Brazil - Business in Brazil

i work for an export company based in China and I am heading to South America on a business trip to visit our regular clients in markets we are currently working with. Brazil is a new market for us and although I've been hearing the economy isn't great my company is considering sending me there (since i will already be in the area) just so that I can evaluate the market for myself. I am thinking of heading there after i wrap up in Santiago but I have no idea where i should start. Basically my company is big so we export a vast number of items out of china ranging from basic home appliances to consumer electronics to furniture to garments.

I would like to visit Manaus since it is a freezone but I don't know how it is organized.

Can you recommend what areas I should be visiting in order to meet potential clients?

Any hotel recommendations?

I appreciate any help you can provide

STelite, I'm afraid doing business in Brazil is more complex than you might realize.
Without "relashionships" and/or the proper introductions you won't be able to conquer new (serious) clients, but will open yourself to all sorts of potential scams, instead.
Doing business in Brazil is VERY different from US/Canada/Western Europe.

Maybe you should contact the Brazil-China Chamber of Commerce and go from there.

STelite, I'm afraid doing business in Brazil is more complex than you might realize.
Without "relashionships" and/or the proper introductions you won't be able to conquer new (serious) clients, but will open yourself to all sorts of potential scams, instead.
Doing business in Brazil is VERY different from US/Canada/Western Europe.

I've been told the same thing, my company has a few contacts there already so i think its best if i start with them then see how it goes.

thanks anyways

The economy here in Brazil is supposedly doing quite well, according to the world press, although in some areas of the country that has yet to "trickle down".

In addition to the issue of "relationships" or doing business with people you know personally, the big sticking point IMO for importing into Brazil might be the substantial taxes that raise the price for any item. For example, a car sold in the U.S. for U$20K would sell (same model) in Brazil for the equivalent of R$40K. Same with appliances, electronics, etc, etc. And do note that the guy who sells Chinese knockoff sneakers on the beach in Salvador doesn't seem to do much business. :-)

It doesn't sound like you're ready for a visit yet. More research needed. Does the Chinese embassy in Brasilia or consulate in Sao Paulo have a commercial section? Just going to Manaus because it is a so-called free zone? Manufacturers there get tax breaks from the Brazilian government. What would you see? Brazil does a huge amount of business with China, so I'm sure the chamber of commerce and the embassy will have info.

The economy here in Brazil is supposedly doing quite well, according to the world press, although in some areas of the country that has yet to "trickle down".



Growth forecasts have been scaled back. http://www.bbc.co.uk/news/world-latin-america-18157513 Also, the high government debt is problemtic, though the President said she won't cut back social or infrastructure programs. There's also a high level of consumer debt (e.g., credit card debt), with interest rates ranging to over 150% per year. There is, as in many countries, both extreme wealth and extreme poverty. Cost of living is high. Americans complain about $4 gallon gas. Brazilians pay $5-6.

i work for an export company based in China and I am heading to South America on a business trip to visit our regular clients in markets we are currently working with. Brazil is a new market for us and although I've been hearing the economy isn't great my company is considering sending me there (since i will already be in the area) just so that I can evaluate the market for myself. I am thinking of heading there after i wrap up in Santiago but I have no idea where i should start. Basically my company is big so we export a vast number of items out of china ranging from basic home appliances to consumer electronics to furniture to garments.

I would like to visit Manaus since it is a freezone but I don't know how it is organized.

Can you recommend what areas I should be visiting in order to meet potential clients?

Any hotel recommendations?

I appreciate any help you can provide

ST,

Years ago was in your position (or almost similar). Here's some thoughts off the top of my head.

- Brazil is a big big country. Manaus is very different from SP for example. Try to focus on a specific area first if possible.
- Not sure if you hold CAN or YYZ passport. Make sure you get visa situation sorted out first. I don't think they give out multiple entries on CN passport but my info could be outdated.
- Local connections are key. Use them and have them make other intros.
- Plan on double the amount of time you usually allocate for meetings and intro. Time can be pretty fluid there.
- There are significant import taxes into Brazil. For some chinese companies, after a successful market intro, the next step would be some degree of localization of their product with final assembly or something else happening on the ground. You might as well start looking into this. For example, if tech comsumer electronics, you can start looking into tax preferential rates if you get PPB and MCT.

And finally, have a good trip. Enjoy some Xingu beer.

Cheers,
SF

- Plan on double the amount of time you usually allocate for meetings and intro. Time can be pretty fluid there.

I also do a lot of business in Brasil and this is very very true! Also, remember that having that cup of coffee and being social is a lot more important than in the US or Western Europe. It will open the doors to do business.

Buy leather from Brazil for sale in the USA and it is a process that I am constantly tweaking trying to make everything work.

Sell exotic skins to Brazil and it is a HUGE freaking headache but the profit margins are excellent.

Brazilian businessmen always have a "book of excuses" that they will reach for whenever the situation is not right -- and the situation is never right. Expect this and plan for it.

Also, being a big company means you will have help the "brazilian" no matter how big and well off they are.

thanks for the input, I'm sure they'll come into great use!