what brazilians buy

Consumption, Shopping Habits and Top 10 Popular Products for Brazilians

What Brazilians Buy

EXECUTIVE SUMMARY

• Consumer spending in Brazil has grown over 50% since 2009 and will hit R$3.46 trillion by 2020

• Class B currently spends the most of any socioeconomic class in Brazil

• Class C is growing rapidly and will soon make up 60% of the country

• More importantly, Class C consumer spending will exceed the spending of classes A and B combined by 2015

• Brazilian shoppers favor a number of key products and their spending patterns reveal 10 major product categories that we analyze in the study

BRAZIL’S CONSUMER SPENDING HAS GROWN BY 50% IN THE PAST 4 YEARS.

Source: IPC Target

2009

2010

2011

2012

1.8

2.2

2.5

2.7

Consumer Spending in Brazil (in trillions of R$)

…AND IT WILL CONTINUE GROWING HUGELY—BY 2020 IT WILL REACH:

Source: FecomercioSP

R$3.53 TRILLION

CLASS B IS RESPONSIBLE FOR THE MOST CONSUMPTION IN BRASIL…


A1, 3%

A2, 16%

B2, 26%

B1, 25%

C1, 17%

C2, 9%

D, 4% E; 0.1%

…BUT CLASS C IS KEY FOR MARKETERS. WHY? FIRST, IT’S GROWING RAPIDLY.

105,000,000 Brazilians are now class C

55% of the population

In 2014

58% of the population

will be Class C

40,000,000

Brazilians joined Class between 2003-2011

Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular

SECOND, CLASS C IS SPENDING HUGELY:

R$1,089,000,000,000

Class C will spend $1.089 trillion reais in 2012, then…

Source: IPC Target

THIRD, CLASS C WILL SPEND A LOT MORE, VERY SOON.

By 2015 Class C will spend R$1.46 trillion, more than classes A and B combined

R$1,460,000,000,000


SO WHERE IS ALL THIS MONEY BEING SPENT?

After reviewing dozens of studies, we have identified many of Brazil’s favorite products. Here’s a brief review.

Source: Pyxis Consumo

R$ 36.2 billion

Sales of beauty products in Brazil in 2012

#1 Beauty products & cosmetics are strong sellers in Brazil.

In Brazil, beauty products have posted 15% average growth in sales the past 3 years.

2010 2011 2012

27 31.4

36.2

Sources: Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosméticos, IBOPE Inteligencia, Pyxis Consumo

Total sales of beauty products in billions of reais

Brazil’s beauty market is now a global force.

Source: Euromonitor International

Brazil is the

#3 beauty market in the

world, behind the United States and Japan

Other key data points…

Source: Sophia Mind

79% Of Brazilian

women use beauty products regularly

88% Of Brazilian female Internet users go online to research beauty products

Of Class C women between 18 & 24 spend 71% Of their income on beauty & fashion products

#2 Books: record-breaking sales

Source: Câmara Brasileira do Livro

470 million

Projected sales increase of books in Brazil in 2012

14.5%

Books sold in Brazil in 2011—a new record

Source: Câmara Brasileira do Livro

Class B is by far the largest consumer of books in Brazil.

Class B 51.5% Class C

23.7% Class A 20.7%

#3 Cars: strong sales continue.

Source: Associação Nacional dos Veículos Automotores

2.1 million

Cars were sold in Brazil between January and

September 2012

The numbers show, steady, solid growth.

Source: 1Tendências Consultoria, 2Jato Dynamics, 3Fiat

2010 2011 2012 (projected)

2013 (projected)1

#4 In 2012 Brazil became the

car market in the world2

Fiat is the best- selling car brand in Brazil and set a record in August

2012 with 98,000 units sold3

3.81 million

3.7 million

3.63 million

3.5 million

#4 Brazilians spent R$17 billion on drinks in 2012, 15% more than in 2011.

Source: Pyxis Consumo

42.6% Of drinks spending

is by class B

40% Of drinks spending

is by Class C

#5 E-commerce: 37.6 million Brazilians made purchases online in 2012.

Source: Câmara Brasileira de Comércio Eletrônico

R$18.7 billion 2011 e-commerce sales

26% growth compared to 2010







Top-selling e-commerce products in Brazil in 2012:

Source: Câmara Brasileira de Comércio Eletrônico

Appliances Beauty products #1 #2

Fashion/ accessories

#3 Books & magazine subscriptions

#4

Computer products

#5

#6 Brazilians are spending more than ever on pet care.

#1 Brazil is Latin America’s largest pet care market

Source: Euromonitor International

US$5.2 billion in sales in 2010

#7 Smartphone sales keep spiking.

Sources: 1Google, 2Pyramid Research, 3IDC

14% smartphone penetration, 20121

165% increase in smartphone sales, 20112

73% increase in smartphone sales, 20123

57% of the phones sold in Brazil in 2015 will be smartphones3

Brazilians use their smartphones for Internet research, social media and games…

Source: 1Nielsen, 2comScore

of cell phones sold in Brazil In 2012 had Internet access1

of apps used by Brazilian smartphone users were games2

of apps used by Brazilian smartphone users were for social media2

55%

68%

67%

…and to shop.

Sources: 1Câmara Brasileira de Comércio Eletrônico, 2Hi-Mídia

R$2 billion In 2013, Brazilians will total

1 in 3 Brazilian smartphone

owners buy online with their devices2

In purchases made with their phones1

R$260 million

In 2012, Brazilians will total

In purchases made with their phones1

#8 PC sales are flat but tablets are becoming very popular in Brazil.

Source: IDC Brasil

5.4 million tablets

will be sold in Brazil in 2013

2.6 million tablets

will be sold in Brazil in 2012…

450,000 tablets

were sold in Brazil in 2011

Symbian and Android are the top OS for mobile phones in Brazil.

Source: Stat Counter

#9 Brazilians are traveling more than ever—and spending record amounts.

Source: 1Banco Central do Brasil, 2Associação Brasileira de Agências de Viagens Corporativas

Brazilians spent US$10.7 million on travel in the first half of 2012—a new record1

Business travel by Brazilians increased by 34% in the first half of 2012—another record2

The United States is one of the most popular destinations for Brazilians.

Source: U.S. Department of Commerce

1.78 million Brazilians visited

it in 2012

2.5 million will visit it by 2016

Brazilians are #3 in spending among visitors to the U.S., behind Japan and Britain

Favorite U.S. destinations for Brazilians are:

Source: Hotel Price Index

Orlando

Miami

New York

Las Vegas

Besides the U.S., high-income Brazilians favor 4 other top destinations:

Source: Pesquisa de Intenções de Viagem Global da Visa 2011

Argentina France Italy U.K.

#10 TVs: Brazilians favor flatscreens.

Source: GfK

90% Of the TVs sold in Brazil in 2012

were flatscreens

LED TVs have the highest market share in Brazil.

Source: GfK

of flatscreen TVs sold in Brazil are LEDs

50.9%

5.5% Of flatscreen TVs sold in Brazil are plasmas

43.5% of flatscreen TVs sold

in Brazil are LCDs

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