Polish medical equipment manufacturer debuts in Brazil

Polish medical equipment manufacturer meets the demand of the world’s ninth economy

The years of the COVID-19 pandemic have exposed the weakness of the Brazilian healthcare system, resulting in increased spending on medical technology and services. Demand in this area has markedly increased over the past few years, and nearly two thousand local manufacturers are only partially meeting it. The Żywiec-based manufacturer of medical equipment has decided to seize the opportunity presented by this market.

In Brazil quality plays a big role

– In Brazil’s medical market, however, quality really plays a big role, meaning that around 60% of medical equipment is imported, mainly from the United States and Germany. The third main foreign supplier is China. In this competition, the advantage Polish companies have over local manufacturers is technological superiority. We are competitive compared to Western European products because we can offer rich functionality at more favourable prices – points out Karolina Orlandi, Business Development Manager, PAIH Trade Office in São Paulo.

Polish medical equipment manufacturer at trade fair in Brazil

Żywiec-based medical equipment manufacturer at trade fair in Brazil

– After the first medical fair, where we presented our surgical tables, we are very optimistic about our development in the Brazilian market. To get noticed in such a competitive environment, you need to stand out by using advanced technologies and innovative product solutions. This is precisely how we operate at Famed, so we approach competition without fear and with enthusiasm. Our portfolio of operating tables is optimally tailored to the needs and requirements of the local market –  says Paulina Sulecka-Adamek, International Sales Director at Famed Żywiec.

This is the absolute top among medical equipment manufacturers

Famed Żywiec tables are ranked in the global top in the area of technological advancement. Among other things, the company is one of the pioneers in using carbon fibre for its manufacture, which enhances the capabilities of the equipment in, for example, imaging and minimally invasive surgery.

Polish medical equipment manufacturer sums up the first half of the year

In the first half of the year, Famed Żywiec increased its sales revenue by 30%, compared to the same period in 2023. The company’s total revenues amounted to PLN 47.6 million. The good financial performance of the Żywiec-based medical equipment manufacturer is confirmed by the title of Business Gazelle.

– We plan to maintain such sales growth dynamics until the end of the year, and investments are also helping us to strengthen our brand strength. In Q1 and Q2 of this year, they totalled more than 5 million and will exceed 7 million throughout the year. These include investment in the expansion of the machinery pool, but with a view to growth, we are also implementing product innovations – points out Paweł Tomala, Vice President and Chief Financial Officer of Famed Żywiec.

Further innovations planned for the second part of the year

The company has planned another innovation in the operating table segment in the second half of the year, which is related to introducing a new proprietary control system.

– As a result, Famed Żywiec operating tables will be unrivalled in terms of positioning precision, which is crucial from a doctor’s perspective. Hospitals expect equipment that will provide good quality and many years of use. This trend gives us grounds for optimism. We have been consistently developing our products in this direction for years. We skilfully combine their extensive functionality with durability and competitive pricing – sums up Michał Grossy, R&D and Marketing Director at Famed Żywiec.

Żywiec-based medical equipment manufacturer presents its operating tables at a trade fair in Brazil.

Every medical equipment manufacturer wants a share in the Brazilian market

Brazil is the largest economy in South America. The seventh most populous country in the world has a market of over 200 million people, which translates into its consumer potential. In 2023, Brazil ranked ninth in the world in terms of GDP.

After years of crisis and economic and political turmoil, the country has regained relative stability and is opening up to international investment and commodities. Brazil trades with, among others, China, the European Union and the United States, while remaining a protectionist country that safeguards domestic production.

Considerable potential…

– There is a lot of untapped potential in trade between our countries. Exports to Poland, in 2023 alone, comprised goods worth USD 1.750 billion. In the same period, Polish products worth USD 850 million arrived in Brazil. The most frequently imported products were pharmaceuticals, including animal medicines, automotive parts, inputs for the processing industry, electrical machinery and equipment, electrical generators and power generation machinery – comments Karolina Orlandi.

Polish brands grow in strength

Some Polish companies already have manufacturing plants in Brazil. These include Selena (construction chemicals), Boryszew (rubber parts for vehicle air-conditioning systems) or CanPack (aluminium cans).

– Still, Brazilians most often associate Poland with Pope John Paul II or Robert Lewandowski. In states with concentrations of Polish communities, awareness is somewhat greater. I believe Polish brands will soon create good associations in Brazil,” says the PAIH representative. “The Brazilian market requires time and a proper entry strategy. The efforts of companies that commit to the process will be rewarded by the huge business opportunities that abound here. It is certainly worth including a presence in Brazil in your development strategy, investing in growth in the market and visiting trade fairs as Famed Żywiec has recently done – concludes Karolina Orlandi.

A medical equipment manufacturer faces 3 main barriers to market entry

Obligation of certification

Obligation to certify certain products, such as food or medical products, with the relevant regulatory authorities in Brazil. This process delays the entry of Polish products into the Brazilian market.

Custo Brasil

That is, a set of structural, economic and bureaucratic obstacles and high taxes that make it difficult to do business in Brazil. It is a very price-sensitive market, and the complex tax system makes it difficult to pursue economic activity. Therefore, local lawyers and accountants or intermediaries are needed to help overcome the challenges involved.

Cultural differences and detailed knowledge of the local business landscape

In Brazil, negotiations are between people, not companies. It is therefore very important to build lasting and friendly relationships. Personal contact is important to enhance credibility and build trust. This is because personal relationships are closely linked to professional relationships in Brazil. For this reason, it is worth seeking a local partner to reduce misunderstandings and instil greater trust in the market.