Brasil x Argentina. E não é jogo de futebol.

Brasil e Argentina se reúnem em 14 de julho próximo, em Brasília, para ver se o Brasil responde às medidas protecionistas da Argentina, em função da crise financeira global desde o ano passado. A premissa é de que a Argentina estaria comprando itens da China em vez de mantê-los na pauta de importação do Brasil. Estão aí os móveis, têxteis, calçados e eletrodomésticos de linha branca. Será? Ninguém confirma mas a reunião tratará do tema e discute-se no governo se o Brasil entra com processo na Organização Mundial do Comércio (OMC) contra as várias barreiras do governo de Cristina Kirchner que afetaram o comércio bilateral. Vamos acompanhar.

Discount at Asian Film Market event.

The fourth edition of the Asian Film Market, which runs Oct. 11-14 during the Pusan Intl. Film Festival (Oct. 8-16), is offering a 30% discount to attendees who register early. Packages include price cuts on stands and complimentary accommodation. Event takes 30% off price for early birds.

Pusan International Film Festival, held annually in Busan (or Pusan), South Korea, is one of the most significant film festivals in Asia. Its focus is to present new films and first-time directors, especially those from Asian countries. Another notable feature is the appeal of the festival to young people, both in terms of the large youthful audience it attracts and through its efforts to develop and promote young talent.

In 1999, the Pusan Promotion Plan was established to connect new directors to funding sources.

Some figures (total audience)
1996 – 184,71
1997 – 170,206
1998 – 192,547 (paid audiences:174,870)
1999 – 180,914
2000 – 181,708
2001 – 143,103
2002 – 167,349
2003 – 165,102
2004 – 166,164
2005 – 192,970
2006 – 162,835
2007 – 198,603
2008 – 198,818

mari.beltrami@hotmail.com

Penetrating international markets.

There are some tracks to follow before penetrating new international markets and they are:
1. Researching and studying international markets
2. Preparing international products
3. Managing exports services
4. Exports pricing strategies
5. International distribution channels
6. International marketing and distribution

The entrepreneur must hire people to do task 1. Its managing team must deal with tasks 2 and 4. A good import/export dealer can offer good services at task 3, looking for the best opportunities for you, at the best price.

Tasks 5 and 6, however, must be managed by yourself or, if your company is more than 500 employees, for your CEO, even if a consultant can present you a good study on the distribution channels and marketing structure.

We do jobs like that for entrepreneurs but always we went with them to visit the fairs of the segments he operates with because he must have the feeling of what is going on. Studies, even with field data, can be a good first step but they are not the reality itself.

I remember a research I have made for a new product and material for an european company. I told them, in the end, that it was imperative for them to interview personally two or three persons I would indicate, to better evaluate the strategic recomendation I was pointing. They did not believe and started business anyway. Sometime later, they had to abandon the country. The lack of the correct strategy made them loose money and do not consolidate their position.

The depth interviews and other techniques I used pointed to a bad disclosure, if the right strategy was not followed. It was hard to believe as the considered market was huge. But they could not feel this as a reality as they did not meet those real people I have indicated. They were the best example of what th market was thinking. The other interviews and data I gave them would help the first right steps but would not replace the feeling.

That is why I repeat: tasks nr. 5 and 6 must be followed personally by the entrepreneur or the main decision person.

mari.beltrami@hotmail.com

Argentina, Brazil´s 3rd partner

Argentina is 3rd Brazil partner, just after USA and China. Brazil and Argentina are experiencing mutual restrictions in their commerce and this is not a very good sign for a market that aims to be a common market. Actual financial crisis is one of the reasons for these facts.

La Nacion, Argentinian newspaper, is talking about Sao Paulo industries measures today: they are reducing exportations to Argentina in order to contribute to the general situation and avoid conflicts whith Argentinian industries. The decision will certainly reduce hostility with this partner and avoid dumping from Argentinian.

Friends are supposed to be friends in bad and good times…

mari.beltrami@hotmail.com

Does the world crisis affect Brazil?

The 11th World Social Forum (WSF) took place in Belem, Amazonas, in the end of January, and gathered 100.000 activists from around the world to discuss an agenda that comprises several items from the left wing political standpoint regarding themes that interest the world minorities. Five Latin American presidents attended the Forum. For political and strategic reasons, Brazil’s President decided to ignore the World Economic Forum in Davos, Switzerland.

In Belem, in an open meeting place the participants debated on subjects such as marital violence in India, support for Cuba government, land rights for Amazonian Indians and so on. This event was conceived initially (2001) as the anti-Davos forum since the discussions were focused on issues that concern the poor or the so called underdeveloped countries.

WSF is a platform designed to draw the world’s attention for the global problems that affects mankind but it is also a political platform (despite some internal contradictions) to divulge ideas that will enhance the prestige of the so called populist presidents like ours. He received indeed a superstar ovation from the audience. The reception stimulated him to point out the usual mantra against his traditional villains, i.e., criticizing the developed nations for having created the current financial crisis and the IMF for its permanent and dictatorial demand for sacrifices when loaning money for underdeveloped countries. In a very strong position, he stressed that the world should stop to interfere trying to take control over Amazon as this is a Brazilian task and the country is prepared to defend its sovereignty. Maybe this was the issue he really intend to address worldwide.

Some businessmen in Davos meeting commented that Brazil’s image changed from being considered financially problematic country in the previous year to a “new power broker” nation in this annual meeting.

All these remarks may lead to the wrong and dangerous conclusion that the world crisis will not affect Brazil and that the country is immune. This is a wrong perception that we must take into consideration. It is a fact that the crisis will reach every country – develop or underdeveloped. It is a global event.

Marketing or political purposes made Lula recently refuse to accept that the crisis was knocking at Brazil’s door. Now he and his administration (Central Bank authorities in Davos) are accepting the existence of the worst crisis that affected the world since 1930.
As a consequence several actions were implemented by Brazilian authorities to help the economy, such as to give financial support for the companies that promote exports and tax exemption to stimulate the automotive industry avoiding thus unemployment and so on.

And the alert signals do not stop to show up. According to the latest release from the Brazilian Development, Industry and Trade ministry, Brazil presented its first monthly trade deficit in almost eight years as exports plunged by a record amount on falling prices for the country’s commodities. In other words the world is closing up for imports, in an attempt to protect their economies and this will require a lot of effort and creativity from the Brazilian companies to overcome all the obstacles that this situation presents.

Finally the Brazilian government’s euphoria is been replaced by the common sense that dictates that the situation demands serious approaches. They are learning by the trial and error.

Davos came to this conclusion: effective solutions should be implemented in a short time period and all effort should be applied to develop swift and coordinated policy to respond to the most serious global recession. Crisis will last at least three years. Time has come to act united to benefit the entire world. Companies must address immediate partnerships and find new markets in order to face what is coming.

ferreira.ronaldo1@gmail.com

Where are the opportunities?

Am I boring you if remembering the Chinese popular old saying: whenever a crisis shows up, somehow an opportunity possibly will somewhere be available?

If so, excuse me but I have to say it again. Nations are struggling to survive. Industries are promoting an escalating unemployment, causing a great deal of stress in the life of many families. The crisis is at our door definitively.

The hard times are affecting even the billionaires. The Russian tycoon Roman Abramovich is reported to have lost approximately 60% of his net worth in the stock exchange, which is making him to consider selling the British Chelsea Football Club or his yacht Pelorus, among other actions, aiming at to start his recovering process. The same huge losses in the stock exchange happened to the Brazilian billionaire Eike Batista forcing him to postpone temporarily his investments to build ports in Brazilian states.
It is a fact that the remaining balance of their wealthy will enable them to keep their higher standard of living while waiting their stocks to recover to their former value.

But not everybody will have this chance to make ends meet so easily. Specialists predict a three year term for this world crisis. Assuming they are right, you have to establish an immediate proactive approach to overcome these difficult times.

With many companies going bankrupt, you have to give a look to the markets, widening your international work area. A step that must be in your 2009 calendar necessarily: visiting international fairs and attend commercial missions abroad, looking for new alliances, knowing potential clients and thus trying to take advantage of the new demands that the world will present.

There is a time to wait and a time to go forward. Now you have to start up immediately. Define your strategy considering the Chinese saying.

ferreira.ronaldo1@gmail.com

African economy: investments on the road.

Despite bad perspectives for African economy due to the present crisis, Christian Cornille, CEO of Aerolia, a French company, signed an agreement estimated at €60 million with the Tunisian government for the construction of a plant south of the capital Tunis, to produce front segments of Airbus planes, local news agency reported.

The plant will be ready in 2010 and probably will employ 1,500 qualified personnel. Among them, Tunisian engineers with high degree of competence. The suport of the Tunisian Government and the logistics – nearby harbour and proximity to Europe, are the main reasons, with the prepared local engineers, for this investment.

The President told journalists that Airbus had orders for some 3,700 planes throughout the world that he intendes to honour. Tunisia has a number of aeroplane parts companies which are moving into the country claiming it to be a cost reduction source due to its proximity to Europe yet companies get orders from Africa and the rest of the world.

mari.beltrami@hotmail.com

Newcomers to international market.

Actual crisis is bringing us companies that never exported and are willing to boost their sales through this way. International market is not something you decide today and get results tomorrow. Let´s discuss some important steps to take before doing this.

1 – Business plan: you have to evaluate the targets that should fit to your company and products, the price and market to win, i.d., a business plan.

2 – Fair price: the price of the product and services must be calculated with
accuracy bearing in mind all the corresponding taxes concerning the international trade, the expected profit of the company, as well as the competition pricewise.

3 – Markets: it is important to prepare a marketing study defining market niches, the buying prices, the size of the market and the competition. Do not forget cultural aspects. In some countries they are decisive.

4 – Distance: freight rate has an important factor when fixing the price of your product for other countries. In this case, weight and measures can work in favour or against you.

5 – Communication: take international fairs and exhibitions very seriously. Look to the calendar and put it in your 2009 schedule. There you will evaluate your chances and also update knowledge with the latest news to better develop your strategy accordingly.

6 – Someone to be in charge: you must hire someone or a company that take care of all the steps, including negotiation in other languages. Do not hire that clever nephew that is about to graduate. International market is made with expertise and vision. You must hire experienced people.

Finally, you have to wait. This is not a 2 months target but when it starts you will have a strong basis to face internal crisis and to improve the quality of your products and services.

Ronaldo Ferreira – ferreira.ronaldo1@gmail.com

Brazilian export strategy for 2009.

2009 will start with “Brazilian Export Strategy 2008-2010″ guidance, launched in last September and supposed to expand Brazilian competitiveness in international market .

The document arises from the outlined challenges for the growth of Brazilian exports settled in May for the Productive Development Politics: broaden the participation of Brazilian exports in 1.25% of world exports in 2010, i.e. about $ 210 billion. Another target was the increase in number of micro and small enterprises in Brazilian foreign trade.

Obstacles to face: reduction of bureaucratic costs and financing, in addition to the improvement of infrastructure. The strategy identified five macro-objectives for the expansion of Brazilian exports of goods and services:

1. Improving the competitiveness of Brazilian export base
- Ease access to credit
- Cutting red tape and facilitation of foreign trade
- Improving the infrastructure for transport

2. Aggregation of value to exports
- Encouraging innovation in enterprises
- Promote the efficiency of production chains
- Development of alternative sources of energy

3. Increased export base
Give support to micro and small enterprises (21% of the value of exports of the country), providing:
- Training and access to information
- Provision of financial support for exports of small enterprises

4. Expand access to markets
- Expanding the network of international agreements
- Strengthening of the instruments of intelligence and trade promotion
- Overcoming of non-tariff barriers to Brazilian exports (improvement of the health controls for agriculture products)
- Metrology, Quality and Conformity Assessment;
- Encouraging the internationalization of Brazilian companies (Brazil Trade Support Centers, Apex-Brasil (Brazilian Agency for the Promotion of Exports and Investments).

5. Increased exports of services
- Creation of information systems and management of the operations of foreign trade in services;
- Expansion of credits and exemption of export operations services;
- Training of professionals and services;
- Expansion, diversification and devolution of Brazilian exports of services.

Let´s be alert to see what happens in the first quarter of 2009 to analyse if this policy is for real.

mari.beltrami@hotmail.com

Being local.

The economic crisis did not discouraged Valduga House to develop their products. They have launched internationalized products in order to strengthen their business. The company aims to draft a varietal Malbec in Argentina, called “Mundvs”, expanding the line in April 2009 and launching a Cabernet Sauvignon produced in Chile. In addition to a cut made in Portugal, according to the company’s commercial director, Juciane Casagrande.

Brazilian Union of wine (Uvibra) says they have 75% of the Brazilian market for fine wines.

The line “Mundvs” is produced in partnership with a wine from each country and the whole process, the harvest of grapes for wine making, aging and filling, is done under the supervision of enologists and agronomists of Valduga. There are also negotiations to produce in South Africa and plans to also include Australia, Italy, United States (region of California) and Uruguay.

In Argentina, the partnership is with the Bodega Sottana, the province of Mendoza, in Chile, with the winery Antipode, the region of the Maipo valley of the river, and in Portugal with the group Enoport.

Foreign trade is not just export anymore. You have to be next to the consumers. In some cases, you have to be “local”, starting a marriage with some native company. Think about that.

Mari Beltrami