Brazil's strong internal demand, market fundamentals and government support offer some reassurance in the face of a dim economy. Keen on expanding to Brazil? IE Singapore's Centre Director for Latin America offers insider tips and insights.
Business between Singapore and Brazil has grown steadily and the past five years' trade volume has surged by 230 percent, making
Brazil Singapore's largest trade partner in South America.
Case Study
How a local company successfully expanded its operations to Brazil
Singapore Airlines (SIA) Cargo, an independently managed subsidiary of SIA, may have had its first flight to Brazil in February this year, but the Brazilian market is not a completely new territory for the company.
SIA Cargo, which serves the varied needs of individual shippers, freight forwarders, local firms and multinational corporations in more than 74 cities, has been mounting charters to transport Formula 1 race-cars inbound and outbound of Viracopos-Campinas International Airport (VCP) in Sao Paulo, Brazil for the last four years.
According to Tan Tiow Kor, Senior Vice President for Sales and Marketing at SIA Cargo, the company identified Brazil as a high-potential overseas market, because it held the largest export and import volume in South America.
While it was a logical move for SIA Cargo to start an office in Brazil, the company knew that, just like any airline trying to penetrate a new market, it would encounter stiff competition from established existing players.
"Given differences in culture, language and local customs, it does help to have a strong, respected local contact to introduce us to the right business partners with whom we can team up to gain the trust of key players, such as local logistics companies, shippers and airport authorities, in the Brazilian market," Tan said.
International Enterprise (IE) Singapore was able to help in this respect by providing the company with useful referrals. Leads from IE Singapore not only helped SIA Cargo get in touch with potential partners but also contributed contacts for legal advice on setting up a business in Brazil.
At present SIA Cargo and IE Singapore mutually benefits from joint public relations and media support in Latin American countries and the rest of the world. The company believes that such media efforts will play an integral part in generating awareness and laying the groundwork for further expansion in the region.
It may still be premature to gauge the success of SIA Cargo's operations in Brazil. However, as it continues to gain a deeper understanding of the local business culture and to leverage on business leads and support from IE Singapore, SIA Cargo aims to establish itself as a major player in the Brazilian market.
Visit SIA Cargo for more information.
A complimentary service by www.iadvisory.com.sg
Name: Sunny Chia
Company: UPS
Expertise: Import/Export
Market: Asia Pacific, Europe
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