Tag Archives: Class C Brazilian women spend 19 billion reales a year on beauty products

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.

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chanel brazil mall

What Brazilians Buy

We’ve tracked the results of dozens of recent studies to measure the hottest products among Brazilian consumers and the latest info about their buying habits. Here’s a quick and easy breakdown for marketers, advertisers and agencies.

BEAUTY
• The Brazilian beauty market quintupled its sales between 1996 and 2010, reaching $27 billion reales, with 30% growth projected for 2011*
• The Brazilian beauty market is #3 in the world, just behind the United States and Japan*
• Class C Brazilian women spend 19 billion reales a year on beauty products—more than all other socioeconomic classes**
• 79% of Brazilian women use beauty products regularly***
• 88% of Brazilian female Internet users go online to research beauty products***
• Class C women between 18 and 24 spend 71% of their income on beauty and fashion products***
*Source: Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosméticos
**Source: Data Popular
***Source: Sophia Mind

BOOKS
• Brazilian shoppers bought more books in 2010 than in 2009, spurring an 8% growth in sales and a 13% increase in copies sold*
• Books ranked #4 among products bought by Brazilians online**
*Source: Produção e Vendas do Setor Editorial Brasileiro
**Source: “Webshoppers,” by e-bit and Câmara Brasileira do Comércio Eletrônico

CARS
• Sales set a record in 2010, reaching 3.5 million, up 12% from 2009*
• In 2011, sales are projected to hit 3.69 million, up 5% from 2010*
• Fiat is the market leader with sales of 600,000+ vehicles projected for 2011, followed by Volkswagen AG, General Motors and Ford*
• Hyundai sold 80,000 units in Brazil in 2010, up 19% from 2009, and projects sales of 93,000 cars in 2011**
• Subcompacts are the most popular segment sold in Brazil***
• In the first-ever J.D. Power survey done with Brazilian car buyers, the Volkswagen Gol G5 ranked #1 among subcompacts, the Volkswagen Crossfox was #1 among compacts and the Honda Civic was #1 in the midsize category
*Source: Anfavea
Source: **Hyundai
Source: ***J.D. Power and Associates

CELL PHONES AND MOBILE MARKETING
• In 2010, 55% of Brazilian consumers bought a cell phone and Brazil was #1 in cell phone sales compared to 8 major countries, including the United States, Japan, Germany, France, Russia, India and China*
• 60% of Brazilians polled said they would buy electronics in 2011*
• Cell phones are the #2 platform that Brazilians use to play online games: 24 million of the 35 million cell phone users in Brazil use the phones to play games**
• Smartphone sales in Brazil went up 165% in the first half of 2011***
• Smartphone sales in Brazil will total 10 million units in 2011 but hit 47 million units by 2015****
• Nokia is the most popular cellphone brand in Brazil, with 47% market share, followed by Samsung at 21%*****
• The iPhone has a 6% market share in Brazil****
*Source: Accenture
**Source: Newzoo and Real Games
***Source: Niesen no Brasil
****Source: IDC Brazil
*****Source: icrossing.uk

COMPUTERS
• 58% of households in metropolitan Brazil have computers
• 19% of Brazilian households have more than one computer
• 56% of class C households in Brazil have a PC
• 22% of class D households have a desktop computer
• 196,000 Brazilians owned tablets in the first half of 2011
• Over 66% of tablet owners in Brazil say that the Internet is the greatest influence for purchase
Source: “Tech Metrics Brazil,” produced by Ipsos Brazil

CREDIT CARDS
• 72% of Brazilians have credit or debit cards in 2011, up 4% from 2010
• Nearly half of Class C members own a credit or debit card: 47%, up 11% compared to 2009
• By 2012, 76% of Brazilians will have credit or debit cards
Source: Associação Brasileira das Empresas de Cartões de Crédito e Serviços

E-COMMERCE
• Brazilian shoppers spent 8.4 billion reales (US$4.7 billion) in online buys in the first half of 2011
• The #1 e-commerce category among Brazilians is appliances, followed by computer products and health/beauty products, with books ranking #4
• 18.7 billion reales (US$10.2 billion): the projected amount Brazilians will spend on e-commerce in 2011, up 26% from 2010
• Men account for 54% of e-commerce purchases in Brazil and women account for 45%
• 61% of new entrants in Brazilian e-commerce between January and June 2011 are low-income, earning 3,000 reales per year
• 46.5% of class C members are buying online
• As an e-commerce category, clothes have gone from 26th place in 2006 to 6th place in 2011
Source: “Webshoppers,” by e-bit and Câmara Brasileira do Comércio Eletrônico

LUXURY PRODUCTS
• The Brazilian luxury market rose to 15.1 billion reales (US$9 billion) in 2010, up by 23% from 2009
• H Stern is Brazil’s top local luxury brand (24% market share), followed by Daslu (20%), Fasano (5%), Osklen (4%) and Victor Hugo (3%)
• The top international luxury brand in Brazil is Louis Vuitton (30% market share), followed by Hermès (12%), Chanel (8%), Giorgio Armani (6%) and Gucci (5%)
• 55% of Brazilians buy luxury brands overseas, mainly in New York (36%), Paris (21%), Miami (15%) and Buenos Aires (6%)
Source: DBM Consulting and GFK

REAL ESTATE
• Brazilians bought 9% of the homes and apartments sold to international buyers in Miami between 2009 and 2010*
• 20% of Miami homes and apartments sold in 2011 will be bought by Brazilians*
• 85% of all Brazilian buyers pay cash*
• Within their country, 9.1 million Brazilians plan on buying a house in 2011**
• Besides Miami, Brazilian buyers are also focused on Fort Lauderdale, Orlando and other Florida cities***
*Source: Miami Association of Realtors
**Source: Data Popular
***Source: National Association of Realtors

TRAVEL
• In 2010, 50 million Brazilians traveled—taking a total of 186 million trips*
• 32% of Brazilians say they will travel in 2011**
• Brazilian travelers spent US$8 billion from January to June 2011, a new record***
• On average, every Brazilian tourist who visits the United States spends US$5,918****
• Spending by Brazilian tourists in the U.S. has gone up by 250% since 2003****
• 1.2 million Brazilians visited the United States in 2010, a 34% increase from 2009****
• Top destinations favored by Brazilian travelers include Paris (214% growth in bookings between 2010 and 2011), Milan (210% growth), Miami (198%) and Mendoza (182%)*****
*Source: Ministério do Turismo do Brasil
**Source: BGN Cetelem & Ipsos Public Affairs
***Source: Banco Central do Brasil
****Source: U.S. Department of Commerce
*****Source: Hotéis.com

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

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