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