Even before the current uncertain economic climate affected traditional market strongholds, such as Europe and the USA, many companies were turning their attention to emerging markets. For electronics companies, one of the most vibrant marketplaces is in Brazil.
It's easy to notice when you walk through the streets of São Paulo that electronics are no longer only available to the rich. The boom in electronic products is driven by middle class purchasing power, which has led to pricing levels and market competition with the same characteristics as found in Europe and USA.
The Brazilian electronics market
Until quite recently, you could find a few "sweet spots" in the Brazilian electronics market, but certain larger market segments didn't exist. Nowadays things have changed, and the major international suppliers launch their products in Brazil about the same time as they launch their products in Europe.
From being an international outpost, Brazil is now the largest emerging electronics market in the world. Data from Brazilian Electrical and Electronics Industry Association (ABINEE) shows that the total value of the electronics market in Brazil in 2007 was $57.3 billion. This is 297% of growth compared to the total value of $19.3 billion in 2002.
For foreign electronics companies the timing for entering Brazil is good. Even though the Brazilian GDP doesn't reach the 30% foreign trade mark which is considered ideal for an open economy, the inflation rate of 3.1% in 2006 and 4.5% in 2007 has been attracting international business to invest in Brazil.
Getting to know the market
In Brazil there is a strong culture for small companies and network marketing. The most talented junior employees in larger companies are starting their own company instead of waiting for promotion within the companies they already are working in.
For foreign companies the good news is that it's not necessary to have huge marketing budgets to succeed in Brazil, but the bad news is that networking is mostly done in Portuguese. In addition, foreigners will meet a totally different culture compared what you will find in Europe and USA.
The best way to get a feeling for the electronics market in Brazil is to attend one of the many trade shows hosted in Brazil. Due to the important position that Brazil has in Latin-America, trade shows often turn into a melting-pot for the whole region and you will easily be able to communicate with most of the exhibitors in English, Spanish or Portuguese.
Over the next year a lot of superb electronics related trade shows are scheduled, and if you are interested in the Brazilian electronics market it's worth a visit.
Futurecom 10th Edition
This is a high profile event hosted in São Paulo from 27/10/2008 to 30/10/2008. The event gathers market strengths through the participation of distinguished executives and professionals from the telecom and IT sectors, national and international operators, suppliers of products and services, as well as corporate customers. The Brazilian ministry of communications traditionally honour Futurecom with their presence.
Futurecom 10th Edition is separated into two main track, The International Seminar and the Business Trade Show.
Nanotec 2008
Nanotec 2008 is one of the most important trade shows about Nanotechnologies in Latin America. The event is held in São Paulo from 12/11/2008 to 14/11/2008. This show will present the most advanced technologies and projects in nanotechnology applied to products and B2B solutions for the chemical, plastic, electro-electronics, textile and automotive sectors. In parallel to the trade show, the event will also host a conference to discuss the progress of the nanotechnology and new applications in Latin America.
Brazil Automation - ISA show 2008
Brazil Automation is a renowned event in Automation, Instrumentation, Systems and Process Control. Besides seminars and courses, the event give professionals a great opportunity to get updated on new technologies, network and even initiate new business. The show attracts a large number of visitors interested in catching a glimpse of the latest products presented by over 100 exhibitors. This event takes place in São Paulo from 17/11/2008 to 19/11/2008.
ISC Brasil 2009
ISC Brasil 2009 is the most important international event for electronic security equipment and new technologies in the sector in Brazil. ISC is a traditional event in USA with over 35 years of history. ISC Brasil is a great example of how international players in the electronics market take advantage of a fast growing market segment in Brazil. ISC Brasil 2009 will be hosted in São Paulo between 17/03/2009 and 19/03/2009.
electronicAmericas
electronicAmericas takes place every second year in São Paulo. Exhibits include electronic components and subsystems as well as machines and equipment used to manufacture electronic components and assemblies. Between the fair sponsors we can find Brazilian Association of Electrical and Electronic Industry (ABINEE) who also developed the fair concept and conference program. The fair will take place at Anhembi Park from 01/06/2009 to 05/06/2009.
4th FEEAI - Feira de Eletro Eletrônica e Automação Industrial
The FEEAI is one of the biggest trade shows for the electro, electronics and automation industry in Brazil. This biennial event attracts visitors with all the levels of interest in the industry among others professionals that work in the area. The list of exhibitors from previous events included sectors that range from robotics to power distribution systems. Their focus is to present their latest products and present their market thesis and expectations. The event is held in Joinville, SC in south of Brazil from 13/04/2010 to 16/04/2010.
This article was written and supplied by Connection Consulting, a Businesses Consultant Boutique dedicated to introducing European electronics SMB companies to the Brazilian market.