São Paulo – Getting to know the habits, the history and, of course, having a good strategic planning to enter the foreign market. These were some of the important points for exporting to the Arab market that were presented yesterday (10th) during the workshop ‘Get to Know the Arab Market,’ administered by Rodrigo Solano, the Market Development manager of the Arab Brazilian Chamber of Commerce, and by Francisca Barros, Foreign Trade coordinator at the organisation. The event took place at the Chamber’s head office, in the city of São Paulo. Up until December, one meeting will be held each month. Enrolment is free of charge.
According to Solano, the goal of the organisation is to enhance the perception of the Arab market that businessmen have, particularly those in medium-sized companies. During the presentation, Solano showed the audience, comprised of a textile industry representative, lawyers and consultants, the figures of foreign trade with the Arab countries, a bloc whose share of Brazilian exports is increasing constantly.
According to the manager, the Gross Domestic Product (GDP) of the Arabs is forecasted to grow 2.5% this year, a figure that scares away the economic crisis and shows Brazilians an important market to be tapped. In the last five years, the trade flow between Brazil and the Arabs grew 262%. In the first half this year, Brazilian foreign sales to the region grew 4.1%, whereas exports from Brazil to the world decreased by 23%.
To Solano, the figures show that the Brazilian share in Arab markets is growing, but still has space to expand. “The Arabs have not been introduced to the power that is Brazil yet, and that is why trade promotion work is so important, and even more so at a moment in which competitors such as China and India, which are physically closer, are already on the market. Brazil needs to make itself known,” he says. But Solano warns of product quality and differentials when the time comes to sell, particularly because of the price policy of the Chinese and the Indians, who have an advantage in this respect. As an example, Solano mentioned Brazilian fashion. “One of the strategies is to bet on the development of products that have a concept.”
Format
During the meeting, participants also had a quick lesson on how to behave in situations such as the first meeting with a potential Arab client, follow-through, trade fairs, prospecting trips etc. “Whoever starts negotiating with an Arab, for instance, should be maintained in the task, unless they are dismissed from the company. That inspires trust on buyers,” he says. If the change is inevitable, then the new Brazilian negotiator should be properly introduced to the Arab, so that the relation that has been built is not broken. “The Arabs value the person much more than they do the company, for example,” explains Solano.
Solano also provided tips for a good conversation and listed the most successful topics among the Arabs. Football, of course, is the first in the list. The Arab presence in Brazil and their influence on Brazilian culture are other points that must be remembered. The executive recalled, for instance, the success that the story of the Habib’s food chain made during a conversation. “They were impressed when they learned that there is an Arab fast food chain in Brazil, and that the owner is a Portuguese,” he said.
Planning
After the more informal part, the workshop went on to discuss strategic planning for companies willing to export, sanitary rules, treatises and international agreements that must be understood during a foreign trade transaction with Arab representatives. “The companies needs to be well prepared in order to negotiate the sale, they need to know the rules well in order to launch themselves on the market,” says Francisca.
The Arab Brazilian Chamber professionals also presented to the participants all of the services that the organisation offers to Brazilian exporters, such as trade consultation, data pertaining to the Arab countries and to buyer companies, business roundtables, product certification and document translations – the two latter charged for.
Information on the dates of coming events are available at the Arab Brazilian Chamber website (www.ccab.org.br)
*Translated by Gabriel Pomerancblum
