Fira in Brazil, a market with new opportunities
In recent years, Brazil has become one of the leading international powers and the main destination for new investments in Latin America. Its political and economic stability has contributed to the country, which has great potential for growth, opening up to the world as a market full of opportunities.
The world’s fifth largest country
With an area of almost 8.5 million kilometers and almost 193 million inhabitants, Brazil accounts for 50% of the total population of Latin America. It is the world’s fifth largest country, and has the largest volume of consumers.
A major producer and exporter
With a GDP (Gross Domestic Product) of 1.30 billion euros, it is the ninth largest economy in the world, although is anticipated to become the fifth largest in 2016. Considered one of the main exporters of raw materials, it is also the world’s fourth exporter of commercial aircraft, the fifth largest producer of iron and steel, the sixth automobile manufacturer, the seventh most important country in the chemical industry and the fifteenth largest petrol producer (1.48 million barreks a day) according to data from the Brazil-Spain Chamber of Commerce. .
Important sports events
Brazil will host the FIFA World Cup in 2014 and the city of Rio de Janeiro will host theOlympic Games in 2016. These two historic events are opening up new business areas, as major investments are anticipated.
A destination for Spanish investors
For Spanish companies, this new economic giant has become a key destination in their internationalisation strategies. This is also true for the trade fair business.
In this respect, Fira de Barcelona, through its delegation in Brazil, has intensified its efforts to attract Brazilian purchasers to its shows and has even considered other strategies such as taking replicas of events to Brazil or selling services, technology and advice to local trade fair organisations. These initiatives are part of the new range of value for Fira de Barcelona.
We asked the heads of the Fira delegation in Brazil, Jordi Solé and Francisco Orjales, for their opinions on the Brazilian market.
How would you describe trading relations between Brazil and Spain?
The relationship is very positive. Spain is the country with the second highest levels of investment in Brazil, which is obviously due to the level of involvement by major multinationals such as Banco Santander, Telefónica, Iberdrola, Melià, and others. In other words it is very highly concentrated in strategic sectors like banking, hostelry and communications. The most important thing is that Spain’s image is very good among Brazilian businesspeople.
What is their view of the Fira in Brazil?
Fira is today a platform that is little used by Brazilian industry to market its products in Europe. However, we are intensifying our publicity campaign for the Fira shows, especially those that represent strategic sectors like tourism, such as the International Tourism Show in Catalonia, or construction such as Construmat. We always use the Barcelona brand, highlighting the fact that it is one of the best European cities to do business.
What are the opportunities for trade between Brazil and Spain?
There are many opportunities for Spanish companies in mass consumption markets such as food, the automobile industry and petrol, logistics and urban infrastructures, tourism and construction. Indeed, in this case one of Lula’s flagship policies was “Minha casa, minha vida”, which gave the people of Brazil an opportunity to buy a house with very low financing costs. Estimates suggest that 14 million homes will be built over the next five years. It should also be remembered that Brazil has one of the world’s highest levels of consumption and will be hosting two of the leading sports events, which will lead to major investment.
Any recommendations for businesses wanting to contact Brazilian purchasers?
First, Spanish products should be adapted to the profile of Brazilian consumers, who have their own characteristics. At the same time, these businesses must be able to supply major levels of demand. We must remember that at the moment, Brazil is one of the most highly rated target markets by countries in Europe, Asia and America, meaning that businesses must be ready to match high levels of competition. It is also important to know that Brazil has its own very strict regulations regarding international trade, which make it very different and special.
What is the image of Barcelona in Brazil?
This is a major point in our favour. Brazilians see Barcelona as one of the most beautiful and interesting cities in Europe. In fact, there has been an increase in the number of Brazilian tourists, especially over the last two years, thanks to the revaluation of their currency, the real.