What Class C Is Buying the Most

What Class C Is Buying the Most

In 2011, nearly 20,000 products were launched in Brazil’s retail sector. According to a study done by Nielsen for the Associação Paulista de Supermercados (Sao Paulo Association of Supermarkets), 50% belonged to the “high price” category, 13% were “medium price” and 36% were low price. Essentially, about half of these products seemed to be aimed at wealthier (class AB) Brazilians.

What’s odd about this is that the biggest socioeconomic class in Brazil is Class C (105 million). In fact, FecomercioSP projects that in 2015, Class C will spend R$1.4 trillion, more than classes A and B combined.

While we don’t know why companies would weigh their targeting in favor of a market segment that is smaller and spends less, we do have some figures to help professionals in marketing, advertising and media to understand where Brazil’s class C is directing its considerable purchasing power.

Beauty. According to Pyxis Consumo, Brazilians spent R$36 billion (US$18 billion) on beauty products last year. Class C was responsible for 42.6% of the total amount spent by Brazilians on beauty products and cosmetics—more than any other class, including class B, which was responsible for 41% of the total. Beyond just purchasing products, 60% of Brazilian women who visit beauty salons are from Class C, indicates Data Popular.

Travel. Between 2002 and 2012, Class C increased its spending on tourism by 277%. Of the 82 million Brazilians who said they planned to travel in 2012, 60% (the largest amount) were from Class C. In addition, 28% of Class C members say they opt to stay in 3 or 4-star hotels when they travel and their favorite destinations include Argentina, the United States and France.

Clothes. Data Popular estimates that Class C spent R$55 billion (US$27.5 billion) on clothes in 2012—R$10 billion more than classes A and B put together. Class C was responsible for 46% of the total amount that all Brazilians spent on clothes in 2012 and between 2002 and 2012, Class C increased its expenditure on clothes by 153%.

Appliances. Data Popular projects that Class C will spend R$51 billion (US$25 billion) on appliances in 2013, a 122% increase compared to 2010.

Food and Drink. In 2013 Class C will spend R$220 billion (US$110 billion) on food and drink,  a 21% increase compared to 2010. According to Pyxis Consumo, in 2012 class C was responsible for 40% of the overall spending in Brazil on drinks (R$7.1 billion or US$3.5 billion), just behind class B, which accounted for 42.6% of the total that Brazilians spent on drinks in 2012.

Auto insurance. According to Experian Marketing Services, in 2012 Class C Brazilians accounted for 41% of the spending on auto insurance in the country, up from 29% in 2008.

Tablets. Figures from IDC indicate that class C Brazilians bought 545,000 tablets in 2012 and will purchase 1.1 million tablets in 2013 and 1.6 million in 2014.

To find out how we can help you reach Brazil’s Class C or any other target in the country via any type of media, please contact us.

About Sheila Vicente@USMediaconsulting.com

Based in São Paulo, Sheila is a Digital Ad Sales Executive at US Media Consulting.

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