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Two Interesting Looks at Business in Brazil, from SGK and Popsop

Posted By: SGK April 08, 2013

A recent Popsop column on consumer product marketing in Brazil meshes nicely with an article in the most recent SGK Patterns: Emerging Markets, Converging Opportunities. In Popsop, “The Opportunity, Creativity and Diversity of Brazil” discusses how that country is both intriguing to global brands and a “tough nut to crack” because of distinctly Brazilian factors.

Author Stephen Maher notes that while Brazil is second only to the U.S. in Facebook use and that pay TV has 45 million subscribers there, there are strategic challenges to consumer brands entering the market. For one, there are no dedicated media-buying agencies there – it’s handled by full-service ad agencies – a legacy of the state’s previous control of the media.

Another is that although the internet is the third-largest media channel in Brazil, brands still prefer mass-market TV advertising and its excellent penetration. And there are even more unique challenges, like the ban on outdoor advertising in São Paolo.

In SGK’s recent Patterns article, “Brazil’s Personal Care Boom: Room for More” we note factors like high import costs and high taxes on businesses compared to other countries, which make it hard to do business in Brazil from afar and hard – at the same time – to put down roots there. But major foreign brands are doing it.

And both articles note the astounding transformation that Brazil has undergone in the past decade, thanks in part to active government involvement in jobs and infrastructure. This activism is a key reason Brazil will host the 2016 Olympics, and the Olympics in turn are additional motivation for the government and for brands that want to leverage Brazil’s new awareness of its own consumer power.

Read "Brazil's Personal Care Boom: Room for More" and “The Opportunity, Creativity and Diversity of Brazil” back-to-back for an excellent overview of business, marketing and creativity in that country.