Welcome to Management in Focus, the monthly newsletter from Galeazzi & Associados. Every last Monday of the month, you will receive exclusive analyses, topics to keep an eye on, and insights from Galeazzi & Associados on what's shaping the market and business landscape. Our goal is to enhance your planning and decision-making with the professional insights and perspectives provided by Galeazzi & Associados.

In this debut edition, several topics of interest that directly impact Brazilian businesses are on the agenda. These include the crisis affecting major retailers, the taxation of imports that is expected to impact key Asian marketplaces, and the challenges faced by unicorns and venture capitals.

In a time when interest rates weigh heavily on the market, hindering the sustainable growth of e-commerce, the government seemed determined to end the tax exemption for international shipments up to $50 made between individuals. This legal loophole has been a factor contributing to the perceived 'unfair competition' between Brazilian retailers and Asian platforms such as Shopee and AliExpress. However, this decision was met with negative reactions, prompting Lula to exert pressure on Fernando Haddad and the economic team, which announced a reversal of the decision on Tuesday (18).

Simultaneously, recent weeks have been marked by bankruptcies and layoffs across various sectors, from major retailers to fintechs. In the midst of the negative trend in venture capital, we must also reflect on cases like that of Facily, a social commerce startup founded in 2018 and elevated to unicorn status in 2021. After a 90% drop in GMV, analysts project that the company may become a write-off, underscoring how exponential yet disorganized growth is the Achilles' heel of such companies.

We remain vigilant! Until next month!