A major trade show in Sao Paulo this week has provided Brazilian importers with a vital platform to source cost-effective products directly from Chinese manufacturers, as Brazil is struggling with volatile currency and unfavorable trade conditions.
The recent depreciation of Brazil's currency has significantly impacted trade dynamics in the country. While exports have gained momentum and revenue from international commodities has risen, Brazilian importers are facing increasing challenges.
For importers, finding the best deals is a critical aspect of their business, especially when exchange rates are unfavorable. Many are exploring market opportunities at Brazil's premier fair for Chinese consumer goods--the China Homelife Expo.
"The fluctuation of the dollar is a problem. When you calculate the cost of doing business, sometimes you reach the conclusion that it's not really worth it,”said Elson Pereira de Souza, an importer and retailer.
Marlon Glauber Faria, a manufacturer, echoed this sentiment. "It used to be better, right? The dollar is a bit high, international freight is unfavorable, but we still persist. Why? Because we think it's still advantageous,”he said.
The instability of the Brazilian currency has made it difficult for importers to plan ahead, as the cost of imported goods can fluctuate significantly.
"We see a lot of volatility in Brazilian currency because of the fiscal side. When it comes to the fiscal balance of the central government, many economists do not believe that the administration or the Finance Minister is going to deliver a surplus in 2024 or even 2025. So, all that together [has] made the Brazilian currency more volatile throughout 2024," said Andre Perfeito, an economist.
The organizer of China Homelife Brazil emphasized that importers can reduce costs by connecting directly with Chinese manufacturers, thereby bypassing intermediaries.
"You can find some people in a virtual way, but face-to-face is always the best. Not only [for] regular importers, but also [for] entrepreneurs that can come here face-to-face with those manufactures with a kind of special support from the organization," said Anselmo Carvalho, CEO of Expo Solutions.
This year, approximately 800 suppliers are participating in China Homelife Brazil, confident that nurturing direct business ties remains essential, even in a challenging environment.
Brazilian importers seek cost-effective solutions at Chinese consumer goods expo
