Bright Business Consulting LLP

Monday, May 21, 2018

Market Opportunities in Brazil

Doing business in Brazil may sound easy for those who are new to the market, but adopting a strategic approach is the key to make the process manageable. It is important to have a middle and long-term outlook considered that being successful in Brazil implies commitment. A right choice will be rely on subjects  that have knowledge and skills in this market.

In many sectors Brazil is already  a well-developed market. You may find out that your competitors are already there and that there is a fierce competition. As in every new market, it will be necessary to use your own competitive advantages to the top, and it is important to know which ones will be the most effective ones in Brazil. It is important to search the market  to identify the level of the demand for the product or the service you intend provide and then decide if it is necessary to face the market on the whole or through specific niches.

YOUR STARTING RESEARCH MUST PINPOINT

  1. The existence of a market for the product or the service in Brazil.
  2. The existence of peculiar centres of interest.
  3. Whether you can be competitive in Brazil.

SECTORS

WORLD LIST

Extraction of oil in depth

1st

Aircraft production  (size 70-110 passengers)

1st

Market on helicopters   

2nd

Hydroelectric buildings 

2nd

Production of bio fuel

2nd

Buses

3rd

Shoe making

3rd

Steel production

4th

Motorbikes  production

4th

TV Network

4th

Trading jets

4th

Shoe Export

5th

Lorries

5th

“Futures” commodity exchange

6th

Beauty products

6th

Car production

7th

Network in franchising - 1.013

4th
Number of outlets

6th
Brazilian networks on International markets

48

Brazil represents an opportunity of investment considered that it enjoys a stable system of financial market and some capitals in great development. For sixteen years Brazil boasts a low inflation rate and runs a responsible economic policy. In eight years this South American has climbed five positions in the world ranking. Fostered as regards "Investment Grade" in 2008 by Standard & Poor’s (BBB), Fitch Ratings (BBB) and in 2009 by Moody’s (Baaa3).

Economy is growing at a very fast pace comparable to that of the States in the thirties, and the average prediction of growth in the next years is between 5% and 6%, therefore it is far bigger than in the USA, Europe and Japan. Brazil is today the seventh power in the world and is expected to become the fifth one in 2014.

Main leading factors of the Brazilian economic growth are found in:

  • Rise in the credit from local banks (in the first months of 2012 loans to companies have increased of 22% compared to 2011).
  • Attention to micro-credit (BNDES - in 2012 loans to families increase of 26%.
  • Subsequent increase of consumptions within families.
  • Considerable growth of the middle-classes.
  • Demographic bonus.
  • Appreciable attention addressed to micro-companies with possibilities being financed up to 100%.
  • Regional banks for the development of specific productive areas (in particular in the North and North-East).

Very young target of consumers. Brazilian who are older than 65 are only 7% of the population: it implies a large potential of consumers that will contribute to the growth of GDP-PIL. The growth will also be ensured by the increase of the middle classes. From 2002 to 2010 about 29 million not well-off Brazilian entered middle class, thus becoming consumers to all intents. At the moment middle class with an income between 1.610 Reais and 6.941 Reais represents 53,3% of the whole population. Such a situation reflects in the markets with increase in the sales of quality products.
 
But not only, really interesting are also the sectors of the accessories for cars, lubricating oils, sphere valves, packaging machines, boats, helicopters and instrumental mechanics. There have been several state interventions in the sectors of car industry, of building industry and agriculture.

FACTORY LOCATION

  • North: industry of extraction.
  • North East: tourism, clothes, shoe industry, Petro chemical.
  • Centre-West: agro business, tourism.
  • South-East: cars, mechanics, services.
  • South: agro industry, cars, wood-furniture, clothes, ceramics.

According to IBGE ( Brazilian Institute of Geography and Statistics) in 2012 industrial production of Brazil increased of 12,5%. Brazil I among the first countries in the world for industrial productions. Leading technologies in the sectors of oil, biodiesel, aeronautics. Diversified industrial park and characterized by small and middle-sized companies ready to interact with foreign companies.

As a great producer of commodities, Brazilian economy is profiting of the world boom of the price of raw materials. There are perspectives of high economic growth to integrate with a diversified energy origin and highly based on renewable alternative sources.

Another very attractive factor for the investors is the huge amount of natural resources present on the Brazilian territory. Brazil is the "Country" that owns the largest cultivable lands to exploit. It is among the first producers and exporters of agricultural goods in the world.

PRODUCTION

WORLD LIST

Products           

3rd

Fruit

1st

Soya

1st

Sugar

2nd

Meat

1st

Coffee

1st

Oranges

1st

Biodiversity

4th

Timber

2nd

Last but not least the programme PAC programme, (Programa de Aceleracao de Crescimento), an investment of about US$ 275 MD with engagements on the sector of infrastructures such as ports, waterways, motorways, energy, social and a diversified export in products and markets.

Company Formations In Brazil

Practices For Visa Permanent

Deposit & Trademark Registration In Brazil

Emerging Markets

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LONDON - UK - W8 4DB 

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