Research On Market Opportunity For Chinese Oral Care Products In Brazil Market

In this paper we review the main existing approaches around the phenomenon of business internationalization from the recent scientific literature on the entry modes to a foreign market, with the objective of verifying the feasibility of Chinese enterprises to export to Brazil-oral care products.For this, we based on the "Six Steps of Internationalization Process", created by Moberg&Palm. This model of internationalization says that the company should make a research and come up with its position about the reasons for internationalization; right after that, the company must make a detailed SWOT analysis listing the Strengths, Weaknesses, Opportunities and Threats; the choice of the product/service to be explored in this new market is critical, because it is through it that the company will have its first contact with the market; it should also explore the target market, getting as much as possible the market information; the choice of entry mode plays an important role, because it is through it that the company’s future will be defined in the target market; and finally, with all the information ready, the entrant company should know the appropriate time to enter into this new market.This paperwork is focused in oral care products, which were divided by the author in four categories:breath items (toothpaste/dental gel and mouthwash); brushes (infant finger brush, toothbrush (children and adults), denture brush and interdental brush), floss (dental floss/tape) and others (tongue cleaner). These products are classified under the CTF (Cosmetics, Toiletries and Fragrance) industry-which also comprises skin and hair products, make up, perfume, bath and some others. This industry has a large market in the world, especially in Brazil which was listed as the third biggest market in2010. And in this context, the oral care products were ranked as the sixth biggest in terms of value in the national market. Brazil has a very large and competitive market for oral care products. As we can see through the data collected in this paperwork, most of the toothbrushes (children and adults) and tongue cleaners are manufactured in China while the other products herein studied have a very little participation of products made in China. This shows that the Chinese manufacturers have a very big chance and opportunity to develop a new market.Brazil has a very complicated and complex systematic of import, where taxes are levied on "cascade effect", in other words, the value of a tax enters as the calculation basis of another tax (commonly known for Brazilians as "tax on tax"). All the taxes and its formulas are exposed and explained in this paperwork as well as practical examples of import calculation for the items studied.The final part of this study approaches the conclusion and recommendations for Chinese enterprises to export its oral care products to Brazil with profit maximization on export sales.