Brazil

Five million home audio equipment units are sold every year in Brazil. This is the sixth biggest market in the world for television sets and the fourth and fifth biggest for air conditioners and refrigerators (respectively). Brazil is much more than an appetizing destination. For astute, market-aware firms, it is a paradise in the making.

The Japanese electronic consumer goods manufacturer, Panasonic, saw this promise early on and established its first Brazilian operation here in 1967. In these early years, manganese and alkaline batteries produced in the company's Sao Jose dos Campos factory were the mainstays of the business. After that, Panasonic moved on from strength to strength. To this day, new product lines are launched regularly every two to three years.

Not only has the company shown its ability to survive in unpredictable conditions - a necessary skill in Brazil - it has also become a shrewd reader of business opportunities. In 1981, for example, it took full advantage of government incentives aimed at revitalizing the giant Amazon region to establish an audio equipment plant in Manaus. This semi-industrialized city set amidst tropical forest is the country's foremost inland port. Costs were cut significantly.
Panasonic do Brasil President Masahiro Seyama

In February 2001, the company took another step to reinforce its Brazilian operation when it brought in a new man to preside over Panasonic do Brasil. Masahiro Seyama's experience, including ten years in Mexico and a stint at the Japanese headquarters in charge of Latin American marketing looks to have equipped him for the challenge.

According to Seyama, local knowledge will be paramount if the company is to prosper. "We will be looking to increase the number of Brazilian employees, especially in the administrative area," he said. "I know from my conversations with our Brazilian staff that they have good knowledge of the markets. It is up to us to give them the management know-how."

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