Brazil's Correios report reveals that its Remessa Conforme program has highlighted significant financial and operational challenges faced by the company.
The Brazilian postal service, Correios, has been experiencing consecutive financial losses for several quarters, attributed to a fall in revenues coupled with rising general expenses. A report from its Economic-Financial Directorate reveals that the newly implemented "Remessa Conforme" program has further exposed the economic and financial difficulties of the company. By instituting a 20% import tax on international purchases up to $50, which were previously exempt for businesses, the government aimed to generate more revenue but may have inadvertently troubled the postal service operations.
The report notes a significant decline in market share within the international parcel segment, which until August 2024, was essentially monopolized by Correios. The lack of strategic business repositioning by the company in response to changing societal behaviors and market demands is highlighted as a critical issue. It underscores a disconnection between the Correios' operational strategies and the evolving landscape of the e-commerce and logistics sectors. This could potentially jeopardize the company’s future viability if not addressed promptly.
Moreover, the statement from the economic director Loiane de Carvalho Bezerra de Macedo emphasizes the urgency for Correios to reassess its business approach. With government policies evolving and more competition entering the market, the company must adapt its service offerings and pricing structures to remain competitive. The findings from this report could be a catalyst for necessary reforms within the postal service in order to restore its standing in the market and enhance overall service efficiency.
