GLOBAL MANUFACTURER CHALLENGES
In order to take the Go/No-Go decision, the foreign manufacturer needs to base its decision in real facts, not only in the feeling, otherwise the risk is too high and it will generally cause a huge waste of time and money. We can offer a report with all the needed information to take the right decision. Besides that, we can be your partner during all the process.
The brazilian market offer several challenges for doing business considering that you are a new player.
The main barriers are:
Very complex regulatory system
Depending on the product, there are different regulatory bodies, such as ANVISA, INMETRO, ANATEL, and MTE. One of the most regulatory body is ANVISA, which demands several requirements to allow the imported healthcare product being sold in the brazilian territory. Anvisa register can involve GMP certification depending on the risk class, taking from 1 to 5 years. If you decide to manufacture in Brazil to take the government benefits, it can take from 6 months to 2 years. By other side, if your product is risk class 1 or 2, you can have the "cadastro" in less than 6 months.
Brazilian different cultures
The Brazilian culture is one of the world’s most varied and diverse, this is due to its being a melting pot of nationalities. All of these different influences caused a unique and complex modern-day Brazilian culture.
Brazil is a country colonized by people from several European countries, mainly Portugal, Italy and Germany. There are 5 large different regions that require different approaches.
Very complex tax system
Imported products are subject to a huge number of taxes and fees in Brazil, which are usually paid during the customs clearance process and after by the local distributor. Some of the main tax involved in the process are the Import Duty (II), the Industrialized Product tax (IPI) and the Merchandise and Service Circulation tax (ICMS). In addition to these taxes, several other taxes and fees are applied to the sales process. Note that most taxes are calculated on a cumulative basis. In 1995, Brazil implemented the Mercosul Common Nomenclature, known as the NCM (Nomenclatura Comum do Mercosul) to regulate the trading among the southern cone countries.
Geography
Because its continental territory, Brazil has 5 big regions and 26 States to be explored. That means long journeys between main cities and states. Each one has different economic and business situation.
MEDICAL SALES HUB SOLUTION
The Medical Sales Hub helps to overcome all above barriers working with specialized partners in each specific area in order to provide a welcoming business environment for foreign companies.
We provide high efficiency in the incoming process for international manufacturers. We operate on the entire value chain, managing product registration in all regulatory agencies, importation and nationalization of goods, as well as planning, execution and sales management in the country.
We act with market intelligence, identifying products and solutions aligned with the technology and innovation criteria demanded by the healthcare sector. Thus, we distribute the products aligned with the correct sales channel that will allow the best solution, so we ensure greater penetration, scalability, efficiency and relationship with each customer.
We seek to always developing the best communication with the market, building marketing actions capable of enhancing customer perception, always aligned with the manufacturer
Our role is to be the facilitating agent of the foreign manufacturer in Brazil, conducting with full knowledge of the market and its rules, the entire process of entry and participation in the country. We have a mission to act transparently, eliminating the entry barriers of traditional distribution models. Thus, we provide clarity from products registration to end customer satisfaction.
Medical Sales Hub structure and step by step actions for Global Manufacturers
MSH has all the necessary structure to import and sell your product in Brazil. We have expert partners who act very focused on each step of the country entrance process for foreign manufacturer.
We can build a complete business plan to start your business in Brasil including all information about financial and market viability.
We have developed step by step procedures for product entrance into the Brazilian healthcare market:
- Identification of regulatory needs and required budget for registrations.
- Technical and financial feasibility assessment through a tax planning to understand if the price will be competitive with the desired operating margin.
- Market research which will set the basics for building the marketing plan.
- Marketing plan, which will set the Go to Market strategy involving market, competitors' price and positioning. This will set the final price strategy, desired market share, key customers definitions, among other important aspects.
- Definitions of importation and nationalization process, including any local stock needs.
- Definition of responsible team and its main actions.
- Agreement building between all the parties.
- Sales channel building and training.
- Importation, Logistics and distribution including possible demos kits.
- Service channel building as well as Customer Service.
- Sales and service channel management
Check out our services and let's work together!
Brazil is the third largest private healthcare market in the world, behind only US and China.
The Brazilian healthcare market is estimated at $120 billion, with a 10-year historical growth rate of almost 20 percent, and is expected to continue growing rapidly due to demographics.
The population aged 65-plus has been growing three times faster than in the US, what means Brazil will continue to be a great place to invest in healthcare.