Brazil, being the eighth largest economy and one of the top growth markets in the world, has gotten more and more companies looking to fine-tune their marketing strategies to leverage the immense business opportunities provided by the country. An abundance of natural resources, enormous consumer base, and above all, the sheer size of Brazil are just some reasons that make the country a promising market for foreign investment. When considering localising for Brazil, one should keep in mind that Brazil is a country with close to 1/4th of its population below the age of 29, which makes this such a capable market. Brazil is also the largest coffee producer in the world and a new industrial country.
The key to seizing the market in Brazil lies in adapting your existing service or product to meet the expectations of the local customers. Other than understanding what kind of product or service will resonate with Brazilians, multinationals also need to exercise effective localisation.
Firms that have made an Impact
Nestlé and Volkswagen have made it big in Brazil by perfecting their localisation planning. While both these brands curated customised product portfolios for the country’s market, these multinationals also used strategised localisation strategies to connect with their audiences.
Nestle has been exporting condensed milk to Brazil since 1876, nine years after the product was invented, and set up its first factory there in the 1920s. Not so long after, Brazil’s government called on Nestlé to help resolve its extensively massive coffee surplus, which led to the invention of the freeze-drying process, an integral part of the launch of Nescafe in 1930. At present, Nestle is the top food-giant in Brazil, Chile and Mexico, and a dominant player in various other markets including Colombia, Argentina and Venezuela. Nescafe still dominates the countries.
Moving on to Volkswagen, the first thirty VW Beetle cars landed at the port of Santos in September 1950. Soon after, they were marketed at a price thrice as high as expected.
This was the humble start of a huge success story. In the ensuing six decades, VW has manufactured over 20 million cars in the nation. Today, Brazil is VW’s second-biggest sales market behind China. Volkswagen is the best-known car brand in the country.
The most well-known social network in Brazil is Facebook, in terms of unique visitors, with LinkedIn at second by a large margin. The reason for Facebook’s immense popularity is its advertising opportunities for small Brazilian businesses. It has given the people a chance to expand their reach to an audience from far and wide. This means that it would be an excellent idea to localise these social media channels. Since Facebook is a huge deal in the country, it can be used as an affordable means of reaching many users. When looking at the most popular mobile apps in Brazil, WhatsApp is number one. It is followed closely by the Google products Google Play, Google Search, and YouTube.
In spite of Brazil’s continental dimension making it socially excluded and difficult to enhance digital communication, six out of ten Brazilians have internet access. Proportionally, the country is behind only the United States, India and China, and the tendency is that the number of users will grow even further.
According to Statista, online buyers of the country spend money on fashion, tailed by electronics and media. Fashion has a market volume of almost 5.5 million USD in 2019. A prerequisite to growing your business in this country is a thorough understanding of the country’s unique culture and the preferences of potential customers.
The country’s economy is dynamic, and it takes a dedicated company to realise and utilise its immense potential. For companies aspiring to make it big in the Brazilian market, it’s essential to focus on how to localise your website and business. Analysts say it is on the road to becoming a superpower, as it is already an emerging global power right now. It is the right time to explore this new market.
By Ira Mahajan