a business in Brazil. Brazil has signed a bilateral agreement on avoiding double taxation with most countries, including United Kingdom. [...]

[...] As in many developing countries, the corruption is still a big issue in Brazil. Opening an operation may require additional payments to government officials, and so it can be a big obstacle for entering the market. According to Transparency International, Brazil stands at 70th place in level of corruption among 180 countries. Economic Due to large population and inflow of Foreign Direct Investment, Brazil has high potential for growth. Even if it's a country with huge disparities in terms of wealth, the gap between rich and poor is decreasing gradually, and there is a significant growth of middle class. [...]

[...] The tax rate is quite high when compared to some other economies. Social Brazil has a huge economic inequality among the population and around 19% of citizens live under poverty line. But let's not forget that Brazil has a population of around 188 million people, which makes it the 5th largest nation in the world. Let's take a look at the income distribution table from the website: ‘answer.com/topic/economy of Brazil'. (cg4) Class distribution in Brazil has a huge portion of low income people, and a significant number of wealthy citizens. [...]