For years, Brazil has been known for its sustainable energy generation, chiefly through hydroelectric power stations. Due to a recent drought, this market is currently also open to a whole range of other technologies.
Situation
This case study is of a young, dynamic company that focuses on the renewable energy sector. The client’s products contain high-quality components with built-in safety systems to protect the product and its surroundings from the caprices of nature. The business has enjoyed considerable success in Belgium and Europe, but had noticed that, because of the niche in which it is operating, the growth potential in its home market, country and environment had quickly become saturated. The business therefore wished to expand its international activities. In its search for a new market, it struck this client that Brazil offered a huge number of opportunities thanks to its favourable natural elements, which are essential to the business’s products. As the company itself had little knowledge of the country, the language, the business culture and the potential opportunities, it contacted Belofloripa.
Belofloripa’s approach
The first and most important thing that the company needed was a clear overview of the sector in Brazil in order to be certain of the potential (and its extent) for the relevant products within the Brazilian market. An in-depth screening of the market came up with favourable results as regards opportunities for the company within this sector in Brazil. Because the price positioning of the products was extremely important, Belofloripa then carried out a tax calculation. This meant that a 100% accurate scenario of export to Brazil could be drawn up and the client could get a clear picture of the price of it products within the Brazilian market. This not only took into account the various different taxes, but also the pricing of the company’s local competitors. Because of the sector and the quality of the products, substantial tax reductions were noted, which meant that the client’s products were introduced into the market at a correct and competitive price. Following on from the positive findings detailed above, Belofloripa organised a trade mission for the client, in order to introduce the client’s products to potential distributors.
Results
An intensive trade mission to companies in various different regions of Brazil (from north to south) led to a constructive new partnership, through which the company will be able to supply products on a project basis.