– The Brazilian economy is doing well, the currency is getting stronger, the stock market is in excellent shape and the unemployment is decreasing – as is corruption and criminality. With 200 million inhabitants, it is a large and interesting market. However, a company might not begin its international expansion in Brazil without some previous experience from other export markets.
The majority of large Swedish companies, as well as some smaller, is already operating in Brazil. In total, there are some 200 Swedish companies established. The telecom and the automotive industry are big and many manufacturing companies are outsourcing parts of their production, resulting in new problems and other rules. When dealing with Brazilian bureaucracy, you need assistance, says Hugo Oljemark.
– Brazil is bureaucratic and unwieldy. It takes time. To get it right from the beginning, you need assistance. Start by exploring the market for competitors, price levels, customs rates etc. Personal contacts are very important. To facilitate decision making and to get an understanding of the market, go there to meet with potential partners, customers and suppliers. One issue might be the language, English is not widespread and few Swedes speak Portuguese or Spanish.
– Partners are particularly important when dealing with products and services, partly to adjust to the market, partly to get favourable customs rates. Exporting a finished product from Sweden is expensive; customs are 10-20 percent. In addition, taxes and VAT need to be paid before they can be redeemed. Should you however, choose to refine the goods locally, the costs decrease.
– The Brazilians are a generous and positive people seeing opportunities and possibilities. They are reluctant to give negative information and subsequently it is advisable to have your own contact to get a correct picture of the business development. Many companies have their own finance manager on location, finishes Hugo Oljemark.
Christina S. Donnerlid