Brazil: Surfing the real-estate wave

Favelas, the longtime feared Brazilian slums that were traditionally known as some of the most dangerous neighborhoods on the planet, have transformed into the diamond in the raw for real-estate. Today, there are many American companies who are finding it harder and harder to compete in local markets, but have not realized there are interesting opportunities in emerging markets that are yet to be discovered. As a graduate student at Northwestern University's IMC program, I have developed a special interest in Brazil and the emerging markets of Latin America. My international background, and experience launching products and brands in these areas, have given me a unique perspective on the broad range of opportunities that lies ahead for those wanting to explore new territories.

A good way to start is by taking a look at companies like GTIS, who have figured out a way to profit from Brazilian growth. By gathering investment from the outside, GTIS is funding growth and profiting from it as well. Today, they have offices in New York as well as Sao Paulo. As seen in an article by the New York Times, there are many opportunities to be taken advantage of by those who see them.

Metropolis like Rio de Janeiro, São Paulo, and northeastern cities like Recife are experiencing unprecedented growth. The slums of these cities, which are scattered close to proliferous neighbourhoods like Rio’s Leblon and Ipanema, have begun acquiring new value as land becomes scarce. Finding these types of opportunities may be more than half the battle when it comes to investments. Today, with foreign money being injected into the country, not only have inhabitants of the favelas increased their purchasing power, but the land around them is increasing in value. Favelas are often located close to some of the most sought after neighborhoods, creating a great opportunity to become a part of the imminent real-estate wave.

However, it is not all reais and dollar bills. For those willing to take the plunge and put in the effort, it is important to understand that the Brazilian real-estate market operates very differently than its American counterpart. Making assumptions can be the death of any well-intentioned business venture, in a market as different and fast paced as this one. I recommend you surround yourself with experienced people, and stay up-to-date with the news. Understanding the Brazilian culture and market dynamic can be a difficult task for foreigners, but learning how to do it is well worth the effort. The United States Department of Commerce, for instance, is a good place to get started. Finally, going to local experts such as Connection Consulting, and finding the right alliance to help you in your efforts to penetrate the Brazilian market.

Background: Laura Lozano is a student of Integrated Marketing Communications at Medill, in Northwestern University. She has experience working with international brands from a broad range of industries, ranging from fast-food to real-estate.

Skype: laura_loz
Twitter: laura_lzo

 

Multicultural Marketing: Looking Forward to Tomorrow’s Face of America

This December, I will be graduating from Northwestern University’s Integrated Marketing Communications Graduate Program as an accomplished and intelligent professional ready to take on the Marketing challenges that tomorrow holds for the changing global marketplace.

According to Hernan Lopez’s article, “U.S. Hispanic Population is Growing, But This Isn’t Your Abuela’s Latino Community”, Hispanics currently make up 18% (50 million people) of the U.S.’s population – this is more than Canadians in Canada!  Hispanics are a young population comprising 21% of those younger than 25 according to The Economist.  All organizations who want to succeed in the U.S. need to recognize the importance of the U.S. Hispanic population especially since in the next 40 years, the Hispanic minority will become the majority.  By 2050, Hispanics will comprise 29% of the American population according to the Pew Hispanic Center.  If Hispanic’s current purchasing power is more than $1 trillion, just imagine what it will grow to in the next 40 years.

Knowing this, what should businesses do now to reach this growing segment in the years to come?  Businesses should take a cue from Wal-Mart and remove their multicultural budget from its silo and give it to each of the business units.  This will give each business unit and their respective marketers more responsibility and ownership and prevent them from thinking that someone else is thinking of the multicultural market.  According to Tony Rogers, Wal-Mart’s Senior VP Brand Marketing and Advertising, Wal-Mart is “Making multicultural part of everything we do” (Advertising Age).  This is incredibly smart and strategic of Wal-Mart.  This should help ensure that each marketer at Wal-Mart will think of the multicultural market with each move they make as they will be held accountable come year end.  Wal-Mart is looking forward to tomorrow and is doing what it can now to remain relevant in the years to come.

Companies who do not consider multicultural marketing important, especially marketing to the Hispanic market, will not do well in the future.  An article in Advertising Age found that companies who spend more on Hispanic media find their revenue growing faster than those that do not.  Currently, 57% of the top 500 advertisers spend less than 1% on Hispanic ads.  Less than 1%!  I believe this will change since the 2010 Census has shed light on America’s changing demographics.  If business did not see the value in targeting this segment, they should now.

Website, Facebook, and other social media content should also be tailored to the Hispanic community giving the end user the option to choose between languages.  As noted in the article Few Marketers Target U.S. Hispanics With Spanish-Language Facebook Fan Pages, Marketers should ensure that Spanish language content on websites and social media sites be just as rich as that of the English content.  Additionally, as any smart marketer will tell you, content needs to be tailored to your market.  Do not copy website content from your website in Spain as your U.S. Hispanic probably has different needs and problems to be solved.    

As a marketing professional and Hispanic, I look forward to seeing how businesses will attempt to reach the growing Hispanic population and hope to be a part of that communication.  My hope is that businesses will take the time to get to know the changing face of America and produce relevant and tailored content. 

Yanette Jimenez is a proud Longhorn & Northwestern Medill IMC Graduate Student and can be reached on Twitter @YanetteEJimenez.