Brazil

by Neil Payne, Managing Director of Kwintessential

The land that has brought us the Bossa Nova, Pele and coffee has recently started to realise its potential on the world stage. Emerging from over half a century of military intervention into domestic politics Brazil has now recovered from the economic doldrums of the late 1990’s to become the world’s ninth largest economy.

Following the election of the current president Luiz Inacio Lula da Silva in 2003, the administration has established a stable economy aided by greater privatisation and deregulation. Spanning almost half of South American continent it has huge natural resources with successful industries in agriculture, mining and manufacturing. The UK is now Brazil’s ninth largest supplier of goods and services and therefore the UK’s most important Latin American trade partner. For those looking for up and coming foreign markets, Brazil is certainly attractive.

The fact that 2/3 of Brazilians live next to or near the coast may have something to with their relatively relaxed approach to life and business. However, as with any country there are still ways and means that you need to be aware of.

A key point to consider is that business is seen as any other sort of social interaction; and as a result people feature much more prominently in decisions than profit-margins. Deals are won and lost upon the strength of relationships and the ability to nurture a sense of chemistry. Consequently when first starting out in the Brazilian market it is important to work through a local contact, a “despachante”. This contact has the ability to introduce you to the right people, set up meetings and deal with paperwork.

A potential Brazilian partner is essentially looking for two things; someone they like and trust as well as someone who is competent in business. The most important of these is to build a strong relationship first which will then naturally lead to trust. Time must be invested in getting to know people on a personal level in order to allow for open and honest discussions in business.

One point Brazilians usually comment on is the tendency of European and American business people to “get straight down to business”. This can be seen as offensive and even aggressive. It is good practice to indulge in small talk whether it is asking about their children or chatting about the latest news or football results. Don’t be surprised if you are asked seemingly personal questions as this is part of the getting to know you process. Reciprocate such questions and show an interest in their lives and background.

It is crucial point to note is that Brazilians do business with people, not companies or organisations. As a result if a team or individual who has built a good working relationship with Brazil are replaced, the company goes back to square one as the relationship has to start from scratch.

The Brazilians’ communication style reflects their warm and vivacious characters. When greeting they expect a firm handshake combined with strong eye contact. Don’t be taken aback if they stand very close to you when speaking. Moving away may be interpreted as rejection. On the whole they are a very touchy-feely people and close physical contact is not considered an invasion of personal space. When speaking they can become quite animated and passionate. Interruptions are normal and rather than having a negative connotation reflect interest in what is being discussed.

When first meeting your Brazilian counterpart ensure you stick to the initial formalities. Unlike many countries, surnames are not the norm. The use of titles however is tricky, even for Brazilians on occasions, as they depend on hierarchy, age and other factors. The safest option is to respond to your counterpart in the manner they address you, i.e. if you are called Mr, then call them Mr back.

Dress is taken quite seriously in Brazil. This is possibly a manifestation of the subtle class system that exists in country. People tend to social profile others and dress is one of the many factors taken into consideration. Try and dress conservatively, i.e. a suit and tie for men and a dress and jacket for women. Jeans are a no-no as they are considered way too casual.

Business meetings can be lengthy affairs. This allows for a decent amount of small talk before getting down to the nitty-gritty of business. Punctuality can sometimes be an issue in Brazil although this should not be interpreted a rude or lazy. As Europeans we may be accustomed to rigid schedules and appointments and always keeping one eye on the clock. In Brazil however there is a very different approach to the concept of time. Individuals often deal with several people and different problems at the same time. Combine that with a complicated bureaucracy, frequent traffic jams and the tendency to get into a decent chat with anyone and the result is very often lateness. In this instance the “when in Rome” rule should not be applied – always turn up on time.

Remember that Brazilians will want two things out of a potential associate. A good relationship based on trust plus a sound business partner. When presenting information ensure you use sound facts and statistics and try and present them visually. Ultimately a decision comes down to chemistry so ensure you remain cool and professional; avoid any sort of confrontation and definitely do not resort to hard sell tactics.