Thursday, 14 Jun 2012
Image – glass hanging, Sao Paolo, Brazil
Creative Industries sector in Brazil
Recent studies showed that Creative Industries account for 2.5% of Brazil’s GDP. Some states, such as Sao Paulo and Rio de Janeiro, have already achieved shares above the country’s average in this sector. The estimated turnover of the sector for 2010 was of US$240 billion. Between 2002 and 2008, the Brazilian exports of goods and services in this segment went from US$ 2.4 billion to US$ 7.5 billion.
Creative Industries are growing at a faster rate than the world economy in general, representing seven percent of global GDP, equivalent to US$1.3 billion dollars. (Source: UNCTAD). In Brazil, the segment grew 500% over a period of 10 years, generating around 1.8 million new jobs. Until 2010, the core of the Creative Industries sector employed 771,000 workers. However, the entire Creative Industries chain – which comprises industry, services and trade – accounted for 11.8 million jobs, most of them concentrated on fashion and design.
In Brazil, the number of companies in this segment exceeds 320,000. 99.87% of them are small and medium companies.
Brazil is the world’s 12th music market. Between 2010 and 2011, the recording industry grew 8.47%, achieving a turnover of 129.5 million GBP. Opportunities for electronic and British pop music can be found throughout the country.
Between 2008 and 2010, the book publishing industry in Brazil went through a fast growth, going from approximately 340.000 books published to around 492.000. Their earnings in 2010 were around 1.56 billion GBP. Also, the last edition of Book Bienal reached an audience of 670,000 people. Another success is the International Literary Festival of Paraty (FLIP), which is organised by Liz Calder, editor and founder of Bloomsbury. The festival has featured British writers such as Salman Rushdie and Ian McEwan – who will return for the 2012 edition.
Design and fashion design are others sub-sectors of Creative Industries that offer major commercial opportunities for UK companies. Brazilian companies are fully aware of the necessity to invest in design in order to compete overseas and Brazil wants to increase its exports of sophisticated products. Also, the country’s luxury market, where UK fashion designers fit, is the largest in Latin America, accounting for 70% of the segment. Opportunities in this field are distributed along seven promising cities in addition to Sao Paulo and Rio de Janeiro. In 2012, another luxury landmark will be inaugurated in Sao Paulo: JK Mall. This shopping centre will be home to the first Topshop store in Brazil.
The major sports events that Brazil will host in the next years (2014 World Cup and 2016 Olympics in Rio) will propel the role of art, culture and Creative Industries in general. New ideas, especially in services, design, branding and marketing, will certainly be explored.
Getting into the market
The creative industries sector in Brazil has no specific key method for doing business. The best way to approach the market is to be introduced to it in all of Brazil – from the North to the South, paying especial attention to the Southern region, where the cities of Sao Paulo and Rio de Janeiro are located. Salvador and Curitiba also present good opportunities.
UK products are considered to be of high quality but also high price. In most cases, the decisive issue still is the price. Under Brazilian’s law, it is mandatory to have marketing literature in Portuguese. Brazilians are well-versed in international trading practices and trends.
Because of the dynamics of the Brazilian market, the businessmen are quick decision-makers, extremely flexible and fast to detect commercial opportunities. The initial approach when doing business is extremely important:
Brazilians expect face-to-face contact with their suppliers and look for commitment to their market. Clear catalogue prices in US dollars FOB or preferably landed at a Brazilian port. When visiting Brazil, despite the tropical climate in much of the country, it is customary to wear a suit and tie.
Market intelligence is critical when doing business overseas and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists based overseas - or contact your local international trade team.
Simone Ricci, Sector Manager, British Consulate-General in Sao Paulo. Tel: +55 11 3094 2746 or email: email@example.com.
Vera Oliveira, Commercial Assistant, British Consulate-General in Sao Paulo. Tel: +41 (0)22 333 4444 or email: firstname.lastname@example.org.
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.
FLIP – Literature Festival
04-08 July 2012
19-23 September 2012
29 May – 22 July 2012
Bienal de artes de Sao Paulo ( Art Biennale)
07 September – 9 December 2012