Brazil to Open Distribution Centers Overseas. Miami Is First.

Next year, Brazil is going to start opening distribution centers for Brazilian products on the foreign market. The first center should be inaugurated in January, in Miami, United States, and the second in Frankfurt, Germany, in the second half of 2005.

In 2006, the idea is to expand the project to China, South Africa, Poland, Russia and India.


The project, developed by the Brazilian Export Promotion Agency (Apex), also forecasts the inauguration of a space in Dubai, in the United Arab Emirates.


“Dubai is just the beginning, and other centres may be opened in the Arab countries,” stated Apex president Juan Quirós, to ANBA.


“The idea behind the distribution centers is basically the reduction of distance between our end products and the consumer, making it possible for, in case a deal is closed, the company to provide spot delivery,” stated Quirós, who participated yesterday, November 23, in the 24th National Foreign Trade Meeting (Enaex), in the city of São Paulo, the largest and most industrial in Brazil.


The distribution centers will include a space for storage of non-perishable products, a showroom and an office for administrative and commercial activities.


The administrative cost will be shared between the companies participating, which will have between 12 and 18 months to consolidate their position in the market.


According to Quirós, in the showrooms, each company will have its own space, where it will be able to show its products and, in the offices, they will be able to receive clients to do business. The sectors participating will be determined by the demand of each market.


At the end of November, representatives from the Apex will travel to Miami to analyse a space reserved and, on their return, they will present a list of 35 companies from the shoe, food, furniture and jewellery sectors, among others.


“The centres will be turned to small and medium companies and our plan is to begin with companies that already have experience in the market chosen,” stated Quirós.


In the period of 12 to 18 months, the companies that have established relations on the foreign market are going to be transferred to other areas of the Apex, so as to continue operating in the region.


The new project is part of the Apex operational strategy for 2005, when they will not only open the distribution centers, but will also consolidate the markets that have already been opened, seek new niches and proceed with promotional actions focussed on the end consumer.


The first two centers, to be inaugurated next year, have been considered priority due to the volume of Brazilian exports to the European and US markets.


According to Quirós, the United States answers to between 21% and 22% of Brazilian exports, as well as having an adequate structure for the project.


At the center in Miami, for example, there is a warehouse with an area of one thousand square meters, 150 square meters of office area and 200 square meters of showrooms. But these dimensions will not be the same at all locations.


In the case of Dubai, the Apex wants to expand a furniture distribution center inaugurated last year, to include new sectors. According to Quirós, among the sectors that may be represented in Dubai are the food, garment, jewellery, cosmetics and shoe sectors.


“The jewellery, cosmetics and shoe sectors are very strong in the Arab countries,” he said.


According to the Apex president, the choice of Dubai was due to the logistics in the emirate, to the local market, and to the access to other Arab countries.


ANBA ”“ Brazil-Arab News Agency

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