São Paulo Outlook 2013 - Resumo (Inglês)

São Paulo Outlook

Yearbook 2013

International

business hub

Projects 16 projects and initiatives that will transform the metropolis

SP in numbers 500 social and economic indicators of the capital

Business center o

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São Paulo

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The consumer profile of the city which accounts for 12% of the country’s GDP

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O ut l ook International

business

www.analise.com www.analise.com

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U T L O O K .C O

São Paulo OUTLOOK

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hub

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.B

1

BIKE AT THE SUBWAYS

check operation hours and get around on a bike.

BIKE RENTAL

get to know the best of São Paulo on a bike.

Bike Lanes, Bikepaths and Bike Routes.

Leisure, culture and transportation options taking you to the best of São Paulo.

With the recreational Bike Lanes, Bikepaths and Bike Routes,

MORE THAN

200KM

cycling around the parks of São Paulo, sightseeing on bikes, renting bikes and enjoying the cultural and historical attractions

IN EXTENSION.

has become the favorite activity for tourists and locals.

PHOTO: JOSÉ CORDEIRO

rentals and free lending at several locations in the city.

LEISURE TOURISM

Consult your travel agent. www.cidadedesaopaulo.com/ciclofaixa

São Paulo

Ou tl o o k International

business

hub

16 Plan of action e

A city in transformation that faces the typical challenges of any large urban center

06 são paulo IN NUMBERS More than 500 economic and social indicators show the size of the city

06 Population and economy

r

i

a

l

Silvana Quaglio

Content director

18 Strategy

Alexandre Secco

Commercial director

18 Target program

19 Responsible discarding

Alexandre Raciskas

Rua Major Quedinho, 111, 16° andar CEP 01050-904, São Paulo-SP Tel. (55 11) 3201-2300 Fax (55 11) 3201-2310 contato@analise.com

www.analise.com

19 Environment 19 Two wheels

São Paulo Outlook

19 Clean fuels

21 Consumption and Income If it were a country, São Paulo would be among the 40 wealthiest cities in the world

10 Tourism, leisure and culture

22 More purchasing power cover photo: Detail of the bridge Octávio Frias de Oliveira Santos in the south end of the city (Edu Lyra/Pulsar)

14 Creative economy

Ventures and projects that are driving and developing the city of São Paulo

o

CEO

17 World Cup

21 The size of a country

16 São Paulo on the move

t

Eduardo Oinegue, Silvana Quaglio and Alexandre Secco

17 Planning

08 Trade and services

12 Mobility and transport

i

Publishing council

18 Cultural center

04 PRESENTATION

d

17 Urban fixtures

web

PUBLISHER Silvana Quaglio EDITOR Alexandre Secco Executive Editor: Gabriel Attuy Research and distribution manager: Ligia Donatelli Content coordinators: Célia Almudena, Irene Ruberti, Paula Quintas and Vinicius Cherobino Research coordinator: Sumaya Oliveira Distribution coordinator: Juliane Almeida Art Coordinator: Bruna Pais Content team: Bruno Maddalena, Patrícia Silva, Taiane Silva and Tais Souza Research team: Amanda Otero, Ana Carolina Machado, Anna Carolina Romano, Bárbara Saryne, Bianca Barros, Bianca Camargo, Claudia Barbosa, Gabriel Magno, Guilherme Padin, Janaina Neves, Jéssica Souza, Leandro Nunes, Lucas Cunha, Luiza Chagas, Marcella Bertini, Matheus Narcizo, Mauro Camargo, Mayara Rovick, Ricardo Borges, Thainá Marques, Txai Zerbeto, Victor Augusto, Yago Rudá, Yamin Gomes and Yuri Damacena Designers: Ágata Yamashiro and Régis Schwert IT Coordinator: Cristiano Carlos da Silva IT Staff: Felipe Cavalieri and Leandro Akira Contributors: Alex Argozino, Claudio Gatti, Claudio Rossi, Guilherme Gomes, Rogério Montenegro Proofreading: Mary Ferrarini Translation: Sogl Traduções

www.analise.com To find Análise Editorial on the internet, go to one of the addresses below. For more information about our products, exclusive content and online store go to our website

16 Exclusive lanes

Advertising/Business managers: Alessandra Soares and Márcia Pires Assistent: Felipe Ricelle

Customer Care and administrative support: Fábio Lopes, Giseli Monteiro

facebook.com/AnaliseEditorial

16 Public transport linkedin.com/company/analise-editorial

16 Road system

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São Paulo Outlook is an independent publication developed by the Análise Editorial with the support of the City Government of São Paulo and SPTuris

São Paulo OUTLOOK

3

presentation

A city for those who do

business São Paulo is an ever-changing city that faces challenges typical of large urban centers. This edition of SÃO PAULO OUTLOOK includes some of the city’s main features and a unique survey with 225 executives who work in São Paulo

I

t’s amazing what can change in a city like São Paulo in a single year. The fleet of hybrid vehicles, which will help reduce pollution, has increased.

The project to revamp all bus stops has been put into action and over a thousand clocks have been installed on the streets. More than one hundred kilometers of exclusive bus lanes have been created. Areas for the loan of bicycles have become popular. And these are just a few of the more apparent changes of the city, those that have helped change the face of the city. We are not even going into the changes that occurred in health, in education, in areas where the changes are more difficult to perceive.

The city of São Paulo, however, continues pressured by problems and challenges related to its size. Urban mobility, for example. A series of street demonstrations that occurred throughout Brazil and brought together millions of people in São Paulo in

4

São Paulo OUTLOOK

June 2013 brought the issue to light: too many people, too many cars and not enough room for everyone. Those who live here realize that moving around is becoming increasingly more difficult, either by car or public transport. Another serious problem is the lack of security. Many of São Paulo’s residents avoid leaving home for fear of being robbed and the fleet of armored vehicles grows year by year.

That’s São Paulo: a contradiction between a modern, rich metropolis, home of global companies and a city still under construction, struggling to overcome its shortcomings. For all these reasons, understanding and labeling São Paulo becomes a very difficult task. However, it seems that among all its facets, the idea of São Paulo as a world business center is becoming more tangible.

After all, despite all its issues, the bulk of Brazilian and multinational companies have chosen the city to set up their headquarters.

São Paulo is home to 38 of the 100 leading privately-owned local companies and 63% of the international groups operating in Brazil. The image of buildings on Paulista and www.analise.com

mauricio simonetti/pulsar

Passengers at the Consolação subway station in São Paulo: the system received an average of 3.7 million users per day in 2012

Faria Lima avenues and the Marginal Pinheiros expressway are still the most typical picture of the capital.

This edition of SÃO PAULO OUTLOOK offers a new survey aimed at translating this city from the perspective of executives who chose it to further their careers. The result of this project that heard the opinions of more than 200 people confirms the business hub theory. It shows that the main reasons that make the city so attractive revolve around professional opportunities. Many also recognize that which the residents already know, the capital is a prime center for leisure and entertainment. For 71% of the survey respondents, the business environment in São Paulo will improve. Another 75% say that São Paulo is an option for new investment. Most of the executives placed São Paulo among the priorities in their projects.

The survey also revealed the evolution of the city as a business center. Seven out of every 10 respondents claimed www.analise.com

that the state capital has become more appealing in the past ten years from the point of view of investors. Eight out of every 10 executives see improvement in São Paulo’s business environment.

The survey asked executives to assess the evolution of the business environment of the city in the last decade. Most noted an evolution of the city and 46% said that the business environment of São Paulo has improved greatly.

This perception is in line with projections made by international consultants. According to American Cities of the Future 2013 of the UK’s FDI Intelligence of the Financial Times, São Paulo received, in 2012, more Foreign Direct Investment (FDI) than New York, and was considered the second city of the future in America losing only to the North American city in this regard. In the opinion of those interviewed by SÃO PAULO OUTLOOK, in comparison to other global cities, São Paulo is the most suitable as a business hub and a regional base

for Latin America. A total of 93% of the entrepreneurs interviewed considered it to be the best for this role.

This edition also carries an analysis of major projects and works in progress in the city in areas such as mobility, urbanization, recreation and sustainability. There are 16 initiatives that can be found in the section that begins on page 16 and they include expanding the bus lanes and subway network, renovating the city’s street fixtures and increasing selective trash collection.

The main economic and social indicators of the city are presented in the section São Paulo in Numbers. This section offers more than 500 facts that show the city’s size in the sectors of trade, services and transport and others.

It also includes information about tourism and the infrastructure of the hotel sector, the mega events that move the city and indicators about entertainment and culture. Have a good read and we hope to see you again in the next edition of SÃO PAULO OUTLOOK. 0 São Paulo OUTLOOK

5

SÃO PAULO IN NUMBERS On this page: 1 population, 2, population pyramid, 3 prices

3

6%

of population of Brazil

Equal

to the population of Greece

1

POPULATION

11 mln Floating population 11.2 mln Resident population 5.3 mln (47%) Men 5.9 mln (53%) Women 0.75 Population growth per year (2000/2010) 15.6/K inhabitants Birth rate 6.1/K inhabitants Death rate 75 years old Life expectation (data of 2010 referring to 2009) 0.841 HDI 0.45 Gini coefficient

Largest

Japanese, Spanish and Portuguese colony outside of their own countries 2

POPULATION PYRAMID OF SÃO PAULO Men

Age

Women

100 or more 95 to 99 90 to 94 85 to 89 80 to 84 75 to 79 70 to 74 65 to 69 60 to 64 55 to 59 50 to 54 45 to 49 40 to 44 35 to 39 30 to 34 25 to 29 20 to 24 15 to 19 10 to 14 5 to 9 1 to 4 Less than 1

(average for Morumbi, Mooca, Tatuapé)

in thousands

600 500 400 300 200 100 0

100 200 300 400 500 600

City budget in 2012

Area

1,500 km

2

R$ 39.6 bln

Is the largest city in the Southern Hemisphere GMT

Public investment

R$ 3.6 bln

–3 hours

SÃO PAULO

Population density

7,400 inhabitants/km

2

6

PRICES

R$ 24,000 Cheapest car R$ 80/day Car rental (compact car) R$ 180/hour Limousine rental R$ 280 Monthly parking R$ 25 Daily parking R$ 90 Taxi from airport to downtown R$ 3.00 Bus ticket R$ 3.00 Subway ticket R$ 1.907 Driver (monthly average) R$ 1.903 Cook (monthly average) R$ 1.410 Nanny (monthly average) R$ 1.075 Maid (monthly average) R$ 4.50 Starbucks coffee R$ 5.50 500 ml Coca-Cola R$ 11.25 Big Mac R$ 21 Movie ticket R$ 55/month Broadband 1MB R$ 3,300 iPhone 5 Ermenegildo Zegna Business Suit R$ 5,000 R$ 250 Elton John concert ticket R$ 1,000 School tuition

São Paulo OUTLOOK

Annual collection in 2012

R$ 37.7 bln www.analise.com

Population and economy On this page: 4 economy, 5 eap 6 income distribution

4

5 EAP 10.7 mln 3.8 mln (38%) Services 2.5 mln (26%) Industry 1.7 mln (18%) Commerce 1.7 mln (18%) Others Motorcycle couriers 300,000 253,000 Lawyers 141,000 Accountants 52,000 Doctors 20,000 Trash Collectors 15,000 Car Watchers 10,000 Architects 8.6 mln Voters

ECONOMY

R$ 443 bln (US$ 219 bln) GDP (in 2012) R$ 230 bln Services (in 2008) R$ 63 bln Industry (in 2008) R$ 64 bln Commerce (in 2008) R$ 19 mln Agriculture (in 2008) 6.9% Annual variation (2009/2010) R$ 39,000 GDP per capita R$ 2,200 Family income (average in 2010) R$ 1,400 Worker income (average in 2010) R$ 622 Minimum wage 1 mln Companies 115,000 New companies (in 2010) US$ 9 bln Export (in 2012) US$ 13.3 bln Imports (in 2012)

12%

of Brazilian GDP

Same

as GDP of Portugal

Same

as exports of Bolivia

6

19

billionaires, the 12th city in the world

30

thousand millionaires, 60% of Brazil

3rd

largest stock exchange in the world

INCOME DISTRIBUTION

Minimum wage Up to 1 From 1 to 2 From 2 to 3 From 3 to 5 From 5 to 10 From 10 to 20 More than 20

Population 11% 19% 17% 23% 18% 9% 3%

City Council in 2012

Number of Bills town councilors presented

55

548

www.analise.com

Laws enacted

161

City council budget

R$ 472 mln

5 Regions 31 Subdistricts 96 Districts 58 Voting Zones

S達o Paulo OUTLOOK

7

SÃO PAULO IN NUMBERS On this page: 7 commerce, 8 sanitation, 9 real estate market, 10 housing

9

7

COMMERCE

Total number of stores Pet shops Drugstores Bakeries Gas stations Bank branches Gyms Open-air markets Supermarkets and hypermarkets McDonald’s stores Starbucks coffee houses Mont Blanc stores Ferrari dealers Malls Street vendors (registered in the city government)

59 streets with

specialized shops

8

São Paulo has the

3rd largest supply center

10

HOUSING

Homes Slums (in 2009) Homes in slums (in 2009) Residents of slums (in 2009)

3.9 mln 1,637 393,000 1.4 mln

864,000 credit card transactions per day

SANITATION

Homes serviced Water Sewage collection Sewage treatment Garbage collection

8

240,000 5,000 4,000 3,200 1,800 2,400 1,900 900 1,148 151 34 5 1 85 2,100

REAL ESTATE MARKET

Homes built (in 2011) Homes sold (in 2011) Offices built (in 2011) Home rental m2 (average in April 2011 in Downtown area) Office rental m2 (average on Faria Lima, Itaim, Paulista, Vila Olimpia and Berrini) Office rental m2 by region Faria Lima Itaim Paulista Berrini Vila Olímpia Vacancies in office buildings Growth of home rental prices (2010/2011) Growth of office rental prices (2011/2012)

100% 86% 66% 100%

São Paulo OUTLOOK

Trash collected/day (in tons) 19,000 Household 221 Recyclables 91 Hospital waste 84 Paper and cardboard (in 2010)

Glass (in 2010) Plastic (in 2010) Aluminum (in 2010) Number recyclables coops

25 29 16 21

www.analise.com

27,800 27,000 6,200 R$ 24 R$ 136 R$ 150 R$ 110 R$ 90 R$ 95 R$ 120 7% 7.8% 21.7%

Trade and services On this page: 11 health, 12 education, 13 Crimes, 14 garden areas, 15 security

14 11

HEALTH

Healthcare establishments Hospitals Beds Vaccine doses applied (in 2010) Doctors Doctors per thousand inhabitants Vacancies in hospitals Private system Public system Organ transplants (in 2010) Hospitals qualified to perform transplants In S達o Paulo: Hospital that most perform

kidney

transplants in the world

GARDEN AREAS AND BIODIVERSITY

97 Amount of parks 29 km2 Park area 2% Slice of territory 6,000 Public parks 2 Number of APAs 341 km2 APA area 23% Slice of territory 260,000 Trees planted per year 38,6% Plant coverage of city Coverage of original Atlantic Rainforest 21%

2,500 205 35,000 15 mln 49,000 4.3 61% 39% 2,500 60

Species of fauna 372 Birds 126 Insects 83 Mammals 45 Amphibians 40 Reptiles 23 Fish 9 Arachnids 2 Crustaceans

In S達o Paulo: Hospital that most perform

liver

transplants in the world 12

EDUCATION

Daycare centers Kindergartens Elementary Schools High Schools Technical Schools Unified Educational Centers Universities Distance learning courses Graduates per year (in 2009) Vacancies Daycare Centers (in 2010) Preschools (in 2010) Elementary schools High schools

13

1,622 532 1,584 632 249 45 200 31 260,000 212,000 202,000 1.2 mln 476,000

CRIMES (PER 100,000 INHABITANTS)

Homicide Theft Robbery Auto theft

www.analise.com

S達o Paulo 12 1,752 992 764

Los Angeles 8 1,492 317 478

15

New York 6 1,339 221 127

London 2 450 160

SECURITY

25,000 Military police 20,000 Civil police 7,000 Municipal guards 3,400 Police cars 93 Police stations 96 Mobile military police stations 272 Councils in the city

S達o Paulo OUTLOOK

9

SÃO PAULO IN NUMBERS On this page: 16 tourism, 17 Hotel management, 18 largest events, 19 events

16

TOURISM

18

Purpose of visit Business Events Other Brazilian tourists Average stay Average/day expense Origin of Brazilians São Paulo state Rio de Janeiro state Minas Gerais state Paraná state Rio Grande do Sul state Foreign tourists Average stay Average/day expense

57% 19% 24% 10.01 mln 2.7 days R$ 432 25.2% 16.2% 9.9% 8.3% 7.4% 5.4 mln 4.6 days R$ 551.00

1 2 3 4 5 6 7 8 9 10

10 LARGEST EVENTS Event LGBT Parade Virada Cultural New Year’s on Paulista Av. Book Biennale Automobile Fair International Art Biennale Motorcycle Fair International Film Festival GP Brazil of Formula 1 Carnival

Public 4.5 mln 4 mln 2.4 mln 750,000 750,000 535,000 255,000 200,000 150,000 120,000

5th largest zoo

in the world

USA

Origin of foreigners in %

7.7

6 minutes

7.5 Argentina 2.8 Chile 2.6 2.6 England

São Paulo has the largest LGBT parade

76.8

France

17

Holds an event every

Others

HOTEL MANAGEMENT

Hotels Apartments Occupancy rate Average rate Most visited places Museums Parks Nightclubs Theaters Concert halls

410 42,000 69% R$ 240

33rd in the world city ranking

of international business events

83% 81% 67% 56% 37%

19

EVENTS

Events per year Revenue Event area Exhibitors Visitors

10

São Paulo OUTLOOK

www.analise.com

90,000 R$ 2.9 bln 700,000 m2 35,000 4.3 mln

Tourism, leisure and culture On this page: 20 cuisine, 21 leisure and culture, 22 communication

20

CUISINE

Restaurants Bars Pizzerias Barbecue houses Japanese restaurants Delivery options

12,500 15,000 1,500 500 250 2,000

21

1 mln pizzas

produced a day

10.4 mln loafs of

bread produced a day In 2013, S達o Paulo-based restaurant DOM th was elected the 6 best in the world

www.analise.com

LEISURE AND CULTURE

Sports and leisure center Soccer stadiums Golf courses Car racing tracks Theaters Theater rooms Plays a year Shows and concert halls Museums Libraries Cinemas Movie theaters Large show venues

672 9 12 1 160 280 600 294 110 131 55 260 7

22

COMMUNICATION

TV channels Radio channels Circulation of largest daily newspaper Cable TV providers Mobile phones per inhabitant (in 2011) Landline calls Mobile phone calls

S達o Paulo OUTLOOK

11 42 286,000 copies 6 1.5 3.7 mln 63 mln

11

Sﾃグ PAULO IN NUMBERS On this page: 23 transport

23

TRANSPORT

Fleet Total 7.3 mln Automobiles 5.3 mln Motorcycles 962,000 Vans and pickup trucks 808,000 Trucks 150,000 Buses 43,500 Taxis 33.000 Helicopters 452 Subway trains 150 Daily trips Passenger transport 13.9 mln (55%) Passenger transport 11.3 mln (45%) On foot 12.6 mln Automobiles 10.4 mln Bus or busload 9 mln Subway 2,2 mln School bus 1,3 mln Train 815,000 Motorcycle 721,000 Chartered bus 514,000 Taxi 91,000 Traffic jams in 92 km peak hours (average in 2010)

Special parking spaces 32,000 Blue Zone 1,973 Spaces for senior citizens 791 Spaces for disabled Inspection 1,854 Traffic dept Inspectors 9.9 mln Fines applied 12,000 Towed vehicles 435 Radar guns 153 Electronic speed bumps 2 Airports 44 Airlines Congonhas Airport Landings and takeoffs (in 2010) 213,000 16,700 Passengers (in 2010) Campo de Marte airfield Landings and takeoffs (in 2010) 143,000 427,000 Passengers (in 2010)

Daily passengers Buses (on business days) Subway (on business days) Trains (on business days) Age of cars Up to 1 year old 2 to 5 years old 6 to 10 years old More than 10 years old Parking spaces Own Sponsored Curbside Monthly Daily Blue zone

9.7 mln 3.7 mln 2.3 mln 9% 23% 27% 41% 3.2 mln 1.7 mln 1.5 mln 259,000 143,000 32,000

A bi-articulated bus can seat 190 passengers

Public transport Bus Operators Bus depots Bus corridors Bus lines Extension (in km) Stops Subway stations Subway lines Extension of subway lines Train stations Train lines Extension of train lines

12

Sﾃ｣o Paulo OUTLOOK

15,000 25 29 10 1,300 4,400 km 19,000 67 5 74.3 km 98 6 260 km

www.analise.com

Mobility and transport On this page: 24 CO2 emission, 25 vehicular inspection, 26 infrastructure, 27 traffic fatalities on the decline, 28 Taxis

6,100 zebra walks with traffic lights

4,200 cars and 200 buses cross Paulista Avenue per hour (peak hour)

24

CO2 EMISSION

25

CO2 emitted (inventory reference of 2005 in ton equivalents)

15,000 200 60 250,000 38 60 km 120 km 156,000

TRAFFIC FATALITIES

2011

2012

1,463 1,382

1,365 1,357

1,231

2.7 mln 2.7 mln 2.6 mln

Motorcycles

Trucks

266,000 268,000 264,000

21,000

26

INFRASTRUCTURE

Paved roads Bridges Overpasses Energy consumption Total Residential Commercial Industrial Other Public lighting Distance from port of Santos

17,200 km 47 136 27,300 GWh 11,100 GWh (41%) 9,200 GWh (34%) 4,000 GWh (15%) 3,000 GWh (10%) 570,000 lamps 77 km

53,000 45,000

28

1,566 1,487

2010 Cars

Buses that use renewable fuel Biodiesel Electric Ethanol Cyclists Bicycles Bike racks Bike paths Bike lanes Daily trips

27

VEHICULAR INSPECTION

15.7 mln

TAXIS

Car/ 1,000 inhab.

S達o Paulo 3 Buenos Aires 10 London 3 New York 1.5

Basic taxi fair R$ 4.10 R$ 3.00 R$ 7.50 R$ 5.60

Per km R$ 2.50 R$ 1.42 R$ 6.50 R$ 5.60

2006 2007 2008 2009 2010 2011 2012

www.analise.com

S達o Paulo OUTLOOK

13

SÃO PAULO IN NUMBERS On this page: 29 Creative companies, 30 sectors of the economy, 31 creative roles, 32 Jobs in the sector, 33 production complexes 29

CREATIVE COMPANIES

8,438

São Paulo

Brazil

63,633 60,707

7,863 7,094 7,276 2006

2007

58,663

58,458 2008

2009

30

2006

2007

2008

2009

SECTORS OF THE ECONOMY

32

JOBS IN THE SECTOR SP city, in thousands

Information Technology 2,496 Editing and Printing 1,344 Publicity and Advertising 1,266 Architecture and Design 803 Sound and Video 723 Teaching and Culture 662 Visual arts and Writing 540 Performing Arts 466 Research & Development 102 Heritage 36

140,5

134,5 109,8

114,9

2006 33

2007

2008

2009

PRODUCTION COMPLEXES Job concentration by sector

31

CREATIVE ROLES

Information Technology Publicity Sound and Video Architecture and Design Editing and Printing Teaching and Culture Research & Development Fashion Heritage Arts & Crafts Visual Arts and Writing Performing Arts

14

São Paulo OUTLOOK

Itaim 91,900 19,600 16,200 15,900 14,900 14,900 10,400

Architecture and Design 19.6% Information 24% Technology 39.3%

Bela Vista Publicity and Advertising 11.4% Vila Performing Arts 7% Leopoldina Visual Arts and Writing Jaguaré

8,400 8,000 4,300 2,800

República

1,700

Cambuci

Sound and Video 35.4% Editing and Printing 11.3% Heritage 35.4% Teaching and Culture 9.3% Research & Development 31.2%

www.analise.com

Creative economy On this page: 34 mega events in the city

34

MEGA EVENTS IN THE CITY VIRADA CULTURAL 24 hours of activities 4 million participants 900 cost-free attractions 250stages 27.3% of the audience between 18 and 24

440 thousand are tourists 2.6 nights is the average stay of the tourists 1,168 reais is how much each visitor spends in the city 10 million reais involved in the event in 2013 3.4 thousand military police in 2012

F1 and INDY

CAMPUS PARTY

VIRADA ESPORTIVA

127,000 Formula 1 spectators 11.4% foreign tourists 60,000 Formula Indy spectators 277 reais average for expenses

8,000 participants 160 thousand visitors 500 hours of activities 76 thousand square meters of area for the event

36 hours of activities 3.5 million participants 2.5 thousand sports activities 1,100 sites with attractions

2013 edition was the

largest in the world

5th largest fashion

FASHION WEEK Editions per year Fashion shows per event Tourists Spectators since creation in 1996 Spontaneous media in Brazil Business Professionals involved

week in the world

2 50 38,000 3.5 mln 600 mln/year R$ 2 bln 11,000

CARNIVAL Samba schools and clubs Schools in the Special Group Public Tourists Investment in school Participants of parades

78 14 110,000 12,9% 35 mln 49,000

www.analise.com

S達o Paulo OUTLOOK

15

SÃO PAULO on the move

This section shows the largest ventures, actions and projects in progress and how they have changed the face of São Paulo

Exclusive lanes

More bus corridors FOR FASTER TRAVELING

T

o increase the average speed and reduce the commuting time, the city of São Paulo is investing to build corridors and install dedicated lanes for passenger transport. The city government is also working on a pilot project to implement bus lines that operate 24 hours.

In July 2013, the federal government announced it will spend R$ 3.1 billion in the Growth Acceleration Program (PAC) - Urban Mobility to implement 99 miles of corridors, which will be added to the existing 126 km. In total, it is expected to build 150 kilometers of exclusive lanes in the city by 2016, with investments of R$ 6.5 billion.

The bus corridors will be separate lanes, usually with bus stops located in the medians of the avenues. In turn, the exclusive lanes will occupy the right lanes of the roads and will be specific for passenger transport.

Two of the already auctioned bus corridors are the 26 kilometers on the Radial Leste avenue, one of the highways of the city, and the 14 kilometers in Itaquera district to the east. In the south end of the city, 3 kilometers will be placed on the Engenheiro Luís Carlos Berrini and Chucri Zaidan avenues and 16 kilometers in the road system that connects the Capão Redondo neighborhood with the Campo Limpo and Vila Sonia districts.

The south and eastern end of the city are the regions that have the greatest demand for public transport since they are the most populated. The construction of a bus terminal in the Itaquera district is also in the works.

More corridors are planned to be built on the avenues of Dona Belmira Marin in the south end of the city and Celso Garcia, to the east. The forecast is for the projects of all the corridors to be ready by the end of 2013.

In addition to the corridors, the City has invested in dedicated bus lanes. From January to August 2013, 100 kilometers of exclusive bus lanes were created in the city. The goal of the city government is to reach 220 kilometers by the end of 2013.

The goal of Operation Dá Licença Para o Ônibus (Make Way for the Bus) is to give priority to the circulation of passenger transport in order to reduce the travel time and ensure more comfort for the passengers. The drivers who fail to keep away from the lanes will be fined R$ 53.20.

The 24-hour bus lines will start operating in 2014. The route will follow the path of the subway, which won’t work between midnight and 4:40 a.m. This measure meets an age-old demand of users, who complain of a lack of public transport at night in the city of São Paulo. The city still has no public transport option for those leaving concerts and other events at dawn.

16

São Paulo OUTLOOK

Public transport

SUBWAY WILL GET TO 100 Kilometers WITH MONORAIL

T

he São Paulo subway system had four simultaneous projects going on in early 2013. The goal is to open ten more stations by the end of 2014, expanding the subway network from the current 74 kilometers to 100 kilometers in length.

One of the projects is the extension of Line 5-Lilac, linking Largo Treze Station in Santo Amaro to Chácara Klabin Station, Line 2-Green. Another project is Phase 2 of Line 4-Yellow, which will extend 12.8 kilometers.

Line 17-Gold, a transport system of elevated roads, is being built to connect Congonhas Airport and Morumbi Station. Line 15-Silver is being built on the east side, with the same elevated roadway system, from the Ipiranga neighborhood to the district of Cidade Tiradentes.

Road system

CONSTRUCTION WORK WILL INCREASE ACCESS TO SOUTH END

A

series of road works are in progress to help relieve traffic in the south end of the state capital. One of the most important is the construction of two bridges over the Pinheiros River, near the Chucri Zaidan avenue, which will be extended 3,250 meters to João Dias avenue.

Another important project is the extension of the Jornalista Roberto Marinho avenue up to the Imigrantes expressway, which will help relieve the traffic on Bandeirantes avenue.

The city began the channeling work for two streams in the Jardim São Luís district. With the completion of the work, overpasses will be built to access the new roads.

Plan of action

statistics SHOW A DROP IN VIOLENCE IN SP TRAFFIC

T

he city of São Paulo has the Pedestrian Protection Program to encourage safe crossings for pedestrians and to educate drivers. In May 2013, the initiative completed two years of operation with positive results. The amount of pedestrian deaths fell 20.4% in the city of São Paulo during the period from 11 May 2012 to 28 February 2013 as compared with the same period before the initiative was introduced.

A behavioral study showed that 83.3% of pedestrians cross on the crosswalk but one in four makes the crossing distracted by the cell phone. www.analise.com

Urban fixtures

CITY GAINS NEW BUS SHELTERS AND DIGITAL CLOCKS

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he City of São Paulo in 2012 opened a tender to renew city fixtures, with the installation of 6,000 new bus shelters and the implementation of 1,000 digital clocks. The installation of the shelters at bus stops began in late 2012 and the new digital clocks began operating in May 2013.

The new modern shelters are made of glass and are supported by steel or concrete struts. In addition to the shelters, 12,500 bus stop standing signs will be mounted.

The winning consortium submitted a bid of R$ 167 million to build the shelters, during a term of 25 years for an investment of over R$ 300 million to set up the new fixtures.

The bus shelters and clocks may display ads, which sets off a new phase in the Clean City Law, which regulates outdoor advertising on city streets. The maintenance will be the responsibility of the concessionaire companies.

The clocks with LED screens will also inform the temperature and air quality. All equipment should be operating by the end of 2013. It is considered the largest electronic clock project in the world.

Planning

RESIDENTS RETURNING TO RESTORED downtown AREA

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ão Paulo’s downtown area is undergoing a revival with the recovery of public areas and property launches. One of the strengths of the central region is the wide range of services and efficient infrastructure, such as public transport, which includes subway stations and train and bus lines to various points in the city.

According to a study about the real estate sector, Liberdade, in the central region, stood in first place in the ranking of districts with the highest number of residential units launched in the first quarter of 2013 in the state capital. In the neighborhood, which is home to most of São Paulo’s Asian colony, 469 properties were launched. Other downtown areas that appeared on the list were Santa Cecilia and Consolação. Together, both districts have added 188 new properties.

The increase in housing in the downtown area is precisely the commitment of the government to renew the region.

The city and state government announced a partnership to build or remodel 10,000 dwellings in the expanded central region at a price of R$ 4.6 billion. The first Public Private Partnership (PPP) in the country for housing was launched in April 2013.

Currently, the borough of Sé concentrates 20% of the city’s jobs, but only 3% of the inhabitants of the capital. www.analise.com

INNOVATION ON THE STREETS

The city gains bus shelters and modern public clocks

6,000

new bus shelters

12,500

standing bus stop signs

1,000

digital clocks that tell time, temperature and air quality

23ºC

World Cup

NEW STADIUM AND road work HOST WORLD GAMES in 2014

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ão Paulo is one of the host cities for the 2014 World Cup games in Brazil and it is preparing its stadiums for the World Cup matches. With the construction work and expansion, the city will gain four large modern stadiums. In addition to the Corinthians Stadium, nicknamed Itaquerão, in the east end, São Paulo will have three other stadiums with a capacity to seat more than 35,000 people: the Palestra stadium, the Morumbi stadium and the traditional Pacaembu stadium.

The Corinthians Stadium will host six World Cup matches, as well as the opening game and one of the semifinals.

The stadium will seat 48,000 people and 20,000 removable seats will be set up to reach the capacity required by FIFA. With a project estimated at R$ 820 million, the stadium should be ready by the end of 2013.

With an investment of R$ 330 million, the old Palestra Itália stadium in the west will become the Allianz Parque multipurpose stadium with 45,000 covered seats. The projects are expected to be concluded in early 2014. The Morumbi stadium in the south end will not host World Cup matches but the bleachers will be covered, the parking lot expanded and a hotel will be built nearby.

Several projects have been designed for the east end of São Paulo to adapt the road system around the Corinthians stadium. Neighborhoods like Itaquera, Arthur Alvim and Cidade Líder will gain new avenues, connections and access routes to the subway and train stations. The city and state government entered into an agreement to carry out interventions, valued at R$ 478 million, of which R$ 346 million from the state and R$ 132 million from the city.

São Paulo OUTLOOK

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SÃO PAULO on the move

Strategy

Target program

NEW SCHOOLS AND MORE HOSPITAL BEDS IN 2014

PRIORITIES SET WITH PARTICIPATION OF POPULATION

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IBIRAPUERA OFFERS MUSEUMS AND EXPO CENTERS

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São Paulo OUTLOOK

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The move of MAC consolidates the cultural center

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birapuera park is a major cultural complex in the capital with three museums, two exhibition halls and an auditorium. The transfer of the Museum of Contemporary Art (MAC) to the site in 2012 confirmed the park as a center of the arts. MAC has a collection of 10,000 artworks and is considered one of the most important in the Southern Hemisphere. Ibirapuera was already home to the Museum of Modern Art (MAM), which maintains more than 5,000 art pieces. The Afro Brasil Museum is dedicated to Brazilian culture.

The Art Biennale of Sao Paulo, held in the pavilion in the park, will reach its 31st edition in 2014. The pavilion also hosts events and fairs, such as São Paulo Fashion Week.

The Oca building is used as an exhibition center.

Designed in 1950, the auditorium’s construction was only kicked off at the celebration of São Paulo’s 450th anniversary and it opened in 2005. The area can seat 800 and has a reversible stage for outdoor performances. The Ibirapuera also offers a Sculpture Garden, a Japanese Pavilion, the Manequinho Lopes Nursery and a planetarium, inaugurated in 1957.

A COLLECTION OF 15,000 ARTWORKS IN THE PARK

Líbano ave.

Cultural center

ity government announced in early 2013 its targets until 2016, which include 100 projects to set priorities in various management areas. The proposal was discussed in 35 public hearings held in the boroughs and in city council, involving around 6,000 people in total. More than 9,000 suggestions were made by the people for the final version of the document, presented in August 2013.

The single issue that was most discussed by the population was health, followed by urban mobility and education.

The city’s Target Program also received about 800 messages with suggestions sent in by email. Popular participation has enabled the creation of a database that will serve to further revaluate the program.

The administration has also opened channels for the population to make suggestions for the Strategic Master Plan (PDE). Residents may make proposals at meetings in the boroughs or through an online form.

The Master Plan od the city is the main tool for organizing urban planning, with rules on construction and environmental preservation. The current law was passed in 2002 and is now being revised. After the suggestions made by the public are analyzed, the final text will be sent to city council.

República do

he areas of education and health are among the investment priorities of the City for 2014. The projects in these two sectors were defined based on the Target Program (2013-2016) and included in the Budget Guidelines Law (LDO), 2014, published in July 2013. The LDO sets the list of priorities of the city administration for the following year. The projects require approval for the city budget funds, which is being drafted by city hall of São Paulo and voted on by city council at the end of the year.

The city’s government announced plans to build new schools and increase the number of vacancies in the municipal network. A total of 20 new Unified Educational Centers (CEUs), educational, sporting and cultural complexes are in the plans. Currently, São Paulo has 45 CEU units. The goal is to deliver 13 units in 2014, opening 9,750 new spots.

Another priority is to open a tender for the construction of 70 Child Education Centers (CEIs). Investments in education also include the construction of 41 municipal children schools (EMEIs).

In health, the goal is to start building three public hospitals in 2014, increasing by 750 the number of beds available.

The goal also includes renovating six hospitals in 2014 and starting the construction of 34 Basic Health Units (BHU).

Responsible discarding

Environment

PLAN EXPANDS SELECTIVE TRASH CITY IS NEAR THE GOAL OF COLLECTION AND RECYCLING IN SP HaVING 100 public PARKS

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ão Paulo will extend the services of selective trash collection and recycling. The goal of the city government is to quintuple the collection capacity of the capital by 2016. In May 2013, it announced the installation of two mechanized sorting centers, which will recycle 500 tons more of material, increasing the current production from 250 to 750 tons a day. With the implementation of another two centers, the production of recyclable material should reach 1,200 tons per day in 2016.

The goal is to reach 10% of selective trash collection in the capital, expanding the service to the entire county. Currently, 75 of the 96 districts in the city are enrolled in the program. The city’s selective garbage collection was established in 2003 and since then, the volume of material collected has grown tenfold. The city produces every day, 19,000 tons of garbage, which is sent to environmentally-controlled landfills. No waste is disposed of in the city dump. Today, only 1.8% of the waste is recycled in the city of São Paulo.

The first plants are expected to be ready by June 2014.

The other two units should be completed by the end of 2016. The city government will also modernize 19 of the already existing plants.

Two wheels

EXCLUSIVE LANES AND LOAN ENCOURAGE USE OF BICYCLES

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ão Paulo has 60 kilometers of bike paths, which added to the bike lanes, permanent bike paths and bicycle routes total 241 kilometers in the cycling network.

The goal of the city administration is to implement by the end of 2016 a 400 km network of roads with bike lanes. The goal is to equip the city with over 340 kilometers of bike lanes by 2014.

The city government of São Paulo in 2013 launched a pilot project that will allow users of the Single Ticket, a public transport card in São Paulo, to make bike loans. The goal is to integrate the bicycle to other means of transport in the city. The initiative is part of the Bike Sampa program, a bike sharing service maintained by the government in partnership with the private sector, which offers one thousand bikes and one hundred loan stations. The goal is to double the number of stations and bicycles by the end of 2013.

In addition to bike paths, the city offers bike lanes for leisure purposes for the option of family outings and to encourage the use of bicycles. Organizers estimate that about 100,000 people use the temporary lanes every day when they are available. www.analise.com

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ew green areas are planned for the city of São Paulo. In 2005, the city had 34 parks. Currently, it offers 97 public parks. Another three parks are under construction. The opening of new green areas is part of São Paulo’s 100 Park Program (Programa 100 Parques para São Paulo), which also includes linear and natural parks.

With the program, the distribution of green areas in the capital has become more balanced. Currently, each borough has at least one park in place, under construction or in the design stage.

The protected green areas increased from 15 million square meters in 2005 to 45 million square meters in 2013.

The goal is reach 50 million square meters with 100 parks.

Clean fuels

SP LAUNCHES FLEET OF ELECTRIC AND HYBRID TAXIS

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ince late 2012, 116 hybrid taxis and 10 electric taxis, a fleet unprecedented in Brazil, began circulating in São Paulo. Besides saving on fuel, the vehicles emit fewer pollutants and are quieter.

The hybrid cars combine two engines, an electric one and a combustion one. The technology reduces fuel consumption by 50% and decreases by 40% the emission of pollutants. The electric taxis are equipped with lithium-ion batteries, which provide a range of 160 kilometers. The use of electricity is five times cheaper compared to gasoline.

TRANSPORT EMITS MORE CARBON Share of emissions per energy use in the city Transport 78%

Others 5% Industrial 7% Residential 10%

São Paulo OUTLOOK

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Silva Junior/Folhapress

Consumption and Income

Consumers throng 25 de Marรงo street in downtown Sao Paulo: region attracts on average 400,000 people every day to shop in its more than 1,400 stores

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Sรฃo Paulo OUTLOOK

www.analise.com

Consumption and Income

a city the size of

A country

São Paulo accounts for 12% of Brazil’s GDP and 6% of its population. If it were a country, it would be among the 40 wealthiest and the 80 most populated in the world.

The city is expected to consume R$ 277 billion in 2013

S

ão Paulo is a city of superlatives. The city has 11.2 million inhabitants and the metropolitan area - consisting of 38 other cities – has almost 20 million, which places the urban agglomeration of São Paulo in sixth place among the largest in the world, according to UN figures.

It’s not hard to mistake the city for a country. In generating wealth, São Paulo is now the 36th largest economy in the world, according to a study of the Federation of Trade in Goods, Services and Tourism of São Paulo State (FecomercioSP). With a GDP of around R$ 450 billion, the city in 2010 stood ahead of Hong Kong and Chile, for example. According to projections from PricewaterhouseCoopers, by 2025 the GDP of the urban agglomeration of São Paulo is expected to reach sixth place in the world hitting US$ 782 billion, surpassing Paris, www.analise.com

Osaka, Philadelphia and Mexico City.

Among its Latin American partners, the economic importance of the city of São Paulo is impressive. The city’s GDP represents about 70% of Argentina’s economy, 85% of Venezuela’s and 90% of Colombia’s.

Within the Brazilian economy, São Paulo’s GDP represents 12% of the domestic one. In the regional comparison, São Paulo’s economy represents 21% of GDP in the southeast region, 65% of the southern one and 87% of the GDP of the northeast region. The GDP of São Paulo is still 27% higher than the GDP of the midwest region and nearly two and a half times that of the north region. In the comparison of the states, the city of São Paulo, if it were a Federative Unit, would be the second wealthiest, behind only the actual state of São Paulo.

The city is R$ 36.4 million ahead of the state of Rio de Janeiro, which ranks third in the list.

São Paulo is home to the most diverse economic activities, which reduces the city’s risk in case of financial turmoil, un-

8 bln is the value of São Paulo’s luxury product market

São Paulo OUTLOOK

21

André Lessa/AE

Store opening in the JK Iguatemi mall, São Paulo: city concentrates 60% of the revenue of the luxury market in Brazil like most Brazilian cities and regions that focus on sectors such as oil, trade, mining, agriculture, among others.

Consumption on the up – The in-

come of São Paulo city’s workers is 37% higher than the Brazilian average.

The average income in the country is R$ 1,345 a month, according to data from 2011, in São Paulo this amount can reach R$ 1,840. In São Paulo, the lowest wage level is also higher than Brazil’s. The state minimum wage ranges from R$ 755 to R$ 775 since February 2013 and the national average is R$ 678.

Brazilian consumption was estimated at R$ 3 trillion in 2013, up R$ 276 billion as compared with the previous year. The forecast is for family expenses to rise above the GDP. The annual per capita consumption of the

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São Paulo OUTLOOK

national urban population - including the purchase of goods, food, housing, taxes and related expenses - was estimated at R$16.900. The city of São Paulo continues to be country’s largest market, accounting for 9.2% of overall consumption. The consumer potential of the state capital was estimated at R$ 277 in 2013.

Calculations made with the information from the Household Expenditure Survey of the Brazilian Institute of Geography and Statistics (IBGE), which includes the consumer potential of the regions and by income, shows that São Paulo’s families spend on average per month in utility costs practically the same amount of all the households in the state of Rio de Janeiro and more than twice the consumption of households in the northern region.

It is also important to scale the real

gains that have been occurring in the remuneration of the lower income strata of the population, especially among the C and D classes. Between 2001 and 2011, the creation of 16 million formal jobs across the country combined with income transfer policies caused the per capita income of Brazilian families to grow 32.6%. The income gain of the middle class - workers with a family income between R$ 291 and R$ 1,019 - advanced more in the decade, growing 50.6%.

Social mobility – The population of

the C, D and E classes was less affected by the financial crisis of 2008, were favored by a rise in income and were a contributing factor for the increase in retail sales, as well as the sale of vehicles, parts and construction material, which exceeded market expectations www.analise.com

Consumption and Income

More purchasing power

The weight of São Paulo Annual GDP growth Share in Brazil’s GDP

Projected annual growth until 2025

São Paulo

6,6%

12%

6,3%

4,2% 3,2% 3,2%

and continues to spur industrial production. With the growth prospects of the Brazilian economy, the trend is for the new C class consumers to continue to grow nationwide and especially in São Paulo, which offers greater opportunities for social mobility.

The B class (32% of all households in the country) accounts for 48.5% of domestic consumption. According to IBGE data, the A class (4.6% of all the country’s households) shows an increase in spending, reaching R$ 540 billion, which represents almost 20% of the country’s total expenses. The C class (48.6% of the households) will account for 27.9% of consumption.

The D class (13.9% of the country’s households) indicates a projected consumption of around R$ 117 million (10% more than in 2012) but in a smaller number of households, which confirms the migratory process between the categories. The E class will consume less (R$ 3.5 million) and will also include less households (368,000 or 0.7% of Brazil’s households).

The result is that the pattern of household consumption has also undergone changes: there was an increase in family spending for items such as healthcare and transport but the growing ownership of durable goods is also noteworthy because it reflects the increase in income and credit, which facilitated the acquisition in particular www.analise.com

New York

London

Moscow

São Paulo

88%

Mumbai

Other Brazilian cities

Shanghai

1,8%

of products like mobile phones and computers. Cars and appliances and electronics continue to gain ground in the consumer’s budget.

Luxury market – If the potential consumption growth in the lower-income segment has been quite significant, the market for luxury products and services has been no different. São Paulo should climb positions in the world ranking over the next decade, surpassing cities in Europe and Asia.

Over the next decade, analysts point out that the city of São Paulo should join the list of the ten largest cities in the world in terms of the size of its product and luxury services market.

The city is the preferred address for the Brazilian subsidiares of international brands. Among the brands that have recently entered the market in São Paulo are GAP, H&M, Forever21, Kappa, Benefit, Chanel and Miu Miu. In 2012, Brazil accounted for around US$ 12 billion in luxury goods, up 24% over the previous year, according to estimates of MCF Consultoria e Conhecimento, a consulting firm specialized in this area. São Paulo represents on average 70% of this consumption in the country and the rest is mainly concentrated in Rio de Janeiro and Brasilia. The Brazilian luxury sector is expected to grow around 25% over the next five years. 0

The changes in the Brazilian economic policy over the last decade have enabled millions of people to move out of the poverty line and have led to a decline in unemployment. The scenario raised the purchasing power and led to the expansion of the production base and therefore the ability to undertake and generate new business Work on the up – Between 2003 and 2012, the employment level grew 1.9% in São Paulo city and 2.6% in other cities in the region of Metropolitan São Paulo. Stable unemployment – The unemployment rate in São Paulo city stood at 10.2% in June 2013, the lowest rate since 1989. More occupation – In 2012, nearly two-thirds of the working population of the city was formed by employees (51.5% formally employed), 16% selfemployed, 7.3% domestic servants, 9.2% family employers or relatives with no salary, independent university professionals and other occupational positions. Entrepreneurship – Around 30 million Brazilians have a business or are involved in the creation of one, according to research from the Global Entrepreneurship Monitor, which places the country in third place in a list of 54 nations. The country is behind only China, which leads with 370 million entrepreneurs, and the United States, which accounts for 40 million.

São Paulo OUTLOOK

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S達o Paulo yearbook 2013

Outlook

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