The London-based Center for Economics and Business Research (CEBR) has officially declared Brazil as the 6th largest economy in the world. It has now surpassed Great Britain.
In fact, Brazil represents a substantial opportunity to nearly any company looking to accelerate their growth curve. With 200 million inhabitants, a growing economy, and imports growing at a 31% annualized rate in 2011, Brazil shows an appetite for foreign-made products. Couple this to increasing demand from private consumption, government spending and fixed capital formation2, and Brazil’s status as a highly attractive emerging economy is well-deserved.2
With a projected annual GDP growth rate of 4.2% for the 2012-2013 period3, massive infrastructure developments to support the burgeoning purchasing power of its population – and the upcoming 2014 World Cup of Soccer and 2016 Olympics – Brazil represents one of the most substantial opportunities for organizations looking to expand internationally. At present, Brazil provides organizations in technology and numerous industry sectors with a unique ecosystem to substantially accelerate growth, to increase revenues, and to claim early-mover advantage in one of the world’s most coveted international markets.
With size as a frequent indicator of market potential, here are some additional facts4 that further illustrate the massive opportunity that Brazil represents to nearly any company looking to capitalize on its growth:
- Biggest aerospace power of the southern hemisphere. The opportunity: With defense and aerospace cuts in the USA, your next market growth may come from south of the Equator.
- Biggest fixed line telephone market of Latin America. The opportunity: Have a technology that depends on land-lines? Welcome to your new market with a legacy infrastructure.
- 3rd in the world in the aircraft industry. The opportunity: Akin to the defense and aerospace market domestically .Presents a major opportunity to diversify abroad.
- 3rd in the world computer market. The opportunity: Just about anything related to such a market stand to do well in Brazil.
- 4th biggest TV network in the world. The opportunity: A captive audience of brand-loyal, media-influenced consumers. Lifestyle choices are substantially driven by television.
- 5th biggest mobile phone market. The opportunity: Why confine a mobile app, website or software channel to a single language? Your next mobile-friendly money-making endeavor may need to be released in Portuguese.
A very short list of massive markets looking for solid players to enter, nurture and grow their presence. At a minimum, company leaders owe it to themselves to disprove the hypothesis that growth opportunities for most companies also means growth for their own.
So go ahead and give Brazil a look. It might just be the next springboard market that sets off your company into a transformation leap forward.
2 Source: Center for Economic and Policy Research, 2011.
3 Source: Scotia Bank, 2012.
4 Source: UHY Advisors, 2011.