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8 biggest mistakes that

Chinese companies make when
doing business with brazil

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you have slept in your geography
classes at school

mistake nº1
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I heard Buenos Aires
is very nice. That is
your capital, isn’t?

What is your
capital? Rio de Janeiro
or São Paulo?

Hola, mucho gusto!
Gracias! (speaking
spanish)

Brazil is in
Africa, right?

What language
you speak there?
巴⻄西语吗?

mistake nº1
you have slept in your geography classes at school

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• Brazil is located in South America;
!
• It is the biggest country in the continent
and 5º in the world with 8,515,767 km2;

mistake nº1
you have slept in your geography classes at school

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• Population

is 201,032,714 (5th), density
23.7/km2 (China is 139.6/km2);
!

• GDP $2.422 trillion (5th) and per capita
$12,118 (79th);

mistake nº1
you have slept in your geography classes at school

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• Portuguese (7th language in world);
!
• Brazilian Real (BRL) - 1 R$ = 2.65 RMB;
!
• Dilma Rousseff is our current president
mistake nº1
you have slept in your geography classes at school

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!

• 26 states, Brasília as capital;
!
• Was discovered in 1500 by Portugal;
• Great concentration of wealth on
Southeast Region;
!

• 3/5 of Amazon forest is in Brazil;
!
• 30% of drinkable water in the world
is in Brazil;

mistake nº1
you have slept in your geography classes at school

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• Multicultural people:
•
•
•
•
•

•

47.73% white
43.13% pardo (mixed)
7.61% black
1.09% asian
0.4% Amerindian

!
More than 64% of people are Roman Catholic;

mistake nº1
you have slept in your geography classes at school

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use google translator or try to conquer
brazil just with english

mistake nº2
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负载陷⼊入联邦收⼊入,因为该⽂文
件不是⽤用蓝⾊色钢笔签名。

A carga ficou presa na
receita federal porque a
documentação não foi assinada
com a caneta azul.

mistake nº2
use google translator or try to conquer brazil just with english

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Do you have any idea
of what he means?
mistake nº2
use google translator or try to conquer brazil just with english

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Do you have any idea
of what he means?
let’s make this translation more accurate…

mistake nº2
use google translator or try to conquer brazil just with english

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因为⽂文件没有⽤用蓝⾊色钢笔签
字,所以货物被海关查处了。

A carga ficou presa na
receita federal porque a
documentação não foi assinada
com a caneta azul.

mistake nº2
use google translator or try to conquer brazil just with english

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• Less than 1% of the Brazilian population
speak English;
!

• Don't you like when a foreigner speaks
Chinese with you? So do we.

mistake nº2
use google translator or try to conquer brazil just with english

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don’t use google translator for
important quotations or media material

mistake nº2
use google translator or try to conquer brazil with only english

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don’t use google translator for
important quotations or media material
really… don’t!

mistake nº2
use google translator or try to conquer brazil with only english

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not understanding about Brazilian
social etiquette

mistake nº3
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• Men shake hands (like a man);
!
• Men may ‘hug' you if you are close;
!
• Kiss on the cheek (woman with woman) - 1 for SP and 2 for RJ;
!
• Men don’t cheek kiss (like some European or Arab countries)

mistake nº3
not understanding about Brazilian social etiquette

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• Most of Brazilian people take shower twice a day and
brush their teeth three times a day;

!

• We use perfume;
!
• As in China, people care about how others will think of
them (clothes, car, watches, bags, etc) - ⾯面⼦子;

!

• Wear office clothes (you don’t need a suit);

mistake nº3
not understanding about Brazilian social etiquette

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• I believe you will love Brazilian food, but you
don’t need to demonstrate it loudly in the
table or make any sound with your mouth;
!

• Try not to burp, soak up the noodle or chew
with your mouth opened;

mistake nº3
not understanding about Brazilian social etiquette

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• Try to avoid personal questions or comments
when you just have met someone:

•
•
•
•
•

How much is your salary?
How old are you? (for woman)
How many wives you have?
You are so fat!
You are thirty years old and still not married? Why?

mistake nº3
not understanding about Brazilian social etiquette

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• Tips? Try to ask about:
•
•
•
•

Ask your customer how he started his business;
Tell him to tell more about the city he lives, where he
comes from in Brazil;
Explore how you two could cooperate more;
Tell more about your company history;

mistake nº3
not understanding about Brazilian social etiquette

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neglect how Chinese are seen by
Brazilians

mistake nº4
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• Products MADE IN CHINA still don't have a good image
for some people;

!

• Chinese in Brazil may be famous for selling fake and
low quality products;

!

• “No problem, my friend. Of course"

mistake nº4
neglect how Chinese are seen by Brazilians?

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• Always offer samples, focusing on the quality of your products
and warranty policy;

!

• Understand that shipping products for replacement is not cheap;
!
• Getting new customers is more expensive than keeping old ones;

mistake nº4
neglect how Chinese are seen by Brazilians?

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Not understanding how Brazilian
economy can be so protective

mistake nº5
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• Brazilians’ Big Mac is the second most expensive in the world;
• Ipad in Brazil is the most expensive in the world;
!
• Mobile phone - the fourth most expensive in a ranking of 161 countries (ONU);
!
• Mobile Internet – among 78 emerging countries the voice and data plan in
Brazil is the most expensive
!

• Rio de Janeiro ranks sixth as having the most expensive hotels in the world,
ahead of cities like Paris and London.

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Start to understand that Brazil has it’s own certificates and licenses. Some products may need more than
one;

!

• You will need a rep office in Brazil or a partner if you want to sell your products licensed;
!
• Certification may take 3 to 24 months. If you have CE or FCC, it will be easier;

Eletronic
Eletric parts
Engines
Toys
Cables
Many others

Medical equipment
Cosmetics
Perfume
Medicines
Pharmaceutical
Others

Mobile phones
Telecommunication
Wi-fi products
3G products
Radio devices
Others

Security equipment
required for work
Glasses
Gloves
Helmets
Others

Battery
Tires
Chemical
Harmful and hazards
Others

mistake nº5
Not understanding how Brazilian economy can be so protective

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• On import, we have a ‘snowball system’ of taxes, on which we pay taxes over taxes;
!
• This can make a product more than double its price after it is ready to be sold;
!
• Below you will find the main taxes that are involved in an import process for Brazil;
PIS / COFINS
SOCIAL incentive
tax

I.P.I.
Industrialized
product tax

I.I.
import tax

icms
vat sales tax

Federal tax;

Federal tax;

Federal tax;

State tax;

By HS code;

By HS code;

Fixed for import;

By state;

from 0% to 60%

from 0% to 35%

9.25%

from 0% to 19%

!
!

!
!

!
!

!
!

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for:
ORDER 400 PCS
!

FREIGHT COST:
USD 2,000

HSCODE 85193000
USD 20,00

!

USD to BRL
1 = 2.3

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE
85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000);
20%
I.I.
import tax

30%
I.P.I.
Industrialized
product tax

9.25%
PIS + COFINS

18% (SP)
ICMS
VAT SALES TAX

TOTAL
(BEFORE CUSTOMS
FEE)

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE
85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000);
20%
I.I.
import tax

30%
I.P.I.
Industrialized
product tax

9.25%
PIS + COFINS

18% (SP)
ICMS
VAT SALES TAX

TOTAL
(BEFORE CUSTOMS
FEE)

BRL 23,000
x 20% II

!

BRL 4,600

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE
85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000);
20%

30%
I.P.I.
Industrialized
product tax

I.I.
import tax
BRL 23,000
x 20% II

!

BRL 4,600

9.25%
PIS + COFINS

18% (SP)
ICMS
VAT SALES TAX

TOTAL
(BEFORE CUSTOMS
FEE)

BRL 23,000
+ BRL 4,600 (II)
x 30% IPI

!

BRL 8,460

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE
85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000);
20%

30%
I.P.I.
Industrialized
product tax

I.I.
import tax
BRL 23,000
x 20% II

!

BRL 4,600

BRL 23,000
+ BRL 4,600 (II)
x 30% IPI

!

BRL 8,460

9.25%
PIS + COFINS

18% (SP)
ICMS
VAT SALES TAX

TOTAL
(BEFORE CUSTOMS
FEE)

BRL 23,000
+ BRL 4,600 (II)
+ BRL 8,600 (IPI)
x 9.25% PIS/COFINS

!

BRL 3,348.5

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE
85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000);
20%

30%
I.P.I.
Industrialized
product tax

I.I.
import tax
BRL 23,000
x 20% II

!

BRL 4,600

BRL 23,000
+ BRL 4,600 (II)
x 30% IPI

!

BRL 8,460

9.25%

18% (SP)
ICMS
VAT SALES TAX

PIS + COFINS
BRL 23,000
+ BRL 4,600 (II)
+ BRL 8,600 (IPI)
x 9.25% PIS/COFINS

!

BRL 3,348.5

TOTAL
(BEFORE CUSTOMS
FEE)

BRL 23,000
+ BRL 4,600 (II)
+ BRL 8,600 (IPI)
+ BRL 3,348.5 (PIS/COFINS)
x 18% ICMS

!

BRL 7,118.73

mistake nº5
Not understanding how Brazilian economy can be so protective

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• Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE
85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000);
20%

30%
I.P.I.
Industrialized
product tax

I.I.
import tax
BRL 23,000
x 20% II

!

BRL 4,600

BRL 23,000
+ BRL 4,600 (II)
x 30% IPI

!

BRL 8,460

9.25%

18% (SP)
ICMS
VAT SALES TAX

TOTAL
(BEFORE CUSTOMS
FEE)

BRL 23,000
+ BRL 4,600 (II)
+ BRL 8,600 (IPI)
+ BRL 3,348.5 (PIS/COFINS)
x 18% ICMS

BRL 46,667.23
!
50.72 USD p/
pcs

PIS + COFINS
BRL 23,000
+ BRL 4,600 (II)
+ BRL 8,600 (IPI)
x 9.25% PIS/COFINS

!

BRL 3,348.5

!

BRL 7,118.73

mistake nº5
Not understanding how Brazilian economy can be so protective

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TAXES

average
customs FEE

TOTAL

Per piece

400 pcs
20 USD

10,000 USD CIF

10,290.10 USD

1,500 USD

21,790.1 USD

54.47 USD

400 pcs
46 BRL

23,000 BRLCIF

23,667.23 BRL

3,450 BRL

50117.23 BRL

125.29 BRL
172%

mistake nº5
Not understanding how Brazilian economy can be so protective

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172%! OMG! THAT IS SO
MUCH!
Is there any way to make these numbers better?
Yes! ;-)
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• Brazil offers different benefits on taxes, which can make an import process much cheaper;
!
• If you establish a company in Brazil, as a foreigner investor you can get even more
•

benefits;
!
If you plan to have an assembly factory in Brazil, you may almost pay NO TAX!

mistake nº5
Not understanding how Brazilian economy can be so protective

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Can I offer some tax
benefit to my customer?
How?
You just have to use our trade
company in Brazil to get really
good benefits on the import
process.
Ask us how after this presentation.
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Not understanding cultural thoughts
and likes of Brazilian

mistake nº6
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• NOT ALL OF THEM, but many Brazilians like football. If
•

your customer does, you may ask what is his local team;
!
You may also invite a customer to watch a game in a
pub or in the stadium if he is into football. This may
improve your relationship with him;

mistake nº6
Not understanding cultural thoughts and likes of brazilian

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• Carnival happens on february and it’s a national holiday as many others during the year. Each year, a Brazilian has
around 45 days holiday (30 days work vacation included);

!

• Many decisions are affected by that, so don’t expect fast decisions on orders and don’t be surprise with old customers
returning after a long period looking for you to discuss ‘old' requests;

!

• Processes will happen slower before, during and after holidays. Get a list of local holidays to understand and interact
with your customer.

mistake nº6
Not understanding cultural thoughts and likes of brazilian

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• As a catholic country, we celebrate Christmas. That is a very important
date for us, just like the Chinese New Year;

!

• Make sure to send a postal card and gift to your key customers and at
least an email wishing Merry Christmas and Happy New Year;

!

• Different from China, we love to celebrate birthday. Since kids we have a

cake, presents and cards from our family. Make sure to know and make
a call to personally wish a Happy Birthday to your key customer. A gift is
also a good shot;

mistake nº6
Not understanding cultural thoughts and likes of brazilian

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not being open-minded
mistake nº7
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Is Brazil an important market for
you?
!

Do you want to increase your
presence there?
If your answer is yes, just see our example
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I live in China for 3
years already. But I
don’t speak Chinese.

I hate Chinese food! I
only eat my local
food.

Chinese do
everything in a
different way. They
should do our way.

mistake nº7
not being open-minded

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I don’t have any
Chinese friends. They are
boring and we like different
things.

Why am I not
being successful
selling to
China???
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I live in Brazil for
3 years already. But I
don’t speak
Portuguese.

I hate Brazilian food! I
only eat my local
food.

Brazilians do
everything in a
different way. They
should do our
way.

mistake nº7
not being open-minded

COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados

I don’t have any
Brazilian friends. They are
boring and we like different
things.

Why am I not
being successful
selling to Brazil???
Blend in!
!

Be like water like Bruce Lee!
Who has the biggest interest? You or the customer?
Flexibility for SME. Structure for corporations.
See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432

Try to do everything on your own
mistake nº8
COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
Flexibility for SME. Structure for corporations.
See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432

• A natural product that makes your skin

darker without having to go to the beach;
!

• Do you think this would work in China?
!
• "This product sells so well in Brazil, and it is

also very new. I am sure this work in China!
So many people there, if I get 5% of 1.7 bi
people, I am rich! Am I right?"

mistake nº8
try to do everything on your own

COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
Noooo! :-(
Flexibility for SME. Structure for corporations.
See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432

• We have heard and seen many products in China that would work very well in Brazil.

But we have also heard and seen many products that Chinese love which would never
work in Brazil;
!

• Is my product already being sold in Brazil? How much is it? What are the most
important features for Brazilian customers? Where should I advertise? How can I make
partnerships with Brazilian companies? How can I find a distributor there? Which region
is the best to launch my products?
!

• Questions like these can all be answered with a market research;

集思⼲⼴广益
mistake nº8
try to do everything on your own

COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
Flexibility for SME. Structure for corporations.
See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432

WHAT CAN WE OFFER?

1

2

Be	

prepared	

!

Understand	

the market	

!

TRANSLATION

4

TRAINING

3

Open R.O	

!

LEGAL, SALES, HR,
ACCOUNTANT

Use our	

contacts	

!

CLIENTS
DATABASE

mistake nº8
try to do everything on your own

COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
Flexibility for SME. Structure for corporations.
See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432

Do everything as everyone does
mistake nº9
COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
Surprise your customer!
Flexibility for SME. Structure for corporations.
See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432

• Think new ways to do old things!
!
• Explore social media and develop

a better customer relationship and

management;
!

• Train your team for success, keep improving them!
!
• Try to understand what customers need and offer them customized services;

mistake nº9
Do everything as everyone does

COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
3Q!
China Link Group
!

Stephen Meng
stephen@chinalinktrading.com
+86 755 8283-0432

COPYRIGHT © China Link Group 2008 - 2014 © Todos os direitos reservados

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8 biggest mistakes that Chinese companies commit doing business with Brazil

  • 1. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 8 biggest mistakes that Chinese companies make when doing business with brazil COPYRIGHT © China Link Group 2008 - 2014 © Todos os direitos reservados
  • 2. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 you have slept in your geography classes at school mistake nº1 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 3. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 I heard Buenos Aires is very nice. That is your capital, isn’t? What is your capital? Rio de Janeiro or São Paulo? Hola, mucho gusto! Gracias! (speaking spanish) Brazil is in Africa, right? What language you speak there? 巴⻄西语吗? mistake nº1 you have slept in your geography classes at school COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 4. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Brazil is located in South America; ! • It is the biggest country in the continent and 5º in the world with 8,515,767 km2; mistake nº1 you have slept in your geography classes at school COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 5. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Population is 201,032,714 (5th), density 23.7/km2 (China is 139.6/km2); ! • GDP $2.422 trillion (5th) and per capita $12,118 (79th); mistake nº1 you have slept in your geography classes at school COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 6. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Portuguese (7th language in world); ! • Brazilian Real (BRL) - 1 R$ = 2.65 RMB; ! • Dilma Rousseff is our current president mistake nº1 you have slept in your geography classes at school COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 7. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 ! • 26 states, Brasília as capital; ! • Was discovered in 1500 by Portugal; • Great concentration of wealth on Southeast Region; ! • 3/5 of Amazon forest is in Brazil; ! • 30% of drinkable water in the world is in Brazil; mistake nº1 you have slept in your geography classes at school COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 8. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Multicultural people: • • • • • • 47.73% white 43.13% pardo (mixed) 7.61% black 1.09% asian 0.4% Amerindian ! More than 64% of people are Roman Catholic; mistake nº1 you have slept in your geography classes at school COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 9. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 use google translator or try to conquer brazil just with english mistake nº2 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 10. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 负载陷⼊入联邦收⼊入,因为该⽂文 件不是⽤用蓝⾊色钢笔签名。 A carga ficou presa na receita federal porque a documentação não foi assinada com a caneta azul. mistake nº2 use google translator or try to conquer brazil just with english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 11. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 Do you have any idea of what he means? mistake nº2 use google translator or try to conquer brazil just with english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 12. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 Do you have any idea of what he means? let’s make this translation more accurate… mistake nº2 use google translator or try to conquer brazil just with english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 13. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 因为⽂文件没有⽤用蓝⾊色钢笔签 字,所以货物被海关查处了。 A carga ficou presa na receita federal porque a documentação não foi assinada com a caneta azul. mistake nº2 use google translator or try to conquer brazil just with english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 14. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Less than 1% of the Brazilian population speak English; ! • Don't you like when a foreigner speaks Chinese with you? So do we. mistake nº2 use google translator or try to conquer brazil just with english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 15. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 don’t use google translator for important quotations or media material mistake nº2 use google translator or try to conquer brazil with only english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 16. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 don’t use google translator for important quotations or media material really… don’t! mistake nº2 use google translator or try to conquer brazil with only english COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 17. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 not understanding about Brazilian social etiquette mistake nº3 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 18. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Men shake hands (like a man); ! • Men may ‘hug' you if you are close; ! • Kiss on the cheek (woman with woman) - 1 for SP and 2 for RJ; ! • Men don’t cheek kiss (like some European or Arab countries) mistake nº3 not understanding about Brazilian social etiquette COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 19. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Most of Brazilian people take shower twice a day and brush their teeth three times a day; ! • We use perfume; ! • As in China, people care about how others will think of them (clothes, car, watches, bags, etc) - ⾯面⼦子; ! • Wear office clothes (you don’t need a suit); mistake nº3 not understanding about Brazilian social etiquette COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 20. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • I believe you will love Brazilian food, but you don’t need to demonstrate it loudly in the table or make any sound with your mouth; ! • Try not to burp, soak up the noodle or chew with your mouth opened; mistake nº3 not understanding about Brazilian social etiquette COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 21. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Try to avoid personal questions or comments when you just have met someone: • • • • • How much is your salary? How old are you? (for woman) How many wives you have? You are so fat! You are thirty years old and still not married? Why? mistake nº3 not understanding about Brazilian social etiquette COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 22. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Tips? Try to ask about: • • • • Ask your customer how he started his business; Tell him to tell more about the city he lives, where he comes from in Brazil; Explore how you two could cooperate more; Tell more about your company history; mistake nº3 not understanding about Brazilian social etiquette COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 23. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 neglect how Chinese are seen by Brazilians mistake nº4 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 24. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Products MADE IN CHINA still don't have a good image for some people; ! • Chinese in Brazil may be famous for selling fake and low quality products; ! • “No problem, my friend. Of course" mistake nº4 neglect how Chinese are seen by Brazilians? COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 25. • Always offer samples, focusing on the quality of your products and warranty policy; ! • Understand that shipping products for replacement is not cheap; ! • Getting new customers is more expensive than keeping old ones; mistake nº4 neglect how Chinese are seen by Brazilians? COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 26. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 Not understanding how Brazilian economy can be so protective mistake nº5 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 27. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Brazilians’ Big Mac is the second most expensive in the world; • Ipad in Brazil is the most expensive in the world; ! • Mobile phone - the fourth most expensive in a ranking of 161 countries (ONU); ! • Mobile Internet – among 78 emerging countries the voice and data plan in Brazil is the most expensive ! • Rio de Janeiro ranks sixth as having the most expensive hotels in the world, ahead of cities like Paris and London. mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 28. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Start to understand that Brazil has it’s own certificates and licenses. Some products may need more than one; ! • You will need a rep office in Brazil or a partner if you want to sell your products licensed; ! • Certification may take 3 to 24 months. If you have CE or FCC, it will be easier; Eletronic Eletric parts Engines Toys Cables Many others Medical equipment Cosmetics Perfume Medicines Pharmaceutical Others Mobile phones Telecommunication Wi-fi products 3G products Radio devices Others Security equipment required for work Glasses Gloves Helmets Others Battery Tires Chemical Harmful and hazards Others mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 29. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • On import, we have a ‘snowball system’ of taxes, on which we pay taxes over taxes; ! • This can make a product more than double its price after it is ready to be sold; ! • Below you will find the main taxes that are involved in an import process for Brazil; PIS / COFINS SOCIAL incentive tax I.P.I. Industrialized product tax I.I. import tax icms vat sales tax Federal tax; Federal tax; Federal tax; State tax; By HS code; By HS code; Fixed for import; By state; from 0% to 60% from 0% to 35% 9.25% from 0% to 19% ! ! ! ! ! ! ! ! mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 30. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for: ORDER 400 PCS ! FREIGHT COST: USD 2,000 HSCODE 85193000 USD 20,00 ! USD to BRL 1 = 2.3 mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 31. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE 85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000); 20% I.I. import tax 30% I.P.I. Industrialized product tax 9.25% PIS + COFINS 18% (SP) ICMS VAT SALES TAX TOTAL (BEFORE CUSTOMS FEE) mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 32. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE 85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000); 20% I.I. import tax 30% I.P.I. Industrialized product tax 9.25% PIS + COFINS 18% (SP) ICMS VAT SALES TAX TOTAL (BEFORE CUSTOMS FEE) BRL 23,000 x 20% II ! BRL 4,600 mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 33. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE 85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000); 20% 30% I.P.I. Industrialized product tax I.I. import tax BRL 23,000 x 20% II ! BRL 4,600 9.25% PIS + COFINS 18% (SP) ICMS VAT SALES TAX TOTAL (BEFORE CUSTOMS FEE) BRL 23,000 + BRL 4,600 (II) x 30% IPI ! BRL 8,460 mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 34. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE 85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000); 20% 30% I.P.I. Industrialized product tax I.I. import tax BRL 23,000 x 20% II ! BRL 4,600 BRL 23,000 + BRL 4,600 (II) x 30% IPI ! BRL 8,460 9.25% PIS + COFINS 18% (SP) ICMS VAT SALES TAX TOTAL (BEFORE CUSTOMS FEE) BRL 23,000 + BRL 4,600 (II) + BRL 8,600 (IPI) x 9.25% PIS/COFINS ! BRL 3,348.5 mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 35. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE 85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000); 20% 30% I.P.I. Industrialized product tax I.I. import tax BRL 23,000 x 20% II ! BRL 4,600 BRL 23,000 + BRL 4,600 (II) x 30% IPI ! BRL 8,460 9.25% 18% (SP) ICMS VAT SALES TAX PIS + COFINS BRL 23,000 + BRL 4,600 (II) + BRL 8,600 (IPI) x 9.25% PIS/COFINS ! BRL 3,348.5 TOTAL (BEFORE CUSTOMS FEE) BRL 23,000 + BRL 4,600 (II) + BRL 8,600 (IPI) + BRL 3,348.5 (PIS/COFINS) x 18% ICMS ! BRL 7,118.73 mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 36. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Let’s simulate how much tax we are going to pay for a CAR DVD, HS CODE 85193000, 400 unit x USD20 each, USD 10,000 CIF SANTOS (BRL 23,000); 20% 30% I.P.I. Industrialized product tax I.I. import tax BRL 23,000 x 20% II ! BRL 4,600 BRL 23,000 + BRL 4,600 (II) x 30% IPI ! BRL 8,460 9.25% 18% (SP) ICMS VAT SALES TAX TOTAL (BEFORE CUSTOMS FEE) BRL 23,000 + BRL 4,600 (II) + BRL 8,600 (IPI) + BRL 3,348.5 (PIS/COFINS) x 18% ICMS BRL 46,667.23 ! 50.72 USD p/ pcs PIS + COFINS BRL 23,000 + BRL 4,600 (II) + BRL 8,600 (IPI) x 9.25% PIS/COFINS ! BRL 3,348.5 ! BRL 7,118.73 mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 37. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 TAXES average customs FEE TOTAL Per piece 400 pcs 20 USD 10,000 USD CIF 10,290.10 USD 1,500 USD 21,790.1 USD 54.47 USD 400 pcs 46 BRL 23,000 BRLCIF 23,667.23 BRL 3,450 BRL 50117.23 BRL 125.29 BRL 172% mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 38. 172%! OMG! THAT IS SO MUCH! Is there any way to make these numbers better?
  • 40. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Brazil offers different benefits on taxes, which can make an import process much cheaper; ! • If you establish a company in Brazil, as a foreigner investor you can get even more • benefits; ! If you plan to have an assembly factory in Brazil, you may almost pay NO TAX! mistake nº5 Not understanding how Brazilian economy can be so protective COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 41. Can I offer some tax benefit to my customer? How?
  • 42. You just have to use our trade company in Brazil to get really good benefits on the import process. Ask us how after this presentation.
  • 43. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 Not understanding cultural thoughts and likes of Brazilian mistake nº6 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 44. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • NOT ALL OF THEM, but many Brazilians like football. If • your customer does, you may ask what is his local team; ! You may also invite a customer to watch a game in a pub or in the stadium if he is into football. This may improve your relationship with him; mistake nº6 Not understanding cultural thoughts and likes of brazilian COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 45. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Carnival happens on february and it’s a national holiday as many others during the year. Each year, a Brazilian has around 45 days holiday (30 days work vacation included); ! • Many decisions are affected by that, so don’t expect fast decisions on orders and don’t be surprise with old customers returning after a long period looking for you to discuss ‘old' requests; ! • Processes will happen slower before, during and after holidays. Get a list of local holidays to understand and interact with your customer. mistake nº6 Not understanding cultural thoughts and likes of brazilian COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 46. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • As a catholic country, we celebrate Christmas. That is a very important date for us, just like the Chinese New Year; ! • Make sure to send a postal card and gift to your key customers and at least an email wishing Merry Christmas and Happy New Year; ! • Different from China, we love to celebrate birthday. Since kids we have a cake, presents and cards from our family. Make sure to know and make a call to personally wish a Happy Birthday to your key customer. A gift is also a good shot; mistake nº6 Not understanding cultural thoughts and likes of brazilian COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 47. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 not being open-minded mistake nº7 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 48. Is Brazil an important market for you? ! Do you want to increase your presence there? If your answer is yes, just see our example
  • 49. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 I live in China for 3 years already. But I don’t speak Chinese. I hate Chinese food! I only eat my local food. Chinese do everything in a different way. They should do our way. mistake nº7 not being open-minded COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados I don’t have any Chinese friends. They are boring and we like different things. Why am I not being successful selling to China???
  • 50. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 I live in Brazil for 3 years already. But I don’t speak Portuguese. I hate Brazilian food! I only eat my local food. Brazilians do everything in a different way. They should do our way. mistake nº7 not being open-minded COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados I don’t have any Brazilian friends. They are boring and we like different things. Why am I not being successful selling to Brazil???
  • 51. Blend in! ! Be like water like Bruce Lee! Who has the biggest interest? You or the customer?
  • 52. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 Try to do everything on your own mistake nº8 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 53. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • A natural product that makes your skin darker without having to go to the beach; ! • Do you think this would work in China? ! • "This product sells so well in Brazil, and it is also very new. I am sure this work in China! So many people there, if I get 5% of 1.7 bi people, I am rich! Am I right?" mistake nº8 try to do everything on your own COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 55. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • We have heard and seen many products in China that would work very well in Brazil. But we have also heard and seen many products that Chinese love which would never work in Brazil; ! • Is my product already being sold in Brazil? How much is it? What are the most important features for Brazilian customers? Where should I advertise? How can I make partnerships with Brazilian companies? How can I find a distributor there? Which region is the best to launch my products? ! • Questions like these can all be answered with a market research; 集思⼲⼴广益 mistake nº8 try to do everything on your own COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 56. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 WHAT CAN WE OFFER? 1 2 Be prepared ! Understand the market ! TRANSLATION 4 TRAINING 3 Open R.O ! LEGAL, SALES, HR, ACCOUNTANT Use our contacts ! CLIENTS DATABASE mistake nº8 try to do everything on your own COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 57. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 Do everything as everyone does mistake nº9 COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 59. Flexibility for SME. Structure for corporations. See more: www.chinalinktrading.com | Write to us: contato@chinalinktrading.com | Talk with us: +86 755 8283-0432 • Think new ways to do old things! ! • Explore social media and develop a better customer relationship and management; ! • Train your team for success, keep improving them! ! • Try to understand what customers need and offer them customized services; mistake nº9 Do everything as everyone does COPYRIGHT © China Link Trading 2008 - 2014 © Todos os direitos reservados
  • 60. 3Q! China Link Group ! Stephen Meng stephen@chinalinktrading.com +86 755 8283-0432 COPYRIGHT © China Link Group 2008 - 2014 © Todos os direitos reservados