Antonio Tajani takes luxury delegates to Brazil to meet policy makers.
The European Cultural and Creative Industries Alliance (ECCIA), which includes UK luxury group Walpole, has publically backed EU Commissioner for Industry and Enterprise vice-president Antonio Tajani’s efforts to strengthen relations between Europe and Brazil.
Tajani has just returned from the first EU business delegation to Brazil with a group of luxury leaders that included Louis Vuitton Brazil general manger Marc Sjostedt, ECCIA president Armando Branchini and Circulo Fortuny Spain president Carols Falco.
The Brazilian luxury market has grown at a compounded annual growth rate of 45% from 2003 to 2011 and the growth is expected to continue, thanks to the economic development in the country.
This growth is facilitated by factors such as an enlarging luxury consumer base, a stable economy and increasing demand for sophisticated products. The estimated luxury market value for Brazil is €2.3 billion (£1.9bn) at the moment and is expected to grow by a further 35% in the next few years.
These figures could make Brazil a key export market for the European watch and jewellery industry. At present two thirds of luxury purchase made by Brazillian citizens are done so abroad as despite 60 international brands already operating in the country there is still limited access to luxury brands within Brazil.
Should more European luxury brands be assisted to move into Brazil it could have a major impact on the economy, creating new jobs and keep more Brazilians’ luxury spend within their domestic market.
As part of the EU business delegation trip, Tajani discussed a range of export issues with Brazilian policy makers, including import duties, non-tariff barriers, IPR protection and layered taxation.