Brazil Looks to Future

To some in the United States, the Latin American tradeshow industry might appear monolithic. But it’s decidedly not, with significant differences from one country to another on the vast continent.

The primary country that must be included in any discussion of South American exhibitions is Brazil. Its large population (at an estimated 196 million, South America’s biggest) and vibrant economy alone make it a prime target for foreign exhibitors.

However, there’s a lot to know about doing business in Brazil, including its tradeshows.

Ana Maria Arango Medina, executive director of AFIDA, the Asociacion Intl. de Ferias de America, said Brazil is the 12th-largest economy in the world, with half of South America’s population, territory and economy. Though Brazil did not avoid the world economic downturn, it has been among the fastest countries in finding its way out, she added.

As of last month, Brazil’s economy is growing again at a 5-percent annual rate, which has contributed to the positive performance of its exhibition industry sector. There has been no significant reduction in exhibit space sold or international attendance as a result of the current crisis, Medina said.

Marco Giberti, president of Reed Exhibitions Latin America, said Brazil was not immune to the recession. In fact, the first half of last year particularly was tough because of the global crisis.

“Nevertheless, the recession was short,” Giberti said. “We started to feel positive improvements again in the last quarter of 2009, and our projections for 2010 are reflecting positive growth.”

How does Brazil’s tradeshow industry compare with others in Latin America? According to Medina, it’s well developed, offering facilities that meet international standards, a strong presence of international show organizers, high levels of competition, a well-recognized and developed tradeshow culture in government and business and a tradeshow industry represented by strong associations.

In contrast, she added, less-developed exhibition industries in other Latin American countries lack government support, sometimes hold tradeshows in tents or venues lacking adequate infrastructure and have exhibitions that are conceived more as popular and festive events rather than commercial meetings.

Giberti said Brazil is quite different from, for example, Mexico or Argentina. With a very strong domestic market, shows in Sao Paulo attract an important national audience in many different industries, as well as regional visitors from the rest of Latin America, he added.

“Without doubt, Sao Paulo is the capital of the Latin American tradeshow industry,” Giberti said. “(Reed Exhibitions Latin America) consider(s) Brazil our No. 1 priority in Latin America and one of our top priorities in terms of growth opportunities on a global basis. We have invested significant resources during the last several years in order to consolidate the best portfolio of events and management team in the region, and we have a long-term vision to keep adding new events through acquisitions, strategic partnerships and launches.”

He said being part of a global company, with more than 470 events each year in 37 countries, is a challenge, but he is passionate about continuing to find new ways to serve local customers with a local approach, while capitalizing on the benefits of being a leading global player and bringing the best buyers and exhibitors from all over the world to Brazil through partnerships with international and local organizers. These partnerships allow for collocated events and joint ventures that create a stronger value proposition and ROI to all parties involved, Giberti added.

Reed Exhibitions has had a presence in Latin America for more than 15 years and has seen many different crises and opportunities in the region. The company is confident that Latin America and, particularly Brazil, will become a larger and more important player in the global tradeshow industry, Giberti said.

Anselmo Carvalho, president of Sao Paulo-based tradeshow and corporate event organizer Grupo Feira, spoke of what he considered Brazil’s unique business culture, noting the country is famous for its hospitality, warmth and spontaneity. And flexibility, the ability to adapt and to facilitate communication and negotiation – Brazil’s “jogo de cintura” – makes the country’s businesspeople experts at finding creative solutions to problems and obstacles that might arise when facing political and economical challenges, he added.

Carvalho said Brazilians have the ability, because of their Latin roots, to establish relationships based on affection and emotion without losing focus on the business deal. By doing so, they are able to establish deep connections with their customers, suppliers and partners, he added.

This Brazilian way of dealing with people is able to be seen on the tradeshow floor, Carvalho said. It is not uncommon for exhibitors to hire receptionists to give special attention to attendees, especially in times of peak booth activity, to keep the business atmosphere from cooling down, he added.

Carvalho said Brazilian exhibitors usually invest heavily in lounges, VIP rooms and mezzanines in their booths that allow them and their potential customers to discuss business comfortably and informally. Catering services are nearly mandatory in Brazil.

“At the end of the day, exhibitors have a habit that would be considered uncommon in many countries,” Carvalho said. “Wine, champagne, whiskey and beer are part of the menu.”

Promotional activities, such as raffles, dance or musical groups, the distribution of gifts and playful demonstrations of products and services, are just part of the attractions designed to create a pleasant, informal environment in which to make deals, Carvalho added. It’s also common for companies to schedule activities after the close of the day’s events. Dinners, parties or visits to nightclubs with their main clients are ways exhibitors have fun, show off a bit of Brazil to their guests and, of course, lay the groundwork for future deals.

With all of this going for Brazil, what’s the future look like? For Medina, the good experiences of international tradeshow organizers already in the market and the positive outlook for Brazil’s economy offer substantial market opportunities and great incentives for potential players looking for growing markets. However, there’s a high level of competition that makes for a very complex market.

Giberti said the organization he oversees, Reed Exhibitions Alcantara Machado, is the main tradeshow organizer in Latin America with Brazil as its main market, particularly with national and regional events in Sao Paulo.

Other big international players in the market are United Business Media and Clarion Events. UBM, formerly CMP, was the first international organizer to establish an office in Brazil in 1994. Since then, it has developed and organized more than 80 events for the food, pharmaceuticals, cosmetics, building, IT and transport markets, including Hi South America Summit, Fi South America, CPhI South America, P-Mec South America, Intermodal South America and Busworld South America.

Major domestic organizers include Equipotel, Fagga Eventos and Grupo Couromoda.

Medina’s list of significant organizers included Reed Exhibitions Alcantara Machado, Brazil Trade Shows, Diretriz Empreendimentos, Francal Feiras, Grupo Couromoda, Grupo CIPA, Fagga Eventos, Messe Brasil, Nuernberg Messe, FCEM, Feiras and Congressos e Empreendimentos.

She said some of the most significant shows included the Salao do Automovel, an automobile tradeshow; Fenatran for the transportation industry; Autopar, the South Brazilian automotive industry exhibition; Hospitalar for hospitals, health clinics and laboratories; Fispal for the food and beverage industries; Brasilpack for packaging; Couromoda for shoes, sports and leather goods; Francal for footwear and fashion accessories; Fimec for accessories for footwear and machines and equipment for footwear and tanneries; Mecanica for machinery and industrial supplies; and Agrishow for agriculture.

Medina said Brazil’s major economic sectors all are well developed and well represented through tradeshows, and there is no sector without a recognized exhibition. The most dynamic sectors in the exhibition industry are automobile, machinery and equipment, followed by agriculture, industrial and textile, accessories and footwear, she added.