5 Key Things To Know Before Doing Business In Brazil
Entering the Brazilian market is often harder than it looks. See some tips of a Forbes Magazine�s article:
Prepare for Legal and Regulatory Challenges
Brazil is famous for a lot of things: beaches, nightlife, a booming economy � and some very complex business regulations.
It has high import tariffs, a policy designed to encourage international businesses to manufacture their goods within Brazil, rather than shipping them in. This policy has been a deterrent for many international businesses, but others have found in-country manufacturing to be a very worthy investment.
A Local Partner is Critical
Like its import tariffs, Brazil�s legal system can deter unprepared businesses from expanding within the country. �The first thing we did was find the right local partner to work with, and I think that�s a really key part of the puzzle for expansion,� an executive said. �It�s really critical because of the political and tax environment in Brazil.�
Learn the Culture
Even with a local Brazilian partner to help with legal and regulatory issues, it�s worthwhile for a business to get to know the local culture. Knowing Brazil�s culture and customs can help smooth challenging interactions and earn U.S. businesses substantial good will, both of which will go a long way toward closing deals.
Build Relationships
�Similar to any business culture in the world, but also unique to Brazil is that, getting things done is a lot about relationships,� said an executive. Yet another reason to secure a strong local partnership, those with experience operating in the Brazilian market are much more likely to have existing relationships � and are better able to build new ones � with the parties necessary to launch and maintain a new venture there.
Invest in Social Media
While time spent on social media sites continues to drop in the U.S., the opposite has been true in Brazil, leading The Wall Street Journal to dub the country �the social media capital of the universe.� The difference, according The Wall Street Journal, is the level of enthusiasm and engagement Brazilians show toward social media. Not only are Brazilians spending more time on social than the rest of the world, they also have an �unusual willingness to make purchases online.�
Brazil can be a point of entry into other growing South American markets such as Colombia. But as with any new
international market, succeeding in Brazil means navigating a range of legal, regulatory and cultural nuances.
Finding the right local partner and taking the time to understand the country�s unique business culture can make all the difference for U.S. businesses looking to tap its booming market.
Note: this is a short version of an article published on 7/15/2014 at Forbes Magazine.
See the full article here: http://www.forbes.com/sites/hsbc/2014/07/15/5-key-things-to-know-before-doing-business-in-brazil/