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Gary Evans

Brazilian importers must know territory here, there

The currency is making it difficult to do business in Brazil, but a couple of companies that exhibited at the April market are doing just fine, thank you.

Last week, Brazil’s real was the highest it’s been in years. The U.S. dollar has lost a third of its value against the real in the past three years, which is not good news for Brazilian manufacturers trying to get a toehold in America.

Still, many are doing well, particularly importers who know their way around the U.S. retail market and Brazilian manufacturing. One such is NASA Brazil, which shows on Main Street in High Point. Bill Drake, a partner in the company, agrees the currency situation is tough but not insurmountable.

He’s been doing business in Brazil for many years, so he knows the territory. With a Brazilian partner, he sells a number of Top 100 dealers who look to NASA as a major source of upscale juvenile furniture.

NASA, which has a factory in Brazil by the same name, has begun warehousing in North Carolina, which will allow its annual sales to approach $20 million soon. Because of its expertise in juvenile, its lower freight costs and its speed in getting product to U.S. shores, Drake said the company has never lost a customer because of currency fluctuations.

For $2,500, you can get a high-cube container from Brazil, versus a standard container from China for $3,500, which Drake said represents about 7% of product cost. And there’s an almost unlimited supply of Brazilian pine, which seems to grow about a foot a day and makes for cheaper material costs.

NASA hasn’t raised prices in three years, Drake said, adding, “We’re not giving it away, but we’re running close.”

For Primex International, meanwhile, the key has been working hand-in-hand with American retailers to provide what they want, said President Stewart Paul.

Primex’s space this April brimmed with product from Brazil, Chile, Columbia, Argentina, Mexico and elsewhere. Much of the volume is from Santa Catarina, a state in south Brazil with many furniture factories.
With 30 years experience in sourcing, 60 different manufacturers and 100 factories to draw from, Primex has mastered sourcing from Latin America. It knows what retailers want in style, finishes, fabrics and leathers, and delivers it consistently.

Primex does a lot of private-label and exclusive product, and the case goods and upholstery it shows in its High Point space are not yet spoken for by buyers. Once that happens, said Paul, the introductions are taken off the floor and are no longer available.

One thing buyers like about buying from Brazil and South American is that sailing times are about 20 days to the East Coast, versus over 30 from Asia, said Paul.

Even better are the 55% to 65% margins that stores are able to get, he said.