Last Updated 27 Jul 2020

PESTEL Analysis Brazil

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Brazil Political: Although the country has had some corruption, but the current situation shows that the current government is doing effective activities making the country politically stable. Economic: The crowded population brought international investments to the country. Recent researches show high economic growth rates and booming economy. An economic forecast has been done and showed high potential of economic growth. Social: Due to the booming economy, the gap between higher calls and lower class is whirring, and there is a noticeable trend of growing middle class.

However there exists a significant economic inequality with more than 18% of the population under poverty line, and there's a huge segment of people who get minimal income. In addition, Brazilian are up-to-date in the fashion world and are considered modern, as they are aware of big brands and are keen to buy expensive and luxurious products. Technological: Brazil is still the leader in technology and R in South America. IT is a sector in which Brazil has been improving and is currently one of the top 50 in the world. Brazil is currently one of the top ten textile and denim producers in the world.

In fact, there are more than thirty thousand companies in the Brazilian that produce textiles. Environmental: The fast growth of the market has led to a significant increase of foreign investments. These foreign organizations and companies brought with them not only new financial flow, but also new culture of organization, sustainability, and corporate social responsibility themes and plans. These types of themes are used as a source of nominative advantage especially thru differentiation, environmental protection and other sustainable strategies.

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We can find these sustainable strategies clearly applied in the fashion industry especially in terms of quality, design and after sales services. Legal: Consumer protection law Free trade with EX. In terms of Brazier's fashion industry, it is noticeable that the import customs and duties are being the major obstacles for foreign clothing nevertheless the luxury products, and this keeps the selling price for luxury items too high for most customers except for the wealthiest of them.

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