Good morning! Brazil pushes for trade deals with Mexico. The president’s son says ‘no change comes through democracy’. The list of Brazil’s most valuable brands is out—and we have the main findings. Amazon to change Brazilian retail. And as China clears 25 meat plants from Brazil, Xi Jinping confirms visit to Brazil. (This newsletter is for platinum subscribers only. Become one now!)
Amazon Prime a game-changer in Brazil
In its most relevant move in Brazil, Amazon launched the Amazon Prime subscription service, including music, video streaming and the removal of shipping costs for purchases in the marketplace. Plans start at BRL 9.90—five times cheaper than it costs in the U.S.—in a clear strategy to gain market share.
Why it matters. Amazon got to Brazil in 2012, but didn’t manage to replicate the success it enjoys in the rest of the world, due to local obstacles and a well-established domestic market. One year ago, the company inaugurated two massive distribution centers, controlling its business from end to end. Now, the company has doubled down in Latin America’s biggest market. In the U.S., Amazon Prime accounts for half of the company’s sales.
Competition. It will be interesting to monitor how the stock...