Friday, 16 March 2012

Brazil - part 2

In my first post about Brazil I explored BoP and classes, the switch and economic situation. Now some interesting factors about the Brazilian market, a little information about ‘luxury’ and C classes, before I go on exploring about advertising, marketing, and digital opportunities in Brazil.

  • Brazilian are confident, always think positive
  • Spontaneous cordiality of Brazilian people
  • Alienation and conformism are major traces
  • Personalisation
  • Relationships by nature are ‘genuine’
  • Brazilian elites emulated Americans and Europeans
  • Most of elite follow international trends
  • Brazilians are naturally ‘consumists’
Classes A and B are the ones behind the luxury market in Brazil. This portion of the Brazilian society is mostly concentrated in São Paulo (53% only in the capital) and Brasilia, although a significant portion of the upper class is composed by landowners who live in the rural areas of the country.

In terms of legal entities, the market is mostly composed by men (54%) and the most expressive age group is from 36 to 45 years old. Foreign women are buying 12% more than Brazilian women, who correspond to 40% of the market.
As for final consumer, 58% are women and 63% of them are between 26 and 45 years old. In terms of educational level, 36% are undergraduate and 47% have a post-graduation degree.
Their mostly consumed items are:
  • Shoes
  • Clothing/apparel
  • Perfumery
  • Food
  • Jewelry
  • Automobiles
  • Hospitality
  • Alcoholic beverages
  • Cosmetics
  • Furniture

Class C – or the Brazilian middle-class has been the main target of retailers in Brazil. As this concept of middle-class is relatively new in a country that used to classify its inhabitants as merely poor or rich, it is hard to find a concrete definition to what exactly is the profile of a typical middle-class Brazilian family, but I guess it is possible to talk about constant change and desire to reach the top of the social pyramid.
To that extent, most middle-class families in Brazil are composed by parents with a lower educational level (mostly high school) that try to provide social inclusion to their children by sending them to college.
Brazilian brands have learned that the products and strategies they’ve used to reach class A and B consumers can’t simply be “pushed down” to class C.
This new middle class is, after all, making the transition from a very different economic reality in which a can of condensed milk was considered a luxury item to be offered as a gift on special occasions.
Brazil’s emerging consumers will be loyal to brands and products that cater to their unique needs and norms. Sales at the Casas Bahia retail chain skyrocketed after the brand figured out that class C customers loved furniture with mirrored doors because it made their small homes appear bigger.


The picture gives the taste of my next post – I will explore the digital marketing, social network and generally in the Brazilian way.

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