4 challenges you will face when doing business in Brazil

Doing business in Brazil | Bold Creator's Club leading agency in influencers' marketing | Fazer negócios no Brasil | hacer negocios en Brasil

The world of influencer marketing is vast. It’s easy to get lost in all the options you could argue that Brazil is one of the most diverse and exciting countries in South America. The landmass spans across eleven time zones, with various climates from tropical to arid deserts found there as well. That is why there are several challenges to doing business in Brazil.

The country also has a population size approaching 200 million people, which makes it more than twice the size of France or Spain’s population.

It would make sense then for companies planning on doing business in Brazil to consider various factors when sending expatriates abroad.

Doing business in Brazil | Bold Creator's Club leading agency in influencers' marketing
source: Barrett Ward

It seems many different steps need consideration before setting up international business relations for any corporation; these include culture, politics, language barriers, and company values and standards that must not differ from home country practices.

Some countries require specific visas or work permits depending on how long one will stay within their borders.

The “when in Rome” saying also applies at the business level. Companies that fail to correctly assess, learn about cultures, and adapt their practices will face many problems when entering a new market and doing business in Brazil.

Doing business in Brazil | Bold Creator's Club leading agency in influencers' marketing
source: Dylan Gillis

The Legal challenges of doing business in Brazil

Brazil is a hot spot for commerce in the Americas and has its own set of laws when it comes to brands entering their borders. If you want your brand on store shelves or online stores by Christmas time this year, make sure that all legal procedures are taken care of now so as not to have any unforeseen delays later down the line!

Brazil is a land that values family and togetherness. For this reason, the Brazilian laws of commerce are different from those in European or American countries. With these more lax regulations on business owners entering Brazil, companies need to understand which legal procedures they will need to endure before importing their brand into the country and doing business in Brazil.

Doing business in Brazil | Bold Creator's Club leading agency in influencers' marketing
source: Statista 2021

There are many regulations on imports in Brazil. All Brazilian imports must be authorized first, and the import license formalizes an import request identifying what product is being imported to how much of it will be brought into the country as well as who’s involved with importing this item to ensure that they have permission from all parties necessary for bringing something new across borders.

The impact of political instability to doing business in Brazil

There has been a major corruption scandal in Brazil that involved CEOs and government officials across Latin America. With the recent arrest of an executive at Brazilian construction company Odebrecht, over 140 people have now come under investigation for their involvement with this corrupt act.

Political corruption is an issue in Brazil, but it’s nothing new. The country ranked 76th out of 180 countries on the Corruption Perceptions Index released by Transparency International for 2016. It was also named one of five “worst offenders” and “high-risk” economies due to its high degree of political instability that can negatively impact business operations when doing business with a Brazilian company or developing their international expansion strategies into this market.

Doing business in Brazil | Bold Creator's Club leading agency in influencers' marketing
source: Transparency International | Statista 2021

The Brazilian government has been working to improve transparency in recent years. One way they’re doing this is with their “integrity program,” which involves sharing public resources on where it’s being applied and providing more opportunities for citizens’ voices to be heard.

With the current volatility of the Brazilian economy and coin, and with elections in 2022 that promise to bring a fierce fight in the ballots, companies must understand this political instability before doing business in Brazil.

Language barriers when doing business in Brazil

The English language is not widely spoken in Brazil. The most common languages are Portuguese and Spanish, which leaves many people from other countries feeling isolated when they visit.

Only 5% of Brazilian’s speak English- including CEOs or high positioned individuals like doctors, lawyers, etc., who often can’t perform their duties without the help of a translator because so few understand it.

Portuguese speakers on a Spanish continent far from the English-speaking world, Brazilians have been able to form their own linguistic universe. This has allowed them to keep and maintain traditions that may otherwise be lost with globalization and the unification of languages across cultures.

While many Brazilians are not proficient in speaking English outside Rio de Janeiro or Sao Paulo, it is important for those who live abroad or interact with foreigners regularly to know some basic phrases because they will likely need these skills during travel overseas as well as when interacting at home if other bilingual people come into contact more often than before (in whatever capacity), being crucial for foreigners that plan on doing business in Brazil.

The problem of infrastructures when it comes to doing business in Brazil

Brazil has always been a country of progress and innovation. However, when it comes to infrastructure development the South American giant is severely lacking in spending levels compared with other emerging markets like China for example who spends 4-5% GDP per year on infrastructure.

Doing business in Brazil | Bold Creator's Club leading agency in influencers' marketing
source: Associação Brasileira da Infraestrutura e Indústrias de Base | Statista 2021

As the National Transport Confederation of Brazil reports, 57% of Brazilian roads are damaged at least to some extent. This compounds issues such as cargo theft and traffic accidents which are also very high in a country that relies on their road infrastructure for 60% of goods transportation. The quality of this system is questionable when considering how many cars have been reported stolen or involved in collisions due to unsafe driving conditions.

Brazil’s rail lines have been a vital part of the country’s economy, but due to its uneven geography, it has proven difficult and costly for them. Airfreight is too expensive for many things in Brazil so inland waterways are used instead. They account for about 14% of transportation needs, but they’re underused when compared to other countries where waterways are more utilized.

When doing business in Brazil, all these infrastructure and logistics problems must be acknowledged in strategic planning.

Bold Creators Club can help you doing business in Brazil

Brazil faces other problems like extreme bureaucracy, high inflation rates, and social prejudice. However, a lot of people don’t know about the advantages that come from hiring an agency to take care of visa processing because they feel it will be too expensive or complicated.

Bold Creators Club can help you navigate the Brazilian business environment so that your company is successful. We are aware of how difficult it has been for international businesses in Brazil and know just as well as anyone what a tough adventure this country may be on one’s own, especially if they don’t speak Portuguese.