The first China Brand Show took place this week in the largest Brazilian city, Sao Paulo. Sponsored by China’s Ministry of Commerce, the exhibition brings Chinese brands to Brazil. So how do exhibitors feel about the Brazilian market? Yin Yue tells us from the exhibition.
This is the first China Brand Show in Brazil. 111 Chinese mechanical and electronic companies flew half way around the world to introduce themselves to Brazilian consumers.
According to China's ministry of commerce, the purpose of the exhibition is to help Chinese companies expand their businesses into other emerging markets. Data from the ministry shows that in 2013 China was Brazil’s largest trading partner, as well as one of the major sources of investment. But this doesn’t mean that Chinese companies can just come and conquer. There are still hurdles to overcome.
Besides lack of brand perception, Brazil's high import tax has also made many Chinese companies frown, but Chinese companies, especially those in the mechanical industry are still showing great interests.
One of the reasons: data from China's Chamber of Commerce of import and export of machinery and electronic products shows that in 2013, total volume of China’s mechanical export to Latin America reached 75 billion US dollars, among which almost 30% went to Brazil.
"Brazil is THE most important market for us in both North America and South America in terms of purchase volume. But we think that the high import tax is hurting our business," says Tommey Chan, overseas marketing manager of Ningbo Aux IMO. & EXP. Co. Ltd.
"We believe the most difficult is to promote the brand perception here in Brazil. We want expand our business here, we need to start over," says Li Youbo, general manager of Hisense International of Brazil Ltd.