Multinationals Like Marketing in Brazil

Thanks to an emerging middle class and a long period of economic expansion, many marketers have their eyes on Brazil as a growth market.

Kirin, a major Japanese brewing company, has just bought a majority stake in Brazil's second-largest brewery. Given the current state of the Japanese economy, Brazil represents a good opportunity for higher sales revenue. Buying into a successful, established brewing firm lets Kirin learn about the market and buying behavior without the cost and risk of building facilities and starting from scratch.

Automakers see considerable opportunity in Brazil and are putting money into the market day by day. China's Chery and JAC companies, Japan's Nissan, and South Korea's Hyundai are only a few of the automakers that are building factories in Brazil, the world's fourth-largest car market (and moving up quickly). 

The leading foreign car brands in Brazil these days are Fiat, VW, GM, and Ford. Tomorrow, however, the Asian automakers are likely to challenge this line-up and move higher in the standings.

Brazil's economic climate is positive for imports but some local firms aren't doing quite as well as foreign counterparts. Inflation is on the rise and after a big run-up in consumer credit, the level of household debt could hold back consumer spending. Another issue for marketers to consider is the cost of doing business in Brazil. Long term, however, marketers are happy about the prospects of serving Brazilian customers.