International Representative Spotlight: Brazil
International Representative Spotlight: Brazil
Interviewee Name and Title:
José Madeira, Managing Director
The Georgia Department of Economic Development (GDEcD) has maintained representation in Brazil since 1996 and recently celebrated 25 years of economic partnership. The country is considered one of the top emerging economies in the world and, in 2020, was Georgia’s 11th largest export market. In recent years, Brazil has achieved impressive and sustained GDP growth and now boasts not only the largest population and geographic size, but also the largest economy in Latin America.
Where is the office based?: São Paulo, Brazil, which is the largest financial and commercial center in South America.
Who are the team members?: We have 5 team members that work with Georgia businesses. There is myself (José Madeira), Mariana Desani (Trade and FDI Specialist), Carolina Nascimento (Trade and Development Manager), and two others as needed.
How did you enter the world of exporting/trade and how long have you been working in this field?
José: I have a background in engineering and hold an MBA degree, specializing in marketing and finance in the United States. I have been working in the trade and investment field since 1996, when I started as a Trade and Investment Officer in the Brazilian Trade Promotion office in New York. This position ultimately led to my work in this field. After my work in New York, I founded the company that represents Georgia today, River Global, which is an international marketing and consulting company. River Global has represented Georgia in Brazil since 2010, but Georgia has maintained representation in Brazil for 25 years.
What typical services do you provide for Georgia exporters interested in your market?
J: We provide a full portfolio of services to Georgia companies that are seeking to tap into the opportunities found in the Brazilian market. We provide support through market research and information on the regulatory environment, as well as insight on market development and growth. We are here to support Georgia companies in whatever opportunities they discover or issues they may face, and we will walk hand-in-hand to help these companies access the Brazilian market.
What do you consider the biggest challenge(s) to exporters interested in your market?
J: Cultural misunderstandings, language barriers and limited market access are all major challenges that Georgia companies can face. But let me reiterate that we are here to help Georgia companies overcome these gaps; we will walk hand-in-hand with companies to help them be successful in Brazil.
What do you consider the greatest opportunity for exporters interested in selling to Brazil?
J: Brazil has a population of over 210 million people and is Georgia’s 11th biggest export market, with sales to Brazil valued at over $803 million—I think these numbers speak for themselves. The size of the market makes it a very attractive and diverse market for Georgia companies, and there are opportunities in a wide range of industries, such as technology, food and beverage, aerospace and defense, life science, and many others.
What is the trade relationship between the U.S. and your market like?
J: Brazil and the US are important and longstanding partners in the areas of trade and investment. Brazil is the 12th largest economy in the world, and the US is Brazil’s 2nd largest trading partner. US-Brazil bilateral trade is incredibly strong—in 2019, two-way trade was worth over $104 billion, with around $67 billion in goods and over $37 billion in services. The bilateral trade of the two countries is far reaching, diversified, and it is focused on high value-added products.
While there is no free trade agreement between the US and Brazil, there are currently ongoing talks between the US and Brazil regarding trade facilitation, good regulatory practices and standards, and we are optimistic that these talks will continue to generate good opportunities for Georgia businesses.
Are there any trends in policy, culture, or consumption habits that exporters should be aware of when considering the market?
J: The ongoing talks between the US and Brazil are a good starting point for policy trends. There is no free trade agreement yet, but we are optimistic that good opportunities and reduced barriers to trade will result from these trade facilitation talks.
In terms of trends, we see in Brazil the same thing we’re seeing across the world. COVID-19 is changing the way we shop, travel, and work, so companies should pay attention to the consumption and cultural trends stemming from the pandemic. We’re starting to see implications of those trends and the way they are transforming the market. Specifically, we’re seeing e-commerce experience exponential growth—it is here to stay! Also, products focused on health and wellness are doing particularly well. We believe many other trends and their implications will come to fruition during 2022, which is a great opportunity for many companies. The GDEcD Brazil office keeps Georgia companies up to date on these trends and will help them continue to explore those opportunities.
It’s important to note that, many times, trade numbers involve huge companies making deals on a scale that are not achievable for many small- and medium-sized enterprises (SMEs). Since we primarily work with SMEs, we tend to lead companies to the places where the best opportunities for them can be found. Sometimes companies will think their product wouldn’t find an audience in Brazil, but Brazil’s market is huge and diverse, so there is a multitude of opportunities across industry sectors. Companies of all sizes and industries can find a niche in Brazil, and we’re here to help Georgia companies through the entire process of expanding here.
It’s also important to understand that American products are seen in Brazil as being reliable and of good quality. So, even if you’re a small company, if you have a novel product, service, or technology, we can probably find people here who are interested in buying it. Buyers in Brazil are very open to innovation and love having well-made products in their portfolio.
What advice do you have for companies looking to start exporting to Brazil?
J: Contact GDEcD! Our entire team is fantastic. The Atlanta team is outstanding and has won multiple federal awards for GDEcD’s export promotion services, and Georgia's representatives across the world are all here to help you export to every market we can. In Brazil, we are ready to assist and guide you as Georgia companies on the best ways to enter our market, whether you are already exporting or interested in starting to export. So, if you’re looking to start selling in Brazil, the best starting point is contacting the International Trade team in Atlanta and they will facilitate a meeting with us.
Can you tell us about a memorable time when you were able to help a Georgia company avoid or overcome a major pitfall in your market? What was the situation and what do you want other companies to learn from this?
J: We had an experience with a Georgia company that saved them millions of dollars in logistical costs in Brazil. This company had a large shipment coming to the Port of Santos in São Paulo, which is the busiest container port in Latin America. They needed a special dock and facility to put their product, but the port was extremely crowded—more than usual. When the vessel with the company’s product arrived at the Port of Santos there were very long lines for docking; however, waiting to dock and unload would represent thousands of dollars in unexpected costs for our Georgia client. The port had given priority to other vessels from oil and gas companies, so to solve the logistical issues we needed to involve a lot of different people. We worked with our client's Brazilian partner, as well as representatives from the Port of Santos, and some Brazilian government officials. Through this cooperation, we were able to help manage and streamline the process, which ensured our client was able to dock and unload their product more quickly and avoid all the unexpected costs.
One lesson that I think comes from this is that Georgia companies should take advantage of the resources the State of Georgia offers to help them sell in Brazil! There is a lot of opportunity in Brazil and we’ve been able to help several companies sell their products here and avoid pitfalls. Our team is here to help you find and take advantage of these numerous opportunities, and we will help you with any issues you may face in selling here.
What has been your most significant export achievement?
J: Helping a wide variety of companies is more important to us than helping just one, and we’re really proud of the large number of small businesses across industry sectors that we’ve helped to enter and have success in Brazil. We are more concerned about the quality of services we offer to small businesses than we are about the size of sales; we consider it a bigger success to help ten small companies sell ten different products for less than $1,000 each than to help one huge company sell a single product here for $10 million. We exist to help small businesses, and, in my tenure here, we’ve helped hundreds of Georgia companies. As a result, we have a lot of really significant success stories.
What made the most impression on you when you visited Georgia?
J: I’ve been to Georgia many times since my team works with GDEcD’s investment, export promotion, and tourism divisions. Georgia is incredibly beautiful: there is such a variety of truly beautiful landscapes across the state. Besides being beautiful, I think it’s impressive how Georgia’s leaders and state agencies have a great long-term view of and are incredibly proactive in looking after businesses and opportunities. The state puts so many resources towards economic development, which ensures there are ample opportunities to help companies grow. GDEcD has created so many helpful tools and resources for businesses, so it’s no surprise that Georgia is repeatedly distinguished as a Top State for Business. We see this in the way that so many companies are coming to Georgia, and I think it’s especially prevalent in the movie and entertainment industry.
What do you enjoy most about representing Georgia in Brazil?
J: We love marketing Georgia as a top destination for business and tourism, and Georgia is very easy to sell in Brazil. Many Brazilians either have traveled through the Atlanta airport or have studied at one of Georgia’s many great universities, and it’s easy to get there and experience all the things we promote to Brazilians every day.
My team has worked with Georgia for 11 years, so the relationship we’ve developed over those years is really amazing. We love the state and the support we’ve received from all the Governors, Commissioners, and department heads that we’ve worked with—even more, the entire team is really fun! All of GDEcD’s teams are incredibly successful, and the Trade team in particular has won a lot of awards from the US Federal government, so we’ve very proud to be a part of this team.
What do you think would most surprise Georgians to learn of Brazil?
J: A lot of people from Georgia will come here and are really impressed by the size of the country and the variety of landscapes. They’re also very impressed by our large cities like São Paulo and Rio de Janeiro and the sheer potential for business in the country. Brazil is a very open society and they love to interact with foreigners, especially Americans. Georgians, and people from the US in general, are very impressed when they come and experience for themselves the culture and business opportunities, as well as how big things are in Brazil and São Paulo.
I also think it would surprise Georgians to learn that the State of Georgia is the #1 US State for Brazilian investment. There are more than 40 Brazilian companies that invest in Georgia, and together they generate over 12,000 jobs in the state. As a whole, Brazilian companies are actually the 6th biggest employer in Georgia—which is really fun and surprising fact for both Brazilians and Americans!
###
Are you a Georgia business looking for help growing your international sales? Find out how Georgia’s International Trade Team can help at www.Georgia.org/Trade.