Mar 7
2009

Interior design for the upper middle-class. Foto: Michelangelo

„Quite expressive“ was the term used by Brazil’s National Stone Trade Association Abirochas to describe the current import figures for natural stone. What exactly was meant by the term „expressive“ in this context remains a mystery – perhaps with a view to the future it could be an indication that the territory will not be relinquished without a struggle.

The figures published by the Abirochas-Newsletter Informe (3/2008) (Portuguese pdf) are, indeed, impressive. The value of imports increased by 32,5 % from 2006 to 2008, which represents a 21 % increase in tonnage. Stone imports totaled U.S. $51,6 million or 91.244 tons.

That is a small portion of the country’s exports, which last weighed in at 2.5 million tons or just under 1000 million USD. Perhaps Abirochas use of the term „expressive“ as well as taking a closer look can be justified by the continuous increase in exports.

In short, Brazil is on its way to becoming an importer of European marble and travertine. A good 2/3 of imports were marble worth 39,5 million $ and representing a mass of 66,223 tons.

Brazil has its own assortment of indigenous carbonate stones. Ever since the granite gold rush broke out in the USA domestic varieties were treated as orphans. Only recently – more precisely, since the Vitória trade fair last year – have they moved closer to the limelight.

Natural stone imports began coming out in a big way in the 90’s after some import restrictions were lifted. Even back then it was obvious that there was an enormous demand for marble and travertine.

Stone was imported mainly from Italy, Spain, and Greece. The reason for these preferences is unchanged (see interview below).

A look at local buying-habits soon uncloaks the Brazilian particularity: the upper and middle class are nothing short of consumer-crazed. Coupled with the habit of buying on credit, which, just as in the USA, is wide-spread, socio-economic behaviour, these practices define common ground throughout the Americas from north to south, be it in city-planning or in consumer markets.

Just to afford some insight in the potential of Brazilian markets, let us turn to a Brazilian peculiarity: the importance of „carro zero”, the zero-mileage car, which means so much to Brazilians that, in fact, many buy a new vehicle every couple of years.

Unbridled consumerism is rampant in large cities like São Paulo, a mega-industrial centre, home to an estimated 10 million citizens, or Rio, the artistic heart of the country, or, Brasília, the administration-centre of the country – far from the life-style in the country-side or the favelas.

As far as home-construction is concerned, as in the USA, big is beautiful. A home typically has not only one bathroom but ideally as many as members of the family living in it. Natural stone is an integral part of interior design, not only in the living area but also in the kitchen and is generally used as flooring. This is due in part to the climate, as stone remains pleasantly cool even in the warmest latitudes.

Outside their buildings, too, Brazilians like „softer“ stones.

Informe (3/2009) gives up-to-date insight in Brazilian domestic consumerism. An estimated 65 million m² (2 cm-thick slabs) were turned over in 2008. For the purposes of this article, the 14 million m² marble are of particular interest, of which over 10 % (1.9 million m²) were imported.

These figures are backed by a sharp increase in buying over the last years. Low interest rates for long-term investments and an increase in wages resulted in an increase in gross domestic product up 5.4 % to 2,600 billion R$ (or approx 1092 billion U.S.D) from 2006 to 2007 according to the IGBE, the Brazilian bureau of statistics. Turn-over was up 6.5 % during this time-span.

It is not so much the actual figures, which impress. After all, Brazil is as large as an entire continent and embraces an estimated population of 190 million. Indeed, what is most remarkable, is the steady growth, which this country has been experiencing since 2004. Previously, periods of growth were limited to small straw-fires coining the phrase „chicken hops“ or „vôo de galinha“ as the Brazilians called them. The steady economic growth experienced since 2004 saw a surge and further increase in 2006.

Despite the fact that prognoses have fallen victim to the world-wide recession, let us take a look at one of the studies. Brazil is, albeit, experiencing a period of stagnation. But it seems safe to assume that growth will resume, when the crisis subsides.

The Brazilian National Bank for Social and Economic Development (BNDES) presented the expected volume of investment for the period from 2008 – 2011 (pdf in Portuguese) . According to the study, investments of over 1,200 billion R$ (or approx 504 billion USD) were expected for the 4 year period.

Of particular interest for our purposes is the fact that 44 % of this volume was earmarked for housing: 535 billion R$ (or about 225 billion USD), a mammoth sum.

Even if natural stone imports make up but a small portion of the investments, or, as has already been observed, synthetic stone should gain increasing ground of the domestic market share, it should nevertheless prove worthwhile to take a close look at Brazil as a consumer market.

By the way: Brazil is likely to become an increasingly important consumer of imported machinery for the stone producing industry in the years to come according to the Italian trade journal Giornale del Marmo: (vol 276, November/December 2008) bears the heading „Brazil’s waiting“.
 

Why Brazilian consumers value marble from abroad

Priscila Fleischfresser A. Costa.

Michelangelo Mármores e Granitos situated in the state of Praná in southern Brazil is one of the most important producers of natural stone in Brazil. Recently, imported marble and travertin were added to the range of the company’s products, complementing domestic varieties and granites. The company, founded in 1989 by two brothers of German origin, was always a couple of steps ahead of its competition: in the early days the company concentrated on domestic marble, among others on the famous Prána which became the company’s trademark. In the 90’s the brothers discovered the American market. Later, concentrating once again on the local market, they now offer the like of calibrated tiles 1cm thick. Stone-Ideas.com spoke with Priscila Fleischfresser A. Costa, director of Michelangelo.

Stone-Ideas.com: Which type of stone do you import to Brazil?

Priscila: Michelangelo has a whole range of marble imported from Europe on offer: among others Crema Marfil, Marrom Emperador Light, Estatuário, Carrara and Calacatta. We are the exclusive distributors of Royal Beige and Botticino Nuovo. We also import Branco Pighes, which comes from Greece.

Stone-Ideas.com: Can you name some figures?

Priscila: In 2008 we imported approx. 50.000 m² to Brazil, including marble slabs and tiles.

Stone-Ideas.com: Where is this stone used?

Priscila: Essentially the stone is used in private building projects and architectural projects. Many Brazilians use the stone to decorate and design the interior and exterior of buildings.

Stone-Ideas.com: Why to Brazilians buy stone from abroad?

Priscila: Brazil is famous for its indiginous stone which also sells well in other countries. However local consumers prefer more uniform colours. Beige, white and grey are in great demand. Most Brazilians are partial to subtle structures and colours, which our local granite does not offer but which is in great demand abroad. Also imported stone gives home-owners a feeling of nobility, upgrading their status.

Stone-Ideas.com: What do you mean by this?

Priscila: Euroean history is imprinted in marble steming from the continent. Sculptures of ancient Greece, for example, were carved from European marble, so were Michelangelo’s famous works of art. The stone is not purchased as a building material but rather to create atmosphere according to the builders’ wishes. The marble affords a certain life-style and feeling for those dwelling in its proximity.