Brazilian consumers will hear about (a lot) of Acer from this year. In the second half, the company will launch two new models of tablet and notebook models, duly accompanied by a millionaire campaign in various media in the Rio-Sao Paulo, Northeast and South with this strategy and an investment of $ 30 million, Acer has projected a 25% growth in revenues and 40% in volume terms. And for 2012, since the launch line of smartphones.
Brazil is to become the third largest PC market in the world. This makes Taiwan’s Acer , the second largest manufacturer worldwide, increase their stakes in the country but is not simple. “This is more complex market that I’ve been exposed,” recognized Mark Hill, general manager of Brazilian operations and vice president in the United States. “It’s expensive to do business here.”
Among the causes, He cited the sales between states, with differences in rates of GST or the need to make accurate projections of market for the import of parts and pieces. In Brazil, the manufacturer needs to maintain higher inventories than elsewhere. Apart from China, Brazil is the only country in which Acer has local manufacturing of notebooks. “The local manufacturing adds an extra layer of complexity,” Hill said.
Among the novelties, the company plans to release a tablet in the local market next quarter, with 10-inch screen and Android Honeycomb, a version developed for tablets. The first units will be imported. The company has not ruled out launching another model, with seven-inch screen later this year.
Moreover, it will launch an extensive advertising campaign to promote its three brands: eMachines (with machines more simple and low cost), Acer (intermediate) and Gateway (more sophisticated). Acer studies to launch desktops too, since this format still accounts for almost half of sales in the country.
Tablets and Smartphones made in Brazil
“We want to expand our business in Brazil and expand our distribution network,” said Emmanuel Fromont, corporate vice president and president of Acer America. On his first visit to Brazil, a market he considers very strategic for the company, Fromont announced the launch of two models of tablet of 10 and 7 inches, with Google’s operating system, Android 3.1. Prices are not yet closed, since only yesterday (23/05) Minister Guido Mantega announced the reduction of tax burdens (in portuguese), which could make the production of tablets “attractive” with a 31% reduction in costs, leaving the price compatible with the U.S. price.
“If you get me a calculator, I can do the math now, but I think this is not so easy,” said J. Mark Hill, Acer’s general manager in Brazil. The company sells the tablets and $ 449, he said, the price in the country would be above this range, due to other charges such as transportation and distribution, which are more expensive in Brazil. “It takes capital, keeping costs to ensure profit margin, predicting the cost price for the next quarter. But I believe that Acer has a much more privileged than many competitors.”
The decision to bring tablets before the smartphone is also strategic. The basis for the distribution of the product already exists and is ahead of production. In the case of cellphones, the Acer in talks with operators the “ideal partner” to put their models on the market. “Clearly this is a market that will grow enough, there are many opportunities for the company here,” says Fromont.
Obviously, a more aggressive strategy of Acer, just when Apple decides to make your iPad 2 here represents a significant increase in the importance of the brazilian market for high technology products worldwide.