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Artificial intelligence expert explains iris scanning and bans imposed on World

A World, led by Sam Altman, CEO of OpenAI, is at the center of a global debate after Germany mandated the exclusion of iris data collected in the European Union. The decision of BayLDA, the data protection authority of Bavaria, is an example of how the collection of biometric data is moving from the realm of science fiction to directly impacting people's lives.

According to the European Data Protection Board (EDPB), 70% of Europeans consider biometric data collection invasive, highlighting concerns about how this information is used and stored.

Alan Nicolas, an expert in artificial intelligence for business and founder ofLegendary Academy[IA], alert that the impact of this decision goes far beyond European borders. "The use of biometric data is no longer a matter of the future. People need to understand that by sharing this data, they are putting their privacy and personal security at risk. Regulation must be clearer to protect individuals," he states.

What's at Stake with Iris Scanning

BayLDA's decision forced World to delete previously collected iris data, claiming there was not enough legal basis for the collection. Although the company claims that the iris codes have already been voluntarily deleted, the order requires new procedures to ensure compliance with European regulations.

Damien Kieran, Chief Privacy Officer of Tools for Humanity, emphasized the need for a more precise definition of anonymization in the European Union. He assures that iris images are not stored, but critics of the practice raise doubts about the tracking and use of these codes.

Because it matters to everyone

In Brazil, World activated 20 collection points in São Paulo, where it has already scanned the irises of over 189,000 people. Although the company promises anonymity, experts point out that biometric data are highly sensitive and can be exploited for unauthorized purposes. "The debate is essential because we are dealing with information that can be used for control or surveillance, something that affects everyone, regardless of whether they are in Europe or Brazil," comments Nicolas.

In other countries, such as Spain and Kenya, the project also faced legal barriers. In the Spanish case, the collection was halted after the Data Protection Agency determined that the practices violated privacy regulations.

From fiction to reality

Alan Nicolas explains that, a few years ago, the use of biometric data to create digital identities was a theme of science fiction movies. Today, it is a reality that influences everything from website authentication to the fight against fake profiles and deepfakes. "It's no longer a matter of fiction. The question now is how to ensure that these technologies benefit people without compromising their privacy. As always, technology is not the villain. What needs caution is how people use it," he emphasizes.

The German decision shows that regulation needs to keep pace with the advancement of artificial intelligence and biometric technologies. "The biggest challenge is to educate people about the risks and ensure that governments and companies work together to create clear rules. Unfortunately, legislation anywhere in the world is not keeping up with the advances and ethical issues raised by these new possibilities. We must rely on everyone's technological education so that they are aware of the potentials and dangers of each tool," concludes Nicolas.

Artificial intelligence and hyper-personalization influence 6 out of 10 consumers in Brazil

Consumer behavior is undergoing rapid transformation. If free shipping and good prices were the main attractions before, today hyper-personalization and artificial intelligence (AI) already influence 6 out of 10 purchase decisions for products or services, according to CX Trends 2025, conducted by Octadesk, LWSA's customer service platform, in partnership with Opinion Box.

The tenth edition of the survey reveals that, in the last 12 months, 68% of consumers highlighted personalization in service as a decision factor, while 50% reported having had experience with AI when shopping – an increase of 8 percentage points compared to 2024. Additionally, 35% of respondents stated that they experienced personalized recommendations through AI in their product purchases or service hiring.

The importance of personalization and AI in consumption

Hyper-personalization occurs when companies use advanced artificial intelligence to deeply understand customers, analyzing data such as purchase history and real-time behavior. In e-commerce, for example, it allows offering accurate recommendations, anticipating needs, and providing proactive support, creating experiences aligned with customer expectations, strengthening their relationship with the brand.

"Today, the consumer seeks more than quality or efficiency; they want an experience that understands and connects to their needs. Technology should be used as an ally to enhance human service, not replace it. This combination is what creates an experience that truly makes a difference for the customer and, moreover, presents an opportunity for revenue growth for companies," says Rodrigo Ricco, Founder and General Director of Octadesk.

Hybrid consumers and decision criteria

The study confirms the hybrid behavior of the Brazilian consumer: 77% made purchases both online and in physical stores in the last 12 months. Among the factors that most influence the choice of where to buy are free shipping (62%), product or service quality (56%), and low price (53%). The main purchasing channels include online stores (68%), marketplaces (66%), and physical stores (64%). Platforms like WhatsApp (30%) and Instagram (28%) also appear, highlighting the growing importance of social networks in the decision-making process.

Technology as an ally of automated service

Although the use of AI and chatbots is expanding, the study indicates that consumers still prefer human interaction. Among those who used chatbots, 36% rated the experience as negative, another 36% as neutral, and only 20% as positive.For 54% of consumers, the best automated service is one that complements human work, offering a balance between technology and personal interaction," comments Ricco. According to the participants, automated services should offer options compatible with the problem (43%), be straightforward (33%), and ensure agility (27%).

"The data highlights the need for careful and customized implementation of these technologies to ensure a satisfactory experience. Additionally, it is essential to have a team that constantly monitors the performance of the chatbots, making the necessary corrections to provide a better user experience," says Ricco.

Point of attention and opportunities for brands

The study revealed that negative experiences are related to service failures. Among the issues mentioned are products or services with below-average quality (26%), delayed (24%) or unfulfilled deliveries (21%), misleading advertising (24%), customer service problems (20%), and lack of response to complaints and requests (18%).

Consumers expect brands to take clear actions to improve their experiences, such as resolving issues quickly (37%), expanding shipping options (37%), offering discounts on future purchases (33%), and reducing delivery times (32%). "The Brazilian consumer is telling us what they want. Based on this information, it is necessary to stand out, not only in what you sell but also in how you sell and serve. The consumer expects quick responses, practical solutions, and service that understands their needs," concludes Ricco.

The CX Trends 2025 was conducted by Octadesk in partnership with Opinion Box, supported by Vindi, Locaweb, Moskit, Bling, and KingHost, and surveyed over 2,000 online consumers aged 16 and above from all over Brazil and all social classes. The margin of error of the survey is 2.2 percentage points. To access the full report,Click here.

Consumer behavior trends in flower e-commerce for 2025

Consumer behavior is constantly changing, reflecting the shifts driven by technological innovations in recent years. This new phase directly influences the commercialization of products online, such as the online flower market, where consumers seek increasingly personalized experiences, as well as concepts like sustainability. Check out five trends that are expected to shape the flower e-commerce industry in 2025.

Product customization

Personalization of items in online floristry requires a tailored and unique service, creating a sense of exclusivity and belonging in the consumer. This step involves everything from the possibility of creating customized arrangements with flowers chosen by the customer to offering packaging with names and messages.

Sustainability

The concept of sustainability is present in flower e-commerce through packaging and items that promote environmental preservation. In addition to packaging, the process also includes the adoption of sustainable practices in almost all sales stages, such as in the delivery of arrangements, where the use of more sustainable transportation causes less environmental impact.

Immersive shopping

With technological advancement, immersive interaction reaches a new level in online flower shops. With flowers and arrangements experienced in virtual reality through 3D projects and augmented reality (AR) equipment, it is possible to create a product catalog that brings the customer even closer to the purchasing decision stage.

Fast delivery

Well-structured logistics is a major differentiator for e-commerce, which aims to fulfill orders with the shortest possible delivery time. In order management, monthly product subscriptions are gaining popularity in businesses that have a fast and efficient delivery system.

Presence on social networks

E-commerce could reach R$ 242 billion in Brazil by 2025, according to a report by FTI Consulting. Social media currently represent a tool with great conversion potential for e-commerce businesses like online florists, with live broadcasts for selling flowers and arrangements and integrated shopping being offered on platforms like TikTok and Instagram.

Did you know that stories can transform the way people see your brand?

Think of a significant moment in your life.Maybe it was a personal achievement, a challenge overcome, or even an unexpected experience that changed your perspective.tiva.Now, imagine what it would be like if your brand could evoke this kind of emotion in the audience. Stories have this power: they connect, inspire, and, most importantly, create identification.

The #LikeAGirl campaign by Always, for example, challenged gender stereotypes by turning a pejorative expression into a symbol of strength and confidence.By showcasing girls performing activities with determination, the brand inspired young women to be proud of their identity, promoting self-esteem and female empowerment.

Dove launched a campaign in which an artist drew women based on their own descriptions and then based on descriptions from other people. The results showed that women tend to see themselves more critically than others see them.The initiative helped many women recognize their own beauty and improve their self-esteem.

When it comes to storytelling, Nike is a shining example.Your campaigns don't just sell products; they sell dreams, courage, and overcoming.By sharing stories of athletes who defied all odds, Nike inspires millions of people around the world.Those who see these stories don't just think "I want a Nike sneaker," but "I want to be part of this movement."

The power of stories

We, humans, are naturally attracted to stories. They transcend words and facts; they touch our essence, evoke memories, and create emotional connections. In the world of brands, this path is a powerful tool. Telling a good story, besides being a differentiator, allows building a deep and lasting relationship with the audience.

For example, when you share the story of a customer who achieved their dreams using your product, you are not only promoting your brand, but showing that it is part of something bigger: someone's journey of overcoming obstacles.

Know your audience

Want to create stories that truly resonate? The first step is to understand who your audience is. What are your pains, desires, and values? The more you know about him, the more relevant and impactful your narrative will be.

  • Search: Use market analysis tools, social networks and surveys to find out what motivates your audience.
  • Empathy is keyPut yourself in your audience's place.How would you feel upon hearing the story? Does it make sense? Is it inspiring?

When you know your audience inside out, you can create messages that feel tailored to you — and that personalization is what turns simple words into emotions.

Create a Hero's Journey

Every good story has a hero, and in the universe of brands, that hero is your customer. He must be the protagonist, facing challenges and overcoming them with the help of what you offer. This approach creates a powerful emotional connection because it shows that your brand is not just a provider of products or services, but a partner in their journey.

  1. The challenge: What problem is your customer facing?
  2. The solution: How does your brand help overcome this challenge?
  3. The transformationWhat is the final result?How does your customer feel after the experience with your brand?

This is the difference between promoting products and inspiring people.

At the end of the day, brands that know how to tell good stories not only sell more — they create legacies. They are remembered, shared, and loved. Therefore, next time you think about a campaign or strategy, remember: it's not enough to talk about what you do. Tell a story that shows who you are and your importance.

So, how about starting today?Your brand has a lot to tell — and the world is waiting to hear it.

What to expect from the metaverse for digital marketing in 2025?

In 2021, Mark Zuckerberg, CEO and founder of Facebook, surprised the world by announcing the company's name change to Meta, with the main goal of exploring this new digital world of the metaverse. At the time, the concept and technology were presented to the public as one of the most powerful and promising initiatives for the future, capable of generating alternative and immersive virtual environments where people can interact and perform any activity.

A few years after the initial boom, the metaverse stopped being a futuristic idea and became a developing reality. Although it has not yet achieved the initial success expected, the resource now opens doors for experiments and interesting initiatives within the digital worlds.

One of the areas that has been exploring technology well since then is marketing. This is because brands seem to have recognized the potential of the metaverse to create deeper and more interactive connections with consumers. Platforms like Roblox and Decentraland today can be seen as living laboratories where these strategies are taking shape, proving that these parallel worlds can be an interesting alternative to bring the audience closer to your brand.

All this potential is further amplified thanks to the aid of adjacent technologies, such as artificial intelligence. Through integration with AI, brands have begun to see the metaverse as an interesting tool for gaining engagement and new revenue.

Given this dubious scenario characterized by enormous potential, yet little explored, I would like to share some key trends and challenges that will accompany the development of the metaverse by 2025, with a focus on helping marketing professionals prepare for this new era.

  1. Immersive and interactive experiences

Immersion is the soul of the Metaverse. Today, brands like Nike, with their NIKELAND platform embedded within Roblox, already demonstrate the power of this approach. The tool goes beyond a mere virtual showroom; it consolidates a world where users can create avatars and interact with the sports brand in a playful way, strengthening the user's emotional connection with the products. AI, in turn, enhances these experiences by enabling the creation of realistic avatars with natural movements and expressions, as well as intelligent NPCs (non-player characters) that provide personalized interactions.

  1. Real-world integration, facilitated by AI

The convergence between the physical and digital is a strong trend for 2025, and the metaverse could be a practical solution for this purpose. Forever 21, for example, now features a store in the metaverse that mirrors its physical collection into the digital realm. This omnichannel strategy offers an innovative shopping experience and also boosts sales, both online and offline. AI once again comes into play by analyzing real-world data, such as shopping preferences and consumer behavior, in order to personalize offers and experiences.

  1. Hyper-personalization with AI

Using a practical work as an example again, Coca-Cola recently used NFTs to unlock personalized experiences, such as access to exclusive events and collectible virtual items. This strategy strengthens customer loyalty and helps create a sense of community around the brand. Through its ability to analyze large volumes of data, AI becomes crucial in this environment to offer personalized experiences at scale, predicting users' needs and desires in the Metaverse.

  1. Monetization opportunities

Today, the Metaverse still represents a new way of monetization for businesses. Luxury brands, such as Balenciaga and Louis Vuitton, are already selling virtual clothes and accessories, creating new revenue streams and reaching a younger, more connected audience.

  1. Metaverse as a service channel with Conversational AI

Imagine resolving your doubts with a virtual assistant in an immersive 3D environment. This is yet another possible use within the metaverse, focusing on the bond between the brand and the customer. Furthermore, thanks to the use of AI, companies will be able to promote more natural and personalized interactions, available 24/7, enhancing efficiency and customer satisfaction.

Personalization at scale and automation will be highlights in digital marketing in 2025

For companies that want to grow and be seen in an increasingly competitive and digitalized market, digital marketing services are essential, as they allow brands to connect directly with their audiences, reach new markets, and optimize results based on concrete data.

Furthermore, these digital services help companies of all sizes, but especially SMEs, which are the largest in the country, to build a strong and consistent presence, which is essential for building customer loyalty and standing out in the online environment.

Marcus Calixto, CEO of Beelieve Group, a company specializing in digital marketing for SMEs, believes that the year 2025 will continue to be driven by personalization at scale, combined with intelligent automation.

“Online consumers value three fundamental pillars: convenience, trust and personalization. They seek a fast, transparent and secure shopping experience, as well as offers and recommendations that are aligned with their needs. Efficient service, from pre-sale to post-sale, is also a decisive differentiator,” explains the executive.

Recently, Beelieve began implementing a new methodology in its services called Blue Star. The method is composed of three very important pillars within the digital realm: Operational Squads, Artificial Intelligence (AI), and Integrated Technology.

“In the case of artificial intelligence, it will be even more integrated into strategies, allowing us to predict behaviors and create hyper-segmented campaigns. To further strengthen the personalization of the service for the end consumer and potential customers,” highlights Calixto.

The expert emphasizes that when making an online purchase, the end consumer prioritizes trust and information, and one of the first steps is to research the company's social networks.

“It looks for signs of reliability, such as updated pages, interactions with the public and positive reviews. Therefore, it is essential that companies keep their social networks and digital platforms optimized and constantly updated”, advises the CEO of Beelieve.

Calixto also points out other highlights of digital marketing that SMEs and digital professionals need to pay attention to.

“Strategies that restore a sense of community and belonging, such as online forums and exclusive communities, can gain new strength with more modern platforms. More established products, such as email marketing, will continue to be a great tool if used to promote greater personalization and interactivity. In addition, simple content formats, such as newsletters and blogs, can regain prominence as the public seeks more informative content that is less focused on direct sales,” concludes the expert.

Companies must now prioritize the mental health of their employees

The MTE Ordinance No. 1,419/2024, published on August 27, established that the new requirements of NR-01 will come into effect on May 25, 2025, granting companies a 270-day period for compliance. In other words, from May 25, 2025, companies need to comply with the new requirements and turn legal challenges into actions that boost productivity and well-being.

“Mental health care in companies is no longer a benefit, it has become an obligation. The scenario is clear: it is not enough to just talk about health and well-being; now Human Resources professionals and leaders need to act in a strategic and structured way,” says Neide Leite Galante, Head of Human Resources, Management and People Development at ButtiniMoraes.

According to her, the ordinance is strategic and meets society's expectations, especially considering that data from the Ministry of Social Security indicated that, between 2022 and 2023, the INSS granted more than 288 thousand absences from work due to mental disorders, which represents an increase of 38% compared to 2022.

“Anxiety is one of the mental disorders that most keeps Brazilians away from work, which has already been proven in several surveys, with one of the most recent in 2023 finding that anxiety was the disorder that most kept people away from work, followed by depression, stress and Burnout syndrome”, highlights Neide.

The data is unequivocal: neglect of mental health goes beyond financial losses. By compromising the well-being and productivity of their professionals, companies neglect their greatest asset. Hidden costs, such as absenteeism, turnover, and decreased quality, reveal the true damage.

What changes with NR-01?

The Regulatory Standards (NRs), established by the Ministry of Labor, aim to ensure the health and safety of workers in their work environments. NR-01, in particular, underpins the Risk Management Program (PGR), requiring companies to identify, assess, and control occupational risks, implementing preventive measures to protect the health and physical integrity of their employees.

“The Risk Management Program (RMP) now covers health risks more broadly, including psychosocial factors. This new legal requirement obliges companies to implement preventive actions to identify and control situations such as work overload and harassment, ensuring the physical and mental health of employees and promoting a safer and more humanized work environment,” emphasizes the Human Resources manager at ButtiniMoraes.

It is important to highlight that NR-01, in its updated version, recognizes the complexity of the risks present in the work environments, expanding the scope of the PGR beyond physical, chemical, and ergonomic risks. "The inclusion of psychosocial factors, such as workload, harassment, and interpersonal conflicts, demonstrates the need for a multifaceted approach to occupational health and safety management, considering both physical and psychological aspects," argues Neide.

To prevent these risks and promote a healthier work environment, companies can adopt several strategies, such as:

  1. Risk Identification and Assessment:
  • Organizational Climate Survey:Conduct periodic surveys to identify the main factors of stress and dissatisfaction at work.
  • Individual Interviews:Talk to professionals to understand their perceptions of the work environment.
  • Data Analysis:Use data on absences, accidents and performance indicators to identify patterns and trends.
  1. Implementation of Preventive Measures:
  • Workload Management:Balance the workload, avoiding overload and underutilization.
  • Open and Transparent Communication:Establish effective communication channels so that professionals feel comfortable expressing their opinions and concerns.
  • Recognition and Appreciation:Implement recognition and appreciation programs, such as bonuses, promotions and periodic feedback.
  • Training and Development:Provide professional development opportunities so that employees feel more engaged and motivated.
  • Flexibility:Adopt flexible working practices, such as remote working, wherever possible.
  • Quality of Life Program:Implement programs that promote the physical and mental well-being of professionals, such as physical activities, yoga and meditation.
  • Prevention and Combat of Harassment:Establish clear anti-harassment policies and create safe channels for reporting.
  • Promoting Diversity and Inclusion:Create an inclusive work environment where everyone feels valued and respected.
  • Psychological Support:Offer psychological support services to professionals who need them.
  1. Continuous Monitoring:
  • Health Indicators:Monitor indicators such as absenteeism, turnover and accident rates.
  • Climate Research:Conduct periodic surveys to assess the effectiveness of the measures implemented.
  1. Professional Involvement:
  • Health and Wellbeing Committees:Create committees to discuss and propose solutions to identified problems.
  • Wellness Programs:Promote physical activities, healthy eating and relaxation practices.
  1. Leadership:
  • Positive Leadership:Leaders must serve as positive role models, fostering a collaborative and respectful work environment.
  • Leadership Training:Provide training so that leaders can identify and deal with stressful and conflict situations.

“Preventing psychosocial risks is an ongoing process that requires the involvement of all levels of the organization. By implementing these measures, companies contribute to a healthier, more productive and humanized work environment,” argues the executive.

Law 14.831/2024represents an important milestone in the promotion of mental health in the workplace in Brazil, establishing theMental Health Promoting Company Certificate, an official recognition for companies that demonstrate a genuine commitment to the psychological well-being of their employees.

In summary, Law 14,831/2024 encourages companies to adopt practices that promote the mental health of their employees, recognizing that psychological well-being is fundamental to a healthy and productive work environment.

Main points of the law:

  • Certificate:Companies that meet the requirements established by law will be able to obtain the certificate, which serves as a seal of quality, demonstrating that the organization is dedicated to promoting mental health.
  • Requirements for obtaining the certificate:The law establishes criteria that companies must meet to receive certification, such as implementing policies and programs to promote mental health, offering psychological support services and creating a safe and healthy work environment.

The fact is that the topic of mental health care and well-being of professionals in the workplace becomes more relevant every year, NR-01 and Law 14.831/2024 represent an important step in this direction.

From MS-DOS to AI: Fleet management software pioneer introduces seven new products to the market

If you are not part of Generation Z or Generation Alpha, you might not know what an MS-DOS operating system is. This system was the precursor of the technological evolution we experience today. It was based on MS-DOS that Gestran, now one of the main fleet management platforms in Brazil, developed its first software, Transdata, in 1999.

Twenty-five years after the company's founding, Transdata – Gestran's Sistran MS-DOS System – remains in fond memory and is part of the success story of logtech. Today, with the rise of artificial intelligence and machine learning, resources that the platform has incorporated into its solutions, Gestran continues to align itself with the technological revolution and the new demands of the transportation and logistics market.

The platform reaches a growth of 40% in 2024. Gestran's products and solutions currently manage 70,000 vehicles across the country, covering more than 750 organizations from various economic sectors, including major retail chains, industry, agribusiness, and the transportation sector itself.

“We have reached 25 years implementing a process that we call AIization – that is, developing and integrating AI [artificial intelligence] into the platform in a definitive and solid way”, says Gestran CEO, Paulo Raymundi.

To celebrate its 25th anniversary, Gestran completed a rebranding, updating the company's brand and culture. The visual identity was modified and concepts like "Open Fleet" were introduced, an innovation practice that integrates technologies and devices for fleet management. This integration includes the Pneu Fit solutions (real-time monitoring of tire conditions) and the fuel application (for fuel management).

Alongside the rebranding, Gestran is working on the development of seven new products that represent an advancement over existing solutions (see box at the end of this article). "With Open Fleet and the new products, the manager will have technological resources that enable more efficient fleet management and operation, resulting in cost reduction, resource savings, and fleet optimization," highlights the CEO.

Raymundi emphasizes that, in addition to technological innovations, Gestran has followed the evolution of the transportation and logistics market in Brazil, especially the fleet management sector. At the end of the 1990s, biofuels and fleet electrification were only objects of experimentation and research, and vehicle automation was in its early stages.

“Investments in this market have grown exponentially. Between 2022 and 2026 alone, the expected investment amount is R$124 billion, according to the Brazilian Infrastructure and Base Industry Association [Adib]. Transportation and logistics are essential for economic growth, and optimizing and making operations in this sector efficient is equally essential,” says Gestran’s CEO.

LEARN MORE

Discover the main milestones in Gestran's 25-year trajectory:

  • 1999: foundation, with a system for controlling the supply and consumption of fuel by vehicles.
  • 2003: first version of the Gestran Delphi system.
  • 2009: second version Gestran Delphi.
  • 2015: the company changes its solution’s name to Gestran.
  • 2019: start of the SaaS Systems project.
  • 2022: investments and innovations in new products.
  • 2024: data driven expansion, repositioning and digitalization of the brand, creation of Open Fleet and Gestran Data.

The products being launched by the platform:

  • TMS:ERP (Enterprise Resource Planning) system for transport and logistics management.
  • Fleet:SaaS (Software as a Service) solution for fleet management, consisting of fueling, tires, maintenance, checklist, expenses, finance, purchasing and warehouse/stock modules.
  • Stratified Data:data and reporting hub with the application of artificial intelligence for real-time visualization, providing greater visibility for decision-making.
  • Open Fleet:API (Application Programming Interface) platform connected to devices and technologies related to fleet management, such as connection with backoffice players, fueling technologies, telemetry and tire data capture, among others, facilitating the integration of fleet data.
  • Gesture:hub for notifications and interactions, with exceptions and alerts triggered for communication applications such as email, SMS, WhatsApp and Telegram, seeking assertive communication and generating alerts for decision-making.
  • Docs:integration of expenses and tax documents through artificial intelligence and machine learning, enabling automation and recognition of recurrences, reducing processing time and manual intervention.
  • PneuFit:data collection equipment that allows reading of tire condition, grooves and calibration, identifying useful life and possible failures, applying actions with the integrated information from the collector to the fleet.

Expected to surpass GDP, revenue of SMEs in the South grows 8.4% in 2024

The Omie Index of Economic Performance of SMEs (IODE-SMEs) indicates that the revenue of small and medium-sized enterprises (SMEs) in the Southern region increased by 8.4% year-over-year. The sector's growth at the national level was 4.5% in 2024. In the fourth quarter, the index showed an increase of 3.3% compared to the same period of the previous year.

In addition to the Southern region, IODE-PMEs indicates that market growth was mainly driven by the good performance of the Northeast (+8.3%) and Southeast (+3.7% compared to 2023). The SMEs in the Central-West region (+0.1%) remained stagnant, and those in the North (-10.4%) contracted.

The index data indicate performance superior to the country's overall GDP in the last year. According to the BCB Focus Bulletin, the median market outlook for GDP in 2024 (whose official closing will occur in March 2025) is at 3.5%.

IODE-PMEs works as an economic thermometer for companies with annual revenues of up to R$50 million, consisting of monitoring 736 economic activities that make up four major sectors: Commerce, Industry, Infrastructure and Services.

Figure 1: IODE-SMEs

(Index number – base: average 2023=100)

Fonte: IODE-PMEs (Omie)

The performance of the national market, according to Felipe Beraldi, economist and manager of Indicators and Economic Studies at Omie, was conditioned by the expansion of domestic demand and indicates a loss of momentum in the segment, especially in the Industry and Services sectors. "In recent years, there has been a strong increase in families' real disposable income, in a context of fiscal expansion with income transfer programs and precatório payments. Also to be considered are the support of the heated labor market, unemployment close to the historically low level of 6% in the last decade, and rising real incomes that are already higher compared to the pre-pandemic period," he explains.

Figure 2: IODE-PMEs – sectoral openings

(2024 x 2023)

Fonte: IODE-PMEs (Omie)

Business

The main contributor to the improvement of the SME market in 2024 was Commerce, with an increase of 8.1% compared to the previous year. The economist recalls that companies in this sector began a recovery trajectory from the second quarter of the previous year, after a very challenging 2023, reflecting the context of increased consumption in the country. In 2024, the results were positive for wholesale (+9.0% YoY) and retail (+6.4% YoY), with highlights in 'Food', 'Beverages', and 'Hygiene, cleaning, and household conservation products'.

In retail, signs of recovery became more consistent for SMEs in the second half of 2024, evidenced by the sustained growth of commerce over the past six months. Among the activities with the best performance are 'Office equipment', 'Food products', 'Pharmaceutical products with formula manipulation', and 'Hydraulic and electrical materials'.

Services

Another sector of the small and medium-sized business market that resumed expansion last year was Services, with a 2.5% increase, despite the slowdown in the last months of the year (+1.2% in Q4 2024). "The increase also impacted the labor market, with most of the rise in the net number of formal workers concentrated in the Service sector activities throughout 2024," reinforces the economist. They stand out as 'Financial and insurance activities', 'Transport and storage', 'Human health and social work activities', and 'Information and communication'.

Industry

The industrial SMEs slowed down in the second semester, with a 1.5% YoY decline in Q4 2024. Still, the sector ended 2024 with a 2.2% higher revenue compared to 2023, according to IODE-PMEs.

In this context, the sector's progress has been less widespread across the different activities of the industry in recent months. Of the 23 sectors monitored by the index, only 11 showed an increase in the fourth quarter of 2024 compared to the previous year. They are: 'Recording and reproduction of recordings', 'Transport equipment', 'Maintenance, repair, and installation of machines and equipment', and 'Electrical machines, appliances, and materials'.

Infrastructure

Small and medium-sized infrastructure companies ended last year with a 0.8% increase compared to 2023. After a first half of declines, the area began to expand again from August onwards.

Beraldi adds the influence of the municipal election period on the sector. "On one hand, it stimulates some activities; on the other hand, high interest rates tend to inhibit the growth of the construction industry. As a result, infrastructure expansion was driven by 'Waste collection, treatment, and disposal,' 'Electricity,' and 'Specialized construction services,'" he comments. Some segments of the construction industry, such as 'Infrastructure works' and 'Building construction,' showed lower revenue.

SMEs are expected to grow in 2025, but at a more moderate pace

The outlook, based on the IODE-PMEs, indicates a growth of 2.4% in 2025, after an average increase of 6.9% per year in the 2023-24 biennium. According to the economist, despite the macroeconomic challenges and the increase in uncertainties in the domestic economy, there are elements that should support the continuation of Brazil's economic growth this year, even if with some slowdown.

In general, this continuity is supported by a context of income support for families – unemployment at a low level of 6.1% and with no clear signs of reversal. In this context, therefore, it tends to favor some market segments that are more sensitive to income, such as Services and some segments of Retail (food products, hygiene items, pharmaceuticals, etc.).

On the other hand, the high inflation expectations in the country and the increase in the basic interest rate by the Central Bank in recent months are expected to restrain the momentum of consumption and investments, with effects on SMEs, especially from the second quarter of this year. With this, in 2025, there will be challenges for the performance of segments more dependent on the evolution of credit, such as industrial, commercial, and construction activities.

The business environment this year is expected to be highly susceptible to shocks in both national and international scenarios. "Internally, there is the addressing of fiscal issues (balance between government revenues and expenditures), in addition to the approval of the Tax Reform, which will take effect from 2026, but entrepreneurs are advised to estimate the impacts of the changes as soon as possible," advises Beraldi. "Externally, in addition to monitoring geopolitical tensions worldwide, tracking the political and economic evolution of the US at the beginning of Trump's administration is quite relevant, given the significant impacts on the development of economies in developing countries, such as Brazil," he adds.

Loyal customers save businesses in tough times — here’s how to retain them

The year 2025 is shaping up to be a period of economic challenges. Projections indicate a slowdown in Gross Domestic Product (GDP) growth, with an expected increase of only 2%, after consecutive years of expansion exceeding 3%.Inflation should remain close to 5%, pressured by rising production and service costs, while the basic interest rate (Selic) may reach 15%, making credit more expensive for companies and consumers. The scenario also points to a less heated labor market and a slowdown in public and private investments. In this context, many entrepreneurs assess the need to cut costs in favor of the sustainability of the business.

In moments like this, the marketing department is often one of the first sectors to suffer budget cuts in organizations. However, specialists warn that this approach may be a mistake. For example, astudy carried out in 2022 by NielsenIn the post-COVID-19 pandemic period, it shows that companies that continue investing in marketing during crises tend to recover more quickly and expand their market share. AlreadyLeonardo Oda, marketing specialist and CEO of LEODA Marketing Intelligence, suggests that strengthening the customer base, building customer loyalty and creating retention strategies are essential steps for business stability in times of recession.

All these arguments gain strength when considering that, during times of economic downturn, acquiring new customers becomes more costly. In this way, the priority should be to retain current buyers and/or users and deepen the relationship with them. "Marketing needs to be viewed as a strategic investment and not as a cost, especially in small and medium-sized enterprises. This is because organizations that maintain effective communication and strengthen relationships with their key consumers are the ones that stand out and survive in recession scenarios," argues Oda.

Marketing strategies to face the crisis

To strengthen customer relationships and optimize your marketing strategies, Leonardo Oda suggests approaches based on detailed analysis of the consumer journey, segmented communication and the use of loyalty programs.

1) Understand the purchasing journey to personalize communication

shopping journeyA client's journey does not follow a linear path, but rather a process that involves research, comparison, and decision-making. Entrepreneurs who understand this journey can anticipate needs and offer solutions at the right time.

To optimize this process, a necessary step is to define thepersona detailed profile of the ideal customer, based on real data and behaviors. The more accurate this characterization is, the more effective the marketing and communication strategies will be.

For Oda, in a crisis scenario, understanding the purchase journey and segmenting communication based on a well-defined persona is not just an efficient strategy — it is a necessity. Companies that master these concepts can optimize their investments and turn uncertainties into opportunities, strengthening their market presence and building stronger relationships with their clients.

2) Content marketing and segmented communication

In times of crisis, communication needs to be even more strategic and targeted. In this context, theContent MarketingIt is an approach that allows companies to attract and educate customers through relevant materials such as blogs, e-books, and webinars. This strategy not only helps build authority in the market but also creates a stronger connection with the consumer by providing useful information that assists in decision-making.

Allied to all this, there is theSegmented Communication, enabling the right message to reach the right audience through the appropriate channels. In addition to diversifying channels—such as email marketing, WhatsApp, and exclusive events—the message must be tailored to consumer behavior to generate real value and strengthen bonds. "The proximity generated by well-targeted communication directly impacts customer loyalty, who perceive more value in the relationship with the brand," explains Oda.

3) Loyalty programs for customer retention

To navigate periods of crisis, it is not enough to attract customers; it is necessary to keep them engaged and encourage their loyalty. In this context, theloyalty programscontribute to strengthening the bond between consumer and brand.

Strategies such as cashback, tiered promotions, and exclusive benefits create incentives for repurchase and make customers perceive greater value in their relationship with the brand. "Those who develop strategies to value their loyal customers manage to improve revenue flow and long-term relationships," highlights Oda.

In addition to traditional loyalty programs, offering personalized experiences and exceptional service also makes a difference in the customer's perception.

Crisis is also an opportunity

In summary, the economic challenges forecasted for 2025 should not be seen only as a period of contraction, but as a time for innovation and strategic repositioning. "Companies that use this period to refine processes, adapt products and services to new market needs, and expand their digital presence can find growth opportunities where many see only difficulties," concludes Leonardo Oda.

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