Brazil'S Huge Business Opportunities Attract The Attention Of Quanzhou Shoe Companies

Latin America has the largest consumer market, Latin America's most complete industrial system, and economic strength ranks first in Latin America.

As the largest country in South America, Brazil attracts more and more Quanzhou enterprises' attention because of its huge development prospects and consumption potential.

Reporters learned from the Quanzhou entry exit inspection and Quarantine Bureau, from 1 to May this year, there were 145 batches of goods in the Quanzhou area. The goods were exported to Brazil with a value of 4 million 120 thousand US dollars, and export varied, including footwear, sanitary napkins, food and so on, among which footwear products were the majority.

It is reported that nearly 100 enterprises have business dealings with Brazil merchants.

"Brazil has larger import demand for consumer goods such as shoes."

Quanzhou entry-exit inspection and Quarantine Bureau responsible person said, the Brazil market is a huge, full of opportunities market, is the largest consumer market in Latin America.

According to authoritative organizations, Brazil's economy will grow by 4 percentage points per year in the next twenty years.

By 2030, Brazil's gross national product will reach US $two trillion and forty million, ranking eighth in the world, and its domestic consumption market will surpass France and Britain to become the fifth largest consumer market in the world.

In addition, as Brazil won the right to host the 2014 World Cup and the right to host the 2016 Olympic Games, Brazil, which hosts the two major sporting events, has already started construction of some infrastructure projects, which will naturally lead to the growth of various kinds of consumption.

It includes some building materials, mechanical products, security materials and so on.

In addition, due to insufficient supply of electricity in Brazil, the government of Brazil has been promoting the energy-saving devices such as energy-saving lamps. It has encouraged the import of energy-saving lamps. The import tariff is low, and the energy-saving lamps and other products have great potential in the Brazil market.

Complementarity between mineral resources and Quanzhou's manufacturing industry

The scarcity of resources determines who has the right to speak in the industry.

Brazil is rich in mineral resources. It has proved that the reserves of iron ore are 650 billion tons, and its output and export volume ranks second in the world.

Uranium, bauxite and manganese ore reserves rank the third in the world.

In addition, there are abundant chromium ore, nickel ore and gold mine.

The coal reserves are 230 billion tons, the oil reserves are about 3 billion 600 million barrels, and the oil shale equivalent to 1 billion 500 million barrels of oil. The natural gas reserves are 133 billion cubic meters, while Quanzhou is the manufacturing base, and the two have strong complementarity.

The reporter learned from the Quanzhou customs that the main import commodities in Quanzhou customs area include crude oil, iron ore, soybeans, coal and so on, but the mineral resources directly purchased from Brazil are relatively few.

"Controlling mining rights is equivalent to controlling the quality and price of raw materials, and directly creating the largest profit margin."

The mine has become the highlight of this year's itinerary by Huang Mingchao, chairman of Ming Chao Shi, and Brazil is also considering the scope of his itinerary. "It is mainly to see the specific mining situation of the purchased mines, and the demand for domestic construction market is shrinking, and the quality of the raw stone is more critical."

According to incomplete statistics, up to now, more than 100 stone enterprises in Nanan have foreign mining shares or mining rights. Most of the imported raw materials from these countries are exported through customs, and that is, "two out of the country".

The mines controlled by Nanan stone enterprises are all over Brazil, Turkey, India and other countries and regions.

According to relevant figures, even in the 2008, when the financial crisis deeped, China still purchased 43% of Brazil's export raw materials, and the total import volume of China's stone materials increased by about 11%. Quanzhou, which occupies half of China's stone processing industry, is undoubtedly the largest input place for Brazil raw materials.

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Brazil as a fulcrum to radiate South America

Lin, manager of a foreign trade company in Quanzhou, who has worked with Brazil businessmen for many years, told reporters that although Brazil is a big consumer country in South America, the cost of imports is high.

In order to protect the interests of domestic enterprises, the government of Brazil has set obstacles to imports.

The Brazil government also set a minimum price or reference price when importing customs duties, and then taxed it. If the import price is lower than the lowest price or reference price, Brazil customs will impose additional taxes on goods with low quoted price or dumping behavior.

"Foreign countries, including Brazil, determine whether dumping products constitute dumping. They are defined according to whether their products are priced below the cost price. Usually, enterprises should pay attention to retaining financial invoices such as raw materials invoices, employee payroll and other financial documents, so as to prove that the prices of exported products are not lower than the cost price."

Lin suggested that it would be more difficult for the finished products to export to Brazil. Setting up a processing plant in Brazil's free trade area is a good choice to enter Brazil.

"The Brazil free trade area can be used as a foothold for developing the South American market. Enterprises should use some preferential tax policies in the region to expand exports to the Brazil market and then radiate to the entire South American market, so as to enhance the export share of Chinese enterprises to the South American market.

In addition, when developing the Brazil market, we must make a reasonable price, and the price is based on three factors: cost pricing, market acceptable price and competitive price.

Therefore, enterprises must make a market survey of the market involved in the industry, which includes the prices of peers, the general consumption level of the market and the tariff situation.

Manager Lin said.