Trade talk: Brazil offers great potential for Mauritian exports
Textile products saw the greatest increase with the value of exported products from this sector spiralling from Rs 4.16 million to Rs 21.91 million, according to data from Enterprise Mauritius. (Image: CIEL)
Trade between Mauritius and Brazil is going well with an increase of 51% in the island economy’s exports to the emerging South American economy from Rs 14.98 million to Rs 22.61 million between 2012 and 2013.
Also, according to the data released by Enterprise Mauritius in its latest newsletter, textile products saw the greatest increase with the value of exported products from this sector spiralling from Rs 4.16 million to Rs 21.91 million.
According to Enterprise Mauritius, Brazil holds great potential for Mauritius as clothing imports to this economy are growing at a fast pace of 12.7% year-on-year to USD 957 million in 2013.
At the same time, the economy is facing high production cost leading to closure or relocating to low cost countries, which creates a great opportunity for importers to Brazil, like Mauritius.
All in all, Brazil, the largest and most populated country in Latin America with 201 million inhabitants, relies a lot on imported goods. The country’s growing middle class and upmarket with high disposable income and huge demand for new goods and services makes it an appealing exports market for Mauritian companies.
Brazilians consumed more than USD 1.2 trillion in 2013. Moreover, estimated expenditure of Brazilian families on textile & apparel was around USD 102 billion, which represents 3.7% of total consumption expenditure on households.
Also, Brazil holds an important position in the Retail Apparel Index, which identifies the top 10 developing countries ranked in terms of market attractiveness, retail development and country risk for their clothing retail industries.
Again, Brazilians are big consumers of luxury products, of which Mauritius supplies certain items such as leather products, ship models, and jewellery.
Other specific products such as medical catheters and animal feed also have potential in the Brazilian market.
However, Mauritius is not yet a popular sourcing destination among the Brazilian importers and likewise, Mauritian exporters are not aware of the potential that this growing market represents.
Some quick facts. After China, Brazil is considered as the second largest emerging economy. The country is quickly becoming one of the largest economies in the world contributing approximately 43% of Latin America’s total GDP alone.
It is to be noted that the Brazilian economy is the world’s eighth largest by nominal gross domestic product (GDP) and the 10th largest by purchasing power.
The country accounts for almost 60% of the US $ 1.6 trillion Latin America retail market. It is an upper middle-income country with per capita GDP of USD 11,340 in 2012. By 2016, retail sales are expected to grow by over 40% to more than US $ 1.2 trillion.
Accordingly, Enterprise Mauritius carried out an in-depth market survey in Brazil facilitated by About Brazil Market Research (ABMR) in 2013.
An interactive workshop, led by Valentim Fernandes and Ivone Andrade, two consultants from ABMR, was organised on April 15, 2014 at Enterprise Mauritius to publish the findings of the Market Survey.
The interaction with the consultants has proved to be beneficial to the participants whose knowledge about this Portuguese-speaking country has improved.
Additionally, factory visits were organized to local companies showing a keen interest to enter this BRIC nation, to enable the consultants to better identify relevant importers.