Success of Exporting Wrist Watches to Brazilian Market : Report
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Added on 2019-09-18
ToMr. Allen Writer, CEO, XYZ Watch Corporation,USARespected Sir, The primary purpose of this report is to explain and evaluate the chances of the success of exporting wrist watches to the Brazilian market. The watch would be marketed in the Brazilian market where there seems to be a high demand for stylish and expensive wrist watches. The product that would be marketed in the Brazilian market would be moderately priced wrist watches that would be infused with modern technologies including calling options. The wrist watch would have leather and synthetic bands and the body of the wrist watch would be of metal. The inception of the idea of marketing such wrist watch to the Brazilian market has taken place in response to the high demand of wrist watches in Brazil and in the major markets of the country. Brazil has been selected as the country in which the product would be marketed. It is a fact that the recent economic condition of Brazil is facing with some particular crises. It must be noted that the fiscal condition of the country has been thoroughly compromised by an amalgamation of high inflation rates, ineffective political policies, and widening of the budget deficits (www.heritage.org, 2017). These facts have increased the burden of public debt (www.heritage.org, 2017). The heavy interference of the state into the market economy has acted as a barrier to trade growth recently in Brazil. The poor government services along with corruption at different levels of government have contributed to the economic deterioration. It must also be noted that burdensome taxes, undue regulations, poor access to long-term financing, barriers to foreign direct investment (FDI) and a rigid labor market have made the economic condition of Brazil an unstable one. But despite such unstable economic condition, Brazil has been chosen to be the country where the product would be marketed because there is a high demand for wrist watches in the Brazilian market and in the very sector there is ample opportunity for FDI. The Latin American desire for luxury products like costly wrist watches is still in vogue (Semilof, 2012), and this has encouraged the Company’s marketing team to put emphasis on the Brazilian market. It must be noted that in the Brazilian market “Watches is expected to record a flat retail value CAGR at constant 2017 prices overthe forecast period” (Euromonitor International, 2017). But this flat rate tendency would be profiting the marketing efforts of our Company. This is primarily because; the dilemmatic market condition in Brazil would now pave the way for the penetration of less costly wrist watches with great features. Though the purchasing power of the Brazilian customer segment has been diminished to a great degree; still the urge to own luxury items would propel the customers to put more emphasis on purchasing wrist watches having great features (like luxury watches) in low price. It must be noted that “Most popular watch models reveal Brazilians preferences for Men’s, Sports and Chronograph timepieces, a segment dominated by TAG Heuer, Rolex and Omega” (Digital Dealer, 2013). This provides a scope for substitution and this would encourage the marketing efforts for our Company’s marketing team.
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