Brazil: Coming Together in Crisis
VERONA, Italy – The worldwide economic downturn due to COVID-19 certainly hit Brazil’s natural-stone sector … but the long-term prognosis points to an even-healthier industry.
As part of the Marmomac ReStart Digital Edition last week, an Sept. 30 online panel discussion with four Brazilian industry executives indicated that the natural-stone market in Brazil was able to succeed, with stable numbers and minimal losses, during the first half of the year.
After the outburst of the pandemic in March, closer cooperation between competitors became a priority for the industry in Brazil.
“We learnt that we have to share information and find ways to react together”, says Matt Vigna, commercial director of Barra de São Francisco-based Gramazini.
The company, one of the largest exporters in Brazil, has its headquarters in the north of the Braziian state of Espírito Santo, while most of the offices and warehouses are in the south. To meet, exchange information and discuss solutions with other big players, Vgna has been travelling frequently for meetings and visits.
Gustavo Probst, the head of commercial relations at Decolores in Cachoeiro de Itapemirim, also felt the need to understand what the other companies were thinking and the challenges they were going through during the unprecedented times.
“We had to learn about all these technologies and virtual meetings, we changed the pace of everything,” he said. “Everybody had a lot more interest in learning what others were thinking, and all of this sharing is making us stronger.
“I’m confident to say that, here in Brazil, most companies don’t hesitate to share information they think is relevant for the sector,” Probst added. “I’m talking about ways to promote the stones, commercial strategies and so on.”
Fabio Cruz, the vice president of industry group Centrorochas, also believed that collaborating is the only way to survive nowadays, and that sharing information is not a bad thing for the companies.
“Data and information is out there for everybody; it is what you do with the information that makes a difference”, he said.
While the consumer, worldwide and in all markets, is increasingly adapting to making choices virtually, selling natural stones is still an activity that favors on site selling, eye-to-eye and inspection of materials. Brazilian companies are investing on improving their marketing resources, as well as maintaining a closer, more-attentive relationship with their clients … even at a distance.
“We’re all consumers as well, and we have to think like our customers are thinking. In times like these, they’re thinking about safety. We’re trying to be transparent, to show the real thing, getting closer to the customer than ever before”, says Gonsalo Machado, commercial director of Cachoeiro de Itapemirim-based Magban.
At Magban, Gonsalo says the focus has been on materials that can be safely selected without inspection. But, if the client feels comfortable to buy more delicate, exotic materials only by choosing online, other resources can be used.
Regarding online selling, all companies pointed out the need to invest in quality folders, pictures and advertising material, which, in Brazil, is putting the country in another level when it comes to customer service.
“You don’t want just a sale, you want a partnership,” Probst said. “For that to happen, good intentions aren’t enough. You have to understand your client to propose more efficient solutions for what he is looking for.”
When it comes to diversity and beauty of materials, Brazil is a worldwide reference. Although the product range is immense, the focus so far has always been on blocks and slabs, and all on the panel agree: The market is more and more demanding for finished and exclusive products.
“I believe we haven’t reached 5% of our potential yet” Vigna said. “There’s so much more room to grow. Most companies in Brazil are focused on slabs, which have a big demand, but worldwide there are many other demands, like tiles and specified products.
“In the next few years, we should focus on expanding the way we work our materials.”
Machado noted that some buyers want to invest in a company that, besides extracting and selling the stone, will also process the final project.
“They want a company that will back up other companies, and have all the work done locally, preferably in the same country.” he said. “We have to work for our materials to be specified in projects. When you put your name together with the professional who specifies, your name is there, people see that Brazil has everything, the whole process. They start trusting, we grow, this can put our materials in a different level.”
Another important part in the process of expanding business is raising awareness and knowledge about the materials and their possibilities and, Cruz said, “get closer to the ones who influence decisions”. He highlights the relevance of increasingly learning to present itself in different ways for different markets.
“Learning to grade and classify the products is all about understanding the expectations of your customer,” he said. “What’s first grade in the U.S. might not be somewhere else. We’ve been learning how to approach our customers and understand their needs.
“Quality doesn’t mean that you always have perfect slabs. Perfect in whose perspective? Everybody has a different opinion about what that slab looks like.”
In Machado’s opinion, if you don’t educate people about the possibilities, there will not be a need for the product.
“All the products can be sold in different markets, but we have to teach them,” he said. “We start from our company, teaching our team about what we have, so they can teach the clients. We have to find partners that wanna jump into this different way of doing business.”
For the complete seminar — Brazilian Natural Stones: Market analysis, COVID-19 and recovery projections, organized by Milanez & Milaneze – visit Brazil’s Stone Summit channel on YouTube at http://www.youtube.com/stonesummit.
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