Reaching the Rich in Latam

Reaching the Rich in Latam

This post is also available in: Spanish

While the impressive growth of the middle class in Latin America (50% in the past decade) has been well-covered in the media, another segment in the region has also grown significantly: the affluent. We recently looked at this segment and have some interesting figures that marketers, advertisers and media professionals should be aware of.

The Growth in Latin America’s Affluent Market

  • According to the 2012 World Wealth Report, the amount of high net worth individuals (HNWI) in Latin America grew by 5.4% in 2011
  • In 2012, Latin America’s population of ultra high net worth individuals (UHNW)—those with a net worth of 30 million or above—went up by 3.5%
  • In fact, right now there are 14,750 UHNW individuals in Latin America and they have a combined net worth of US$2.2 trillion
  • Brazil has the largest amount of UHNW individuals (4,640), followed by Mexico (3,240), Argentina (1,040), Colombia (690), Peru (595), Chile (550), Venezuela (420), Dominican Republic (240) and Guatemala (235)
  • Brazil ranks 11th in the world in high net worth individuals and leads Latin America in this category
  • In 2011 Brazil had 155,400 millionaires, with one-third of them aged 35 or younger

How Latin America’s Affluent Shop
Not surprisingly, the growth of the amount of affluent individuals in the region has clearly driven the growth of the luxury market in Latin America. Here’s a look at some recent figures:

  • In 2012, Brazil’s luxury market grew by 8% to reach R$ 20 billion (US$10 billion) and it’s expected to grow by 15-25% for the next 5 years
  • Sales of luxury watches went up 30% in Brazil in 2012
  • Mexico’s 2012 luxury sales are expected to total US$14 billion and it’s estimated that 7.2 million Mexicans (5.2% of the population) can afford luxury goods
  • Luxury auto sales in Mexico in 2012 went up by 70%
  • A number of luxury brands posted sales increases in Mexico in 2012, including Porsche (20%), Audemars Piguet (25%) and Zegna (10%)
  • In Chile sales of luxury goods rose 10% in 2012 to reach US$472 million

The Media Consumption of Latam’s Affluent
Data on the types of media consumed by this segment is harder to come by, especially when it comes to the entire region. However, there are numbers that offer some hints regarding media consumption by Latin America’s affluent:

  • 37% of class AB Brazilians plan on buying a car in 2013 and the media that they say will most impact their purchase decisions are magazines (74%), Internet (70%), radio (57%), newspapers (56%) and out of home advertising (56%)
  • 85% of Chile’s highest socioeconomic class uses the internet 3-7 days a week, compared to 14% of the lower socioeconomic classes
  • 90% of the higher socioeconomic classes in Argentina have pay TV
  • 94.3% of the higher socioeconomic classes in Colombia have pay TV
  • 32% of Brazilians who listen to the radio in their cars belong to classes AB
  • Internet penetration is 81% among Chileans who belong to classes ABC1
  • Magazines have increased their penetration with classes AB in Brazil, going from 52% in 2011 to 62% in 2012

To find out how we can help you reach affluent people or any other type of market segment in Latin America via any type of media, please contact us.

About Andrés Sandoval@usmediaconsulting.com

Andrés Sandoval is the Digital Ad Sales Director for US Media Consulting.

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