Amazonians must find more expensive products during Christmas shopping

Manaus (AM) – The arrival of the Christmas period is generating great expectations for the Amazonian retail trade. After the period of severe drought faced by the population, traders still believe in good results in 2023. However, customers may find an increase in the prices of products sought after at this time of year, such as gifts and Christmas dinner.

According to the survey carried out by the Chamber of Retail Managers of Manaus (CDL Manaus), the most awaited date of the year should result in gross revenue exceeding 1 billion and five hundred thousand reais, presenting a 6% increase in the number of sales compared to the year 2022. The estimated average ticket is approximately R$170.

The president of CDL Manaus, Ralph Assayag, shared optimism when addressing the positive impact of the payment of the thirteenth salary and the resolution of logistical problems related to the low water in Amazonas.

“We believe that the result will be very good, we will have a payment of 2 and a half billion from the thirteenth. This includes portions of the federal, state and municipal government, in addition to covering the entire industrial and commercial sector. So this is a considerable amount, and what was not spent on Black Friday like last year, will happen this Christmas”,

score.

Despite the optimism in sales, a possible increase in prices is expected. According to the executive director of the Brazilian Association of Cabotage Shipowners (Abac), Luís Fernando Resano, waterway transport capacity in Amazonas was more affected this year than in 2022, during the period of the historic drought in 2023.

Last year, the dry period reduced navigation on the Amazon River by 40%. Despite not yet having this account for 2023, Resano says he believes this percentage will be even higher this year.

“Even if companies have made stocks for the end of the year, depending on the size, they can run out quickly”, highlights Resano.

The rise in prices will be most felt by people who decided to buy cell phones and televisions as gifts this year-end. These items were hit hardest by price increases. According to the National Association of Manufacturers of Electronic Products (Eletros), freight rates rose by around 40% to 50% this year due to the drought.

The executive president of the Brazilian Association of the Electrical and Electronic Industry (Abinee), Humberto Barbato, states that products with the tightest price margin are those most at risk of having an increase for the end consumer. The main items at risk are cell phones, televisions and, in some cases, computers.

Factories had to look for alternative transport, which increased the value of products. Some business owners may have been forced to pass on the increase to cover logistics costs. “Everyone avoids increasing prices, because they could lose market share to the competitor, but I also can’t guarantee you that there won’t be an increase, because, due to this great competition, margins are very tight.”

“There is a problem occurring which is the increase in logistics costs, because everything is a reason for the price increase. When you have a difficulty in some mechanism, there will automatically be an increase in costs. A lot of things that used to arrive by ship are now having to arrive by plane, which is why prices increase significantly,”

says Barbato.

According to CDL Manaus research, 14% of the population intends to buy household appliances, 9% smartphones and 8% electronics.

Supper price

According to experts, the impact of the drought on transport logistics is felt much more by residents of the region than on the products distributed to the rest of the country. This is because Manaus is an important distribution center for basic consumer goods for the interior of Amazonas.

“It’s the Law of supply and demand. If demand does not decrease, supply decreases and prices increase. Those who feel this first are the basic necessities. So it’s rice, beans, chicken”, explains Resano, from the Brazilian Association of Consortium Administrators (Abac).

“With the difficulties in taking these products to the capital, supply begins to decrease, and the tendency is to increase the cost for the population”, he adds.

The impact of this impact can be observed in the municipality of São Gabriel da Cachoeira, in Amazonas, where the price of an egg carton now costs R$45. A unit of the product can be sold for R$1.50.

The historic drought, linked to the increase in inflation of some foods that are part of the end of the year for Amazonians, ended up making dinner more expensive. According to the Brazilian Association of Supermarkets (Abras), the basket made up of Christmas birds, olive oil, box of chocolates, sparkling wine, sirloin, panettone, ham, turkey, cider and tender will cost R$ 321.13, an increase of 8 .9% compared to last year.

Promotions and Gifts

Despite an unfavorable scenario for the end of the year, the president of CDL Manaus, Ralph Assayag, anticipates a favorable scenario for promotions at the end of the year.

“I believe that more promotions will happen at the end of the year, so it has everything to be a great Christmas, with the money that will come in, with the merchandise we have and with the installment facilities that will be made”,

he said.

In the survey carried out by CDL Manaus about Christmas 2023, they identified that clothing items will be the preferred items to give as gifts this Christmas with (59%); followed by shoes (34%); toys (26%); perfumery/cosmetics (22%); household appliances (14%); gift certificate (10%); smartphone (9%); electronics (8%); accessories, bags, etc., and travel (7%); jewelry/semi-jewelry (6%); decorative furniture and sporting goods (5%); games and games and others (4%) will buy other gifts and (2%) still don’t know what they are going to buy.

Children will be the most gifted on this date (58%). The mother comes in second place with (42%); 30% of respondents reported that they will give a gift to their spouse; (22%) to oneself; (19%) the father; (12%) brothers; (11%) nephews; (9%) boyfriend/girlfriend; (7%) friends; (5%) godchildren; (4%) grandparents; (3%) stepchildren and (2%) uncles.

Regarding the amount they intend to spend, (22%) said they intend to spend up to R$100; (27%) from R$101 to R$200; (24%) said they will spend between R$201 and R$300; (12%) from R$301 to R$400; (8%) from R$401 to 500; (4%) from 501 to R$1,000 and (3%) intend to spend more than R$1,000.

The main forms of payment that will be used to pay for Christmas gifts are: (59%) cash; (25%) debit card; (21%) pix; (21%) credit card in installments; (9%) credit card (1x); (8%) store credit.

The research was carried out via Google Forms, applied via email marketing and instant messaging applications, from November 22nd to 29th, with around 2,115 people, including men and women, over 18 years old.

Payment of the 13th

With the arrival of December, both employers and employees are eagerly awaiting the long-awaited “Christmas Bonus”, popularly known as the 13th salary. For many, this payment represents an additional resource that can help pay off debts, carry out projects postponed throughout the year or even purchase gifts for Christmas celebrations.

In Manaus, the expectation is that the amount of R$ 3,278,099,066 will be injected into the Amazon economy by the month of December. It is estimated that 981,084 people will receive the 13th Salary this year, equivalent to an average value of R$3,061.30. In order to better understand how the people of Manaus plan to use the thirteenth, CDL Manaus interviewed more than 1500 people. The survey revealed that 52% of respondents receive the Christmas bonus and have varying plans for using this resource.

Read more:

Brazilians replace “traditional” products to make Christmas dinner cheaper

Churches in Manaus host special ‘Mundo Encantado Natal’ concert

The Christmas season begins at Largo de São Sebastião, in Manaus; see schedule