What international businesses can learn from Northeastern Brazil

Welcome to Insight Connect, an initiative where we invite a range of international and local experts to share their experience, view and insights on cultural intelligence and why it matters.

Today, I’m delighted to welcome Vânia Lourenço from North Eastern Brazil, a Global Culture Research & Strategy Specialist with a focus on Continental Brazil and its regional layers that go FAR BEYOND the Southeast. Together we’ll be exploring why companies and brands narrowing down their research efforts to a center of gravity are missing out on big business and sustainable growth opportunities, using Brazil as our scenery.

Transcript

INT! Welcome to Insight Connect, an initiative where we invite a range of local and global experts to discuss their view and experience on cultural intelligence Today, I'm delighted to welcome Vânia Lourenço. From North Eastern Brazil, a global research and strategy consultancy that specializes in the northeast of continental Brazil, and that goes far beyond the southeast of the country.

Together we'll be exploring why brands that narrow down their centre of gravity to the southeast specifically are missing on big business and sustainable growth opportunities. Welcome, Vânia. It's a pleasure to have you here with us today.

VL: Pleasure to be here as well.

INT! So as means of background, could you tell us how, why and when you landed in the cultural intelligence space?

VL: Yes, sure. I have a background in social psychology and this was in 2009, I started studying social psychology. So in 2011 I started my work in cultural intelligence and I basically started working with this because I would like to be able to be an agent of transformation in people's lives in Brazil and mainly related to my hometown, to my region, which is the northeast, to be able to, give access to products, to services, to education, which I understand is how important for the transformation in any type of life.

INT! Brilliant. Amazing. And actually, your take on cultural intelligence is really interesting because it's rooted in your heritage, as you mentioned in the northeast of Brazil. Could you tell us a bit more about your concept of etnosudestino?

VL: Yes, actually this concept I created as a provocation because we tend to think that only everything happens in the South East of Brazil, which is São Paulo and Rio de Janeiro.

And when we do this, actually we are reducing the potential of Brazil, ignoring the other regions and all the authenticity that we have, as people mixing all the capital, the social capital and missing the cultural capital, the artistic capital, and so on. So, I think when we are dealing with businesses and strategists thinking only about the south eastern of Brazil, we are reducing our view, reducing the potential of Brazil. And at the same time, we are actually searching for insights and strategies in the same source coming up basically with the same kind of insights so why not investigate Brazil to be able to find other sources to come up with different strategies that can be more connected to Brazil.

INT! Brilliant. So, what would you say to a brand that is looking at understanding the roots, the identity, the culture of Brazil, why is it important for them to study the northeast?

VL: I think there are a lot of things that is important to think about the northeast. One thinking economically, which is not exactly my point, but I think it's important to say is that the northeast was the region that has grown economically in the last two years in Brazil.

It's the biggest region growing economically right now. Tourism is also growing as well. And we are now having direct flights to Europe from the Northeast, which also increases tourism. And also, there are all the things that in the Northeast we are the pioneer of: Renewable energies, solar energy, wind energy, and now hydrogen, the green hydrogen energy as well.

And so this is actually thinking more about the rational way of studying the Northeast. But I think, it's also important because the Northeast is the region where Brazil was born as a civilized country. And I think that understanding the Northeast, studying the Northeast is a way to understand Brazil better.

And something that is quite important is that a lot of people don't know Bahia, for example, and Bahia, they state where Brazil was born and where the first capital of Brazil was located in the state of Bahia. I think that, when we deal with the Northeast, we are basically regenerating the relationship with Brazil.

It's a way to understand Brazil in its roots, and this helps us not only to understand the past of Brazil, but also to be able to see other alternatives for the future of Brazil as well.

INT! Yes. It's fascinating. I think you always refer it as a blue ocean. Correct? And so there is not only an economic opportunity, but also one that very much lies in authenticity and demonstrating there's an understanding of where the audiences are from, why they are where they're at, and the whole cultural backbone.

So, when we're looking more in depth, what are the audiences that brands are missing out on not studying the Northeast or other regions than the southeast of Brazil? And what does that mean in real terms?

VL: Yeah, this is very interesting because, basically you are talking about medium urban cities, which is exactly not the countryside, but not also the big city of São Paulo or Rio de Janeiro.

And there you can find a mix of people. But interestingly, the younger people are more concentrated in these regions and I would say around 18 years old, basically, where they are still growing with their families. Being with their families. So basically, I would say this is the majority now in these median urban cities.

And it's interesting and important to learn and to investigate because what happens in São Paulo only happens in São Paulo. São Paulo is a huge city with close to 12 million people. So, they have access to everything. They have all the types of services, they have all the type of products, everything is located there.

But how does this work, how does it perform in the median, urban cities in Brazil that basically constitutes Brazil, right? And this is where exactly you were mentioning about the blue ocean. This is why it's so important to study continental Brazil because it's a blue ocean of opportunities where we basically don't know how to deal with these strategies because there is a lot of people looking for access to service, to product, to education, and understanding how the technology and the internet have evolved and transformed, changed the way that people consume in different areas of Brazil, not only in São Paulo.

So, you know, there is a lot of space to grow because people are keen to have access to product and service. And basically no one is looking at, not no one because there are a few brands, Brazilian brands that already had this insight and are doing really well in terms of health service, and also in terms of, for example, billed services because of our diversity. So let's say if we are thinking about women in the category of beauty, the needs and the way that women are in these other cities, regions are different from São Paulo, for example. I remember that I had a client, a global client a few years ago, and we went to the Northeast to do research.

And when we went back to the headquarters in São Paulo, they were impressed with a lot of things they didn't know. And probably they are still using some of the learnings today. Although, it's been a while. It's important to renew the studies to understand all the updates.

INT! Yeah, that's great. I think when you say what happens in São Paulo only happens in São Paulo, everyone can relate. If you think about the UK and all research companies and agencies always say, well, it is true what's designed is thinking of London, for example, in the UK and we know that what happens in London only happens in London and the rest of the country is very different. And besides when you look at the size of Brazil, and I know you refer to it as a continent more than a country due to its sheer size and diversity, it's even more so true. Looking at ESG specifically and sustainability, Brazil is at the heart of a lot of conversations. Obviously with its importance related to the Amazon, but not only. Also, its borders - very very big borders to the sea and the impact this has on the planet. What do you think international brands can learn from Brazil, its heritage, culture, or even from what brands are doing locally in that space?

VL: I think there are a lot of things to learn from Brazil, but I'm going to bring only a few. I think one thing that is really important at the moment is the concept of regeneration. That is basically transforming the way of thinking - that it's not only about sustainability, that you are going to sustain or maintain the place where you are, but actually you are going to work hard to create a positive impact in that area. So, I think this is a very important thing to learn from Brazil. But there are other things that are connected to this concept that is affection and care. I think you cannot actually regenerate or be an agent of regeneration, if you don't get affected and if you don't care about what you do and about people you are working for. So, I think these are the basis for the strategy to be successful today because, at least for me, it's pretty hard to think about approaching life and approach business as we did in the past without understanding these post-chaotic times are actually requiring from us. So, I think like this concept of regeneration, that is actually a mix of learnings, from our ancestors, from the indigenous people and Afro descendant people that are the people that know how to deal with nature and getting this knowledge and be able to apply this into business. It's something that definitely Brazil, is one of the leaders in and, there is a lot to learn from us, I would say.

INT! I love that. You know what's great is it's not just about making the wrong right or righting the wrong, it's also where the E and the S work in symbiose almost, right?

Because at the end of the day, the silos are always the big enemy of any sort of global initiative that's trying to work well. And here I think there's a fundamental element that demonstrates that the E and the S can't live without each other. And it's profound I think to think a culture has worked that out and there's a lot of learnings to get from that for sure.

Brilliant. Well, thank you so much Vânia for your time today. It was lovely to have you, really insightful, really interesting. And for those watching, this is Insight Connect where cultural intelligence lands. Watch this space for more updates and insights soon. Bye.

VL: Thank you. Bye-bye.