Brazil or China's building materials companies under the blue sea

BATIMAT is held every two years and brings together the world's most extensive products, equipment and services in the construction industry. It attracts many professionals including developers, builders, contractors and wholesalers. Chinese companies also actively participate in BATIMAT. From the current point of view, Chinese companies' products are mainly concentrated in the main project area, door and window hardware area, decoration area and machinery and equipment area. The exhibition will be held at the Porte de Versailles Exhibition Centre in Paris from November 7th to December 12th, 2011.

It is no accident that the main character of the Paris International Building Material Exhibition 2011 BATIMAT determined Brazil as the theme country of the year. Brazil, one of the BRIC countries, is now as economically as Brazilian football. According to news from the Ministry of Commerce’s chamber of commerce in the Consulate General of São Paulo, Brazil’s Central Bank officials stated that Brazil’s absorption of foreign direct investment in 2010 will reach US$38 billion, which exceeds US$25.9 billion in 2009, accounting for approximately 3.4 of the total foreign direct investment in the world. %. The Brazilian economy maintains a good momentum of growth. Foreign companies have increased their interest in investment in production and infrastructure.

The influx of large amounts of investment into Brazil has stimulated the development of Brazil’s economy and has also brought about the buoyancy of Brazil’s building materials market. "From 2009 to 2010, Brazil's building materials market as a whole is optimistic. Data from Brazil's building materials market show that in 2009, Brazilian building materials market sales rose by 4.2% to reach 45.04 billion reais (about 22.5 billion US dollars). In February, Brazil's building materials retail sales increased by 12% year-on-year and by 4.9% from the previous period, said Wu Xiang, project manager of Reed Exhibitions International Sales.

Construction projects for the 2014 World Cup and the 2016 Olympic Games have started one after another, and the Brazilian government will further implement the "Accelerated Growth Plan (PAC)" and "My Life, My Home" housing plans. The future financial momentum of the building materials market is worthy of global building materials companies. look forward to.

In 2011, "I will dance to samba, evaluate football, and invest in the Brazilian building materials market. Of course this may be a crazy move," wrote a domestic investor. Perhaps behind this "crazy" is a bold prediction of the market and an accurate grasp of the opportunity.

“Since 2008, the Brazilian government has provided about US$54.5 billion in credit funds to the state-owned Brazilian Development Bank to help domestic companies respond to the financial crisis. This funding will be given priority in areas such as energy, capital markets and infrastructure.” Wu Xiang explained, “The Brazilian government’s Civil Affairs Office announced an increase of 77.4 billion U.S. dollars in investment for the accelerated development plan launched by the government in 2007. By 2010, Brazil will invest a total of 352.3 billion U.S. dollars in this project focused on infrastructure construction. The capital has played an important role in promoting the economic development of Brazil."

The Brazilian government’s series of policy initiatives and major market positives show that BATIMAT2011 is Brazil’s “motivation” for the country of the year. This is similar to what a Brazilian exhibitor said: “Brazil is in the world building materials market represented by Europe, and shows Brazil’s attractiveness to many professionals including developers, builders, contractors and wholesalers.”

A shortcut to the smooth entry into the Brazilian market Of course, as the first exhibition of the international construction industry, BATIMAT is very good at grasping the latest industry trends and providing authoritative market information. Therefore, despite the fact that the global building materials industry has fallen to a low point in the past, global heavyweight companies have not given up to participate in BATIMAT, and international architectural giants including BASF, Poujoulat, Eternit, and STO have exhibited every year. In BATIMAT 2011, Brazil - this year's theme country will provide them with more market opportunities. In their view, Brazil's diversified economy, sound economic and political order, and complete industrial system will bring more opportunities for development.

This is even more good news for Chinese companies participating in BATIMAT. From the perspective of the environment, in the past five years, the trade between Pakistan and China has grown rapidly. The average annual growth rate is about 40%. The growth in 2009 was particularly significant, close to 70%. According to statistics from China Customs, between January and November 2010, the total bilateral trade between China and Brazil reached 56.7 billion U.S. dollars, an increase of 47.4% year-on-year. Brazil has surpassed India as China’s ninth largest trading partner in the world and is China’s largest trading partner in the BRIC countries.

“From 2009 until now, affected by the financial crisis, Brazil’s imports and exports have been affected to varying degrees, but the degree of reduction in trade with China is significantly lower than in other countries.” Wu Xiang believes that such a good trade relationship is the entry of Chinese building materials companies. The Brazilian market has laid a very good foundation.

Compared to relying on a single force to enter the Brazilian market, it is obviously better to choose an influential international exhibition. BATIMAT is one of them. In 2009, there were more than 130 exhibiting companies in China, and the total exhibition area was over 1,700 square meters. Leading companies such as Guangzhou Future Window, Ningbo Moja Bearing and Shanghai Baolu Technology all made appearances in larger exhibition areas. Wu Xiang said: “The participation rate of Chinese companies has been increasing year by year, and the number of repeat exhibitors has exceeded 45%. On the one hand, Chinese companies are going to establish brands on the world market; on the other hand, BATIMAT2009 has attracted more than 1,300 Brazilian visitors and Brazil has become an exhibition. The fifth-largest overseas audience source country. Chinese companies are also optimistic about such a growing building materials market."

The reporter learned from the interview that more than 70% of Chinese exhibitors participating in BATIMAT2009 will consider continuing to participate in the exhibition. More than 74% of Chinese exhibitors believe that the BATIMAT exhibition was very successful. Whether it was in the arrangement of the exhibition or the number of viewers, it achieved the intended purpose. Some companies received nearly 3,000 professional visitors in just a few days. A person in charge of a domestic trading company said: “The organizer has achieved a series of service measures. The economic and trade performance of the exhibitors is even higher than in previous years. We are more optimistic about the new opportunities brought by 2011.”

A person in charge of participating companies also said: "The economic crisis has reduced business operations by 25%. The platform provided by BATIMAT will play a very positive role in the company's development of new Brazilian customers."

The subsequent impact of the financial crisis forced the traditional European and American leading companies in the construction industry to shrink their front lines, and the market has undergone major adjustments. Wu Xiang thinks this is a good opportunity for Chinese companies: “In the aftermath of the economic crisis, more and more buyers are living in the right place and the cost control is more stringent. The cost control advantages of Chinese companies will become the competitiveness of enterprises that cannot be overlooked. The cost-effectiveness of Chinese products is also It will become an important reference factor for international buyers' purchasing decisions. If Chinese companies seize the opportunity and take the initiative, they will make overseas market development more effective."

Now, BATIMAT has become one of the preferred channels for Chinese companies to explore the international market. For BATIMAT in 2011, companies have reason to expect more. In addition to Brazil, the theme country, the exhibition will also hold a number of conferences and seminars in the same period to discuss Brazil's current hot construction projects or the best achievements, when the relevant Brazilian government officials will also make a keynote speech on the local construction market. Of course, the most important thing is that the organizer Reed Exhibitions will use its Brazilian company’s construction industry seller resources to carry out targeted and focused promotion and invite important Brazilian buyers to visit.