How to deploy international companies in Brazil

Since 1998 I had the happiness of deploying the Brazilian branches in Brazil of international companies and contributing with my colleagues to the development of business in other South American countries.

The deploy of a new subsidiary is a complex issue and can become extremely expensive without the management of a professional with experience in the country and who can move through the intricacies of state bureaucracy, both at the municipal, state and national levels.

Brazil is a country that shields its economy with high import taxes. But being a country with a large consumer market, which rewards companies that offer quality products and solutions, it is extremely attractive. But it requires a constant investment of at least three years to reach the financial breakeven point of the subsidiary.

However, what works in the rest of the world does not necessarily work in Brazil. Industrial, commercial, labor contracts with workers and the set up of distribution network etc. must be adapted to the Brazilian way of doing business. Especially the construction of distribution partners requires a high level of sensitivity and the gradual gaining of confidence for the generation of growing revenues.

With the country becoming one of the three major world agribusiness powers, alongside the U.S. and the European Union, we are being demanded to represent global machine manufacturers or suppliers of insums for this segment. However, most of these interested parties intend to reproduce the same export business model they practice with Russia, the Middle East and Asia. But this doesn’t work. The main reasons for these difficulties are:

1º The Brazilian businessman wants to have the confidence that he can count on a long-term partner. He wants to have the security that the company will be present with a local subsidiary for the next 20 years.

2º The immediately supply of parts and technical assistance should be available in the country, if possible close to its customers with trained local technicians and who can solve the problem in a maximum of 3 hours;

3º The distribution network requires constant training, through joint visits for the development of the consumer market and practical technical training.

4º Brazilian logistics is very complex, either by distance or by the risks involved in the transportation of loads of insums and demand distribution points throughout Brazil that react quickly to the growing e-commerce;

5º Employees must have the security that they can invest in the company, thus reducing the power of attraction of competing brands that always seek to take out trained employees.

The Brazilian market is for companies with financial investment capacity, which have the patience to develop the market in the medium term, that does not exert an exaggerated pressure on their team for results nor change strategy at all times.

After all, Brazil is a great opportunity for those who are ready to consistently face the challenges of  Business Development. Difficulties all countries offer, but only where there are many difficulties the returns really pay off.

Want to know more about this, contact me. I will be pleased to support your ventures in Brazil.

Roberto Gregori Junior
Whatsapp: +55 19 998-330-505
brazil@dlconsultoria.com
Skype robertogregorijr