Brazil is not for amateurs.

Brazil is not for amateurs, but is a country full of opportunities

Merluzzi
Merluzzi

With one amongst the most attractive automotive markets in the world, being the seventh-largest economy of the planet, the trucks business in Brazil has become very professional, but also full of traps demanding deep knowledge of local environment. Brazil is no longer a country for adventurers in the automotive business.

With a strong and solid financial system, a territory of continental dimensions, complex taxes chain, deficient infrastructure and, with an impressive productivity, the country is experiencing an economic stability for nearly 20 years and should remain so for a long time.  Brazil is a country where democracy and freedom of expression peacefully coexist with a huge bureaucracy to do business. But businesses in Brazil are profitable.

Brazilian customers demand high quality and product availability, and do not accept promises not delivered. Opinion makers can lead a strong brand from heaven to hell, quickly. Products don’t sell by itself in that country. A wrong marketing strategy kills a great brand but, a strong strategy will not sell a bad product nor mislead the customer.

Brazil is the only country with a Law specifically written for the automotive industry and for the relationship between dealers and manufacturers.

In some Brazilian regions you feel yourself like living in the 22nd century. In other regions, overall conditions are a shame. Unions, associations, councils, manufacturers, and press, are as powerful as religious communities. Politicians are enemies and friends at the same time, and they sign the laws that drive the country. Corruption is a problem, like it has been also in other large countries in the world. The Federal Police and the free Press have acted against it, putting the things back on track. In Brazil the Constitution, the Law and the Supreme Court have been very respected.

Some cities fight against each other aiming at attracting new investors, offering more benefits and incentives than they could manage. The new comers should define the success of their business in Brazil, at the moment of the establishment of the strategy, since the beginning. The correction of the route after the take-off may be difficult, impossible or too expensive.

Brazil is not for amateurs. The great Brazilian market is as cruel as it is fascinating. A wonderful opportunity for those with competence, and a trap for the less experienced in the Country. What is good or a success in another country may fail in Brazil. Foreign investors should ask for local experts’ support, before starting new operations in that wonderful country. Few places in Latin America offer so many opportunities for FDI, as Brazil does.

The sun rises for all, mainly in Brazil where you can find “a sun for each one”. Solar filter is needed to protect your skin. (a quick summary from “Doing business with Trucks in Brazil”, written by Orlando Merluzzi, originally in Portuguese).

9 Comments

  1. Dear Orlando, very interesting analysis that is better understood, reading it between the lines. Congratulations. Nice blog. Clean and objective. BR, Zuccatto.

  2. Orlando, Great and terrific! Deep and clear analysis into this matter. Article show us how complex is this country and our business environment. Brazil is trapped with high opportunities and high risk to fail. Keep going! Leandro

  3. Great! This is Brasil! A country with o lot of opportunities! But, as you said, not for amateurs. Best! Gino

  4. Orlando, very interesting this article! In my opinion this is the “beauty” of the Brazilian Truck Market – how to deal with so many contrasts and still offer products and services innovative, reliable and valuable to the Customers. Some colleagues use to say – “everybody cooking with water”, but in this industry to konw the right “brazilian sauce” takes some time… I wish the best for you!
    Marcello

  5. Dear Orlando! Nice article! I guess very seldon we see somebody with a long, broad and sucessful experience in this kind of industry bringing a fresh and realistic view on the business traps just around the corner.
    The best thing is that it makes all the sense and leave us thinking about how evident it is, but we do not grasp it so easily. Most probably it is because it comes from a solid experience that provides you all the legitimacy on the subject! Congratulations and keep it up!

    Yoshio Kawakami.

  6. Mais uma vez, parabéns pela iniciativa do blog, é sempre bom ter alguém “do ramo” escrevendo ou trazendo comentarios interessantes sobre o mercado de caminhões.

  7. Orlando, good picture of the truck business environment. Show us exactly how this works here. What is impressive in Brazilian market is the speed of changes. In few months the overall picture changes 180 degrees, destroying all strategies. I think this is why we love this business. Best regards. Adriano

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