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.
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.
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
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$7.5 billion) in 2012, which represents an increase of 3.5% compared to 2011.
Sources: Kantar Worldpanel, Anuário Abipla 2013
In most world markets, consumers seem to moving away from PCs and towards tablets, and Brazil is no exception. In the first half of 2013, notebook sales went down by 7% compared to 2012 and desktop sales went down by nearly 13%. But tablet sales in Brazil spiked by 165% during the first half of 2013 and totaled 3.3 million, which is more than the tablet sales total for all of 2012 in Brazil (3.1 million).
Sales of e-books skyrocketed by 350% in Brazil between 2011 and 2012. While a recent survey of Brazilian publishers revealed that e-books make up less than 1% of their sales, publishing consultant Carlos Carrenho has predicted that in 2013 e-books will make up nearly 3% of publisher sales in Brazil.
Source: Câmara Brasileira do Livro
Brazil’s luxury market grew by 24% in 2012 and is projected to post 25% growth over the next 5 years. In terms of specific categories, luxury watch sales in Brazil grew by 30% in 2012. In addition, in 2013 a number of luxury car brands posted massive sales increases between January and July 2013:
- Porsche: 140%
- Rolls-Royce: 100%
- BMW: 68%
- Audi: 46%
In Brazil, the luxury car model with the biggest increase in sales so far in 2013 has been the Jaguar XF, with a 572% increase, while sales of the Porsche Cayman are up by 240% and Porsche 911 sales are up by 132%.
Sources: Digital Group, World Watch Report, Associação Nacional de Veículos Automotores
Sales of nail polish have grown by nearly 12% in the past year to reach R$ 600 million (US$285 million). In fact, Brazil is #2 in the world in the consumption of nail polish, trailing only the United States. Overall, in Brazil the beauty products sector is growing by more than 10% a year, with hair care responsible for 22% of sales. In addition, over the past 5 years, the amount of new beauty salons in Brazil has grown by 78%.
Sources: Associação Brasileira de Embalagem, Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosmético, Associação Nacional do Comércio de Artigos de Higiene Pessoal e Beleza
In 2012 the pharmaceutical market in Latin America grew by 15.8%, an even bigger rate of growth than the Asian pharma market (10%). Among the markets with the most growth, not surprisingly, is Brazil, which should see pharmaceutical sales double to reach R$ 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
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)
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
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
To find out more how we can help you reach Latin American consumers with a strategic media campaigns, please contact us.