Category Archives: Class C (Brazil)

Classe C 2

What Brazil’s Huge Middle Class Will Buy in 2014

If Brazil’s Classe C middle class were a country, its annual consumption is enough for it to be among the top 20 countries in the world. With a total population of 108 million people, in 2013 Classe C spent R$ 1.17 trillion (US$530 billion). Recent studies from Serasa Experian, Data Popular and other sources have identified a number of hot products that Classe C will purchase in droves during 2014.

Auto
Autos

Brazil’s Classe C will buy 3 million cars in 2014. In all of 2013, Brazilians of all socioeconomic classes purchased 3.6 million cars, a figure that suggests that the middle class will account for most car purchases in 2014.

2 clothes
Clothes

The Brazilian middle class will be responsible for 41% of all clothing purchases made in Brazil during 2014. Classe B will be responsible for 40% of the clothes purchases, will Class A will only account for 8% and Classes D and E combined will account for 8%.

3 cosmetics
Cosmetics
In general, Brazilians of all socioeconomic classes will spend 14% more on cosmetics in 2014 than they did in 2013. Last year, Classes B and C were the biggest consumers of cosmetics in Brazil. Classe B Brazilians spent R$ 383 million (US$172 million) on cosmetics while Classe C Brazilians spent R$ 317 (US$143 million).

3 furniture
Furniture
Brazil’s middle class will spend R$ 7.8 million (US$3.52 million) on furniture.

4 fridge 2
Refrigerators

Classe C Brazilians will buy nearly 5 million refrigerators during 2014.

5 phone
Smartphones

Classe C will buy 3.9 million smartphones during 2014. Since IDC predicts that overall sales of smartphones in Brazil will reach 47 million units, this means that the Brazilian middle class will account for 8% of smartphone sales in 2014. In addition, a recent study from Kantar Worldpanel indicates that smartphones have a 17% penetration rate among Classe C.

6 tablet
Tablets

It’s projected that the Brazilian middle class will buy 4.5 million tablets during 2014. Since total tablet sales in Brazil during 2014 are projected to reach 10.7 million, this means that Classe C will account for nearly half of all the tablets purchased in Brazil this year.

7 travel
Travel

Classe C will continue to step up its travel during 2014, spending R$ 8.5 million (US$3.84 million) on travel within Brazil and R$ 3.2 million (US$1.44 million) on travel outside of Brazil. Recently, Brazil’s Tourism Ministry indicated that Brazil’s middle class will make up 53% of the total of Brazilians who will travel outside the country in 2014. A 2012 study from Amadeus, a travel firm, indicated that Argentina was the #1 foreign travel destination for Classe C Brazilians, followed by Paraguay and Uruguay. The United States came in 4th place for Brazil’s middle class travelers, followed by Portugal and Spain.

7 tv
TV Sets

Classe C will purchase 6.7 million TV sets during 2014. Given that one economist has predicted that overall, Brazilians will purchase 9.5 million TV sets this year, this means that the Brazilian middle class will account for 70% of all TV sales in Brazil in 2014.

To find out more how we can help you reach Classe C via an online campaign or through any other form of media, please contact us.

3 Ways Advertisers Can Effectively Reach Brazil’s Class C

According to Ibope Inteligência, consumption in Brazil will grow by 10% in 2013 to reach R$1.5 trillion (US$693 billion). While Class B will be responsible for more than half of this consumption (R$143 billion), Class C will account for 24%, more than Class A’s 22%.

And with 105 million people who are currently part of Class C, it makes sense for advertisers and agencies to pay attention to how this emergent class spends its money. A while back we highlighted some spending trends for Class C using 2012 data, but now we have identified some new trends based on more recent research. Based on this data, here are some suggestions for professionals in marketing, advertising and media.

Try retargeting via Facebook Exchange. Retargeting is a tactic used by e-commerce and e-travel companies. This story explains how it works. It could work well for Class C because according to e-bit, in the first half of 2013, 58% of first-time e-commerce shoppers in Brazil were from Class C. In addition, research firm Data Popular recently reported that Class C makes up 56% of Facebook users in Brazil, while Classes AB make up 24% of the social site’s users. As such, there’s a significant group of class C online buyers and it’s likely that these buyers are on Facebook, thus making retargeting a worthy tactic to explore.

Increase online campaigns aimed at reaching Class C. Online research firm Navegg reported recently that Brazil now has 105 million Internet users. The country gained 3 million Internet users between the end of the first quarter of 2013 and the end of the second quarter. Of those 3 million new Internet users, 61% were from Class C—nearly 2 million people.

Consider more campaigns on pay TV. According to Anatel, nearly 17 million homes in Brazil had pay TV as of August 2013. This translates to an audience of around 54 million people. According to Globosat, 27 million of the 54 million pay TV viewers in Brazil are from classes CD. In fact, while the number of Class AB pay TV subscribers grew by 69% between 2009 and 2013, the amount of class CD pay TV subscribers grew by 398% in that same period.

A Sample of What Class C Buys the Most
Besides knowing how to target Class C with media, it makes sense to understand which product categories are the most popular with segment. Recent studies suggest the following are among the hottest products for Class C:

To find out how we can help you reach Class C in Brazil with any form of media, please contact us.

The letter C in glass

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.

[twitter style=”vertical” float=”left”] [fblike style=”box_count” float=”left” showfaces=”false” width=”450″ verb=”like” font=”arial”] [linkedin_share style=”top” float=”left”] [fbshare type=”button” float=”left”]

Brazil best sellers

What Brazilian Consumers Want

Recently the Brazilian research firm Cetelem BGN released its annual Observador report, based on interviews with consumers in 70 cities throughout the country. We went through the 100-page report to give advertisers, marketers and media professionals a breakdown of the key findings.

Classe C Still Surging
Brazil’s economic transformation in recent years has been dramatic. In 2005, 51% of the population was made up of people from classes D and E, while 34% were from the classe C middle class and 15% were from the upper AB classes. Yet in 2011, the middle class became the majority in Brazil, 54% of the population. These days, 103 million middle class or classe C Brazilians are now the dominant consumer segment.

Purchase Intent
When asked what they definitely intend to buy in the coming months, the top categories among Brazilians were furniture (31%), appliances (30%), travel (25%), TV/video products (19%), cell phones (17%) and computers (16%). Classes AB—42 million people—showed the strongest intent to spend money on travel, furniture and appliances.

Internet Access
Cetelem BGN’s results show that Internet penetration in Brazil is 44%, a figure in line with that of comScore, which estimates that 85 million Brazilians out of a total population of around 193 million have Internet access. At 43%, classe C’s Internet penetration rate is almost the same at the rate for the entire country.

E-commerce
More and more Brazilians are using the Internet to research products before buying and they do this most often when buying electronics, travel products and cultural products. Overall, 23% of Brazilians report that they buy products online, which means that 44 million people in Brazil engage in e-commerce. The two main promotional features that Brazil’s online shoppers value the most are promotional discount periods (66%) and free shipping (48%).
Most Brazilian Internet shoppers (81%) use credit cards while 46% use boletos bancários (online payment voucher) and 11% use crediário, a type of credit system based on installment payments.

Credit Cards
According to O Observador 2012, 33% of Brazilians own a credit card and 35% have debit cards, while 18% have store credit cards. Even among the AB classes of Brazil, the Observador survey shows credit card penetration to be 57%. Among Brazilian credit card owners nearly half (47%) own one and 31% own two, with only 3% owning 5 or more. For most items in Brazil, such as food, clothes, household bills, cell phones, gas, medicines and entertainment, cash is by far the preferred payment method.

To find out how we can help you reach Brazil, Latin America or U.S. Hispanics via a strategic campaign across all media, please contact us.

[twitter style=”vertical” float=”left”] [fblike style=”box_count” float=”left” showfaces=”false” width=”450″ verb=”like” font=”arial”] [linkedin_share style=”top” float=”left”] [fbshare type=”button” float=”left”]

5 Ways to Reach Brazil’s Class C

For quite some time, marketers and advertisers have been paying particular attention to classe C, Brazil’s emerging middle class. This makes sense: the most recent numbers indicate that more than 105 million people in Brazil—55% of the population—are class C. In June 2011 the Fundação Getúlio Vargas, which produces lots of research about the country’s economy and society, reported that between May 2010 and May 2011, 3.6 million Brazilians had moved from classes D and E to Class C, making it the fastest-growing socioeconomic class. According to research firm Data Popular, by 2014 58% of Brazilians will be class C.

As class C has surged, it’s been studied, especially when it comes to media use. Below are 5 ways for marketers, advertisers and media professionals to reach class C.

Go Digital
For years, the perception was that class C was not online, that they couldn’t afford Internet service or weren’t tech-savvy enough. Wrong. According to Renato Meirelles, director of research firm Data Popular, 46% of class C Brazilians have Internet access.
In addition, research firm e-bit reported in 2011 that 52% of Brazilian online consumers were from class C. Looking forward, by 2015 class C will be responsible for a level of consumption that will be equivalent to classes A and B combined. Given this and the fact that this middle class currently has $1 trillion reales of purchasing power, it seems likely that many more people from class C will be online very soon.

Use the Power of Print
In stark contrast to the United States and Europe, print media are very strong in Brazil. Newspapers gained 3.5% in circulation in 2011 and were the #2 medium in ad spend. Magazines broke records in revenues in 2011 while gaining 5% in circulation. According to Pedro Silva, head of the Instituto Verificador de Circulação (IVC)—which tracks Brazil’s print media circulation and revenues—class C is directly responsible for the circulation gain for newspapers.

Put Pay TV into the Plan
Class C’s consumption has extended to pay TV. According to the head of the Associação Brasileira de TV por Assinatura (Brazilian Pay TV Association), 30% of pay TV’s subscriber base are from class C. Around 13 million households in Brazil have pay TV, which translates to around 39 million people because average household size in the country is 3.3. This means that advertisers can reach a potential class C audience of 11.7 million via pay TV.

Develop a C-Class Social Strategy
In fall 2011 Data Popular reported that nearly 60% of class C is on social media. Beyond being strong on Orkut, class C is also moving quickly into Facebook. In fact, a 2011 study from Grupo.Mobi and W/McCann reported that 56% of class C members accessed Orkut from their cell phones and 50% accessed Facebook. These percentages were higher than those of class B members accessing these social media sites from their cell phones.
This trend is not surprising when you consider the 97% penetration rate that social media have in Brazil. In fact, a December 2011 study from Experian Hitwise showed that social media sites in Brazil receive even more traffic than adult sites.

Target Class C with Mobile Marketing
A 2011 study from Kantar Wordpanel Brasil showed that class C members have 57 million cell phone lines, significantly more than classes AB, which have 39.5 million. In addition, 40% of class C members had 2 cellphone lines, compared to only 31% of class AB Brazilians with this amount. And while some have had the perception that class C mostly buys basic phones with little multimedia or Internet capabilities, a 2011 survey from Grupo.Mobi and W/McCann showed that 19% of class C members have a smartphone. For its part, the Kantar study showed even greater smartphone ownership among class C: it claimed that class C members owned 36.1 million smartphones in 2011, compared to 39 million smartphones owned by classes A and B.
Beyond smartphone ownership, “the class C users consume the most mobile content, games and videos,” says Marcio Chaer, Managing Director of Latin America for the Mobile Marketing Association.

To find out how we can help you reach Brazil via a strategic campaign across all media, please contact us at info@usmediaconsulting.com.

[twitter style=”vertical” float=”left”] [fblike style=”box_count” float=”left” showfaces=”false” width=”450″ verb=”like” font=”arial”] [linkedin_share style=”top” float=”left”] [fbshare type=”button” float=”left”]

brazil online use this

How to Reach Brazilians with Media

Not long ago we covered what Brazilians buy, breaking down over 20 recent studies. The next piece of the puzzle is how they use media and what they prefer. The following insights may help marketers, advertising agencies and media professionals create strategies to reach this powerfully growing market.



BLOGS & SOCIAL MEDIA

  • 71% of Brazilians visit blogs*
  • Top topics for Brazilian blogs include entertainment (24%), technology (20%) and education (10%)**
  • The top 3 brands mentioned on Brazilian blogs are Google, Samsung and Apple—these 3 account for 35% of the brand mentions**
  • The remaining 65% of brand mentions on Brazilian blogs include Adidas, Disney, Intel, Microsoft, Sony, Nokia, Amazon, Adobe, Motorola and Blackberry**
  • 79% of Brazilian Internet users are on social networks and their average age is 32**
  • Brazilians spend more time on social media outlets—19% of their overall time online—than people in any other country: in comparison, Americans dedicate 15% of their total time online to social media***
  • Facebook has surpassed Orkut in Brazil: as of August 2011, Facebook had 30.9 million unique users in Brazil compared to 29 million users for Orkut****
  • 61% of Brazilians use social media to find product recommendations and user reviews*****
  • Four out of 10 Brazilian users of social media are fans of products; out of those, 81% are looking at new products from the brands they are fans of*****

*Source: Ipsos
** Source: Boobox
***Source: Experian Hitwise
**** Source: Ibope Nielsen Online
***** Source: Oh!Panel

INTERNET

  • 77.8 million: the total number of Brazilians with Internet access as of the second quarter of 2011*
  • 58 million: the number of Brazilians in households that have computers with Internet access, a 20% increase from 2010*
  • 31.1 million Brazilians visit e-commerce sites every month*
  • Coupon sites in Brazil grew 379% in visitors between May 2010 and May 2011*
  • 60% of class AB Brazilians access the Internet via mobile phones*
  • 36% of class C Brazilians access the Internet via mobile phones*
  • 75% of the page views in Brazil are generated by just 7 Web sites: AOL, Earth, iG, Globo.com, Google (including search, YouTube and Orkut), Microsoft Live and Yahoo**
  • 68% of Brazilian Internet users say that online ads influence their purchasing decisions, more than TV (66%)***
  • 79% of Brazilian Internet users search for products after being impacted by offline media****
  • Top offline media that drive Brazilians to research products online include TV (51%), print (35%) and Out of Home (27%)****
  • The online content about products that Brazilians look for the most are discounts (40%) and product/service information (33%)****
  • Groupon and Peixe Urbano are the top group-buying sites in Brazil*
  • In 2011, Brazilians spent $2 billion on playing online games, with 16% spent on MMO (massively multiplayer online) gaming sites, 15% spent on other types of gaming sites, 11% on social media sites like Orkut and Facebook and 9% on mobile phone games*****

*Source: IBOPE Nielsen Online
**Source: JWT
***Source: Deloitte Media Democracy
****Source: Iprospect and Google Brazil
*****Source: Newzoo



PRINT

  • 73% of Brazilians prefer to get their news from print media rather than online*
  • 21 million Brazilians—11% of the total population—read the newspaper every day*
  • Brazilian magazines grew 5% in circulation between July 2010 and July 2011**
  • Average daily newspaper circulation in Brazil hit a new record in the first 6 months of 2011: 4.4 million copies**
  • Subscriptions to print magazines in Brazil have doubled since 2010***
  • Subscriptions to newspapers in Brazil have increased by 7% since 2010***
  • Online newspaper subscriptions in Brazil increased to 14% between 2009 and 2010***
  • In 2010 Brazil’s magazine titles grew by 2.6% to 4,000, while both circulation and ad revenues for the 100 largest titles grew by 4.5%***
  • Overall, Brazilian magazines will take in $1.269 billion in revenues in 2011, a new record****

*Source: Datafolha
**Source: Instituto Verificador de Circulação
***Source: Deloitte
****Source: Group M


TV

  • 175 million Brazilians (92% of the population) watch TV regularly*
  • 75 million Brazilians (49% of the population) watch TV 3 or more hours a day*
  • Of the 75 million Brazilians who watch 3 hours or more of TV every day, 44.8% are women*
  • 90% of Brazilians say TV is their preferred source for news**
  • Pay TV subscriptions in Brazil grew by 11% in the first five months of 2011, with 1.1 million new subscribers added in that time frame***
  • Pay TV had a penetration rate of 33% among Brazil’s Class C as of mid-2011****
  • Among young Brazilians aged 12-19, TV is the primary source for news (68%), compared to just 20% for Internet and radio (4%)*****
  • 72% of Brazilians get their sports news from TV******

*Instituto Brasileiro de Geografia e Estatística
**Source: Datafolha
***Source: Anatel
****Source: Ipsos
*****Source: TNS Research International
******Source: IBOPE Media

To find out how you can reach Brazil’s high-powered consumer market, contact us at info@usmediaconsulting.com.

[twitter style=”vertical” float=”left”] [fblike style=”box_count” float=”left” showfaces=”false” width=”450″ verb=”like” font=”arial”] [linkedin_share style=”top” float=”left”] [fbshare type=”button” float=”left”]

class C women Brasil

New study: Women are Key to Reaching Brazil’s Class C

Attracting women seems to be crucial in reaching Brazil’s emerging class C. According to a new study called “As poderosas da nova classe média brasileira” conducted by research firm Data Popular and Abril Media, class C women are the key decision makers when it comes to purchases. Here’s a rundown of the key results.

Who’s in Charge?
• 82% of class C men say their wives manage the household budget
• 77% of class C men say their wives make most of the spending decisions, including what kind of underwear they use
• Out of every 100 reales in household income for class C, 41 of them (roughly 400 million reales) are from the woman’s work—hence her strong influence on what to buy

In fact, class C women bring in nearly half (47%) of the total income earned by all women in the country, compared to 22% from class A and 20% from class B.

What Women Want
Brazilian Class C women showed some interesting preferences in the study that both advertisers and media agencies should note. We organized them by relevant product category for quicker reference.

  • Beauty: 70% believe that beauty care increases the chances of success in life—and they spent 19 million reales on beauty products in 2010, an increase of 228% from 2002
  • Cars: 64.8% care most about engine power when it comes to cars and 44% finance their cars
  • Cell phones: 50% plan on buying a new cell phone in the next year
  • Computers: 66% have taken or are taking a computer course and 46% want to buy a notebook computer in the next year
  • Language classes: 38% want to take an English class
  • Perfumes: 56% of imported perfumes are bought by this segment
  • Pharmaceutical products: 56% of them purchase their household’s pharmaceutical products and 37.6% prefer generic brands to name brands
  • Real estate: 31% want to buy a new home in the next 2 years
  • Social media: 68.9% are on social media networks
  • Travel: 72% will travel in the next 12 months and 62% traveled in 2010, compared to 54% of class C men, and 48% of them prefer using travel agencies
  • Weight loss products: 39% want to lose weight

Brand Opportunities
When it comes to brands, class C women in Brazil already have favorite brands in areas like food, personal care, clothes, makeup, perfume and mobile carriers. However, they are still selecting their favorite brands in the following areas:

  • Banks
  • Cable TV
  • Cars
  • Clothing
  • Furniture/Decor
  • Shoes
  • Electronics

Go here to review more study results.

To learn more about how we can help you reach Brazil via online or other media, contact us at info@usmediaconsulting.com.

[twitter style=”vertical” float=”left”] [fblike style=”box_count” float=”left” showfaces=”false” width=”450″ verb=”like” font=”arial”] [linkedin_share style=”top” float=”left”] [fbshare type=”button” float=”left”]