The idea to open a store in Brazil arose from the couple's great desire to start their own and to experience a new culture. So when their Brazilian friends recommended that they start selling Scandinavian design products, which they were personally big fans of and could see a market for, Anette and Søren agreed, and in 2007 moved to Brazil.

- We probably chose a slightly different approach than many others when we decided to do our market research in Brazil. That is that we moved the family with us to Brazil with the aim of starting a life there and at the same time assessing the market opportunities. However, we had previously obtained the rights to some selected brands, so we knew we had something to sell, says Anette.

Language and imports are the biggest barriers

As I said, there were many challenges associated with the start-up, and the language was initially one of the biggest barriers before the couple could move forward. So the starting point was not to set up shop from day one, but instead they chose to follow a 3-month intensive language program while they investigated the options.

-When you move to a country without being able to say much other than "thank you" and "good day", there are many obstacles. Fortunately, we very quickly started selling on to a very large Brazilian chain a la Inspiration and Kop & Kande.

But Anette and Søren encountered a completely different market, which was structured differently and much more complex than in Denmark.

-For example, the customs duty is so high that you don't even think it can be if you haven't been there. Importing goods was and still is a big challenge, and it quickly becomes very difficult, as there are an extremely large number of taxes and duties that we do not know from Denmark. It's a puzzle that can sometimes still be difficult to solve, says Anette.

-And it is a labor market with many pitfalls. Having employees employed can be a challenge in many areas, but conversely, we have only had good experiences ourselves – so far!, she adds.

The crisis gave rise to new opportunities

After their rapid success, however, the crisis hit in 2008, and they were hit so hard that the chain they sold to stopped all purchases and cut existing orders in half. So therefore they had to stop and look at whether there were other approaches to the market.

-We therefore started our own sales channel, Scandinavia Designs, which today is a recognized brand, and our store with the same name is well visited. Our "Scandinavian house", or the unofficial embassy for Scandinavia, as we were quoted in Vogue recently, is very focused on furniture and lamps. But we also sell a lifestyle, so you will also find sunglasses, bicycles and of course Danish design classics such as the Stelton thermos jug, Royal Copenhagen and Georg Jensen. We have just launched an online store, and we are in the process of making it visible in the rest of Brazil – and who knows, one day in the rest of South America, says Anette with a smile.

Cultural differences that can be felt

The Brazilian business culture differs (of course, one is tempted to say) from the Danish one. Anette and Søren, on the basis of their experiences, have set up a Danish/Brazilian consulting firm, SVAR Brasil, which can help Scandinavian companies get started on the Brazilian market.

- Doing business with Brazilians, I think, is a pleasure, and we have found some great business partners ourselves that we also feel we can trust. But if something sounds too good to be true, it usually is! So you should not enter the Brazilian market and believe that everyone wants the best. But you get better at seeing that through with time, says Anette.

A challenge that can be recommended

As I said, the couple's business is well established in Brazil today, but the road has been long and it has made them wiser in many areas. However, one of the things cannot be pointed out enough; learn the language and be present yourself. You can't do it from your desk at home in Denmark, emphasizes Anette.

- I would say that you can take a lot of further education, and I myself have an MBA from the USA, but I have never learned so much in such a short time as during the period when we established our company in Brazil. So sometimes you have to take the plunge, but be aware of what the risk is and be willing to bet. But then it can also be fun and educational! And most of all, you must be outgoing and use your network both privately and business wise. Brazilians are incredibly nice and helpful and like "foreigners", concludes Anette, who today divides her time between Brazil and Denmark, where she recently settled with her family.

The company continues unchanged in Brazil, and they have now just established themselves with a company and desks in Denmark as well. Every month either Anette herself or her husband Søren is at the office in Brazil.

Last updated 21 September 2022