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Agchem market in Brazil: "Worst strategy is to sell cheap"
Sep. 2, 2014
"The least correct strategy that companies can use is to sell cheap", alerts agronomist Flávio Hirata to foreign companies interested to invest in Brazil. He talked exclusively with Agropages.com during the seventh Brasil Agrochem Show, held last August 15 in São Paulo.
Hirata explained that "selling cheap compromises the quality, investments of the company, and does not bring a margin to invest. The most correct strategy is to innovate, add value to the product and service, so that the consumer will identify a benefit, beyond the product itself".
The configuration of the Brazilian agrochemicals market is that the main companies account for 85% of the market, while other 150 dispute the remaining 15%. "Where there is too much concentration, the competition diminishes - which forces companies to innovate more, research more, and to have more competitive edges", he noted.
"Generic companies sell cheaper. The companies that have a bigger slice of the maker have product which are not similar with the generics companies, so they sell it more expensive. The best is a balance, and the government needs to realize the importance of having more products registered", concludes the associate of AllierBrasil, a company specialized on registration and markets of agrochemicals.
Source: AgroNews
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