Redfive looks at the rise of Brazil

June 6, 2012 - PRLog -- Football’s 2014 World Cup will take place there! But it’s not just huge sporting events that have catapulted Brazil into the spotlight; more importantly it’s the development of the country. Brazil has transformed itself into a thriving country with a strong economy, and many say that direct marketing is to thank for this catalyst, from poverty stricken to a thriving exhilarating country, with the 12th largest economy in the world, and the world’s firth most populous with 192 million people.
Redfive realises that those events are just icing on the cake for a Brazilian economy already growing in leaps and bounds. And savvy multinationals have begun shifting their direct marketing dollars into Brazilian reels in order to tap into Brazilians’ rapidly increasing discretionary income -– a result of a massive expansion of the country’s middle class over the past decade or so.
Redfive was flabbergasted that of Brazil's total population of 192 million (fifth largest in the world); more than 30 million entered the middle class in just the past decade or so. The middle class has now grown to more than half the population of the formerly poor country.
Redfive acknowledges that Brazil’s current economic success does have a direct correlation to its booming direct marketing industry. For one thing, Brazil has a very mature direct-marketing industry. The country has had an active direct marketing association for decades (ABEMD – the Association of Brazilian Direct Marketing), which manages a self-regulatory code and approves and validates all lists since 1998, Brazil has had a Consumer Protection Law. There’s a Self-Regulatory Code for Direct Marketing, and also specific rules for both telemarketing and Internet marketing. Brazil’s use of direct marketing is also growing rapidly. For the past nine years, it has grown at an average rate of 12.5% annually, and is projected to grow at a 16% rate over the next three years. Direct marketing revenues in Brazil were $15 billion last year. That’s especially impressive compared with the U.S. total of $40 billion.
Redfive accepts that the multinational marketing bandwagon is speaking Portuguese more and more these days, and realises that personal relationships are a major key to doing business in Brazil. Brazilians value one-on-one meetings. Like so many of us; Brazilians enjoy interacting in person, as convenient as the internet is, the majority of us prefer to discuss a product, get immediate honest responses and know what we are getting for our money. And so it would seem that due to direct marketing and the benefits of interacting personally with a sales advisors whether through B2B, B2C or Event based direct marketing it has allowed Brazil to rapidly improve their economy. People are spending due to this and therefore people are making money. The only way out of a recession is to in fact spend money.