V Winner Post #22- The Best Place to do Business in Brazil

The industries may be fleeing to other parts of the country, but Sao Paulo – where else could be? -- Is the best Brazilian city for business. With nearly 10 million habitants and a potential for consumption estimated at 55 billion dollars a year, Sao Paulo leads undoubtedly the list of best cities for business in the country. The Rio de Janeiro, the second city on the list, has a potential for consumption nearly 15 billion dollars lower than São Paulo. What the São Paulo spend a year in the capital is a slice of more than 11% of annual consumption of Brazil. These data are contained in a study prepared by the consulting Simonsen Associates in partnership with EXAMINATION. The purpose of the search, the sixth of the genus published by the magazine since 1993, was to identify the cities with the best opportunities for business in the country. For a definition of the first ten cities in the ranking, the study examined the situation in 101 municipalities, taking into account factors such as availability of daily flights, number of bank branches and hotel rooms on the network until indicators of quality of life, such as educational level of population, hospital beds and sanitation. The same indicators were used to define the second rank of the best cities for business in Brazil. In the sum of all queries, Sao Paulo emerged unbeatable. As the largest retailer and wholesaler centre of the country, São Paulo always done the wheel of the money spinning faster. Each year, the São Paulo spend a mountain of money on food at home, bars and restaurants, books, health, travel and frequent trips to shopping centers that do not stop to spread the city. Next year it is expected an explosion of sales with the opening of seven other establishments of the genre. Only this year, the turnover of the shopping malls of the city was 12.3 billion reais, a jump of 25% over 1997. It is easy to understand why companies want to be close to the consumer paulistano. On average, he spent 5680 US dollars per year, 80% above the average spending of the country. The greater purchasing power of São Paulo reflects itself in their habits until morning. The families in 34% of households in Sao Paulo consume cereal breakfast, against 18.4% in other Brazilian cities. The lifting of Simonsen shows that 41.2% of households paulistas belong to class A and B. In the rest of Brazil, this index is only 22.4%. It is not for nothing that only in Sao Paulo there are sales of brands of luxury cars like Jaguar and Ferrari. Until October, 797 models super sportives were sold in the city. The price of each unit? Something between 300000 and 1 million reais. "About 70% of these vehicles are in the hands of the city's population," says Carlos Vilhena, executive director of the Brazilian Association of Imported of Vehicles Automobiles , Abeiva. For the region of Jardins , scattered up some of the main symbols of consumption in the world. There emerged in recent years as sales of labels Vuitton, Cartier, Mont Blanc, François Lacroix and many others. What other city could host a home Brazilian as Daslu, a boutique emerged 40 years ago in the garage of a Building and that today focuses on 4400 meters of built area that extends for nearly a quarter of the entire Vila Nova Conceição - one of emerging neighborhoods of Sao Paulo - the finest brands of clothing female and male in the world? An army of 30 security guards and park helpers stand on the doors of Daslu, a house that showcases waiver and placards in front. Ali, saleswomen with surnames 40’s shows to about 300 people attending the shop one day all the latest releases of designers as Chanel, Dolce & Gabbana, Donna Karan, Ferragamo and Ermenegildo Zegna. Altogether, the Daslu represents 38 labels of male and female first line. In Latin America, only the Daslu has Chanel. Prices, of course, are salted. An evening dress, may leave by 5000 US dollars, but that matter? At 20 hours of a Tuesday in early December, a group of women filled a room reserved for boxes. "We have to meet our customers who work outside and do not have much time to deal with fashion," says Eliana Tranchesi, 43 years old, daughter of a founder of the boutique, which form with her husband, cardiologist Bernardino Tranchesi, one of couples most disputed in social paulistanas wheels. The success of Daslu - Eliana does not reveal the billing of the store - is one of the best portraits of the business that proliferated in the city from the opening of the economy earlier this decade. She mind that, once heard the speech of possession of President Fernando Collor announcing the intention to open the borders of the country, thought immediately on the possibilities which appeared to their field. "We were all distressed to the confiscation of the money, but I just thought: I will make a Chanel here on the side," says Eliana. Two months after sales reduced to almost zero, there she was in Europe, seeking their first contacts to Brazil to import the best of fashion labels. "It relied in Brazil." The way was paid in advance and bring the first five brands to the store. Little by little, the trust was established. Today, few shops in the world with a rival Daslu in the concentration of labels of luxury. This year, there was a growth of 65% in the women. The industry turned to the public in this male same period rose from 700 to 2800 square meters. Beside this strength, Sao Paulo together with their problems ever – awful transit, public spaces bad care, chronic violence and social indicators capable of scare anyone. The fleet of 310 helicopters circulating the city, much of it is used by executives of large companies that try to escape the chaotic transit stranglehold that the main roads of the capital Sao Paulo. Run away from the city streets, exchange the convenience of a house or apartment for a live surrounded by security guards can be a solution, but all these problems, certainly, put Sao Paulo ahead at a disadvantage to other cities in the world. It was his performance in the query pífio quality of life that relegated Sao Paulo, the largest Latin American economic colossus, a mere sixth in a recent list published by the American magazine Fortune of the best cities for business in the region. It was hit by cities such as Santiago, the capital of Chile and the first of the ranking, Monterrey, Mexico, Buenos Aires and Mexico City. The Rio was the fourth of the list. In recent times, much has been written and talked about a supposed economic decline of Sao Paulo. The fact, however, is that, as we lost investments billionaires for industries of other states, Sao Paulo demonstrated an extraordinary ability to recreate. Just walk the streets of residential neighborhoods before genuinely such as Vila Nova Conceição or Vila Olympia, now full of bars, restaurants, shops and houses of spectacles sophisticated, or contemplate a row of intelligent buildings on the banks of the Pinheiros River to see the metamorphosis that passes the city. Sao Paulo firm itself increasingly as a financial centre and provider of services similar to those that have occurred with other world metropolises such as New York, London and Tokyo. This year, 148 were performed major events in the network of hotel and convention centers São Paulo. For 1999, are scheduled 226 events of this nature. Data from a survey of the joint Sebrae with Sao Paulo Convention & Visitors Bureau, the SPCVB - the body responsible for the capture of conferences, conventions, exhibitions and symposia - shows that the industry handled 5.6 billion reais in Sao Paulo in 1996. With an average spending of 270 dollars per day, participants of these events end up strengthening the revenue from rental cars, restaurants, bars, not to mention the hotel own network, which has a rate of occupancy during the week, higher than 75%. In Sao Paulo, are the headquarters of major industrial and financial corporations in the country. A Black & Decker may have changed the region of the ABC by Uberaba and Walita was transferred from South Zone to Varginha, Minas Gerais, but in Sao Paulo that both companies retain their administrative headquarters. IBM is the latest company to succumb to Sao Paulo. After 81 years in Rio, it will transfer its centre decision to São Paulo. Since January, the general manager of IBM, Fernando Mitri, and 40 more will gather executives in the company's building on Avenue on May 23, in the central region of Sao Paulo. "We want to get closer to our customers," says Mauro Segura, communication manager of the company. The reasons for being in Sao Paulo are varied. Concentration in the city the apparatus necessary for the achievement of the business. The São Paulo is labor-Expert, the largest supply of executives, consultants, the bunkers, advocacy, advertising agencies, the best hotel network, the best hospitals and restaurants in the country. "Businesses follow a ritual," says Fabio Steinberg, director of external relations of the Central Communications Globo, a carioca that five years ago lives in São Paulo. "For the executive who comes from outside, it is difficult to open hand of the comfort of services that are used to in their country of origin." Much of the 150 people who attend the daily Fasano, one of the fine restaurants of Sao Paulo, is composed of businessmen. "Sao Paulo has never had many restaurants that could be anywhere in the world," says Rogerio Fasano, socio-owner of the Fasano and one of the most successful entrepreneurs in the industry. "The difference now is that the average of restaurants São Paulo improved a lot. Appears one behind the other, which is encouraging." The São Paulo noticed the difference. Daily, about 100 people not on the table for dinner Gero, one of the three houses created by Fasano in the last five years. His most recent work, launched this month, is the Café Gero, installed in the courtyard of a shopping. "I would prefer a coffee on sidewalks, but people do not go on the streets in Sao Paulo." The café in Paris, the third restaurant, Fasano, opened four months ago, consumed investments of 1.5 million reais. Sao Paulo today is the best mirror of the transformations that are changing the face of the country from economic openness and new business opportunities brought by massive investments in the areas of telecommunications and energy provided by the deregulation of public services. Only Telefonica, Spanish company that led the consortium that bought the Telesp, must invest $ 600 million to expand the services of fixed telephony in the city. It is in São Paulo that Enron, one of the largest energy companies in the United States, established its headquarters for the entire South Cone The company, one of the members of Petrobras in Bolivia-Brazil pipeline, is investing 400 million dollars in area of distribution of electric energy. Enron, which bought the Elektro, the former Dismembered company Cesp, or bet now on the market for wholesale energy, a novelty in the country. "Let's get out in front, but new competitors to arise on the way," says Diomedes Christodoulou, director of the Enron for the South Cone Why the company chose Sao Paulo to host its business in South America? "Here is the market and the largest facility of flights," said Christodoulou. "Like any executive who works in the area of services, step three days a week inside a plane." They also points to the facilities of São Paulo that foreign executives are to enroll their children in schools that follow the curriculum and school year of their countries of origin. There are in Sao Paulo more than a dozen of them. Only American, are four, in addition to two British, two German, one French, one Spanish and one Swiss, among others. With the new executive takes to the waves, which have never been abundant, time got shorter. In Graded School, one of the American schools, there is a queue of more than 100 children waiting for a place in pre-school. At the time of his new recruit corps leader, Telefonica is giving preference to executives without children. To solve the problem, the American Chamber of Commerce in Sao Paulo signed an agreement with the college Pueri Domus, one of the most traditional of the city. From next year, the children of American executives can monitor the curriculum of your country on the premises of the college. "Instead of creating new schools, this may be the solution," says John Mein, president of the American Chamber of Commerce in Sao Paulo. To house the new companies and executives who come to the city, scattered up by Sao Paulo sets of intelligent buildings and flats, especially in the southern region of the city. Sao Paulo now has 7000 rooms of flats. By the year 2002, that number will jump to 12000. The Brazil Realty, a joint venture between construction Cyrella and Irsa - the largest real estate company in Argentina, controlled by George Soros mega investorr - is investing 150 million real in three ventures in the high-luxury offices in the region of Avenida Faria Lima. In the past two years, invested 120 million others in the actual construction of 1400 flats and 500 small office to house the activities of professionals that arise around this new web of services in the city. "We are taking the path to where Sao Paulo are following," says Daniel Citron, the chief financial Brazil Realty. Sao Paulo is a kind of incubator business that if they certainly, if scattered to other parts of the country. "It is a tip of the spear from where it spread trends for the rest of the country," says Fatima Araujo, researcher of the foundation Seade, of Sao Paulo. From here some time, the habits of São Paulo have undergone a remarkable change. The shopping in supermarkets, visits to bookstores or trips to the movies, the changes are immense. In recent years, spread by the city novelties as home centers (large stores that follow the concept "DIY"), where you can buy everything for home, a simple nail the partitions of wood. There are at least a dozen such establishments in the city, including the French Castorama networks and Leroy Merlin. In the area of retail, there is an ongoing war between the major supermarket chains, for a greater slice of the market not only in Sao Paulo but in the whole country. The Carrefour bought the French company Comptoirs Modernes, which acquired 23 stores of the network Stores American. The units will be converted into supermarkets. The Sugar Loaf announced this year investment of about 400 million reais in improvements and expansion of its network of stores in Sao Paulo. For the same path is going the Portuguese group Sonae, which bought the network Cândia, with investment of 25 million reais. In the midst of this war, the consumer has received gifts unimaginable before. In some shops in Sugar Loaf, now to open on Sundays, customers make purchases to the sound of Brazilian music and classical pieces played by a quartet installed in one of the corners. A few months ago, the same network opened a store dedicated solely to its clientele child. There, mother only enter together. "The networks are looking occupy space at any price," says Marcos Gouvea, director of Gouvea de Souza, consultant specializing in trade and retail. Another novelty of Sao Paulo are mega book stores, sort of center of home entertainment, where the consumer can choose a huge variety selection of books, magazines, CDs and CD-ROMs. The Attica, the first shop of the genus in Sao Paulo, was acquired by the French network Fenac. Bookstores traditional as Saraiva and Siciliano also mounted big stores in some shopping malls in the city. Another novelty which landed recently in Sao Paulo were the multiplex cinemas - complexes of up to 14 rooms of projection, where every 10 minutes there is a new session starting. No arm of the seat, there is room to accommodate a bucket of popcorn and glass of soda. The network Cinemark American, the fifth I the United States, opened four multiplex cinemas in Sao Paulo since last year and six others are on the way. By the next year, the 140 cinemas, which was in Sao Paulo in 1997 should double. The result of that is invested that after a phase of audiences empty and closed rooms, cinema returned to fashion. "The frequency grows every month," says Valmir Fernandes, director of Cinemark. There are many other innovations in the area of entertainment in Sao Paulo. They are so many that have changed the face of an entire neighborhood. At Vila Olympia, in the south, where until a few years ago was concentrated mechanical workshops and warehouses empty, the night hive. "The beach of São Paulo are the bars, restaurants and night clubs," says Assadur Mekhitarian, owner of Jardineira Beer, the newest beer house of Vila Olympia. There, in the midst of old objects, 'lovers cigars have at their disposal a room equipped with a system of exhaustion. Nearby are the homes of spectacles Via Funchal and Tom Brazil, beyond nigh clubs Absolute, Chaos - a glorious network in New York - and Lov.e. The latter follows the international trend of offering music in a lower volume, so that people can talk. After 1 of the morning, the people , if packaging to the sound of electronic music. That is the web of opportunities that are opening up in Sao Paulo, which makes it one of the most fascinating cities in the world of business. Billionaire or not , they found that huge city a good field to flourish.

- A. Jonathan Buhalis