What is a FMCG Fast-moving consumer goods?

For definition FMCG is: frequently purchased essential or non-essential goods such as food, toiletries, soft drinks, disposable diapers. ‘Fast moving’ implies that the items are quick to leave the shelves and also tend to be high in volume but low in cost items. These are products that you can use day by day. This sector holds some of the most famous brand names that we come across every day.

Why work in FMCG?

1- The FMCG creates in demand consumer products at a low cost that are always available. It means that the types of products in this sector are surrounding consumers every day. Everyone is a consumer, so it easy to sell;

2 – The companies involved in the FMCG are the biggest in the world usually. Working with these companies can be a great opportunity for your target market;

3 – Innovation is a consistent process in the FMCG industry. The FMCG Industry is always thinking to improve their good such as, marketing, advertising. This makes it the perfect market for someone looking to work in a fast paced profitable environment;

4 – Even during the recession, the FMCG industry still carried on profiting good. Because when you are selling so primary products, people alway need it and are always buying it;

5 – The FMCG industry is very dynamic, if you are interesting in be part of this, there are so many different opportunities available in the industry.

Some of the degrees that may prove useful for a career in FMCG include:

Retail Buyers

Are responsible for stock selection. They must understand their customers’ tastes, and the types of products that sell well in their store. They must keep abreast of current trends and fashion, and be aware of the nature of the competition.

Retail Managers

They plan and coordinate the operations of retail outlets. They assume responsibility for ensuring the quality of customer service, the appropriateness of choices of inventory, and managing the finances. In a small organisation, they may take direct responsibility for all aspects of supply chain management, for example.

Supply and Distribution Chain Managers

Are responsible for planning and organising all tasks of supplying the right products to the right store in time. They are required to manage the storage of goods, and the delivery of goods to the retail outlet.

Marketing Managers

Research, plan and implement all aspects of an organisation’s marketing. Improve the image and profile of the organization, and to increase its sales and market share. They need to understand consumer trends and demographics, to plan and develop advertising and publicity campaigns.

Finance Managers

They need graduation in accounting preferably for this work. Many graduates in this function take an MBA to accelerate their career progression and differentiate themselves. The work involves producing management accounts in time for reporting cycles. They work to improve overall profitability of the organisation.

5 Brazilian exporting regulations that you should know

The advantages of importing are many, but doing business in Brazil can be a bureaucratic challenge. See below some of the regulations of exporting from Brazil.

1 – Payment Modalities

Payment in Advance

The transaction value is issued by the importer and the exporter provides the documentation and export of the goods. They must also provide the exchange contract with a bank before shipping the product.

Remittance without Draft

The exporter prepares the documents, ships the goods and  sends the papers to the importer. The payment will be sent once documents and goods have been received.

Documentary collection

It happens when a bank is in charge of all the documents, and act as international debt collector for a transaction previously agreed between the parts, being totally free from any responsibility over the result of the transaction.

Letter of Credit

It is issued by a bank according to the importer’s orders. It assures the payment to the exporter if they follow their obligations.

2 – Main Documents

Pro-forma invoice

It concentrates all basic information on the deal and can be used (by the importer) to go ahead with custom clearance and collect the goods. Not all ports accept them, especially Italian ports.

Nota Fiscal

It must follow the good until it arrives at the shipping location and must be issued in national currency, based on the FOB price conversion from Brazilian reais (BRL) to dollars (USD) on the day it was issued.

Commercial Invoice

Refers to the operation, in which all the information had already been presented on the pro-forma invoice, along with others confirming the transaction. It is issued by the exporter and has to be filled in according to the regulations of the importer country.

Shipping Certificate

it is a document issued by the carrier or its agent, and represents the transportation contract, being the proof that the good has been shipped. It can be accepted by the bank as a guarantee that the good has been shipped.

Packing List

It has the purpose of listing the packages and their contents and is filled in by the exporter, facilitating customs procedures.

Certificate of Origin

It shows where the goods come from, and is issued by accredited entities.

3 – Fiscal Incentives

Exporters are given fiscal incentives (which contribute to tax exemption), such as the decrease of the tax aliquot to 1,5% on top of the billing of companies exporting clothing and furniture, for example. Some of the internal taxes exporter may be free of are PIS, ICMS, IPI, COFINS and IOF.

4 – Norms and Certification

For products to achieve certain quality levels, some procedures are required and in Brazil, ABNT technical norms help  companies to achieve these higher levels. When it comes to international commerce, environmental and technical regulations can be a problem to the Brazilian exports and are called “non-tariff technical barriers” working as a way to protect the market.

5 – Direct and Indirect Commercialization

Direct Commercialization occurs when the exporter is responsible for all the transaction process, from the first contact to the conclusion of the sales. Indirect Commercialization happens when the company has to use a third party, specialized in finding buyers in markets overseas, requiring the participation of a trading company, which acquires goods in the domestic market for export.

When is it worth to import a brazilian product?

Brazil is the fifth largest country in the world, with a population of approximately 204 million. Brazil is the world’s sixth largest economy and by far the largest in South America, so it turns Brazil a potential and security country to import from. It has one of the world’s most rapidly developing economies and a Gross Domestic Product (GDP) per head greater than India and China.

Brazil is one of the four countries that form the BRIC (Brazil, Russia, India and China), and it has the potential to be one of the world’s most dominant economies by 2050, second economists, it reforces the initial information about this country to be a serious and stable to trade with. Some of strengths of Brazil are: strong industrial, large production of commodities, such as canned food, corn, grains, oil. Its grains are internationally certificated, and actually, Brazil has a strong International Trade base to serve its costumers.

The country is the 11th in petroleum production, and the 29th country of the largest international primary products exporters.
Commodities represents 60% of all exportation from the country. And now, the exchange variation of Dollar favors the importation from Brazil.

You must know your company need to register in RADAR, SECEX and SISCOMEX systems to be able to import and in those systems you register, inform your imports, you can request licenses and others documents if necessary in your international trade.  As for the taxation of each product, it is necessary to say that Brazil, the Mercosul Common Nomenclature, the NCM, which is based on the international method of product classification. The classification of goods under the NCM code defines which taxes and rates are due.

Thanks to Brazil’s domestic market of some 200 million consumers and preparation work for the hosting of Olympics in 2016, the Brazil economy will improve its competitiveness forces to export. The weakening of Brazilian real front of dollar, as mentioned before, will help bolster the country’s export and cost competitiveness, incentivising foreign investors and manufacturers to invest and start up production in Brazil.

In practice, lets see three steps you need when you decide to import from Brazil:

1 – You’ll need to decide what kind of goods you want to import, and then you need to know if your country has an international agreement with Brazil, witch are the licenses you’ll need, and all documentation;

2 – You’ll must hire a licensed customs broker with specific experience in the kinds of products you want to import. Expertise in a type of product trumps knowledge of the country of origin;

3 – Confirm with your licensed customs broker all documents, and always be aware of the whole process and ask him every time you are in doubt;

Concluding,  with all these informations and tips you’re certain able to import form this potential and providential of essential goods country, this great economy of south of America, Brazil. And if you’re fully prepared and sail through your port of entry the first time, chances are you’ll make it a habit.

5 Interesting cultural facts about Brazil that every importer must know

Thousands of businesses around the globe successfully import goods from Brazil every day, and that would be mainly to the chance of cutting costs at the same time as receiving a high quality product, which  makes it a tempting option for many businesses overseas.

However, when you think of the beaches, the carnival, samba, football and parties, be aware that doing business in Brazil can be quite a challenge to importers, and not as much fun. Even though there is an enormous potential for companies and entrepreneurs overseas, it will take time, money and quite a lot of effort to do so.

There will be a number of advantages of doing business with Brazil though, and the following cultural facts about Brazil may help you on your way.

1 – Bureaucracy

Brazil has quite a complex tax system with high taxes. The reform of the laws and regulations for opening and running a business in Brazil has not adapted at the rate with which the economy has grown, unfortunately, which can present many problems to companies that are willing to import. According to USA Today, it can take 3 times longer to import or export goods to Brazil than most other countries.

2 – Roads and transportation

There may be long journeys between cities and states, where cultures may vary significantly, and it is said that Brazil is practically a continent in itself. Brazil is a country notorious for its poorly constructed and maintained roads,
railways and seaports. Delays at airports are common, this being aggravated by a not efficient and slow customs service.

3 – Personal contacts and conservatism

You may need to visit the country several times before sealing a deal, as a lot of importance is put on personal contacts. Sao Paulo is Brazil’s most internationally orientated business city, where business behaviour is more westernalized than everywhere else. In general, the more north you go in Brazil, the more conservative business mentality will become. A big part of the economy of Brazil consists of family businesses, and these kind of companies are more
patriarchal and formally organized than western companies. Brazilians consider having a decent family background as being very important, and often managers start later than their subordinates, but stay longer.

4 – Lunch break

Sitting at your desk or in your cubicle, eating lunch while you work is incomprehensible to most Brazilians, who leave their offices to eat with their colleagues and friends. Offices usually work Monday to Friday, from 8am to 6pm.  Lunch breaks can last up to 2 hours, from 12pm to 2pm, which makes doing business with Brazilian companies quite complicated. As an example, due to the time difference, someone in the UK will only be able to speak to Brazil after 12pm and only until 4pm. Then, they will have to wait until they come back from lunch, which usually would be around 6pm (London time).

5 – Footwear

Brazilian footwear is highly desirable worldwide, due to the low prices, high quality and design. Because of this, Brazilian footwear is exported to more than 150 countries, generating around USD 1,1 billion of sales annually. The Brazilian Footwear program was created in October 2000 and its main target markets are United Arab Emirates, France, Italy and United States of America.