Brazil’s Opportunity for Overseas Growth
If you’re looking for a country to expand your import/export business, Brazil might just be the answer. Brazil makes up half of South America and is the fifth largest country in the world. The country has an estimated population of 197,000,000, 46% are Internet users, and 59,000,000 are Facebook users. Brazil is a ripe and robust market offering excellent growth opportunities for exports. It is also part of the emerging–or developing markets–which include large economies such as the BRICs: Brazil, Russia, India, and China.
Business Opportunities in Brazil
In 2019, China was Brazil’s largest source of imports followed by the United States, Argentina, Netherlands, and Japan. The key sectors of the Brazilian market with higher than average growth are air transportation, telecoms, oil and gas, and mining.
When it comes to more than 88 million Brazilian online shoppers, electronic appliances, computers, fashion, and accessories are the key areas of buying interest. Most Brazilians like to do their shopping through marketplaces and group-buying websites such as Peixe Urbano, a discount website similar to Groupon in the United States. Other popular websites include MercadoLivre Brazil and Magazine Luiza.
According to Export.gov:
In 2018, Brazil was the United States’ ninth largest export market, and our second-largest trading partner. Last year, the United States exported $66.2 billion in goods and services to Brazil – up 4.2% from 2017, and imported $36.1 billion in goods and services from Brazil – up 3.1% from 2017. The primary products traded include crude oil, aircraft, iron and steel, and machinery.
As You Start to Expand Overseas
As you begin to expand your business to Brazil, be sure to access local companies and develop a business relationship. Learn about the people and the culture where you will be doing business. Take time to understand the area and see where you can help make improvements.
Develop a deep and meaningful personal relationship with a native because their culture is based largely on those relationships. Portuguese is the official and most widely spoken language. Find someone who is bilingual as this will make your communications flow a lot easier and more effectively. You can start looking by using social media and networking platforms e.g., Facebook, LinkedIn and trading groups such as Import-Export Global Trading Group, but at the same time contact the U.S. Commercial Service Gold Key Service for help.
Create a Presence
Create a presence in Brazil, whether through a personal contact living in Brazil or on your own through the help of a governmental organization that has experience in the market, such as U.S. Commercial Service’s Gold Key Service. When you find a trustworthy partner or distributor, be sure to consult with a Brazilian law firm (again, ask who you know and trust for a recommendation) before signing any agreement to avoid potential legal problems.
Participate in Trade Shows
Participate in a trade show to allow people in the industry to get to know you in person and become acquainted with your company’s products. Keep in mind that you will most likely have to tailor your products to the Brazilian market.
Know Regulations and Standards
Brush up on Brazil’s trade regulations and standards. You want to make sure early on that your products and services do not carry any barriers to entry.
Given the sheer size of Brazil and the high percentage of wealthy individuals, it makes for a great target market for consumer goods and services, especially anything related to the growing telecommunications market as noted earlier.