Brazil’s continued prosperity and optimism provide excellent opportunities for electronics firms in a highly competitive environment. How Hong Kong companies and exporters can better serve the country’s sustained quest for quality products thus becomes a very spellbinding question! Given the sheer share of electronics to Hong Kong’s exports, reaching new heights of success in Brazil’s electronics market is of particular importance.
Sustained quest for quality imports
Despite the presence of a broad-based industrial sector, the country’s quest for better prices, greater variety and superior design has engendered a strong demand for a wide range of manufactured products. This is one of the reasons underlying the accelerated growth of imports (42% in 2010) rather than exports (32% last year).
As if to underline that fact, Brazil’s imports of consumer goods, accounting for 17% of the total figure, grew by 46% last year, outperforming the growth of 42% of the country’s overall imports.
Dominating the export roster, Hong Kong electronics, including both finished goods and parts and components, look set to have the strongest foothold in the Brazilian market, followed by watches and clocks.
The country is host to successive major sporting events – football’s World Cup in 2014 and the Rio de Janeiro 2016 Summer Olympics, so its sizeable young population (comprising almost one-third of the population under the age of 20), ensures that electronics products will definitely become increasingly sought after in the run up to those events.
How has Hong Kong been performing?
Indicative of the economic and consumption boom in Latin America’s largest economy, Hong Kong’s exports to Brazil came back and surpassed its pre-crisis level in 2010, after a staggering decline of 29% in the recession year of 2009.
Recording a growth rate of 41% in 2010, far higher than Hong Kong’s overall export growth of 23% over the year, Brazil has shown Hong Kong companies and exporters once again its sustained quest for quality products.
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