Market entry strategy for exports to Brazil

If Brazil is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Market entry strategy

Oppportunities for international business in Brazil

Brazil, the largest country in South America, boasts a population of approximately 213 million as of 2023. It is celebrated for its diverse culture, vibrant festivals like the Carnival, and natural landmarks such as the Amazon Rainforest and Iguazu Falls.

With a GDP per capita of around $7,000 USD in 2023, Brazil’s economy is the largest in Latin America. The country is a significant agricultural exporter, leading in products like soybeans, coffee, and beef. Additionally, Brazil has a substantial industrial base, producing automobiles, steel, and petrochemicals. The service sector, including finance, retail, and tourism, is also a major contributor to the economy.

Key cities include São Paulo, the largest city and economic powerhouse; Rio de Janeiro, known for its beaches and Carnival; Brasilia, the capital and a masterpiece of modernist architecture; Belo Horizonte, a major urban center; and Salvador, noted for its Afro-Brazilian culture.

VAlidate the HS-codes you use for shipping

Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected. 

Tell us what you want to ship and where to and we ask you all relevant questions to get to the most likely code.

Consumer products in Brazil: Distributors, retailers or online

If you have a consumer product that you can’t sell directly from your home country to your end customer, you need at least one step in between. This can be a distributor (who also acts as wholesaler or importer), a big retailer directly, or it can be a large web shop. Let’s look at the pro’s and con’s of each option.

Distributors

  • Distributors are used to import, store and physically distribute a product.
  • They normally don’t invest in promoting your product to consumers.
  •  They are the best chance to get your product in the market so that you can gather sales data.

Large retailers

  • Retailers are very risk averse, may ask for a listing fee before  they put your product on the shelves.
  • They can help you promote your product in their stores and in their magazines, but will also ask a fee for this.
  • They are the quickest route to the mass market, if you can convince them.

Online

  • Specialised web shops may have a greater interest in your product than general web shops.
  • They can experiment more easily with pricing and ways of promoting.
  • Volumes may be lower, but working with web shops is still a good way to collect reviews and get brand awareness.

B2b or customized products for Brazil

For a B2B product that is not a commodity or for customized solutions the story is different. Here sales needs to be done in alignment with the department that actually delivers the service or that determines the price case by case. Also then you have three different options.

Agents

  • Agents represent you in the country and have a limited negotiation room.
  • They often sell not only for you, but also for other parties.
  • A good agent already has a network in your target market and can start selling directly.

Local offices

  • Local offices are a costly option, but give you full control on your sales.
  • You have to send someone over and hire local staff and office facilities.
  • This gives the opportunity to do local marketing and business development from within the country.

Distance selling

  • If you product can easily be delivered and serviced from abroad (like software) this may be a good option.
  • Video conferencing is more accepted now and can limit travel.
  • Lead generation may be done with SEO, advertising and email marketing.

Where it all starts: select a target group

As counts for any country: you first have to define the target group that you want to sell to. If these are businesses, then you can reach out directly through emails and targeted advertisements, e.g. on LinkedIn. If this arouses interest and gives a sufficient response rate, then you may have found an easy way to get the market’s attention. 

If your target group is more diffuse, or is a consumer group, then you have to rely more on advertising such as on Facebook or Instagram.

Market entry strategy for other countries