2. 2 BRAZIL = PROMOTION
Amazonas, located in northern Brazil,
is named after the world’s largest
river (by volume). It is the largest state
in Brazil, and forest covers 98% of its
area.
For many years, the state’s economy
depended primarily upon rubber. Now
it has diversified, with an economy
based on industry, natural gas and oil,
mining, fishing and some agriculture.
Ecotourism, with an average growth of
6% a year, is the fastest-growing segment
of all, according to Getulio Vargas
Foundation, the world-renowned
Brazilian think tank.
Much of the economic growth of
Amazonas falls under the auspices of
SUFRAMA, the Manaus Free Trade
Zone Superintendency, a federal agency
linked to the Brazilian Ministry of
Development, Industry and Foreign
Trade. SUFRAMA is responsible for
constructing a model of regional devel-
opment using sustainability as a guide,
while ensuring economic viability and
improving the quality of life for local
populations.
Governor Eduardo Braga is a devotee
of Amazonas’ natural environment. He
keenly believes that its preservation is the
key to the state’s economic development.
Amazonas has the largest percentage of
tropical forest in Brazil, but recent stud-
ies indicate that unless action is taken
now, the area could be endangered.
According to Braga, “The Amazonas
is the most preserved state in terms of
environment, but the forest will remain
only if it gains economic value for the
population. Otherwise, soybeans, live-
stock farming and mining will take
place in the forest as an economic occu-
pation.
“People now recognize that the world
really depends on the maintenance of
forests,” he continues. “The reduction of
deforestation is a highly effective meas-
ure in reducing the greenhouse effect. The
whole world recognizes this, yet the mar-
ket does not pay for it. The forest must
have an economic value.”
Braga fervently believes that the stand-
ing forest is worth more than the fallen
forest: “We have developed a strategy to
cut 70% of deforestation. People living
in units of protection must have the com-
mitment not to deforest.” To guarantee
this, Amazonas instituted the Bolsa
Floresta, a system of tax support and
financing designed to encourage the
production of sustainable products. This
policy has contributed to an increase of
about 12% for gross domestic product
annually.
Also helping the economic picture is
the fact that Amazonas comprises the
third-largest state investment in science
and technology in Brazil. The region is
also educating more of its citizens. To do
so, the government is bringing top class-
room resources into the state’s vast inte-
rior through the use of computers,
satellites and other technology.
Another boon for the region is the
FIFA World Cup. The soccer champi-
onship tournament will take place in the
capital city of Manaus in 2014.
Amazonas is hoping to attract invest-
ments totaling $6 billion. “The point is
to mix the World Cup with investments
for environmentally correct tourism,”
says Braga. “We are creating infrastruc-
ture in a sustainable way. We are build-
ing a stadium fueled by solar energy. We
have proposed to FIFA [the World Cup
organizing body] to go carbon neutral
during the event.”
If major change doesn’t occur in the
interim, the biggest soccer tournament in
the world may kick off a new era of sus-
tainability for Amazonas. O
By Laura Powell
The Name
Game
From fashion to
furniture, the
magic formula
for successful
merchandising
at two enduring
Brazilian
companies is
branding.
Entrepreneurial flair in branding and mar-
keting are among the key elements in the
success of two of Brazil’s longest-established
family businesses.
Cia Hering, an apparel, manufacturing
and retail company, and Insinuante, a retail
network selling furniture and household elec-
trical appliances, have created brand names
famous throughout the country.
Two brothers, Bruno and Hermann
Hering, founded Cia Hering in 1880, while
Luiz Carlos Batista, the president of
Insinuante, began acquiring his business acu-
men from his father and grandfather.
Cia Hering is now a public company with
only two members of the Hering family on
its board, while Insinuante remains a private
concern.
What the two companies have in com-
mon, however, is the inspired creation of
their brands and the astute manner in
which they have updated their products
through the years.
“In German, Hering means fish, so our sym-
bol of two crossed fish has a very strong
legacy,” says Ivo Hering, president of Cia
Hering. “But today, we are catering to a
younger group of people, and we are more
dynamic in terms of purchasing, so we had to
consider how to make the brand more visible.
“The way to achieve this was to control
our distribution channel through our own
shops and franchised stores, and we now
have the largest network of apparel stores
covering the whole of Brazil.”
Today, Insinuante’s brand name and logo
is simply IN. “The name Insinuante was too
long, so we reduced it,” says Batista.
His greatest achievement, he says, has been
introducing a new concept for the brand: giv-
ing each of the stores large, modern prem-
ises with 10,000 square meters of sales space
and 5,000 square meters of parking.
Both Cia Hering and Insinuante place
great emphasis on their marketing strategy.
“Advertising becomes more effective once
you have your own shops and can build a
Staying Green
The preservation of the natural environment is
key to economic development.
VTQuatro–Comunicações
Brazil2-09-reprint:forbes 7/22/09 2:17 PM Page 2
3. BRAZIL = PROMOTION
collection with stylistic ideas,” says Hering.
“We give consumers a good relationship
between price and quality.”
Cia Hering made improvements in prod-
uct development and pricing, and is con-
stantly reinventing itself to stay ahead of
fashion trends. “Brazilians see Hering as a
quality product within a certain price
range,” Ivo Hering adds.
The company launches six collections a
year and turns over a large part of its prod-
ucts every two months. Hering says the com-
pany has the potential to maintain a growth
rate of 30% to 40% per year, as it has done
for the past two years. “We want to open
more shops rather than growing through
mergers or acquisitions,” he says.
One of the company’s altruistic activities
is its involvement in the Fashion Targets
Breast Cancer campaign, which raises
money for research, detection and treatment.
“We made a T-shirt to give visibility to this
campaign and won honors in the U.S. for
achieving the world’s largest sales by vol-
ume,” says Hering.
Insinuante’s commitment to advertising
and marketing is even more adventurous. At
one point it was
spending half of
its profits on its
advertising cam-
paign, paying for
20 television com-
mercials a day.
“To spend 3% or
4% of annual sales
on advertising is crazy,” says Batista.
“Imagine paying 50%!” However, the strat-
egy has paid off, and the company is now
the fourth-largest player in its sector.
Having started out in the family shoe and
furniture business in Vitoria da Conquista,
Batista opened another store in Salvador,
where he was attending university.
“That’s how I came up with the strategy
to keep opening new stores,” he says. “I was
opening stores in neighborhoods where
money was short, because I understood the
culture of those people. Then I moved to city
shopping centers to meet middle-class needs.”
Insinuante soon had 100 stores. Today, the
company has its own advertising agency and
operates in 12 Brazilian states.
“Consumers have grown up watching or
listening to our commercials,” says Batista.
“In the past four years we have had growth
of 200%.” O
3
Luiz Carlos Batista,
President, Insinuante
Brazil2-09-reprint:forbes 7/22/09 2:18 PM Page 3
4. 4 BRAZIL = PROMOTION
Purpose Built
The second-greenest city in the
world is commited to private-sector
development.
Goiânia, the capital of the central
Brazilian state of Goiás, has plans in
the works to construct a new recreation
park, a zoo, a livestock reserve and a pub-
lic showground, all aiming to cater to the
increasing number of business tourists
visiting the city.
Modernization of the airport is already
under way, and Mayor Iris Rezende is
confident that the city can attract sufficient
private-sector investment to fund many of
its other projects. “I never saw an investor
disappointed after investing in Goiânia,”
he says.
The city is only a two-hour drive from
Brasilia, and this proximity makes it a prac-
tical and affordable destination for tourists,
particularly the crowds expected to pour
into the country during the 2014 FIFA
World Cup soccer tournament.
Goiânia was founded in 1933 and is the
only city in Brazil other than Brasilia that
was completely planned from scratch.
Today, it is home to 1.25 million people and
is a bustling center of cattle raising, agri-
cultural industry, pharmaceutical clusters
and, increasingly, information and commu-
nications technology. It is also said to be the
greenest city in the country, and worldwide
is second only to Canada’s Edmonton.
Rezende, age 75, is a veteran political
activist. A former member of Parliament
and two-term state governor, he is now
serving his third term as mayor. “I took
office when the city was in chaos,” he says.
“Goiânia had 130 districts without asphalt.
In four years, I paved 1,560 kilometers [970
miles] of streets.” O
Small Region,
Big Potential
A best-kept secret, this unspoiled
Brazilian state is investing in its
image and economy.
From the untouched glory of its coast-
line to the colonial architecture of its
towns and the fossilized footprints of
dinosaurs, Paraíba is still waiting for dis-
covery by tourists and investors.
Located in the northeast of the coun-
try at the easternmost point on the
South American continent, Paraíba is one
of the smaller Brazilian states, with a pop-
ulation of 4 million and a largely agricul-
tural economy.
Situated between Rio Grande do Norte
and Pernambuco, two states that are
already popular tourist destinations,
Paraíba has yet to benefit fully from its
own attractions. “We have beautiful
beaches, but we must offer quality infra-
structure,” says Governor José Maranhão.
With this target in mind, the state gov-
ernment is investing $51 million in a con-
vention center for business tourism and is
building highways linking the cities of the
south coast to the towns of the interior.
It has already made other infrastruc-
ture investments. Six months out of the
year, no rain falls in Paraíba, so the gov-
ernment has constructed dams and water
ducts to bring water to 102 cities and has
irrigated almost 5,000 acres of agricul-
tural land. A project is also under way to
bring electricity to 90% of the state’s rural
communities.
The presence of large oil shale deposits
in its territory and the prospect of the fed-
eral government’s investment in a biodiesel
production plant are expected to further
boost the economy, as will tourism.
The state’s potential as a tourism
resort and its wealth of high-quality oil
and minerals are attracting international
investors, says the governor. “We have
even received a group from China inter-
ested in investment,” he says. “Our slo-
gan is, ‘Those who are not the largest
must be the best.’”O
“We have beautiful beaches,
but we must offer quality
infrastructure.”
Governor José Maranhão
Brazil2-09-reprint:forbes 7/22/09 2:18 PM Page 4
5. BRAZIL = PROMOTION
One-on-One
Approach
Emphasis on personalized assistance
makes life easier for investors.
The tiny northeastern state of Alagoas is
the second smallest in Brazil, but it’s big
on natural beauty. Alagoas is known for its
many lagoons and its coastline. From the
capital city of Maceió to the northern bor-
der, the coast of Alagoas is marked by a
fringe of reef and pristine beaches. In recent
years, visitors from Europe and other parts
of South America have been discovering
these shores.
In addition to its natural advantages, the
state’s way of doing business also gives it a
leg up on the competition. According to
Governor Teotônio Brandão Vilela Filho,
creating transparency in public administra-
tion has pointed the way forward. “We
needed to rescue the credibility of the state
to attract investors,” says the former econ-
omist. So, Alagoas streamlined its govern-
ment, reorganized the treasury office and
made information about government funds
public. “We are Brazil’s first state to use this
measure so that society can trust in the
change that is happening.”
Transparency makes life easier for
investors, as does the Alagoan govern-
ment’s commitment to personalized assis-
tance. In fact, the state has a secretary of
development who deals with entrepreneurs
and investors one-on-one. “The government
here is not impersonal, bureaucratic,” says
Vilela Filho. “We deal with each entrepre-
neur as a partner, a friend and a person that
we respect. As the state is small, we can fol-
low each project with great attention.”
Despite the world’s current economic
situation, Banco do Nordeste has given
Alagoas a favorable projection in terms of
attracting new business. Vilela Filho says
that since Alagoas has always been careful
about planning for the future, it’s now
primed to grow. Still, the state needs to over-
come poverty by generating new jobs and
improving the quality of life for its citizens.
Tourism development can do that, while
providing substantial returns to investors at
the same time. O
“We deal with each entrepreneur
as a partner, a friend and a person
that we respect.”
Governor Teotônio Brandão Vilela Filho
5
Brazil2-09-reprint:forbes 7/22/09 2:18 PM Page 5
6. 6 BRAZIL = PROMOTION
GET TO KNOW BRASILIA,
THE CAPITAL OF BRAZIL.CULTURAL PATRIMONY OF HUMANITY. MUCH MORE THAN YOU CAN IMAGINE.
[1] Francisco Rubio [2] Jerry [3] Claudia Victor [4] Patricia Brum [5] Walter Guimaraes [6] Helio Luiz [All Others] Trazzi
[1]
[4] [5]
[2] [3]
The Government of Federal DistrictTourism company of Brasilia
[4] [5]
Brazil’s second smallest
state is attracting the
world’s biggest investors
www.governo.al.gov.br
ALAGOAS STATE
No Clouds
on the Horizon
Ceará offers tourists compensation if
it rains and gives a warm welcome
to investors.
So certain is Ceará of its tourist-friendly
weather that the state offers visitors
refunds of their holiday costs if it rains dur-
ing their stay.
“We have a climate that allows us to have
tourists all year round,” explains Cid Gomes,
the governor. “There is even a period here
where we offer a safe-sun insurance. We are
so sure about the weather that if visitors come
here and experience rain, they will have a
refund to compensate for it.”
Ceará is on the northeastern coast of
Brazil, and its dry season extends from July
to December. In addition, the temperature
is warm all year.
At present, the state’s tourism is predom-
inantly domestic. Brazilians account for
85% of visitors, but with more than 350
miles of sandy beaches, together with
mountains, spectacular waterfalls and rain
forests, the governor is keen to utilize the
tourism sector to its full potential to attract
more foreign visitors.
“We are only six and a half hours from
At the time of press, the currency conversion rate
was Brazilian reals to U.S. dollars (R$1 to US$0.499).
All monetary figures stated are U.S. dollars unless
otherwise indicated.
Director: Lucas Montes de Oca; Managing Editor:
Beverley Blythe; Editor: Michael Knipe
Art Director: Lisa Pampillonia
Project Managers: Florence Lilti, Mathew Harris,
Lauren Denny and Jorge Maraima
Commercial Director: Carolina Mateo
This special advertising feature was produced by
Insight Publications, a division of
Impact Media International Ltd.
150 East 55th Street, 7th Floor, NY, NY 10022, USA.
Tel: +1 212 751 1900 Fax: +1 212 751 0088
www.insight-publications.com
e-mail: publisher@insight-publications.com
IngolfPompe25/Alamy
Brazil2-09-reprint:forbes 7/22/09 2:18 PM Page 6
7. 7BRAZIL = PROMOTION
Europe, six hours from the U.S. and four
hours from the farthest places in Brazil,” he
says. “We have flights to Lisbon and
Atlanta, but it is essential for us to have
more flight connections.”
With the prospect of increasing numbers
of visitors, particularly in 2014 when
Brazil hosts the FIFA World Cup, Ceará is
improving and expanding its tourism infra-
structure. “We have three major projects in
progress, representing values exceeding
$1 billion,” says Gomes.
The state is building a golf resort and an
aquarium, predicted to be the best in Latin
America, at an investment cost of $102 mil-
lion.
Tourism, however, is only one of three sec-
tors fueling Ceará’s economic growth. The
other two are agriculture – particularly
fruit production – and the port of Fortaleza,
which acts as an import-export shipping hub.
“Our irrigated fruit crop has tremendous
potential,” says Governor Gomes. “In the
last three years we have almost doubled our
exports annually, and we envisage this hap-
pening for many years. People worldwide
will not stop drinking coffee or eating mel-
ons. These are basic products that we
grow, and we can enlarge our market. We
need only to improve some of our infra-
structure to facilitate this process and to
lower the costs.”
The state administration in Ceará has
established an agency in partnership with
the private sector to identify and develop
niche sectors of the economy and facilitate
investment. “We are the closest state to
Europe, and we can be a major hub for
exports and processing,” says Gomes.
The port of Fortaleza is located at an inlet
of the Mucuripe coastline and contains
6,000 square meters of warehouses and
more than 100,000 square meters of docks
for container shipping.
“Our port has a deep draft, which is rare
in Brazil, and we already have all the
structures to transform it into an export-
processing zone,” says the governor.
Ceará is investing about $174.5 million
in the port to double its size and build rail-
road links.
Ceará has a population of 8 million, and
despite development along the coast, much
of the interior is undeveloped, with half the
population living in poverty.
In addition to supporting the develop-
ment under way in the tourism sector and
the seaport, the state is seeking investment
to establish a refinery, as well as steel and
petrochemical plants.
“Basic industries are essential here,”
says Gomes. “There will not be a whole
cycle of industrialization until we have these
industries. We have a substantial footwear
sector, our textile business is second to none,
and the people of Ceará have a natural
vocation for trade.”
The finances of the state are also sound.
Gomes, who served two terms as mayor
and has completed his first two years as
governor, says his first priority was to
improve taxation efficiency and create a
public surplus. Ceará, he says, now has the
largest budget surplus in its history.
His next priority is to attract investment
from private-sector industry. “If any man-
ufacturer wants to explore the alternative
world of Ceará, we are available to enter
as a partner and by buying shares and pro-
viding incentives.
“Our economy and the income of the
population will not improve without a mas-
sive investment.” O
“In the last three years we
have almost doubled our
exports annually, and we
envisage this happening for
many years.”
Cid Gomes, Governor of Ceará
StockBrazil/Alamy
Brazil2-09-reprint:forbes 7/22/09 2:18 PM Page 7