São Paulo – Brazilian franchises should end 2010 with 18.7% greater revenues than in 2009, totalling business of 65 billion Brazilian reals (US$ 39 billion). Still in the second quarter of the year, the performance of sector companies was 3.7% greater than that of the same period last year. Now, expectations are to register, in the third quarter, expansion of 6.1%. The good moment reflects chain actions abroad, with 68 Brazilian brands operating on the international market. The figures were supplied by the Brazilian Franchising Association (ABF).
The reasons for the good performance? "Retail continues strong in Brazil, with salary increases above inflation added to greater employment and easy access to credit, among other factors," explained the executive director at ABF, Ricardo Camargo.
According to Camargo, in 2009, the sector grew 14.7% over the previous year, a performance that reflected the global economic crisis in 2008. ABF forecasts are based on enquiries made to companies in the sectors of personal accessories and shoes, food, beverages, coffee, sweets and snacks, beauty, health and natural products, building and real estate, cosmetics and perfumery, education and training, entertainment, toys and leisure, language schools, cleaning and conservation, furniture, decoration and presents, business and convenience, automotive services and garments. Today, the sector includes 1,600 chains and 79,900 units in operation.
Strengthened within the country, Brazilian franchises are now investing more abroad. "Today, there are 68 companies operating outside Brazil, but up to the end of the year there should be 70," said Camargo. According to him, brands like Havaianas, of plastic sandals, Bonaparte and Giraffas, in the food sector, opened their doors abroad this year. In the case of Giraffas, with 325 points of sale in 23 states and in the Federal District, there will be a restaurant in Miami, United States, in coming months. This should be the chain’s first unit outside the country, in an operation that received investment of US$ 1 million.
"Abroad, opportunities are good, mainly for the sectors of beauty and sports clothes, with special highlight to accessories and handbags," explained Camargo. And to mention opportunities, the executive director at ABF stated that businessmen in the sector are eyeing the Arab nations. "We have already received a delegation from Egypt and visited the country last year," she said. "Apart from that, we have contacts in Saudi Arabia and in the United Arab Emirates and are interested in participating in actions of the Ministry of Industry and Trade in the region."
*Translated by Mark Ament
