Hong Kong

Hong Kong FinTech Week – Opportunities for Brazilian companies

The Hong Kong FinTech Week is an event focused on providing a platform for participants across the globe to share their innovations, organized by the Hong Kong Monetary Authority and InvestHK.

Thiago Cruz Silveira, Principal Consultant of InvestHK in Brazil, has provided us with exciting comments and numbers concerning the event:

The latest results of HK Fintech Week and over 25 satellite events throughout the week are nothing but impressive.

– No. of attendees (physical + virtual): Over 20,000 from 87 economies (15,000 virtual in 2020)

– No. of views of our various live streaming content: Over 4 million (1.2 million in 2020)

– No. of media coverages: 870 (as of 7 November 2021)

Over 300 speakers, over 400 exhibitors, and over 39 delegations and representatives joined the main conference alone.

In addition, the Global Fast Track Programme, part of HK Fintech Week, proved very successful by recruiting over 400 Fintechs which were actively introduced to over 90 corporations and investors.

The weeklong event featured conferences with prominent speakers, the Global Fast Track program, exhibitions, a deal floor, networking events, demo shows, and more.

This year, the side events started on 1 November 2021, and the main event began on 3 November 2021 and ended on 5 November 2021.

This edition hosted many virtual sessions with online interactions, although the event’s focus was face-to-face activities, on panel discussions across five stages. As with other similar events, returning to the physical format was much anticipated, considering last year’s virtual-only events and webinars.

The Hong Kong FinTech Week is a great event that allows Brazilian FinTechs to connect with world-renowned investors, founders, Asia’s top executives, and other players in the FinTech ecosystem. As a result, you can be among the first to explore the opportunities to scale in China’s Silicon Valley – Greater Bay Area region with over $1.67 trillion GDP. It also offers dozens of FinTech masterclasses and workshops hosted by the world’s most innovative companies and technology providers in the industry.

The pre-registration for the 2022 edition is already available, and you can register for next year’s edition at this link: Pre-Register 2022 | Hong Kong FinTech Week.

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Chinese Chamber of Commerce of Brazil held the 130th Canton Fair promotion event in Brazil

The China Import and Export Fair, also known as the Canton Fair, started in 1957, is held biannually in Guangzhou, China. The event is organized by the China Foreign Trade Center, sponsored by the Ministry of Commerce of the PRC and the People’s Government of Guangdong Province.

It is also China’s leading commercial promotion platform and directly connects domestic and international markets. The Fair is an extensive international trade event, with a wide variety of products, participation of buyers from various countries, and represents a significant turnover for China.

On 21 April 2021, during the Special Latin American Session of the 129th Canton Fair, the Deputy Director and General Secretary of the Fair, as well as the Director of the Center for Foreign Trade signed a cooperation agreement with the Chinese Chamber of Commerce of Brazil (CCCB). Alongside the CCCB, the Industrial and Commercial Foundation of Argentina, Chile Hongzhan Group, and the Colombian Chinese Chamber of Investment and Commerce also joined the agreement.

CCCB President Daniel Manucci attended the event and said the CCCB had witnessed the development of cooperation between Brazilian and Chinese companies. With this, Manucci signed the cooperation agreement with the Center for Foreign Trade and formally joined the “Canton Fair Global Partnership Program”. This partnership established in the previous edition extends until the 130th edition of the Fair.

Since its inception, the Canton Fair has adhered to reform and innovation. Overcoming several challenges and never being interrupted since 2020, Canton Fair has been transferred to the Internet due to the violent global pandemic of COVID-19 and a severely damaged global trade. In 2021, the Fair returned to face-to-face meetings.

With this in mind, the Chinese Chamber of Commerce of Brazil offered support to Brazilian companies wishing to visit and explore the opportunities provided at the Canton Fair on-site, with the help of our local partner, CW Group.

On 18 October 2021, CCCB held a promotional event at the 130th edition of the Canton Fair. This edition marks an important milestone, since it is the first edition of the Fair with a hybrid format, working in a face-to-face and virtual way.

The event was attended by the Consulate General of China in Rio de Janeiro, the China Trade Center Group, INDI MG – Agency for The Promotion of Investment and Foreign Trade, and ABCasa. On behalf of the CCCB, we had our General Manager, Arthur Guimaraes, and the moderation of the event was made by our Project Coordinator, Lara Cordeiro.

This Article is contributed by the Chinese Chamber of Commerce of Brazil.

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Beautiful Brazil

The diplomatic relationship between Brazil and China began in the 19th century. This relationship became closer in the ’90s due to a more complementary commercial approach. Since 2009, China has been Brazil’s leading trading partner. The economic connections between the countries have brought them closer despite the great geographic distance.

Brazil is a crucial commodities supplier, whereas China provides mostly raw materials, supplies, and machinery to Brazil. China additionally plays a vital role in the Brazilian economy since it buys more than it sells. Since 2010, China is also responsible for heavy investments, especially in energy and infrastructure. In 2019, China invested USD 1.9 billion in Brazil, following the Chinese government commitment made at the 11th BRICS summit in Brasília to invest UDS100 billion.

From January to October 2020, 21.6% of all products imported to Brazil were from China. According to Mr. Yang Wanming, Chinese Ambassador to Brazil, more than 300 Chinese companies invested in Brazil, of which 25 ranked in the top 500 companies globally. The closer connections between the two countries are even more evident now with the joint efforts to elaborate a vaccine against COVID-19.

China considers Brazil as a strategic partner. This scenario presents an opportunity for Brazilian companies that want to expand their businesses to China, even more so after the country’s new Foreign Investment Law came into effect last year, which aimed to make foreign investments in China safer and easier.

Establishing a business in China can present a range of strategic benefits to Brazilian companies, especially to those that wish to partake in product import-export services or establish their operational focus on the Chinese market, from preparation to the distribution of their products services. Although not every company has the same needs, we list a few benefits of establishing a company in China:

  • Access to foreign investment protection as a China-based entity
  • Obtain Chinese-speaking skilled workforce
  • Closer contact with Chinese suppliers
  • Access to one of the biggest consumers markets in the world

Understanding the potential of these fruitful economic relations between Brazil and other Latin American countries, Mr. Thomas Wong, Partner of CW CPA, established a team entitled ‘Latin Department’ to serve Spanish and Portuguese-speaking clients. One of CW’s differentiating factors is that we offer experienced native-speaking advisors that attenuate the cultural differences, thus making the navigation through the complex Chinese market smoother.

To date, our Brazil Desk is a division under the Latin department, assisting various sizable Brazilian companies operating in China, with two Brazilian advisors, namely Kemelly Vera and Rafael Fraga. Our Brazil Desk focuses on international retailers, technology equipment manufacturers, and medium-sized traders that are sourcing components from mainland China. If you are looking to capitalize on China’s market opportunities, please contact our Brazil Desk:

Kemelly Vera | LinkedIn profile

kemelly.vera@cwhkcpa.com

Rafael Fraga | LinkedIn profile

rafael.fraga@cwhkcpa.com

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Brazil-China Chamber of Commerce

The Brazil-China Chamber of Commerce (CCCB) aims to strengthen commercial ties between Brazil and China while contributing to effective communication between companies and entrepreneurs both in China and Brazil. It is equipped with a specialized team of professionals in Brazil and China, ready to meet affiliates and customers’ diversified demands.  

CCCB advises its affiliates to overcome language and cultural barriers and recommend strategic solutions to facilitate business development and growth. They develop personalized services catering to the clients’ unique needs.   

It is fundamental to aid the effective communication between Brazilian businessesChinese companies, and entrepreneurs. CCCB’s portfolio offers services including but not limited to: 

  • Market expansion analysis;  
  • Prospecting for suppliers and buyers in Brazil and China;  
  • International business trips;  
  • Suitability research; 
  • International trade fairs;  
  • Business intermediation.  

In 2020, the Chamber strived to improve its products and services in response to the latest business transformation promoted by the global pandemic. It endeavors to ensure the quality of the services provided. Moreover, CCCB is proud to announce that it has achieved the expected growth of the year; with its cooperation with CW CPAs partner Mr. Thomas Wong (CCCB representative) to establish its presence in Hong Kong, the Chamber successfully launched its Shanghai office and business in the Greater Bay Area.  

It is foreseeable that 2021 will still be under the significaninfluence of COVID-19. CCCB targets to deepen its cooperation with CW CPA to promote more flourishing China-Brazil relations in light of the unprecedented challenges. 

This article is provided by the Brazil-China Chamber of Commerce. For more information, please contact Lara Cordeiro at lara.cordeiro@camarachinesa.com.

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Brazil coffee

The Growing Coffee Consumption in China Opens up Opportunities for Brazilian Coffee

Since 1820, coffee has been Brazil’s most exported product. In only 20 years, Brazil has developed into the world’s leading coffee producer, exporter, and consumer.[1] Coffee-producing regions spread across 14 Brazilian states, with Minas Gerais and Espírito Santo as the top production states.[2] The country cultivated over 60 million 60-kilogram bags of coffee beans in 2020, marking a sharp increase in production since the 2018 record of 50.90 million bags.[3]  Due to the excellent weather conditions, expansion of clonal seedlings, and improved crop management techniques, Brazil is forecasted to account for most of the world coffee production gain this year.

 

China’s Thriving Coffee Market

Known as one of the world’s fastest-growing countries, China’s relationship with coffee has been one of the lowest globally – an average of 5.4 cups per capita in 2019. Nevertheless, this phenomenon changed between 2008 and 2018, thanks to the growing influence of Chinese millennials. As the 1981 and 1996 generation make up most of China’s current population, their passport holding likely suggests their higher disposable income. With the modern penchant for travel, exposure to Western culture also changed the Chinese’s drinking habits from traditional tea to coffee. All these led to the impressive growth of China’s coffee consumption by 1032% in 2018. More notably, there is remarkable revenue growth of 15.6 billion yuan to 56.9 billion yuan between 2013 and 2018. It also projects and represents a 25% compound annual growth until 2023.

China’s coffee consumer market is a massive land of opportunity for Brazilian coffee. According to the United States Department of Agriculture (USDA), the domestic consumption of coffee in China is forecast to be 3.35 million 60-kilogram bags, which is about 17-20 cups of single-shot coffee per person. There is still much room for growth.

Although China herself also produces and exports coffee beans from the Yunnan coffee plants, coffee bean import still occupies a significant proportion in its coffee market. Currently, Vietnam is China’s major coffee importer, accounting for 65,100 tonnes of coffee imports in 2019.[4] Simultaneously, Brazil’s coffee bean is exported to the country dramatically increased by approximately 110% in 4 years.[5]

 

E-Commerce as an Entry Model to the China Market

E-commerce breaks through the reach limitation experienced by physical stores and product origins. It acts as an exciting promotion and retailing channel to bring businesses and customers together. Apart from retailing through the brand’s mobile application, both local Chinese and international corporations have been using Tmall.com as a stepping stone into Greater China. Launched in April 2008 as a spin-off from Taobao, Tmall.com is Asia’s largest e-commerce platform for brands to sell directly and penetrate the prospering China market.

To stand out from competitors, new coffee brands now learn to adopt e-commerce platforms with the hope of bringing in more businesses. For instance, in China, the Luckin Coffee brand launched a mobile app to streamline its operations and analyze customer preferences for promotional use. The brand’s innovative use of technology enables the corporation better to determine store locations, pricing, and market forecasting. The app allows customers to complete a remote, overall order from many coffee, non-caffeinated drinks, and light food. Before making their order, customers could find a brief drink introduction, such as its primary ingredients. Users can also customize their drink to their liking on the app to avoid miscommunication with the barista.  Such a convenient and accurate way of making orders appeal to the new generation of coffee drinkers who applaud speed and convenience. Moreover, the app includes various mobile-exclusive discounts to connect further and retain current customers and attract new users. Thus, from Luckin’s case, we could see that the adoption of e-commerce platforms enables coffee brands to collect customers’ preferences to tailor their services and menus better and, eventually, boost retail sales.

SeeSaw Coffee, a Shanghai-based pioneer in specialty coffee, has successfully retailed its Yunnan and Latin American coffee beans online through Tmall.com. SeaSaw offers a wide range of coffee products like hanging ear drip black coffee filters and Italian-style freshly ground Yunnan coffee powder online to suit its customers’ needs across the country.  Unlike other online marketplaces like Amazon, Tmall ‘recognizes’ the existence of “Flagship Stores”, which SeeSaw’s Flagship Store is similar to its standalone website.

The increasing popularity of coffee in China reflects the undoubted potential of the coffee bean industry. The improved living standards and quality of life will further contribute and stimulate coffee culture and consumption. Adopting e-commerce as an entry model allows and encourages Brazilian coffee farmers to actively engage with worldwide customers and expand their businesses and profits.

[1] https://www.arcgis.com/apps/MapJournal/index.html?appid=8ff13b46d74e4a249f91627ba5a8b126

[2] https://www.arcgis.com/apps/MapJournal/index.html?appid=8ff13b46d74e4a249f91627ba5a8b126

[3] https://www.reuters.com/article/brazil-coffee-crops/update-1-brazil-sees-2020-coffee-crop-at-61-62-mln-bags-below-2018-record-idINL2N2GJ0EX

[4] https://daxueconsulting.com/coffee-bean-market-in-china/

[5] https://dialogochino.net/en/agriculture/34928-how-growing-coffee-consumption-in-china-impacts-brazil/

Written by Claudia Tam , Latin Department, CW CPA

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