Go To Top

Exporting to Brazil

A gigantic new market in which to sell your product and/or service sounds fantastic and is a great way to grow your business, but there are some risks involved. Conducting market analysis, understanding the market, preparing an export plan, making the right strategic choices and arranging to accommodate any additional capital requirements are all essential steps that you must take before committing to anything.

Conducting Market Analysis

Brazil has a population of over 190 million people and that's a huge market by anyone's standards. That said, the average income in Brazil is significantly lower than for example Australia. Australia has a PPP1 per capita income of US$38,900 whilst Brazil's is US$10,500. This distorts even further when looking at the income distribution in Brazil which is heavily skewed to a relatively small percentage of the population.

Understanding the Brazilian market

Developing a clear comprehension of the culture, customs and economic conditions of Brazil is essential to be a successful exporter to Brazil. Braanz Consulting provides an overview of these items and a quick online search will help to provide some more information. Austrade and New Zealand Trade and Enterprise(NZTE) also provide access to information on market and industry sectors, studies and economic reports about Brazil.

However visiting Brazil is still the best way to get an understanding of the market. Doing so enables you to speak with potential clients, partners or distributors, look at your competition and understand local distribution options and relative advantages. Visiting trade shows and events specific to your industry while in Brazil is a great way to get a feel for the local market and potential for your business to export.

Preparing an export plan

An export plan allows you to address and capitalise on your business' relative strength, weaknesses, opportunities and threats in exporting to Brazil. It will help you by defining your objectives and the methods you plan to use to reach them. It should address which areas you are targeting, the long and short term volume levels you are aiming for, your capacity to deliver those volumes, how you will do so, what representation model you plan to use and how will you will market and distribute your product or service. The final part of your export plan should include a tool for evaluating your results in exporting to Brazil and modify your plan if needed.

Making the right strategic choices

Developing a solid business in Brazil will require a long-term commitment, but the benefits for your company can be substantial. Whilst already a large market, Brazil's economy continues to grow at a staggering rate and this provides ample reason for your business to address the market early and grow with it. Entering the Brazilian market should not be seen as a method of addressing sluggish sales in your local market(such as those brought on by the global economic crisis) as succeeding will require the dedication and commitment that only a long-term strategy can provide.

It's easy to get caught up in the hype of such a large market, however we generally recommend that new exporters to Brazil focus on specific regional areas to begin with. São Paulo state alone is a huge market, accounting for 45% of Brazil's GDP.

You may have to adapt your product, price and promotional campaigns to reflect conditions in Brazil, including cultural influences, the Portuguese language, buyer preferences, engineering standards or product regulations. Your pricing strategy needs to take into account market demand, competition and costs such as tariffs, custom fees and shipping and insurance.

Capital Requirements

Exporting to a new market can stretch budgets in any business so both short and long term financial planning is essential. As well as the basics such as product costs, shipping, insurance, etc, you may also need to look at potential capital expansion to meet the demands of the Brazilian market. Ensuring a plan is in place to address these items before you start is a sound way to prepare yourself and your business.

 

1Purchasing power parity is a measurement of a currency's value based on the buying power within its own domestic economy.

Latest News

  • Estacao Hack

     

    28th August, 2017

    Facebook Inc on Monday unveiled its first training centre in Latin America for coders and entrepreneurs, encouraging technology careers for young Brazilians saddled with unemployment after a deep economic crisis.

  • EletroBras logo

     

    23rd August, 2017

    Brazil on Monday floated a proposal to cede control of the country's biggest power utility, Eletrobras, in the boldest privatisation yet by a government struggling to close a record budget deficit, sending Eletrobras' shares soaring in after-market trading.

  • AT&T Time Warner merger

     

    22nd August, 2017

    Brazil’s antitrust watchdog Cade said AT&T’s US$85.4 billion deal for Time Warner poses a high risk to competition, a potential complication that threatens to delay the final approval process.

  • Magazine Luiza's Lu

     

    14th August, 2017

    Lu’s not like other girls on Tinder. For starters, she’s an avatar. The digital saleswoman popped up on the dating app last June, offering coupons as part of Brazilian retailer Magazine Luiza SA’s strategy to boost e-commerce. She’s been surprisingly effective, lifting the company’s online sales by almost five times the pace of the overall market in the first half of the year and helping make Magazine Luiza the world’s best-performing major retail stock.

  • Embraer E175-2 Skywest

     

    28th July, 2017

    Embraer SA returned to profit in the second quarter as the Brazilian aircraft manufacturer ramped up deliveries of narrow body E-Jets to airlines and brought down operating costs through job cuts and controls on corporate expenses.

  • Carrefour

     

    18th July, 2017

    Grupo Carrefour Brasil SA's initial public offering could price at the bottom of a suggested price range later on Tuesday, reflecting concern over too stretched a valuation for Brazil's biggest supermarket chain, three people familiar with the matter said.

  • Soy bags line a field in Mato Grosso

     

    4th July, 2017

    Brazilian farmers are discovering a downside to becoming one of the world’s top producers of soybeans: they’re running out of room to store all the unsold supply.

  • JBS logo

     

    20th June, 2016

    Meatpacker JBS today unveiled a R$6 billion (US$1.8 billion) divestment plan, putting dairy, poultry and cattle feeding assets on the block to cut debt after a corruption scandal raised concerns about its financing costs.

  • Paulo Cesar Silva

    19th June, 2017

     

    Paulo Cesar Silva, chief executive officer at Embraer SA, discusses the impact of political turmoil in Brazil, progress made on the E195 Mark 2 aircraft, and the potential for aircraft deals with Iran. He speaks with Bloomberg's Guy Johnson from the Paris Air Show on "Bloomberg Surveillance." (Source: Bloomberg)

     

  • Daihatsu Sirion

     

    14th June, 2017

    Daihatsu Motors said today it plans to launch compact cars in Brazil, as parent company Toyota Motor Corp looks to its minicar subsidiary to help it expand in emerging markets and produce lower-cost, quality vehicles.