Breaking into the Brazilian Market
If you are reading this article, you are probably interested in Brazil, right? You may have heard before that the country is a growing market for tech services, and in this article we’ll give you some reasons as to why companies should enter the Brazilian market.
Some Numbers
Brazil is the world’s 6th largest economy, and the 5th most populated country in the world with just above 200 million people. Out of those 200m, about 32% of those are between the ages of 20–40 years old. Recent studies show that about 100 million people in Brazil have internet access, and the country has more mobile devices than human inhabitants.
Brazil has a large, growing consumer market and it is very receptive country to foreign product and services. As a developing nation, there is a huge market potential for education and technology services. Brazilian users are crazy about technology and ready for new ideas.
Did you know…
- Brazil is #1 market in Latin America for its Facebook presence with 108 million users every month?
- 75% of all internet users in Brazil are on Instagram?
Being the only Portuguese-speaking country in Latin America, Brazil has the best position to capitalize on regional markets and is artificially devoid of international competition.
The market size alone should be enough to make you think about entering the Brazilian market, but these numbers show that not only does Brazil have a lot of people, it also has many tech-centered customers.
The Startup Scene
Brazil’s startup scene is growing, and the general software business has made over US $12.3 billion in 2015.
Brazil has a pretty strong local startup scene, with Its first unicorn, Movile, having just surpassed the US $1 billion market value. Currently, there are about 800 startup accelerators working in Brazil; there are thousands of startups born every year.
Here are a few big Brazilian startup hits:
- Buscapé: price comparison engine, sold to Naspers for US$342 million
- EasyTaxi: taxi finder app now used in 27+ countries
- Nubank: banking facilities founded in 2013 with valued in US$500 million as of 2016
It is evident that Brazil is capable of trailblazing technology, and that Brazilians have a need and interest in such ventures. The number of startups in Brazil is growing and they are naturally being incorporated into the Brazilians daily lives. This only makes it more interesting to join such a thrilling market.
Brazil is a great place to be!
Brazil hosts some of the most warm and welcoming people in the world. The strong Latin culture makes Brazilian people easy going, passionate and friendly. The country was first colonised by Portugal, which brought a social structure based on family bonds and small cities, which led to Brazilians having a sense of “brotherhood” unlike any other.
After the Portuguese, others came to the country, which led to a unique mixture of cultures and languages.
Did you know that Brazil has the biggest Japanese community outside Japan? And some cities in the south of Brazil still have German as a first language?
Being in Brazil means being in a place where you can eat amazing sushi and drink unparalleled beer while listening to music influenced by African beats. In Brazil, you get many of the world’s indulgences in one place.
Not a bed of roses?
Not everything is perfect in Brazil, of course. A topic everyone loves to bring up when doing business in the country is: bureaucracy. Is Brazil really that bureaucratic? Yes, and don’t even think about setting up your company here in less than 6 months, as it takes an average of 469 days to get a license to run a company in Brazil. However, most US startups have been operating in Brazil from the US and that’s a seamless workaround. Brazil is bureaucratic, but if you’re really interested in setting up an office in the future it’s not impossible; it takes nothing more than a good lawyer to help you.
Another common concern is the risk of doing business in a developing country. Depending on the perspective, this is more of a value than it is a challenge. There certainly are risks involved when you’re entering a market with fallible infrastructure and several instabilities that are not a reality in America or Europe. Even with all these issues, 40 million people have crossed the border between poverty and middle class in the last 10 years, so the power of buying has never been higher in the country. Technology is a part of everyday life, to a truly remarkable degree. Others have taken this risk before and it has most certainly paid off.
There may be some challenges in doing business in Brazil, but they surely pay off because of the country’s greatness. Brazil has great people and, most of all, they are willing to consume and work hard to have an uplift in the country’s economy.
In collaboration with Gabriela Moreira
Resources:
https://www.linkedin.com/pulse/4-ways-brazils-largest-city-building-nimble-startup-culture-wright
http://500.co/vai-brasil-brazils-tech-scene-sambas-onto-the-worlds-stage/
http://www.tmf-group.com/en/media-centre/resources/top-challenges/the-americas/brazil
