 |
| São Paulo
downtown |
|
 |
IRua Barão
de Limeira
- a commercial neighbourhood selling auto parts and accessories |
|
 |
Bom Retiro
- a commercial neighbourhood selling garments and footwear |
|
 |
Extra
- one of the major hypermarket/
supermarket chains in Brazil |
|
 |
Morumbi
Shopping Centre
- a shop selling imported consumer electronics and household appliances
|
November 20, 2007 -
Brazil is attractive to traders again after bouncing back powerfully from its
2001-2003 economic debacles.
A study conducted by Hong
Kong Trade Development Council (TDC) says Hong Kong can make capital of this
phenomenon. It points out that the country's GDP per person had risen to US$6,000,
the second highest among the BRIC (Brazil, Russia, India and China) economies
which are forecast to grow rapidly.
Brazil's amazing recovery
is triggered by its successful fiscal and monetary policies in recent years
and the global commodity boom. The country's consumers are now able - and willing
- to spend more to raise their standard of living. This is particularly evident
among its 40-million-strong middle class, compared to Russia's 30 million.
Nowadays, Brazilians look
for products that are of good quality, trendy, and reasonably priced. Hong Kong
products meet those conditions.
The TDC report reveals that
Brazilian consumers are aware of the fact that most "made by Hong Kong"
products are produced in the Chinese mainland, but that they nevertheless perceive
them as being of better quality and design than their mainland counterparts.
The report says Hong Kong
traders can take advantage of this perception, pointing out that the consumer
market in Brazil, particularly in São Paulo and Rio de Janeiro, is huge.
In the period between 2001
and 2006, Brazil's retail sales chalked up a 63 per cent growth, representing
a compound annual growth rate (CAGR) of 10.3 per cent.
However, Hong Kong companies
are advised to concentrate on mid-to-high-end products and to stay away from
the low-end market which is fiercely competitive. The report also points out
that Brazil's business environment is challenging, made more so by the distance
separating Hong Kong from Brazil.
Local companies are advised
to find Brazilian buyers here in Hong Kong at places such as trade fairs and
exhibitions as an alternative to setting up a direct presence in Brazil.
Hong Kong goods sought eagerly
by Brazilians include computers and telecommunications products, electronic
household appliances, auto/motor parts and accessories, security and safety
products.
Hong Kong's textiles, clothing,
footwear, toys and games, jewellery, timepieces and spectacles are also keenly
sought.
With a population of 190
million, Brazil is by far the largest country in Latin America and Hong Kong's
second largest market in the region, behind only Mexico.
Hong Kong's trade with Brazil
has been rising in tandem with the country's economic growth. In 2006, Hong
Kong's total exports to Brazil rose by 17 per cent, followed by 11 per cent
during the first nine months of 2007. There's still ample room for growth, the
report says.
Also noteworthy is Brazil's
growing interest in selling to China. Among many others, Brazilian agricultural
and mineral products, as well as leather products, are believed to have good
potential in China, and more cooperation with Brazilian companies can be sought.
Hong Kong, the report adds,
can take advantage of the growing Sino-Brazilian trade and economic relationship
by strengthening its role as middleman.
Brazilian companies, like
many other foreign companies, feel more comfortable and confident dealing with
the mainland through Hong Kong. They also believe that Hong Kong, as a risk
manager, can provide them stronger assurance with regard to quality, delivery
and payment.
Executive Summary
Media Enquiries
Please contact TDC's Media and Public Affairs Department at 2584 4333.
About the TDC
Established in 1966, the Hong Kong Trade Development Council (TDC) is the international
marketing arm for Hong Kong-based traders, manufacturers and service providers.
With more than 40 offices worldwide, including 11 in the Chinese mainland, the
TDC promotes Hong Kong as a platform for doing business with China and Asia.
The TDC also organises trade fairs and business missions to connect companies
with opportunities in Hong Kong and the mainland, while providing information
via trade publications, research reports and online. For more information, visit
www.tdctrade.com
