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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.

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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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