I want to make a question for you: If you already have consolidated operations in the European market, is it worth to invest in a country like Brazil?
I make this questioning for you because it was the exactly question that I did to myself when I decided to migrate a part of my operations from Portugal to Brazil. Why Brazil? A country with high costs to companies, complex tax law and a huge bureaucracy for investors?
My answer for you is: opportunity and trust. Of course I could look for an expansion in other european countries or even in Africa where I already had established business units in Mozambique and Angola. However, I saw a direction to follow and grow Quatenus up.
I can explain better these two big reasons talking more about the market potential of tracking and telemetry.
How I glimpsed opportunities in Brazil
First of all, I need to remember that Brazil has continental dimensions. Portugal, for example, you can cross in four or five hours driving. Besides that, Brazil is the only country with the most concentration road and cargo transport. According to data from the World Bank, 58% of travels are made by highways, against 53% from Australia, 50% from China, 43% from Russia, that also have big numbers. The road network used to dispose of the country’s production is 75%.
Brazil records a vehicle theft or robbery every minute.
With this scenario, I can explain the reason “opportunity” that I mentioned earlier. It is a fact that the search for more security has made vehicle owners and transportation companies leverage the Brazilian vehicle tracking market. They want to reduce costs of cargo operations in a vast territory – logistics costs can account for up to 35% of sales value – so many companies have searched for telemetry systems and fleet management.
Now, the question of trust. You must agree that it is very difficult to do business and to undertake here. Taxes, labor laws, economic instability. The Cost and Risk Brazil charge high and the traditional saying of “if it gives to complicate, for what to simplify” is a reality.
“Sincerely, Brazil is not a country for amateurs. The mistake of a badly made bet is expensive”.
However, at this point I knew what to do. So much that I decided to focus on the Brazilian operation in tracking and telemetry – which is the core of Quatenus – to maintain excellence. I brought an advanced technological system. I did not just want to be a management software for transportation. And we are not.
My goal has always been to be a partner company, committed to improving results in the quality and financial return of my clients. And that’s our difference.
“To make a successful business, you have to go further. You must to be quick and efficient to solve the various problems that can arise in the operations of tracking and telemetry. You have to serve the clients throughout the country. It is combining market opportunities with the trust to have advanced technology and service excellence”.
Therefore, I believe that Brazil has a lot of potential. As long as you know how to take advantage of it. I emphasize that Brazil still has a lot to grow, because despite the evolution of the last years, the sector is not yet fully mature and does not offer much space for new ideas.
Want to know more about the market for tracking and telemetry and new technologies for the industry? click here.