Brazil is a country “BRICS” China farthest distance on geopolitical, but now it is getting closer with China –2013 Brazil is China’s largest trading partner in Latin America, while China is Brazil’s largest trading partner. Meba repeated visits to Brazil exhibition, visit the local market, the harvest of valuable Brazilian market details Offer to share with you.
Brazil “Three slow & Three fast “
Living in Brazil, there are “three slow and three fast.”
Three slow means, romantic, the pace of life is slow, slow work efficiency.
Brazilians are very romantic life, like jumping and a variety of colors, look, “Rio Adventure” and the World Cup theme song MV know.
No punctuality is a big criticism of Brazilians, an appointment to meet at 9 am, 10:00 likely to Brazilian buyers yet to come. Brazilians temporary adjustment meeting time or even cancel the meeting is often the case, and is likely to be temporary notify you 5-10 minutes before the start of the meeting, “I’m sorry, I can not go to the meeting today participated in the” or “Today’s meeting canceled, “this is indeed something very crazy. If you reply to a message, such as Brazil, customers, and have been waiting for more than a month, you feel hopeless just decided to give up time to wait, maybe the next second Brazilian customers receive a reply. Brazilians do not like to do things others urging, he did not do before the decision is not going to respond to you. Then he may also just on vacation, then wait for him to come back the end of the holidays, the Brazilians are not as hard-working Chinese people, like a vacation from time to time to see the next Shihai mailbox.
Therefore, in contact with Brazilian businessman, must have patience, and they confirm the good how best to follow up to make them most comfortable.
“Three fast” refers to drive fast, play fast, fast money.
When car drivers recognize only the light does not recognize people, so Chinese-style cross the road here is risking his life.
“Playing fast” well known, not to say.
“Quick money” and credit card penetration in Brazil related to the Brazilian government to encourage people to use credit card, bank card not to collect user fees, also advocated installments, generally divided into 10, 1000 Pakistani currency commodity, a only need to pay 100 Pakistani currency, so the price tag on the business altogether price for 100×10, in order to stimulate people’s desire for consumption. So in Brazil to study, work of Chinese students, businessmen have told the author, “Qian Haozhuan Brazilian people.”
Brazilians this “installment” consumer habits affect their trade. Brazilian businessman with Chinese manufacturers to do a few single business, the often proposed credit requirements in order to ease the pressure on their funds, but was willing to provide credit to Brazilian businessman less than two percent of Chinese enterprises. For this reason, many Chinese SMEs lose the opportunity to continue to expand trade with Brazil and abroad share, some even forced out.
Large dialysis industry opportunities
1, the rapid growth of electricity imported equipment
Brazil is a country with extensive resources, the Amazon rainforest to provide a rich forest mineral resources. But she is also a weak infrastructure, lack of light industrial countries. Improve infrastructure and maintain steady economic growth, is the primary task of the past decade in Brazil.
In recent years, Brazilian imports of engines, generators and transformers and other electrical equipment has maintained rapid growth. According to 10-year plan of the Brazilian Ministry of Energy and Mines, 2006-2015 Brazilian power development investment plan, an annual increase of 12.5 billion investment in Pakistani currency ($ 6.25 billion) by 2020, the total installed capacity is expected to reach 185GW.
2012 imports from China power products and electronic products accounted for 36.8% of total imports of such products in Brazil, reaching $ 1.52 billion. A lot of power infrastructure projects invited Chinese companies to bid. Chinese companies want to bid, it is best to have joined civil engineering, equipment, financing consortium bidding to financing for the pilot, combined with the State Development Bank, China Export-Import Bank export financing facilities to obtain project orders.
As an important player in the Brazilian market, China’s high-end enterprise Siyuan Electric power equipment to participate fully in a number of World Cup-related projects, and for their support of this global sporting event watched smoothly, for the tournament to provide a safe, reliable and efficient power equipment and services. This initiative, not only broke the monopoly of the West strong power equipment giant, is also the Latin American market and establish a good reputation in the market, more Chinese private enterprises to enter the international market power to bring the demonstration effect. UHV equipment has become China’s equipment manufacturing industry, “golden business card.”
2, PV companies will receive government subsidies
In view of the 2014 Brazil World Cup held in Brazil and the Olympic Games 2016 in Brazil and throughout Latin America solar PV market is quietly rising, as the sun the best conditions “BRIC” (BRIC: Brazil, Russia, India, China), one Brazilian PV market has the potential to reach a level in India and China. In addition, there are indications that the Brazilian government will enact legislation in favor of market development, from the end of this year to allow a wide range of solar mounting system and network. European Photovoltaic Industry Association released the “2014 Global Market Outlook” that the Brazilian PV market has huge potential for development.
In addition the government to encourage private capital to enter the market, is now the introduction of preferential policies to within a small area of photovoltaic power generation business subsidies, there are 18 enterprises to obtain subsidies. If you want to enter the Chinese PV companies in the photovoltaic industry in Brazil, the best way is to set up joint ventures with local companies.
Yingli Green Energy is the world’s largest photovoltaic companies, for two consecutive years 2012, 2013 global shipments of the first one, is China’s PV industry representation. This is the second time the company sponsoring the World Cup, is the only Chinese sponsor. Yingli offer all the games for the World Cup cities tower lighting information for 27 sets of photovoltaic systems, including in Sao Paulo, including six of the stadium media center and the headquarters of the international media set 8-15 solar charging station; at the same time, Yingli also Maracana Stadium for the new athletics stadium and Pernambuco installed solar PV modules, 2560 tons per year reduction.
3, Brazil’s “Yiwu City” – 25th District
Brazilians living in Sao Paulo, no one does not know the first 25 blocks, and that is a replica of Yiwu, China.
In addition to infrastructure, light industry and consumer goods in Brazil self-sufficiency is very scarce, mainly rely on imports. Small appliances from China, commodity market place in Brazil. Many Brazilian businessmen came to Yiwu sourcing and sales in 25 neighborhoods. Here, you can also see a lot of Wenzhou reselling shoes, cell phones, mp3, watch. Because they are inexpensive, ordinary people can afford.
In contrast, some of the high-end appliances, such as heaters, coffee machines, toasters, due to large-scale importers are Brazil 5,6 monopolize the market, foreign brands to enter the market would like to own is difficult, the majority in OEM form for Brazil’s domestic brands to provide services.
4, the textile industry, “refused” China Suppliers
Textile industry is one of the traditional industries in Brazil, Brazil’s industrialization began in the textile industry also. Brazil and China are developing countries, the textile industry in the industrial structure of the two countries have an important role. Brazil’s textile industry is divided into raw materials industry, textile industry and product industries. In three parts, the finished products (apparel and other finished products) of the total enterprise engaged in the processing of both, employment or output, are the main industries.
According to customs statistics, from January to November 2012, China’s exports to Brazil fabric $ 1.228 billion, accounting for China’s textile and apparel exports to Brazil proportion of 37%; exports of apparel $ 1,317,000,000, an increase of 17.09% compared to last year.
Strong competition from mainland China to reduce the production of textiles, 2012 Brazil international textile exhibition organizers actually rejected Chinese exhibitors, Chinese exhibitors have fought Houseware Fair, its professionalism and show results can be imagined. China International Textile Industry, CCPIT vice chairman Lin Yunfeng said: “In the process of expanding in emerging markets, we pay special attention to respect the characteristics of the local industrial structure, to fully exploit the complementary strengths to seek win-win situation, seek international cooperation and harmonious relationships, avoid our relatively large-scale textile and garment industry to other industries as a result of homogeneous competition resentment because of the clothing industry in Brazil is relatively mature, fabrics and other intermediate products is relatively weak for this feature, Brazil exhibits enhanced professional development Disposition, focused fabrics and related industries such as intermediate products. On the one hand, China’s rapid development in recent years through the fabric industry, the need for a new breakthrough in the export market, this position is conducive to business interests of our country. On the other hand, prominent positioning for the Brazilian apparel fabrics provide complete and rich industrial supporting procurement choices conducive to the interests of the Brazilian apparel. through this mutual cooperation, so that the local industry to benefit from local industry to promote and adapt the Brazilian economy, achieve two win national industry. ”
Goods through “Off” challenge
Mr. Nei Sadayuki Hocoya is Michael exhibitors a local trader in Brazil encountered during his many years of dealing with Chinese SMEs, for Chinese enterprises to explore the market in Brazil and South America, has a unique perspective.
He said, “Made in China” product image in recent years, more and more attention to the local market, as more and more Chinese products to improve its cost-effective, inexpensive Chinese products found in the market, quality than before Okay. However, although in recent years a large number of Chinese firms came to Brazil exhibitors, the number of large beyond his imagination, the effect is not necessarily how good the show can really reach a direct cooperation with the local terminal manufacturers are very few retail companies.
This is the middle number of reasons, the main reason is that local channels dominated the brand and channel resources, foreign brands in order to gain a firm foothold in the market, you need to have a good number of hurdles language, logistics, channels for the job.
According to Michael understood the efficiency Brazilian customs logistics system really slow clearance of goods “delayed” when the phenomenon occurs, which with its unique system of import clearance related. Specifically, there are two points: first, Brazil imports most products require official permission, that importers need to get pre-clearance of import licenses; second, the Brazilian government is levied on imported products high taxes to Particle board chipboard, for example, the tax base is the CIF price of Customs, the tax rates in the table below. Thus, all taxes are added together, will be close to 50%, in general, CIF cargo multiplied by 1.8 to 2 that the goods in the Brazilian market prices.
IMPORT DUTY + TAXES
|% Import Duty||12%|
|% I.P.I tax||10%|
|% I.C.M.S (VAT)||18%|
|% PIS tax||1.65%|
|% Confins tax||7.6%|
However, for the calculation of taxes have workarounds. Brazil’s government to allow the importer customs storage charges, agency fees with customs agents to negotiate. Thus, in cooperation with the local traders, or in the local search for agents to develop the market, handling logistics, customs clearance, foreign companies compete to become a shortcut to the Brazilian market.
Also note that, since 2010, the social security situation in Sao Paulo, Rio de Janeiro gradually worrying for foreign tourists, especially the behavior of yellow Pirates grab Asian tourists rampant. Whether it is the heart of the city center, is located at a remote pavilion, stolen goods robbed event after another, even in the local living a decades-old overseas Chinese, have suffered a situation at home was robbed.
For a short stay in Brazil exhibitors tourists, meba advice try not to travel alone, if they go out, please sign the passport and immigration card lock in the hotel safe, the local police on the street will not require visitors to show your passport. In the exhibition hall, be sure to look after your belongings, because the museum is no monitoring, theft is often successful.