Florida has an ideal climate to retire to and, with tourist magnets like Disney World at Orlando, to chill out in. This makes for high demand on the hospitality and service sector in general and this in turn drives a demand for labour mainly from the informal market. Leaving aside the the labour issues of the grey or parallel economy let’s turn to hygiene factors; the hospitality industry in the developed world, other emerging tourist hot spots and then, consider the signicance of these issues elsewhere – along the supply chain in general. (more…)

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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)

Kishore Biyani has observed that while brands are able to establish an emotional connection with the Indian (or any) consumer, only the availability of customised credit or financial products provided by the market for the consumer (especially in the informal sector) will make things happen and the market really grow. [i] Extend this from the consumer to the producers and the need for more imagination and viable options from the Financial markets is clear. 

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