Doing Business with Brazil: Know Your Market

DOING BUSINESS WITH BRAZIL - MOVING FORWARD
PART TWO: KNOW YOUR MARKET - MARKET RESEARCH

Introduction
News reports from and about Brazil
Trade and economic statistics, and trade agencies
Factors to consider
Conclusion

INTRODUCTION

Market research is indispensable for success in introducing your product(s) to a new market. It will help you to
determine the way your product is used and marketed, your potential buyers, your competitors – local and
foreign – and a competitive market price.

Conducting a systematic primary market research is time-consuming and expensive. It entails the collection of
data within your target market as well as direct contact with representatives and potential buyers. Designed
especially for your needs, this type of research pays off over time. Click here for a list of leading market
research firms.

For those businesses that cannot afford a tailor-made market research, there are resources available at little or
no cost. These include international news reports, trade and economic statistics, and trade agencies.

NEWS REPORTS FROM AND ABOUT BRAZIL

For those who can read Portuguese, you can access and read any of the governmental and regional
newspapers. Click here for a link to Brazil’s regional newspapers and news media.

Some suggestions for news reports available in English are provided below.

Brazil Post – latest news from the World News Network with links to Brazil Economy, Brazil Financial, Brazil
Life, Brazil Maritime, and other related links;
EIN News – a service for global professionals. Constantly updated news and information about Brazil; and
Financial Times – the latest financial news headlines for the Americas.

You can also obtain news updates for your specific market and product type.

TRADE AND ECONOMIC STATISTICS, AND TRADE AGENCIES

To obtain trade and economic statistics, you need to know the classification code(s) of your product(s). The four
classification systems necessary for a successful research are as follows:

Harmonized Tariff System (HT S) and the Schedule B Export Codes;
Standard International Trade Classification (SITC) system;
Standard Industrial Classification (SIC) system, which is being replaced by the
North American Industry Classification System (NAICS).

Armed with the classification codes of your products, you will now be able to gather data from the resources and
reports available for your market research.
U.S. trade statistics resources include the following:

Trade Information Center 1-800-USA-TRADE – provides information on overseas markets and industry
trends;
The Market Research Library of the U.S. Commercial Service – provides a database search tool by
industry, region, country, report type and period; and
STAT-USA/Internet – service provided by the U.S. Department of Commerce with access to the National
Trade Data Bank (NTDB). Note: Access to files on the Internet is for subscribers only.

You can contact your local Export Assistance Center of the US Department of Commerce for Customized
Market Analyses (CMAs). These reports contain detailed market information on the specific product and
overseas market of your interest. This information includes the marketability of your product, key competitors,
comparative prices, local distribution and promotion practices, and trade barriers.

Trade statistics for the Brazilian market can be obtained through the US Export Assistance Centers in Brazil.

The Country Commercial Guide (CCG) for Brazil can be obtained through the National Technical Information
Service at 1-800-553-NTIS. CCGs, prepared annually by U.S. embassies worldwide, analyze each country’s
business and economic climate, trade, development and other factors.

Also available through NTIS are Industry Sector Analyses (ISAs) prepared by the commercial sectors of U.S.
embassies for selected industries in their respective countries. ISAs analyze market demand, market size and
competition, end-user, market access criteria. They also provide industry contacts and marketing opportunities.

Economic and demographic statistics on Brazil are available on the website of the Brazilian Institute of
Geography and Statistics (IBGE). (The English language version of the IBGE´s web site is not completely
updated. Some links will direct you to pages containing information in Portuguese.)

On Brazil Trade Net, you can obtain information on Brazilian companies, economic indicators, and other
information.

FACTORS TO CONSIDER

Obtain total US exports – in value and quantity – of your product(s) to Brazil. This provides you with the size of
your market. A further examination over a period of time – say five years – indicates whether or not the market is
growing.

Obtain data on Brazilian production and local consumption of your product or, if non-existent, similar product.

Examine Brazilian import statistics of your product type to identify foreign competitors and volume, if any.

Identify the target market for your product and find out trends in behavior, use of your product and where it is
obtained.

Study the way your product-type is marketed. How is your product channeled to end-users?

Find out if there are any U.S. export controls for your product(s).

For information on U.S. and foreign standards for non-agricultural products, contact the National Center
for Standards and Certification Information (NCSCI).
Agricultural products are governed by special regulations, both in the USA and abroad. Contact the United
States Department of Agriculture, Foreign Agricultural Service.

For import regulations governing your product(s), check out the U.S. Department of Commerce – Trade
Information Center. On the page “Country Information,” select Latin America/Brazil. Import regulations and
standards for diverse products are listed under the following headings:

Customs Information & Import Documentation;
General Marketing Information;
Hot News & Events;
Laws & Procedures for Licensing & Investing;
Local Production Environment; and
Sectoral & Product Specific Information.

CONCLUSION

After careful consideration of all risks and characteristics – demographical, economical, political, cultural,
environmental and geographical – of the Brazilian market, it is time to think about your product. Does it need to
be modified for acceptance by your Brazilian end-user? If modifications are necessary, will they make the price
of your product inviable for export to Brazil? Are there other factors that will affect your export price?

Now is the time to consider these and other aspects of marketing your products on the Brazilian market.

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