Sales are stagnating or is even declining? New market opportunities are being explored and inevitably falls a look at Brazil. Finally, Brazil is still one of the top 10 countries in the world with the largest gross domestic product (GDP), despite corruption scandals, political incompetence and resulting economic crisis.
Brazil is a country with more than 206 million inhabitants, which protects its national industry. Supplies of goods and services from abroad are burdened with high import duties, which makes the products unattractive for the Brazilian market, as far as not high technology or very special services are concerned. In addition, a customs agent (Despachante aduaneiro) has to be involved for each import, who takes care and handle the processing of the imported goods.
Not for nothing ranked Brazil at position 123 (June 2016) in the "Ease of doing business" ranking. From the preparation to the opening of a branch and to the finished product or service it is a very long way, which can not be accomplished without professional help. Municipal and country-specific laws and the inconvenience imposed of the Brazilian bureaucracy must be taken into account. Furthermore, the search for the appropriate location must take into account with eventual granted programs for tax exemption and subsidies by the municipalities and federal states.
And, last but not least, everyone who wants to be make successful business in and with Brazil must set free themselves from the idea, that business and business relations work in the same way as in Europe. In Brazil, approximately 70% of the commercial activities are closed through personal relationships. Only about 14% of the deals will be not closed because the price is too high. Even if the potential customer should arise a disadvantage, he will not enter into a business relationship with the supplier if the personal relationship does not fit. This alone already explains a lot about, how complicated it is to build business relations with Brazil.
With our support and our broad network of professionals, a market entry to Brazil can be professionally prepared. Individual studies and information will show which way will be the most useful for you and your company.
Also if you are thinking about a different way of entering the Brazilian market, for example through a joint venture or a professional and ambitious representative, you can also contact us. We will introduce you to suitable candidates and business partners and will make the best choice with you together. The possibilities are infinite ... let us know your ideas!CONTACT US