what brazilians buy
TRANSCRIPT
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…
Source: FecomercioSP
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$1,460,000,000,000
Source: FecomercioSP
SO WHERE IS ALL THIS MONEY BEING SPENT?
After reviewing dozens of studies, we have identified many of Brazil’s favorite products. Here’s a brief review.
Source: Pyxis Consumo
R$ 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
R$14.8 billion 2010 e-commerce sales
40% growth compared to 2009
R$23.4 billion 2012 e-commerce sales
25% growth compared to 2011
R$10.6 billion 2009 e-commerce sales
30% growth compared to 2008
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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