Navigating the Latin American distribution systems is equally complex. The retail market is estimated to reach $1 trillion by 2010 and the channel structure is changing constantly on the way. Currently, the informal economy remains the most important channel for the distribution of goods to customers. For example, 50% of all FMCG brands move through this channel and this is largely to do with Latin American Governments abject failure to streamline formal business regulations many of which are so opaque and complex that they provide a platform for corruption which in turn compounds the problem. Catch 22. A typical business in Sao Paulo reports 7 different taxes four times a year. Despite the economic boom 93% of all jobs created are in the informal sector. [i]

 


[i] Treewater. Logistics Today. (September 2007)