Every company has ever thought of selling its products and services outside Brazil, either for strategic reasons or even for financial growth purposes.
Today, Brazil's main export partners are China, the United States, Argentina and the Netherlands (Holland). In the case of the latter, we can analyze it more broadly, since the largest port in Europe is in Rotterdam. Without a doubt, commodities represent a large share of national exports, but an interesting fact that few people know is that micro and small companies are responsible for 40% of exports. This volume of products, however, when translated into monetary value, represents only 5% of market share. The major export center in Brazil is the southeast region, led by São Paulo, Minas Gerais and Rio de Janeiro. Out of this axis, Rio Grande do Sul stands out.
This internationalization usually takes place through some means, whether directly or indirectly: exports, licensing, franchising, consortia, joint ventures, acquisitions and strategic alliances. Each of these actions has a different degree of commitment, complexity and risks.
Without a doubt, one of the biggest challenges for a brand in the internationalization process is marketing. Often, companies start exporting to countries where they think entry will be easier, whether due to language, distance or any element that makes that country something more familiar to those who are exporting. But what many companies don't ask themselves is whether people in that country need their product, or even if they should make some adjustments to the product or the way they communicate about it.
Many of these ventured without a minimum study of the country they are entering. Some work out, some don't. Citing the case of China Inbox, a successful franchise that needs no introduction. When the company tried to plant its flag in Argentine lands, it did not have any kind of concern, it simply advanced and assembled its units. But what they didn't have in mind is that the Argentine public has a totally different habit from the Brazilian one – they have lunch and dinner much later than us, for example – not to mention that meals are always accompanied by a good wine. These habits, different from ours, had a consequence: when the Argentines were going out to dinner, the restaurant was almost closing, and even when they found it open, they didn't have an alcoholic beverage (wine) to drink. Result: bankruptcy of the units.
This shows that, no matter the size of the company or the degree of maturity, if it does not adapt to the market, if it does not try to understand what the people in that region really need, the probability of something going wrong is great.
Now place yourself, look at the size of the country we live in, of continental dimensions, states larger than many countries. A multicultural Brazil, a world of different ethnicities within a single place. Before trying to introduce your product to another market, you should ask yourself several questions.
Should I introduce the same product or do I need to make adjustments?
Should I adapt or standardize my communication?
Mixed, multiple or umbrella brand?
The biggest challenges for your company to sell nationally are the same as a company that wants to sell to another country: geographic, cultural and psychological.
1.1 Geographic – should be one of the easiest points, however, taxes and logistical problems in Brazil make it something more complex.
1.2 Cultural – this is certainly one of the biggest challenges and deserves a more technical analysis. A study by Geert Hofstede, which ended up becoming a book later, deals deeply with these “cultural dimensions”. Power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term versus short-term orientation.
1.2.1 Distance from power – this factor itself exemplifies how society reacts to inequalities. This directly implies how a boss should deal with an employee, how a salesperson should act with the customer. Where people are more likely to accept such inequality, the easier they will accept hierarchical levels.
1.2.2 – Individualism versus collectivism – how these people act and how they are interconnected. Should I put individual goals or should I add collective goals for the team. Should I present advertisements with friendship and companionship?
1.2.3 – Masculinity versus femininity – it is worth emphasizing that this concept was developed in the late 1980s and early 1990s. The best-used translation would be “money versus values”. Are my employees more interested in earnings or benefits? Do my customers prefer a lower price or a value-added product?
1.2.4 – Aversion to uncertainty – how much people are willing to take risks in their lives. Is this new wave of Start-ups not showing a new reality? Do these new generations have something to tell us?
1.2.5 – Long-term versus short-term orientation – here in Brazil short term is the rule. But since they are internationalization challenges, think about how a Japanese and a Brazilian company acts. Ask yourself this question, and understand how alliances and partnerships are made.
2.3 Psychic – in short: psychic distance results from the perception and understanding of the existence of cultural and business differences between them. Here, returning to the beginning of the text where I commented that companies generally export to countries where they have more identification, but these decision-making can be due to environmental, individual or relationship factors.
Do research! Today the digital revolution and globalization have brought us more cost-effective means of getting more relevant data. Use them wisely in your decision making.
Think globally, act locally.
Renato Vincoletto Chief Creative Officer (CCO) at Alliance Comunicação. Graduated in Digital Communication, post-graduated in Advertising Creation, Master of Business Administration (MBA) in Marketing from USP. I have been in the Communication market for over 15 years, in which I have worked in several segments, with experience in directing and creating projects and campaigns, directing marketing and branding.
