 |
South American Idol » Success story » Battle plans » Fast facts » |
India » Mexico » China » South Africa » |
South American Idol
The world’s biggest companies want a piece of Brazil. Maybe they’re on to something
Take a market of 180 million people that imports goods and services worth US$50 billion every year, and you’re bound to find an export opportunity. And the prospects for selling to the second-largest country in the Americas are getting even better. “Imports started growing in the latter part of 2003, and the expectation is that they’ll grow by 10% or more this year,” says Ron Davidson, Canada’s consul general in São Paulo, Brazil. “The opportunities in Brazil for Canadians go all the way from coal to cosmetics.”Driving trade is the government’s commitment to economic expansion and Brazil’s participation in MERCOSUR, a free-trade agreement among Argentina, Bolivia, Chile, Paraguay and Uruguay. “There’s also a lot of investment into Brazil from around the world, particularly from Europe,” notes Maureen Angus, an international marketing consultant with Ontario Exports Inc. “There don’t appear to be any major upsets on the horizon, unless something serious happens globally.” All of which is boosting the confidence and spending power of Brazil’s growing middle class, which already numbers at least 60 million.
Brazil also boasts a wealth of natural resources, industrial capacity and forward-thinking entrepreneurs. “They’re always looking for new and better technology around the world and trying to incorporate it,” says Angus. “That’s why our niche products do very well.”
That said, taxes are high and the government buttresses domestic business with a tangled web of import tariffs, duties and regulations. “It’s very independent, very protectionist,” says Alfred Durhack, an advisor on Latin America and emerging markets with Manitoba’s Department of Intergovernmental Affairs and Trade. And, as in the rest of Latin America, long-term investment and relationship-building are paramount to success. Durhack advises Canadians to get involved in long-term joint ventures that leverage existing distribution channels and the home team’s knowledge of the local market.
Brazil might also be the most exciting country in which to do business, but for the wrong reasons. There’s enough corruption and fraud to make an Enron executive blush, plus crime rates high enough to put the sturdiest road warriors on edge. You’ll find lots of competition, too. “Of the 500 top companies in the world, roughly 400 are located here,” says Davidson. “It’s a very sophisticated market, and the competitors here are very committed.” —
|
© 2004 Susanne Baillie
