China and Brazil: Commercial strategy

Pablo Foncillas is Lecturer at the IESE Business School and member of the Globalpraxis Board. This article is based on more than 200 route-to-market projects performed by Globalpraxis in different countries and sectors.

China and Brazil afford enormous opportunities to companies, both in demographic and in economic terms.

In this article, various key points are summarized to help commercial managers make the most of the opportunities and establish a correct commercial route-to-market strategy with which to grown in these disparate and highly-competitive environments.

Shanghái Photo

When embarking on a route-to-market (RTM) strategy in two large markets such as China and Brazil, any executive, especially one in sales, will always ask themselves one question right from the start: should I “attack” both countries in the same way, given that they are both BRIC countries (main emerging markets – Brazil, Russia, India and China) or, on the contrary, face them individually, as they are two different environments and therefore require different entry strategies? The answer is that both markets have different realities, which requires that the methods used to penetrate them must also be different, even if China and Brazil share two sides of the same coin: opportunity on the one hand, and a management challenge on the other.

Río de Janeiro's Photo

 

ROUTE-TO-MARKET AND VALUE CHAIN

First of all, what is a route-to-market? How is it designed and what are the key elements among the links that form it? The process by which a company is set up to deal with a market is known as route-to-market, and it is a practice that is becoming increasingly important in commercial strategy, particularly in companies specialized in consumer markets and related sectors (household appliances, computer equipment, small electrical appliances, …). Route-to-market alludes to the ‘route’ a product takes to reach the end consumer. It is, in short, the ‘commercialization channel’, and includes all activities necessary to bring the product to the client.

If you want to read the whole article in English, please contact: pfoncillas@globalpraxis.com 

Download the whole article in Spanish

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