October 24 2014 Latest news:
Ben Woods, Business writer
Wednesday, June 18, 2014
The prominence of the World Cup has beamed Brazil’s eclectic culture of sunshine, samba and soccer into homes across the country.
And while much has been made of the nation’s social problems, it is still on course to capture the economic upsurge that comes from hosting the world’s greatest sporting event.
But as the UK government urges businesses to increase their export capacity, the question remains: is the South American nation a business opportunity worth exploiting?
With a population of nearly 200 million people and an emerging rich middle class, Brazil has all the makings of a market place where UK goods and services can thrive.
But the export figures tell a different story. The east of England may have had periods of strengthening trade, but the performance fluctuates – and has even started to taper off.
Hello – Oi
How are you? – Como está?
What is the name of your company? – Qual é o nome da sua empresa?
Tell me more about your company? – Me conte mais sobre a sua empresa?
Do you have a LinkedIn profile? – Você tem um perfil no LinkedIn?
I’d like to schedule a meeting with you, when are you available? – Gostaria de agendar uma reunião com você, quando é que estará disponível?
Our company is located in East Anglia, England. – A nossa empresa está localizada em East Anglia, Inglaterra.
Yes... it’s near London. – Sim... é próximo de Londres.
Let me introduce you to my colleague – Me permita apresentá-lo/a ao meu colega
Please accept my apologies.– Por favor, aceite as minhas desculpas.
The top three phrases to help you score a goal in any world cup conversation.
– I think Wayne Rooney is wasted on the wing. He would be much more effective playing as a central striker. – Eu acho que Wayne Rooney é um desperdício jogando nas laterais. Ele seria muito mais eficiente jogando como avançado-centro.
– It is great Felipe Scolari is back in charge of Brazil. He was really unlucky during his time at Chelsea. – É muito bom ver o Felipe Scolari de volta no comando do Brasil. Ele teve muito azar durante o tempo que esteve no Chelsea.
– Who do you think will be the player of the tournament? My bet is on Neymar or Lionel Messi. – Quem você acha que será o melhor jogador do torneio? Eu aposto no Neymar ou em Lionel Messi.
By the end of 2011, exports to Brazil were up 25pc compared to 2010, with trade reaching £124m. This was followed by a year of further growth in 2012, when exports soared by 21pc to £150.5m.
In recent years, however, this progress has started to reverse. By the end of 2013, exports to Brazil were down 15pc compared to 2012 at £127.8m. Meanwhile, total exports of goods for the 12 months to the end of March 2014, compared to the year before, were down by 34pc at £102m.
This fall in export orders can be partly explained by the slowdown in the Brazilian economy. The 7.5pc growth in GDP seen in 2010 has cooled to a more modest growth rate of 0.7pc in the last quarter of last year.
Meanwhile, David Revitt, International Trade Advisor for UKTI East, believes the fall in exports could also caused by a lack of perseverance from east of England businesses when faced by a notoriously difficult market.
“We have found that exports in Brazil got off to great start,” he said. “But like the gold rush in America, it is now starting to diminish, because some businesses realised that it is not easy.”
“Brazil is a fantastic market – and a huge one. It has its social problems, but it has a rich middle class and a lot of people with money to spend.
“However, a company cannot have a quick win in Brazil. They need a long term strategy, because it can take a long time to get business flowing.
“There culture will seem strange to us because they do business with people not companies.
“And whereas Brits want to meet at a set time, the Brazilians will turn up when they want to, the meeting will go on for a long time, and they will not want to talk business until they have built up a relationship with you.”
Although there are clear barriers to doing business with Brazil, some East Anglia firms have remained focused on establishing a foothold.
Norwich-based Brandbank and digital marketing agency Further have both explored the prospect, while it is understood that the electrical retailer Hughes is looking to secure contracts ahead of the Olympic Games in Rio in 2016.
What’s more, Norfolk Chamber of Commerce – which held its Better Business in Brazil event last November – has seen an increase in exports to the World Cup nation – albeit from a small base.
Between June 2012 and May 2013, they recorded one agricultural company completing an £8,000 order, compared to the same period this year where five companies across four sectors notched more than £267,0000.
Mr Revitt believes that the east of England has the potential to up its export orders – but it will come from our knowledge-based services and expertise, not our products.
“The difficulty businesses have is that Brazil does not want products it already manufactures, it only wants to import products that have a unique selling point,” he said. “In the east of England when it comes to our knowledge-based industries we do well, but manufactured products is difficult.
“The issue comes because Brazil already has a lot of manufacturing and the import duties are high.
“That said, it is a large market of 200 million people and Brazil has a free trade agreement with Uruguay, Paraguay, Venezuela and Argentina, so it is a gateway to other South American markets, which helps make it an attractive offer.”
• Do you have a business story? Contact business writer Ben Woods on 01603 772426 or email firstname.lastname@example.org