São Paulo – To close deals with the Arabs one needs to follow different rules than those practiced with business owners from the United States or Europe. It requires a good relationship with the buyer and knowledge of the culture of the countries in the Middle East and North Africa. This was the topic of the workshop Cultural Aspects and Negotiation with Arab Countries, presented by Michel Alaby, CEO of the Arab Brazilian Chamber of Commerce this Wednesday (9th) in the city of São Paulo.
“Selling to Arabs is about relationship. A lot of times, I need two, three trips [to the country of the buyer]. A lot of times I need the government’s support and almost always the support of the Arab Chamber, because the Arab Chamber opens the doors for you. It has the tools required for you to enter the Arab market”, emphasized the executive.
A good relationship between seller and buyer is one of the key factors to achieve success in the negotiation. “For the Arabs, what counts is the partnership, trusting the partner. In the Arab countries, they deal with the person, not the company. These characteristics are important for you to have in mind”, he pointed out.
As excellent bargainers, reminded Alaby, the Arabs are always watchful of the price of the products they are about to buy. “They almost always compare the product with the ones from where they pay less. Today, we very well know that the leading Brazilian competitor is China and they [the Arabs] compare the Brazilian product with the Chinese product”, he said.
For Brazilian companies to be able to stand out in this by-the-price competition environment, the executive pointed out the importance of companies showing their edge in the time of negotiation, such as highlighting product quality, showing ISO certificates or environment-friendly seals, or Shariah compliance.
Alaby also showed some trade numbers between Brazilians and Arabs and highlighted the need for diversification of the exports products. In 2014, Brazil’s sales to Middle East and North Africa countries totaled USD 13.4 billion.
“Our three main partners over there are Saudi Arabia, United Arab Emirates and Egypt. What we sell the most to them are meat, sugar, ore and cereals. Almost everything is food and is low value-added. We should be a little more aggressive to sell higher value-added [products]”, he said.
“We should put the Arab countries on our radar”, said Alaby. The executive said that, last year, total imports by Middle East and North Africa nations totaled USD 826.6 billion, and that Brazil had only a small share in this total.
To follow some cultural rules of the Arab countries favors negotiations. “Usually, the Arab will invite you for coffee, for lunch, for tea, for dinner. You should never say no and, if you do, you should present the option of attending the next day”, said the executive.
In order for Brazilians not to forget the negotiation tips, Alaby left a reminder to help in sales. “To negotiate with Arabs, one needs three factors: patience, persistence and perseverance. Visiting a client today and then ask for a position tomorrow. I have to be persistent, I have to visit [the client] a second, a third time”, he said.
Beginning to export
Just beginning to deal in the Arab market, the food machinery company Indiana, from São Paulo, had its first sales to Saudi Arabia and Lebanon this year. Now, the goal is to attend the next edition of Gulfood, the Middle East’s largest food fair, which takes place every year in Dubai.
Nataly Bernardi, the company’s sales consultant, was in the audience and said that Indiana has more than 150 types of equipment. The company’s plan is to display its sweet and savory food machine at the fair. To the executive, the fact that the equipment can produce kibbeh, a typical Arab dish, could generate new sales to the company.
“We learned everything we needed to know”, she said about the lecture. “We solved all our doubts. It was excellent, especially for us that are planning to go over there. Listening to these tips is very important”, she assessed.
*Translated by Sérgio Kakitani
