Jiangmen LED wants to open up the Brazilian market

On December 13th, Jiangmen City Economic and Trade Bureau held a conference sharing meeting for “Blending into Emerging Markets in Brazil”. Jiangmen entrepreneurs from Brazil and local Jiangmen entrepreneurs, officials and scholars discussed the future of Jiangmen’s LED industry in the world. . It is reported that Brazil is about to become the focus of Jiangmen enterprises to open up the market.

Jiangmen LED industry status quo

Although the overall market sales of Jiangmen's LED industry have not been obtained yet, Ren Anliang, deputy director of Jiangmen City's Economic and Credit Bureau, remains cautiously optimistic about the development of LED companies in Jiangmen. Although the overall sales growth rate has declined, the market still maintains. The rapid increase in the 25% increase.

According to Ren Anliang, in 2009, there were only 90 LED companies in Jiangmen, but by 2011, the number had changed to more than 300, and the output value had also increased from 9 billion yuan to 16 billion yuan. The total number of related LED industry companies More than 1,000 companies are listed, including listed companies such as Deli Optronics, Neo-Ningli, and Keheng, as well as Jin Wright, which is currently on trial for listing.

International-level events contain unlimited business opportunities

According to statistics, the trade volume between China and Brazil reached 84.2 billion U.S. dollars in 2011, and 77.1 billion U.S. dollars in 2010, a year-on-year increase of 35%. China surpassed the U.S. to become Brazil’s largest trading partner and the largest export destination. And the second largest source of imports.

“In the future, Brazil, the biggest business opportunity is the holding of three major international events.” According to the person in charge of the International E-commerce Platform Global Market Group, these three major events include the 2014 World Cup, the 2016 Olympic Games, and the 2020 World Expo. In the future, more and more goods will be continuously shipped from China to Brazil.

The responsible person stated that as the event approaches, Brazil’s infrastructure construction will enter a critical period, and now Brazil’s infrastructure is very backward, including outdoor lighting such as street lamps and indoor lighting of stadiums, which all have great market space. “Unlimited business opportunities ".

High tax burden is not rule obstruction

Despite the unlimited business opportunities, there are still many difficulties to overcome in order to seize the Brazilian market. "Language, market rules, corporate credit, local protectionism, etc., are problems that foreign companies must overcome to open up the Brazilian market." Hong Yannan, president of the Jiangmen Lighting Appliance Industry Association, said that his product has just entered the Brazilian market. He has experienced many things that he understands that the Brazilian market is irregular, the rules are changeable, trade protectionism is serious, and credit is low. Great difficulty.

Hong Yannan introduced that Brazil’s tax burden is also a major feature. If products are sold to Brazil in the form of finished products, the minimum tax burden is as high as 50%, and the highest one can reach 100%.

Regardless of market rules, it is also the most frequently encountered in business operations. Hong Yannan said that because Brazilians are lazy, many things that were originally determined have often been placed as “pigeons” in the end, and repeatedly.

"Going in" can take root

Unlimited business opportunities, how to grasp? Hong Yannan believes there are two main roads: going out and going inside. Going out is to do a simple export trade, but this kind of profit is very low; when you go in, you set up factories in the local area and set up coalitions with local companies. The tax burden is reduced and profits are high.

Hong Yannan believes that if Jiangmen enterprises want to take root in these emerging markets in Brazil, the long-term plan is to “walk in” and make channels in the local area to take root. According to reports, the tax burden on local production is only about 10% compared with the lowest taxable rate of 50% for finished products entering Brazil.

As for product requirements, relevant person in charge of Global Market stated that because Brazil’s official language is Portuguese and English is less applicable, the first thing to overcome is the language barrier. At the same time, Brazil’s public places and families often supply two sets of voltages ( 110 volts and 220 volts, so the product must meet their needs.

According to reports, Brazil is still a "state on the Internet." Internet users account for about 50% of the country's total number, so the e-commerce platform is also an important marketing tool for Jiangmen companies to enter Brazil in the future.