Brazil's huge business opportunities attract the attention of Quanzhou shoe companies

With Latin America's largest consumer market and the most complete industrial system in Latin America, its economic strength ranks first in Latin America... As the largest country in South America, Brazil has attracted more and more companies in Quanzhou with its huge development prospects and consumption potential.

The reporter learned from the Quanzhou Entry-Exit Inspection and Quarantine Bureau that from January to May this year, there were 145 batches of goods in the Quanzhou area, and the goods valued at 4.12 million US dollars was exported to Brazil. The export categories were varied, including footwear, sanitary napkins, and foodstuffs, among which footwear The majority of products. It is reported that nearly 100 companies currently have business contacts with Brazilian merchants.

“Brazil has a relatively large import demand for consumer goods such as shoes.” According to the relevant person in charge of the Quanzhou Entry-Exit Inspection and Quarantine Bureau, the Brazilian market is a large and opportunistic market and the largest consumer market in Latin America.

According to the forecast of the authoritative organization, the Brazilian economy will continue to grow at an annual rate of 4 percentage points over the next two decades. By 2030, Brazil’s gross national product will reach US$240 million, ranking eighth in the world. Its domestic consumer market will also surpass France and the United Kingdom and become the fifth largest consumer market in the world.

In addition, since Brazil has won the right to host the 2014 World Cup and the right to host the 2016 Olympic Games, Brazil, which is hosting these two large-scale sporting events, has begun to start construction of some infrastructure facilities, which will naturally lead to the growth of various consumption. Including some construction materials, mechanical products, security materials and so on. In addition, due to the lack of electricity supply in Brazil, the Brazilian government is fully promoting energy-saving lamps and other energy-saving equipment, the introduction of incentives for the import of energy-saving lamps, lower import tariffs, energy-saving lamps and other products in the Brazilian market has great potential.

Mineral Resources Complement with Quanzhou's Manufacturing Industry

The scarcity of resources determines who owns quality resources and who will have the right to speak in this industry. Brazil is rich in mineral resources and has proven reserves of 65 billion tons of iron ore, ranking second in the world in output and exports. Uranium, bauxite, and manganese ore reserves rank third in the world. There are also richer chrome ore, nickel ore and gold mines. Coal reserves of 23 billion tons, oil reserves of about 3.6 billion barrels, and another equivalent of 1.5 billion barrels of oil shale, natural gas reserves of 133 billion cubic meters, and Quanzhou is a manufacturing base, the two are highly complementary.

The reporter learned from the Quanzhou Customs that at present, the main imported commodities in the Quanzhou Customs Area are crude oil, iron ore, soybeans, and coal, but there are relatively few mineral resources directly sourced from Brazil.

“Controlling the mining rights of the mines is equivalent to controlling the quality and price of raw materials and directly creating the largest profitable space.” The inspection of the mine became the highlight of this year's itinerary of Ming Chaochao’s chairman Huang Mingchao, while Brazil also considered the scope of his trip. Inside, "the main thing is to look at the specific mining conditions of the mines that are being purchased. The demand in the domestic construction market is shrinking, and the quality of stone materials is even more critical."

According to incomplete statistics, so far more than 100 stone companies in Nanan have foreign mining shares or mining rights. After enterprises import raw materials from these countries, most of them are exported through foreign bonded customs, that is, they are “outside”. The mines controlled by Nan'an Stone Enterprise cover Brazil, Turkey, India and other countries and regions. Figures from related parties show that even in the year 2008, when the financial crisis deeply affected, China still purchased 43% of Brazil's export raw material stones. China's total stone import volume has increased by about 11%, and it has occupied half of China's stone processing industry in Quanzhou. Undoubtedly, it is the largest input place for Brazil's raw stone.

Brazil as a fulcrum can radiate South America

Lin Lin, a foreign trade company that has dealt with Brazilian merchants for many years, told reporters that although Brazil is a big consumer country in South America, the import cost is high. In order to protect the interests of its own companies, the Brazilian government has imposed obstacles on imported goods. The Brazilian government also sets a minimum or reference price when import duties are imposed, and taxes accordingly. If the import price is lower than the minimum price or reference price, the Brazilian customs will impose additional taxes on goods that are low-priced or have dumping behavior. .

“In Brazil, foreign countries determine whether imported products constitute dumping, which is based on whether their product pricing is lower than the cost price. Enterprises should pay attention to keeping financial documents such as raw material invoices and employee payrolls in order to prove the price of the exported products. It is not lower than the cost price.” Lin suggested that it would be more difficult for the finished product to be exported to Brazil. Setting up a processing plant in Brazil’s free trade zone is a better choice for entering Brazil.

“Companies can use the Brazilian Free Trade Zone as a foothold to develop the South American market, use some preferential tax policies in the region, expand exports to the Brazilian market, and then radiate throughout the South American market to increase the share of Chinese companies’ exports to the South American market. In addition, in the development of the Brazilian market, it is imperative to formulate a reasonable price, the price of which is based on nothing more than three: cost pricing, market acceptable prices, and competitive prices. Therefore, companies must be involved in the industry. The market conducts a market survey. This survey includes: the price of peers, the general consumption level of the market, and the tariff conditions,” said Lin.