São Paulo – A company looking to go international should only worry about paperwork and red tape towards the end of the process of seeking new markets. First of all, micro and small businessmen need to study the market they wish to operate in, which products in its portfolio suit that region, and what the local habits are. These were the pieces of advice given by Nicola Minervini, one of the lecturers at seminar “Solutions to internationalize small and micro businesses,” held last Tuesday (28th) by the Brazilian Micro and Small Business Support Service in São Paulo (Sebrae-SP).
One of the ways to become familiar with the target market, said Minervini, is attending industry fairs. “Never go to a fair for the first time as an exhibitor; go as a visitor,” he advised. That helps businessmen to learn how to proceed in the targeted country, how to go about price formation, and what documents will be required for him to do business. The lecturer is the author of a book named O Exportador (The Exporter).
Minervini told the businessmen to invest in a strong brand, register the brand in the targeted country, offer products with exclusive design, seek a niche in which to work, work in tandem with other micro or small businessmen, be committed to the foreign client, and work in an organized fashion. “Those who wish to go international need to do all that. Obtaining the documents is in fact a necessity, but only towards the end of the process,” said Minervini.
Sebrae-SP senior foreign trade advisor Mauricio Golfetti said that not only internationalization opens up new markets and revenue sources for a company, it can also strengthen it domestically. “An internationalized company has more clients, suppliers and partners. It can reduce costs by increasing production scale, and it can also show domestic players that they |can go up against competitors in places other than the usual domestic market,” he said.
Golfetti noted that Brazil’s economic growth and its hosting of the World Cup in 2014 and the Olympics in 2016 have placed it “en vogue” and will bring about a new economic scenario. This new scenario, he said, will have foreign companies seeking to invest in the country and associate themselves with local partners. “There already is a demand on the part of foreign companies that wish to invest here and associate with local businesses. But that requires qualification,” he said.
The commercial director for Lince Systems, Daniel Fortunato, attended the event. His company developed a less pollutant billboard printing system by replacing sheets and chemicals, and now has two registered patents.
“When the Clean City [anti-visual pollution] Act became effective in São Paulo, we lost 70% of our market. Five companies were left, and they are with us until this day, but we can’t afford to stop growing. And in this case, growing means going international,” he said. The Clean City Act, which entered into force in 2007, regulated advertising in São Paulo and forbade billboard advertisements, among other things.
Lince does not export its products and services yet, but is preparing to enter the Argentinean and Mexican markets. Fortunato believes it is possible to go farther. “I would really like to work in Egypt. From the images I have seen, they must use lots of billboards. It would be an interesting market for us,” he said.
The owner of a company which represents milk and biscuit manufacturers, Marcos Pereira believes that the current economic scenario and the status of his clients allow him to export. The micro business was established in 2000, but he has never had an opportunity to export. “Now, I have clients with strong brands which I can take overseas. Another plus is the fact that I work with foodstuffs. World crisis or not, food is always on demand,” he said. Pereira intends to export first to Portuguese-speaking African countries, such as Mozambique.
*Translated by Gabriel Pomerancblum
