Brazil's Population
- Brazil has over 210 million people
- Population density is equal to 65 people per sq. mile
- 84% (around 176 million people) live in urban areas
Brazilian Economic Statistics
- Has a current GDP of 2.246 trillion US dollars
- GDP per capita is around $11,920
- Average income in Brazil is around $660 per month or just under $8,000 a year
- Current inflation rate is 9.45%
- Brazil's main industries include:
- Automobile Assembly (known as Brazil's industrial back bone)
- Petroleum Processing (13 oil refineries capable of producing 1.8 million barrels of oil per day)
- Iron and Steel Production
- Technology Based Industries (most dynamic recently)
Developments in Science and Technology
- 1.24% of Brazil's GDP is invested in Research and Development
- Has been steadily increasing over the past decade
- Equivalent of just under $28 billion
Channels of Distribution
Importing:
Distribution: Two types of Distribution Agreements
1.) Ordinary Distribution Agreement
The following are responsibilities of the "dealer":
- In order to import products to Brazil the importer must be registered with the Foreign Trade Integrated System
- In order to register, the importer must obtain a Radar License granted by the Brazilian Federal Revenue
- After the importer is registered and licensed, they can ship goods to Brazil
- While in customs, the person in charge must fill out an Import Declaration
- Then the customs agent will hand the importer the Proof of Import
- Once the importer pays the exporter in full through the Brazilian Central Bank, the goods can be released
Distribution: Two types of Distribution Agreements
1.) Ordinary Distribution Agreement
- The agreement has a non-sporadic feature and does not create any dependency bond between both parties
- In a given operational area, unless otherwise agreed by both parties, the contractor may not designate more than one distributor to operate with identical assignments
- Unless otherwise stated, the distributor will be entitled to remuneration corresponding to all commercial transactions concluded within its operational zone, even if they did not take part in it
- Unless otherwise stated, all expenses occurring from the distribution activity are to be held by the distributor
- The distributor is entitled to compensation if the contractor ceases the contract without a just reason
- If the contract has no provision on its duration, it is legally assumed to be undetermined, and its termination may occur at any time by means of a simple 90-day notice
The following are responsibilities of the "dealer":
- Sales of automotive vehicles described above
- Provision of spare parts of automotive vehicles manufactured or supplied by the respective manufacturers
- Provision of technical assistance to consumers
- Use of the manufacturer’s trademark
- Definition of the operational area reserved for the dealer. While operational areas may be reserved for more than one dealer, it is possible for the contractor to grant exclusivity to a specific dealer
- Minimum distances between different dealers - established in accordance with marketing potential criteria
- The dealer commits themselves to trade the contractor’s automobiles and spare parts, as well as to provide technical assistance to its customers