What can Brazilian companies offer Europe? You immediately think of tourist attractions such as beautiful beaches filled with surfers and girls in bikinis. You may also think of the Brazilian carnival with the most colorful clothes and great rhythmic music. And maybe you will also think of attractive fashion brands, such as Havaianas (flip-flops), Mormaii (sunglasses) Osklen or Colcci (high end clothing), or even Natura or Boticário (well-being cosmetics) and TOTVS (a software used globally).
Not only has Brazil powerful brands, it also produces a lot of food
And what about food products? Of course there are exotic fruits like pineapple, banana, coconut and watermelon, but also well-known commodities like soya, sugar and meat that come from Brazil. The country produces enough agricultural products to feed 20% of the world’s population. And it’s not just traditional food products, as the trend towards superfoods also comes from Brazil, that huge country with dramatic landscapes, fertile rainforests and vast wetlands. Brazil’s natural terrain is a bounty of superfoods – foods known for their nutrient-rich content and immense health properties. In Australia, Açaí is a hit. But Cupuaçu, Brazil nuts, Camu-Camu and Guaraná, all popular in Europe, also come from Brazil.
Brazil has its own enormous domestic market
With 212 million inhabitants, its is not hard to understand why the country is both a farming and an industrial powerhouse where almost a third of all exporting companies are manufacturers producing industrial goods such as machinery, tools, construction materials, apparel and plastic products. Brazilian companies basically have enough opportunities in their own market. But there are challenges.
The actual challenges Brazilian entrepreneurs face
With annual growth estimates for next year at just 1.5%, 2022 will most likely be the seventh consecutive year of slow or even negative economic growth, it is evident that the Brazilian economy remains beset by lower global commodity prices and a rising fiscal deficit. Meanwhile, Brazil is one of the countries, that are worst hit by COVID-19, with 4 thousand people dying per day during the worst period of the pandemic, (612.000 death after 21 months of pandemic) which has prolonged and exacerbated the country’s economic crisis.
How can Brazilian companies guarantee their continuity?
Brazilian entrepreneurs are having a hard time. Not only are they losing a lot of money due to the depreciation of their national currency, but also the future of their business is unpredictable, because the economy is unstable and their market is uncertain. Of course, there are traditional companies that can absorb a lot of blows, but there are also young, innovative companies that need more stability and continuity for achieving success. Both for their profitability and for the retention and survival of their staff. Our proposed solution would be: diversify your risks!
How can Brazilian entrepreneurs spread risk, and expand business to Europe?
To be able to diversify risks, entrepreneurs should target other than the internal Brazilian and Latin American markets. What to think about reaching out to the European markets? These have been economically stable, strong and growing markets for decades. Regarding the challenges Brazilian companies have in their own market, you need solutions for possible problems when starting business expansion to Europe.
The experience of the Alliance experts consultants can speed up your start in Europe, with their global network of English, Portuguese and local language speaking partners. Alliance experts can take your first business steps in Europe and establish your contacts in Portugal, the European Union as well as in the other 24 countries in the Continent.
European Market Entry from A to Z
Of course getting support from local advisers is key. Together with you, we make a “European Market Entry from A to Z” and we will conduct all steps required for a successful entry into the most promising market in Europe for you. This starts from:
- Country Selection in Europe
- a short and practical Market Verification Check
- followed by a Longlist of potential distributors and
- a Shortlist of interested resellers
- online meeting appointments.
We can also help you to finalize your business partnership agreement and to speed up your business move in Europe. From the moment the first orders enter your sales department, we can do the local Monitoring and Managing of your sales channels.
What does a European market entry plan cost?
Of course, we estimate the number of hours (and the investment) needed, to set up this practical approach. So that, beforehand, you know the budget, that’s needed to step-by-step lead you to your business partners in Europe, and your successful sales. You invest time and money, to get the best possible sales result in Europe. Easiest is of course to start in Portugal, with Portuguese language and your packaging and marketing already in place. From Portugal it’s easy to enter the European market.
Alliance experts will support your overall planning and help you to find the right translators, package designers, marketeers, public relations agencies and sales partners. For a first entry into Portugal with a well-designed and marketed product, think of a budget from € 8.000 onwards. For an entry into other markets, where more parties are needed to support you, your investment may be substantially more.
Direct sales support in Europe
A different, but also a very valuable approach could be a longer-term assignment by hiring one of the European Alliance experts business developers to be your temporary eyes and ears on the ground in Portugal and the rest of Europe. We can be your “Lead generators” for a monthly fee, who will provide you a number of sales leads or business partners, according to your pre-set partner profile.
Just e-mail us or give us a phone call to find out which solution is best for your company and for the most successful export strategy towards the wealthy and stable European markets!
Sources: The Economist, OECD, World Bank, Brazilian Ministry of Economy