Tag Archives: 5 of the Hottest Growth Markets in Brazil for 2013

main shot 3

The Top-Selling Products in Brazil

Despite reports that the retail market in Brazil is cooling off, our team keeps seeing a flood of statistics that suggest otherwise. We went through a wide range of reports to identify some of the products in Brazil that show either dramatic increases over the past few years or especially strong leaps this year.

 


Appliances

IBOPE recently projected that appliance consumption in Brazil will increase by nearly 12% in 2013 and that Class C will account for 44% of appliances consumption in the country.
Source: IBOPE


Autos

Brazil posted a 5% increase in car sales in the first half of 2013 and overall it’s projected that the country will have a 4% increase in car sales in all of 2013.
Source: Fenabrave


Cell Phones
A recent study by Nielsen and the Mobile Marketing Association (MMA) Indicated that in the first half of 2013, sales of cellphones in Brazil went up by 121%.  Nielsen and MMA also reported that 38% of the cell phones sold in Brazil in this time period were smartphones. However, it’s important to note that IDC/Abinee reported a much more modest increase in cell phone sales in Brazil during the first half of 2013: 8%. What IDC/Abinee did note is that 13.7 million smartphones were sold in Brazil in this period—versus 15.9 million feature phones. As such, IDC, a firm that specializes in technology research, is saying that around 46% of the cell phones sold in Brazil in this period were smartphones. Given IDC’s specialization in tech, their figures could be more accurate than those of Nielsen. Either way, that fact that smartphones make up 38% to 46% of cell phone sales in Brazil is significant and points to the need to divert more investment to mobile campaigns.
Sources: Nielsen, MMA, IDC/Abinee


Cleaning Products
The average amount that Brazilians spend on cleaning products has gone up by 41% over the past 5 years and grew by 8% just in 2012. The Brazilian cleaning product market is #4 in the world, just behind those of the United States, China and Japan. Overall, Brazil’s cleaning product sector had sales of R$ 14.9 billion (US$7.5 billion) in 2012, which represents an increase of 3.5% compared to 2011.
Sources: Kantar Worldpanel, Anuário Abipla 2013


Computers

In most world markets, consumers seem to moving away from PCs and towards tablets, and Brazil is no exception. In the first half of 2013, notebook sales went down by 7% compared to 2012 and desktop sales went down by nearly 13%. But tablet sales in Brazil spiked by 165% during the first half of 2013 and totaled 3.3 million, which is more than the tablet sales total for all of 2012 in Brazil (3.1 million).
Source: IDC


E-books

Sales of e-books skyrocketed by 350% in Brazil between 2011 and 2012. While a recent survey of Brazilian publishers revealed that e-books make up less than 1% of their sales, publishing consultant Carlos Carrenho has predicted that in 2013 e-books will make up nearly 3% of publisher sales in Brazil.
Source: Câmara Brasileira do Livro


Luxury Products

Brazil’s luxury market grew by 24% in 2012 and is projected to post 25% growth over the next 5 years. In terms of specific categories, luxury watch sales in Brazil grew by 30% in 2012. In addition, in 2013 a number of luxury car brands posted massive sales increases between January and July 2013:

  • Porsche: 140%
  • Rolls-Royce: 100%
  • BMW: 68%
  • Audi: 46%

In Brazil, the luxury car model with the biggest increase in sales so far in 2013 has been the Jaguar XF, with a 572% increase, while sales of the Porsche Cayman are up by 240% and Porsche 911 sales are up by 132%.
Sources: Digital Group, World Watch Report, Associação Nacional de Veículos Automotores


Nail Polish
Sales of nail polish have grown by nearly 12% in the past year to reach R$ 600 million (US$285 million). In fact, Brazil is #2 in the world in the consumption of nail polish, trailing only the United States. Overall, in Brazil the beauty products sector is growing by more than 10% a year, with hair care responsible for 22% of sales. In addition, over the past 5 years, the amount of new beauty salons in Brazil has grown by 78%.
Sources: Associação Brasileira de Embalagem, Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosmético, Associação Nacional do Comércio de Artigos de Higiene Pessoal e Beleza


Pharmaceuticals

In 2012 the pharmaceutical market in Latin America grew by 15.8%, an even bigger rate of growth than the Asian pharma market (10%). Among the markets with the most growth, not surprisingly, is Brazil, which should see pharmaceutical sales double to reach R$ 100 billion (US$48 billion) by 2017; in fact, the country’s growth has even attracted U.S. pharmacy chains like CVS, which bought the Paulo drugstores chain, and Walgreens, which is currently looking to purchase a local chain.
Sources: IMS Health, Brasilpar


Scooters

In 2007 only about 3,200 scooters were sold in Brazil but in 2012 the number reached 29,566, an increase of 801%.
Source: Associação Brasileira dos Fabricantes de Motos (Abraciclo)


Travel

A 2013 study that focused on travel habits of 25 major markets found that Brazil is among the top 5 countries in travel spending. Brazilians spend an average of US$3,000 during international trips and rank in 4th place behind travelers from Saudi Arabia, Australia, China and South Africa.
August 2013 was the most recent month in which travel spending numbers were released by Brazil’s Central Bank. In that month, Brazilian travelers spent US$2.22 billion on their trips abroad, nearly 16% more than they did in August 2012. In addition, Brazilian travelers spent nearly US$17 billion on foreign travel between January and August 2013, nearly 15% more than in the same period during 2012.
Sources: Visa, Banco Central do Brasil


Videogames

Between 2012 and 2013, video game sales in Brazil went up by 24%. This increase came on top of an even more massive one of 131% between 2011 and 2012. The top selling video games in Brazil for 2013 are:

  • FIFA 13
  • PES 13
  • Grand Theft Auto 5
  • God of War: Ascension
  • The Last of Us
  • Call of Duty: Black Ops 2
  • Just Dance 4
  • Assassin’s Creed 3
  • Grand Theft Auto 4
  • Assassin’s Creed 2

Source: Gfk

To find out more how we can help you reach Latin American consumers with a strategic media campaigns, please contact us.

What Brazilians Are Buying in 2013

Now that we are more than 7 months into 2013, it’s valuable to review sales patterns in Brazil so that marketers, advertisers and media firms can get a sense of what this large consumer market is spending its money on. While these figures may have little impact on budgeting for the current year, they could be useful for 2014. With that in mind, here are some of the hot products among Brazilian consumers.


Autos

In the first 6 months of 2013, nearly 1.8 million cars were sold in Brazil—a 4.8% increase compared to the first 6 months of 2012. June 2013 was a good month for car sales in Brazil, with 318,000 units sold, nearly 10% more than in June 2012 and nearly 1% more than in May 2013. Fiat has the largest market share (22%), followed by Volkswagen (19%), GM (18%) and Ford (10%). In 2013, the biggest selling make and model so far is the Volkswagen Gol, with 121,000 units sold.
Source: Associação Nacional de Fabricantes de Veículos Automotores

 


Beauty Products

It’s estimated that in 2013, Brazilians will spend more than R$59 billion (US$25.9 billion) on beauty products. This is a 124% increase compared to 2003. Class C is responsible for nearly half the money that Brazilians spend on beauty products. In addition, 78% of upper class Brazilian women report going to the beauty salon in the past month, while 56% of class C Brazilian women report going to the beauty salon and 43% of women from classes D and E report doing so. However, when you look at the overall numbers of women who report going to the beauty salon, class C women represent 53% of the total.
Source: Data Popular

 


Drinks

Brazilians will spend more than R$ 6 billion (US$2.6 billion) on fermented drinks—such as beer, champagne and wine—in 2013. That’s 10% more than in 2012.
Source: Pyxis Consumo

 


Mobile Phones

In the first quarter of 2013, Brazilians bought more than 14 million mobile phones, 15% more than in the first quarter of 2012. Of this total, 5.4 million were smartphones and 8.7 million were feature phones. Smartphone sales in Brazil during the first quarter of 2013 represent an 85% increase compared to the same period of 2012, in which 2.9 million smartphones were sold. It’s projected that smartphone sales will now reach 28 million units in Brazil in 2013.
Source: IDC


Shoes

Brazilians will spend more than R$ 40 billion (US$17 billion) on shoes in 2013, a 10% increase compared to 2012. This consumption translates into about R$ 245 (US$107) per person. Class C is the biggest consumer of shoes in Brazil, with 42% of the total consumption, followed by class B (40%), class A (10%) and classes D and E (8%).
Source: Pyxis Consumo

 


Tablets

In the first quarter of 2013, tablet sales in Brazil rose by 164% compared to the same period in 2012, with more than 1.3 million units sold. The overall projection for 2013 is 5.9 million tablets will be sold in Brazil, an 81% increase compared to 2012.
Source: IDC


Toys

In 2012 Brazilians spent R$3.87 billion (US$1.7 billion) on toys, a 12% increase compared to 2011. It’s projected that toy sales in Brazil in 2013 will reach R$4.34 billion (US$1.9 billion), another 12% increase.
Source: Associação Brasileira dos Fabricantes de Brinquedos


Travel

Brazilians spent US$6 billion on foreign travel during the first quarter of 2013, an 11.5% increase compared to the same period in 2012. They also set a record by spending another US$2.2 billion in foreign travel in May 2013, 22% more than in May 2012. In addition, Brazilians rank #7 in the world in terms of the amount they pay per person for hotel stays: they spend an average of R$364 (US$160)per person, more than Americans or Australians.
Sources: Banco Central, Hotel Price Index

To find out how we can help you reach Brazilians via media campaigns of all types, please contact us.

Profiling the Average Internet User in Brazil

As we all know, proper targeting is everything when it comes to a campaign, especially in the online world. A new report from IAB Brasil called Indicadores Mercado Online may help you refine your targeting. It includes statistics from a variety of studies that seem to paint a picture of the average Brazilian internautas. Here’s a brief profile of the typical Internet user in Brazil, based on this research:

Most Are Young Males
Based on March 2013 results from research produced by IBOPE Media in partnership with Nielsen, nearly 53% of active Internet users in Brazil are men and 47% are women. The largest age group among Brazilian Internet users is 25 to 34 (25.6%), and #2 is 35 to 49, with 25.5%. So slightly more than half of your target audience in Brazil is 25 to 49. If we decide to include slightly younger age groups, we find that 11.6% of Brazilian internautas are between 18 and 24 and 10.5% are 12 to 17. This means that 73% —basically 3 out of 4 Brazilians who are active Internet users—are between 12 and 49 and significantly ore more likely to be male rather than female.

Most are Classes AB
According to  2012 research from IBOPE called Internet POP, Internet has 92% reach among class A Brazilians and 79% among Class B Brazilians, with significantly lesser reach among the growing class C (54%).

The Majority Are Located in the South or Southeast of Brazil
Research from comScore MediaMetrix indicates that more than half (54.9%) of Brazilian Internet users are in the southeastern part of the country and another 18% are in the south, meaning that your web banners are more likely to be seen by people in those parts of the country. In contrast, only 4.7% of Brazilian Internet users are in the north, only 13% are in the northeast and only 9% are in the center-west region.

Their Favorite Web Sites Include News and Entertainment
The research from IBOPE and Nielsen also looked at the top Web site categories for Brazilian Internet users. Search engines were the #1 category, followed by telecommunications/Internet sites (#2), entertainment sites (#3), computer/consumer electronics sites (#4) and news/information sites (#5). Other important categories include family/lifestyle (#9), travel (#10) and finance/investment (#12).
Interestingly, here at US Media Consulting we represent or work directly with major international brands in all of these areas. For example, in Brazil we represent The Wall Street Journal (news and finance), CNET (computers and tech), Clickhoteles (travel), last.fm and SongPop (entertainment). In addition, we frequently work with top technology sites like Mashable, Wired and NetShelter, top lifestyle sites like Glam Media and Enfemenino, top entertainment sites like Grooveshark and top news sites like Forbes, Bloomberg and The New York Times.

Most are Avid Watchers of Online Videos
The IAB Brasil report cites comScore Data that indicates that 8 out of 10 Brazilian Internet users watch online videos, which have the biggest reach among those between 25 and 34 (13 million) and those between 35 and 44 (9 million). This is why we launched Jumba Video Network, which brings together many top sites with online videos all over Brazil and Latin America.

Internet Drives Their Purchase Decisions
A TG.Net survey from June 2012 shows that 74% of Brazilians said they had gone on the Internet in the past 6 months to obtain information about products before buying them. In addition, 68% agree either totally or partially with the statement “A internet me ajuda mais que a televisão para decider que produto comprar” (“The Internet  helps me more than TV does in terms of deciding which product to buy.”) In addition, nearly 7 out of 10 Brazilian Internet users (69%) say that the Internet gives them product information that they can’t get anywhere else.

They Search for Social Sites the Most, then Multimedia
IAB Brasil’s report also cites March 2013 data from Hitwise that indicates that the type of Web sites that Brazilians search the most for are social media sites (30%). The #2 type of site category that Brazilian internautas search for are multimedia sites, which means music and video. Rounding out the top 5 are game sites, portal home pages and education sites.

They Are Fairly Likely to Be Online Shoppers
In 2012 more than 42 million Brazilians bought products online. Currently, comScore estimates that there are 89 million Internet users in Brazil. This means that 47% of Brazilian Internet users engage in e-commerce. For perspective on the explosive growth of e-commerce in Brazil, consider that in 2008 only 13 million Brazilians bought products via the Internet. According to e-bit the top 5 types of products that Brazilians bought online in 2012 were appliances (#1), clothes (#2), health and beauty products (#3), tech products (#4) and home décor products (#5). Overall, Brazilians spent R$ 22 billion (US$11 billion) on e-commerce purchases in 2012 and it’s projected that Brazilians will spend R $28 billion (US$14 billion) on e-commerce in 2013.

A Significant Portion Go Online Via Mobile Devices
The IAB Brasil report includes data from a survey of more than 20,000 Brazilian Internet users done between July 2011 and August 2012. Nearly 4 out of 10 Brazilian Internet users reported using a laptop, netbook or notebook to go online, compared to just 15% in 2009. In addition, 8% of Brazilians said they used smartphones to go online in 2012. That said, 2013 data from IBOPE Media—just published in Blue Bus—paints an even more potent picture of mobile Internet in Brazil. According to IBOPE, 52 million Brazilians can access the Internet via cell phones. Out of this total, 20 million Brazilians access the Internet using a smartphone. This IBOPE study also notes some interesting facts that marketers and advertisers should keep in mind: 64% of Brazilians who go online with smartphones read news, 47% to see what’s new in the music scene and 44% to watch videos.

To find out how we can help you reach Brazilians via any other 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”]

The Most Valuable Brands in Latam

A recent report from marketing communications firm WPP—entitled BrandZ Top 50 Most Valuable Latin American Brands 2012—offers a ranking of the region’s brands.

Overall, these top 50 brands have a total value of US$136 billion. Not surprisingly, Brazil accounts for the largest amount of this total (US$45.9 billion), with Mexico in second place (accounting for US$36.8 billion), while Chile accounts for US$27 billion, Colombia accounts for US$22 billion and Argentina accounts for US$3.76 billion.

To create the ranking, WPP worked with Millward Brown Optimor and generated the valuations based on a brand’s economic impact, i.e. its ability to generate long-term earnings for shareholders and sustained demand among consumers. Several key variables were used as part of the process, including corporate earnings, future earnings prospects and customer viewpoints about brands based on extensive quantitative research.

Here’s the list of the top 50 brands in Latin America as per the report:

 

The top 50 brands in Latin America in this ranking cut across a range of categories, but retail (with 14 brands) is the dominant category, with finance in second place.

The report also listed top brands for specific markets. Here’s a quick look, country by country:

Top 5 Brands in Argentina

  1. YPF (fuel provider)
  2. Personal (mobile telecommunications)
  3. Telecom (telecommunications)
  4. Quilmes (beer)
  5. Banco Galicia (bank)

Top 5 Brands in Brazil

  1. Petrobras (fuel)
  2. Bradesco (bank)
  3. Itaú (bank)
  4. Skol (beer)
  5. Banco do Brasil (bank)

Top 5 Brands in Chile

  1. Falabella (department store)
  2. LAN (airline)
  3. Sodimac (home improvement chain)
  4. Banco de Chile (bank)
  5. COPEC (fuel)

Top 5 Brands in Colombia

  1. Comcel (mobile services)
  2. Ecopetrol  (fuel)
  3. Bancolombia (bank)
  4. Banco de Bogotá (bank)
  5. Banco Popular (bank)

Top 5 brands in México

  1. Telcel (wireless service)
  2. Corona (beer)
  3. Telmex (telephone service)
  4. Televisa (media)
  5. Bodega Aurrera  (retail)

 

To find out how we can help you reach Latin American consumers 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”]