Country Presentation Brazil Presented by Ricardo Camargo World - - PowerPoint PPT Presentation

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Flag of your country Country Presentation Brazil Presented by Ricardo Camargo World Franchise Council Meeting, 27 February 3 March 2012, Mexico City Flag of your country Country Presentation: Brazil Demographic Data Population:

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World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Country Presentation Brazil

Presented by Ricardo Camargo

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SLIDE 2

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Demographic Data

Population: 196.655.014 habitants Total area: 8.511.925 km² Population density: 23,10 /km² GDP 2010: $ 2.088. 966 millions GDP per capita: $ 10,062.49 PPP(Purchasing Power Parity): $ U$ 669, 70 Inflation rate latest 2011: 6,5% Unemployment rate latest 2011: 5,6%

Sources: IBGE (January 2011)

Country Presentation: Brazil

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SLIDE 3

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Current industry data: Development of franchising

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Country Presentation: Brazil

2001 2010 Employees 459.000

777.285

N° of Units 51.000

86.365

Franchise Concepts 600

1.855

Turnover in USD U$13,966bn

U$42,450bn

Exchange rate U$1,00 = R$ 1,79 (December2011)

SLIDE 4

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Current industry data: Sector´s Growth - 2010

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Country Presentation: Brazil

0,3% 3,8% 5,1% 5,3% 12,7% 17,2% 17,9% 20,0% 27,4% 29,0% 29,9% 39,9%

Food Clothing Personal Accessories & Shoes Sporting, Health, Beauty & Leisure Furniture, Decoration & Gifts Hotels & Tourism IT & Electronics Business, Services & other retails Education & Training Vehicles Cleaning & Conservation Photos, Graphics & Signaling

SLIDE 5

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Structure of our association:

Members: Number of members in total: 1.067

Franchisors:

828

Franchisees:

Potential Franchisors:

Collaborators:

167 Board: Our Board of Directors includes franchise representatives Source of income:

membership fee

40%

marketing activities

14%

fair / conferences

25%

training activities

Others

12%

Country Presentation: Brazil

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SLIDE 6

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

5 best running franchise-systems in Brazil

Country Presentation: Brazil

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BRAND SEGMENT MCDONALD´S FOOD O BOTICÁRIO COSMETIC & PPERFUM DIA% SUPERMARKET HABIB´S FOOD BOB’S FOOD BRAND SEGMENT O BOTICÁRIO COSMETIC & PERFUM COLCHÕES ORTOBOM MATTRESSES KUMON EDUCATION & TRAINING MCDONALD´S FOOD L´ACQUA DI FIORI COSMETIC & PERFUM

Ranking By Revenue Ranking By N° of units

SLIDE 7

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Successful international franchise -systems in Brazil (By Number of Units)

Country Presentation: Brazil

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1118 896 1655 648 1260

SLIDE 8

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Best exported franchise-systems (by Number of Units abroad)

Country Presentation: Brazil

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104 108 69 46 32

SLIDE 9

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Climate for franchising in our country:

Trends in franchising:

Microfranchising: Concepts where the initial capital investment don´t

exceed R$50.000 or the monthly revenue doesn`t exceed R$30.000. These concepts are targeted for the lower class and minor investors;

Growth on the Services Segment, especially on the house services

(Plummer, Electricist, etc. );

Industry sectors are using franchising as a distribution channel;
Due to the big commercial concentration on the capitals and main cities,

there is a franchising movement going on towards more internalized areas, smaller cities and less developed cities;

Franchising is developing an important role in the Brazilian retail sector.

Country Presentation: Brazil

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SLIDE 10

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Financing a franchise-system:

Government support: ABF has a partnership with the Ministry of Development, and with APEX, a Government Agency that promotes the export of Brazilian products and

brands. For both, the resources provided to ABF are used to promote the

Brazilian franchising sector in Brazil and abroad. ABF also has a partnership with SEBRAE, for activities of training and education. Other forms of financial support: In terms of national financial support, the following Brazilian Banks offer lines

f credit for the Franchise Sector:
Banco do Brasil
Caixa Econômica Federal
BNDS
Banco do Nordeste

Country Presentation: Brazil

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SLIDE 11

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Legal framework:

Country Presentation: Brazil

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Since1994 Brazil has a specific franchise law (Law

# 8.955);

All companies associated to ABF are in agreement

with the Law of Franchising, as disposed in the association Code of Ethics.

SLIDE 12

World Franchise Council Meeting, 27 February – 3 March 2012, Mexico City

Contact data of our association:

Brazilian Franchise Association

Av. Das Nações Unidas, 10.989 – 11°floor

04578-000, São Paulo – SP Brazil Tel: +55 11 3020-8828 E-mail: rcamargo@abf.com.br web: www.abf.com.br Executive director: Ricardo Camargo President: Ricardo Bomeny Manager of Relations Dept.: Rogério Feijó

Country Presentation: Brazil

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