Tag Archives: class C

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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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.

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CAPTUR~1

In Brazil, Advertise Now, Sell Later

Taking advantage of the Brazilian boom has been a challenge for companies. Not only are import tariffs high, it’s not exactly easy to set up shop there: regulations and local taxes can also be barriers. Even Apple, which probably has a few dollars saved up, passed on opening a store in Brazil.

But you should advertise anyway. You’ll still reap nice ROI. Here’s why.

First, Brazilians are very brand-conscious: they love Nike sneakers, Diesel jeans and Toyota Corollas, for example. If they can’t buy them outright, they’ll pay for them bit by bit. The nation’s top retailer is Casas Bahia, and it earn a good portion of its profits from the interest on installment plan payments.

And if Brazilians can’t afford to pay for these brands at home, they’ll buy them when they travel.

Brazilians are traveling more than ever, especially the emerging class C middle class. In fact, 10.7 million Brazilians will travel for the first time this year—and 8.7 million of them are from classes C and D. When they get to their destination, they’ll shop for the brands they know. Miami is just one city benefiting from this trend: Brazilians spent more than US$1 billion there in 2010. And in 2011, just from January to May, Brazilian tourists spent US$8 billion, a new record.

So build your brand in Brazil. Even without setting up shop there, you could end up with many new loyal customers.

To learn more about how we can help you leverage the power of Brazilian media, contact us at info@usmediaconsulting.com.

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