Brazil’s vast borders encompass a diversity which is reflected throughout many areas: ethnic, cultural, natural, social, and also in business opportunities. This variety is one of the country’s greatest assets, but it also creates a unique series of characteristics which can make doing business in Brazil challenging for a foreign investor or entrepreneur.
The very origin of the country’s population, for example, is diverse: Brazilians are primarily descended from Portuguese settlers, Native Americans and Africans. Following the great immigration waves at the end of the 19th century and the first three decades of the 20th century, German, Italian, Spanish, Polish, Japanese, Jewish and Arab immigrants also influenced the country’s ethnic background.
Diversity is also present in Brazil’s culture: the result blending different customs which immigrants brought with them. Music, art, architecture and gastronomy — everything in Brazil is a mixture. The Amazon is the cradle of the myths and traditions of the indigenous people’s ancestors — the original inhabitants. More than anywhere else, it was in the coastal cities that the mix of ethnic groups, cultural traditions and religions took place, although every region in the country has witnessed this fusion of habits shaped by different groups of people.
Nature in Brazil is abundant too. The country is home to six biomes: the Amazon, Atlantic Forest, Cerrado, Caatinga, Pantanal and Pampa. The Amazon has the greatest biodiversity in the world, and is home to almost 20% of the world’s species. The socio-biodiversity present in these biomes has opened doors for doing business in Brazil, with a focus on sustainable development.
Brazil contains enormous potential for this type of business, since approximately 40% of the global economy is based on products which originate in biodiversity or its ecological processes. Brazil has a modern and diversified industry that produces and exports everything from ore, steel, paper, chemicals, footwear and clothing to cars and jets. Export logistics, particularly port logistics, are also very well developed in the country.
All this diversity is also reflected in the great diversity of opportunities for doing business, and opening new companies. After all, Brazil is the sixth largest economy in the world, and has an objective business culture in which the focus is on reaching the consumer.
But, notwithstanding the great advantages and variety of opportunities, foreigners may face a series of cultural challenges when doing business in Brazil:
- Brazilians, as a people, are very proud of their identity, diversity and culture, but they value an international working environment. They like to meet people of different nationalities and harbour a great curiosity for foreigners. Knowing how to navigate this reality can help an international company to build trust with its local partners.
- Along similar lines, there is the language challenge. Foreign investors should bear in mind that not everyone in the many spheres of Brazil’s business world is fluent in English, and even less so in Spanish. Usage and quality of English is growing among young Brazilians, but a knowledge of Portuguese will be a bonus for ensuring proper business communication in the country.
- Brazil is a great consumer of North American mass culture, and its population is very active on social networks. But the most discussed subjects are not always the same as elsewhere in the world. Brazilian popular culture (i.e. television, music, internet) reflects the country’s personality, and its memes, slang and fads can change very quickly. These factors should be taken into consideration by any company or investor seeking a strong presence on local social networks.
- The country’s gigantic size is reflected in a vast range of personalities, habits and even relationship protocols. It helps to be aware of the subtle (and sometimes not-so-subtle) variations depending on the Brazilian region in which companies wish to do business.
Cultural and economic barriers may put off foreign investors and entrepreneurs. Therefore, it is essential to consider these essential tips for doing business in Brazil, and call on communication professionals who are specialized in the local market, and who will help to overcome these challenges. Keep in mind that:
- According to US companies’ recommendations for investing in the country, Brazilians like to do business with people, not companies. Securing partnerships with local groups will help to successfully navigate these cultural complexities.
- Timeliness varies in Brazil, since Brazilians tend to hold informal chats before getting down to business. Knowing how to naturally establish this link, whether with the press or with local partners, can make all the difference when building a solid communication strategy.
- The Internet has changed the communication paradigm. When it comes to market penetration, mapping the traditional communication vehicles is no longer enough. Knowledge of the digital influencer market, the most-used social networks in the country and even Brazilians’ preferred means of messaging can be decisive.
For all these reasons, we recommend hiring a marketing and public relations consultancy in Brazil to truly get to know the market and its many audiences. Sherlock Communications is one of the few Latin American agencies focused on identifying the region’s complexities, and drawing on this understanding in our clients’ communications and PR plans. Get in touch today and find out how we can help your company to do business in Brazil.
