Tag Archives: What Brazilians Are Buying in 2012

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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.

A Merry Christmas for Brazil’s Businesspeople

Recent research from a variety of sources indicates that this Christmas will bring the gift of many sales for businesspeople in Brazil. The following factors show why this is.

Black Friday Boomed
According to comScore, Brazil’s Black Friday sales were up 368% compared to an average online shopping day in the rest of November 2012. Growth was huge in a variety of areas: 185% more buyers, 64% more spending per buyer, 202% more transactions and an order value that was 55% higher. Besides Mercado Livre, Brazil’s leading e-commerce company, other online shopping companies did well on Black Friday, including Americanas, Pontofrio, Casabahia, Submarino, MagazineLuiza and Netshoes.

More Sales
According to Federação do Comércio de Bens, Serviços e Turismo do Estado de São Paulo (São Paulo State Goods, Services and Tourism Business Federation or Fecomercio), there should be a 5% increase in sales in Brazil this Christmas.
Walmart Brasil foresees a 20% increase in sales this Christmas, while the Associação Brasileira de Shopping Centers (Brazilian Shopping Centers Association) projects a 15% increase in sales this year.

More Spending
A study from the Serviço de Proteção ao Crédito (Credit Protection Service or SPC) and the Confederação Nacional dos Lojistas (National Merchants Association or CNDL) indicate that 7 out of 10 Brazilians intend to buy Christmas gifts for their loved ones this year, with 68% paying cash and only 9% using credit cards and 4% using debit cards.
According to consulting firm Deloitte, 28% of Brazilians say they will spend more this Christmas than last Christmas and 39% say they’ll spend the same. In terms of amount, 76% of Brazilians expect to spend up to R$ 500 (US$250) on Christmas gifts, while 24% expect to spend more than this amount.

The Hottest Gifts in Brazil for Christmas 2012
According the SPC and CDNL study, 68% of Brazilians intend to give clothes as gifts, while 28% plan on giving toys and 26% plan to give footwear and accessories. The gift-giving pattern among Brazilians is a bit different from their usual buying habits, since the most popular items to buy during the rest of the year have included tablets, smartphones, flatscreen TVs and books. However, IDC does project that in 2012, smartphone sales will go up 82% in Brazil, and that 30% of these sales will take place during the last three months of this year. IDC also projects that in Brazil—compared to the second half of 2011—smartphone sales in the second half of 2012 will increase by 85%.
With 80% purchase intent, clothes were also the most popular gift item among Brazilians surveyed in the Deloitte study, followed by shoes (49%), though it is interesting to note that this study showed that 26% of Brazilians intend on giving tech gifts (gadgets, tablets, phones or computers) this Christmas.

More Christmas Shopping Online and via Mobile
Besides the huge amount of sales on Black Friday in Brazil via e-commerce, the Câmara Brasileira de Comércio Eletrônico projects that Christmas 2012 e-commerce sales in Brazil will reach R$ 3 billion (US$1.4 billion), 20% more than in Christmas 2011. One of the interesting results from the study by Deloitte was that 37% of the Brazilians surveyed say they will buy Christmas gifts this year via tablets or mobile phones.

To find out more about how to reach Brazilians with an effective media campaign during Christmas or at any time of the year, please contact us.

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mexico phone

42 Insights into Mexican Mobile Users

While we’ve received some good data on mobile device use in Mexico from Google’s Our Mobile Planet study and from the Asociación Mexicana de Internet (AMIPCI), IAB Mexico’s most recent study seems to be the largest thus far on the country’s mobile users.

After reviewing the study, we’ve identified some of the key findings to help advertisers, marketers and media professionals better target this audience.

Activities
Mexican mobile device users carry out 4 main types of activities with their mobile devices:

  • 91% use them for basic activities (calls, texting, scheduling, setting an alarm)
  • 70% use them for entertainment activities (watching videos, listening to music, taking photos, playing games)
  • 38% use them for Internet-related activities (search, surf, social media, chat, email)
  • 21% use them for specialized activities (read news, look at files, bank transactions)

Time
Not surprisingly, Mexican mobile device users who go online with their devices tend to spend more time using their devices, since they report that, on average, Internet-related activities take up more time than basic activities. In addition, the device owners who use them to connect to the Internet spend more time using their phones in general, even for offline activities like taking photos, listening to MP3 music files and texting.

Mobile Ads
Nearly half (49%) of Mexican mobile device users receive ads on their devices. This relatively low percentage should change quickly as both smartphones and tablets deepen their penetration in the Mexican market. And this deeper penetration is indeed happening: smartphone sales in Mexico went up by 26% in the first quarter of 2012 and it’s projected that Mexicans will buy 1.5 million tablets in 2012.

Mobile Ad Recall
While 73% of Mexican mobile device users recall SMS message ads, other types of ads have low recall, including email ads (16%), social media ads (13%), mobile Internet portal ads (12%), app ads (7%), MMS message ads (6%).

Types of Ads Recalled

  • 43% content, i.e. ringtones and games
  • 27% telecommunications
  • 19% travel/tourism
  • 18% health/beauty

Ad Interaction
Of the 49% of Mexican mobile users who receive ads on their devices, 88% report seeing them but much smaller percentages report interacting with these ads, such as by clicking on them (8%), registering (5%) or purchasing  through them (3%).

Ad Interest
Over 65% of Mexican mobile device users say they would like to receive ads on their devices in exchange for some type of benefit. The most popular benefit include more minutes (83%), gifts like movie tickets, trips or subscriptions (44%), free texting (43%) and exclusive discounts (25%)

Mobile Promotions
14% of users have participated in a promotion via their cell phones, including trivia contests (30%), sending a certain number of texts to win a content (28%), trading accumulated points (19%) and data transfer (8%).

 

TRENDS AMONG INTERNET USERS
Mexican mobile device users who go online with their phones are a particularly interesting segment of the country’s mobile audience. As smartphone and tablet adoption keep rising in Mexico, before long this will become the dominant segment of consumers in the country’s mobile market.

As such, here are some pertinent facts about this segment to keep in mind:

Activities
The top activities among Mexican mobile devices users who go online with their devices are:

  • Send texts (70%)
  • Take photos (67%)
  • Listen to music (61%)
  • Play games (52%)
  • Go on social media (52%)

Time
This segment of mobile device users also spends an average of 3 hours a day online with their devices. Since the average Mexican Internet user spends 4 hours and 11 minutes a day on the Internet, this suggests that Mexican mobile device users are using mobile devices for 75% of their daily online time.

GPS
44% of Mexican mobile users who go online with their devices have used a GPS, with 80% of them reporting they use Google maps.

Apps
66% of Mexican mobile users who go online with their devices have downloaded apps during the past year. These users have downloaded an average of 3 apps in the past 6 months and use all of them. The top types of apps downloaded recently by these Mexican mobile device users include Facebook (41%), games (20%) Messenger (15%), Twitter (15%) and Angry Birds (15%).
To find out how we can help you reach mobile users in Mexico or all over Latin America via a strategically targeted campaign, please contact us.

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print story

4 Reasons Why Print Still Has Power in Brazil and Latam

Despite the challenges that print has faced in markets like the United States, the medium still provides strong reach in Latin America. Here’s why:

#1 Newspapers in Peru have grown in circulation by 50% over the past 4 years

This growth was reported by KPMG, which recently studied newspapers in Peru.

#2 Brazilian Newspapers Are Still Growing
According to the Instituto Verificador de Circulacao, Brazilian newspapers grew by 2.3% in circulation during the first 6 months of 2012 and 73% of Brazilians prefer to get their news from print media rather than online sources.

#3 Consumer magazine ad spend dropped in every region in 2009—EXCEPT in Latin America
PriceWaterhouseCooper reported these results in their Global Entertainment Media Outlook 2012-2016 study. Besides holding steady during challenging times, magazines in Latin America are projected to grow in ad spend over the next 4 years, projects PWC.

#4 Newspapers command strong shares of ad spend in several Latam markets
In 2011, newspapers and magazines commanded 36% of ad spend in Colombia, more than Internet (5%) and radio (20%), while free TV commanded 46%. In Chile in 2011, newspapers and magazines accounted for 28% of ad spend, second only to free TV (44.9%). In Argentina in 2011, newspapers and magazines accounted for 39.8% of ad spend, more than TV (37.4%) and any other medium, including radio (3.2%), Internet (6.1%), OOH (5%) and pay TV (7%). In Brazil in 2011, print media accounted for 18% of ad spend, #2 behind free TV, which took up 63% of ad spend.

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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Online videos latam

4 Reasons to Look at Online Videos in Latam When Planning for 2013

A new study from comScore called Tuning In: The Rise of Online Video en Latin America underscores the surge in popularity of online videos in Latin America—and their impact on advertising. Below we break out the study’s most important points to highlight the 4 reasons you should take advantage of this ad platform in 2013.

#1 A Growing Audience
In December 2011, Brazilian Internet users watched 4.7 billion online videos, 74% more than in December 2010. Mexican Internet users increased their online video consumption by 80% between December 2010 and December 2011 to reach 3 billion videos viewed. Argentine internautas are also avid online video watchers: they reached a total of 1.5 billion videos watched in December 2011, a 75% increase compared to December 2010. However, Chileans grew the most in this category: they upped their online video consumption by 91% between December 2010 and December 2011 to reach 1 billion videos watched.
Essentially, there’s been an enormous upswing in online video watching in the biggest 4 Internet markets in Latin America.

#2 Broad Reach
According to comScore, online videos have 85% reach with Internet users in the U.S. and 84% reach among Internet users worldwide.
In contrast, online videos reach 96% of Argentine Internet users, 92% of Chilean Internet users, 81% of Brazilian Internet users and 82% of Mexican Internet users.
Doing the math reveals:

  • Argentina has 28 million Internet users* and 96% of that total is 26.8 million
  • Brazil has 85 million Internet users** and 81% of that total is 68.8 million
  • Mexico has 40.6 million Internet users*** and 82% of that total is 33.2 million
  • Chile has 10 million Internet users* and 92% of that total is 9.2 million

Sources: *Internet World Stats, **comScore, ***AMIPCI

Adding up these totals means that you can reach 138 million people with online video in just these 4 markets—without counting the millions of Internet users in the rest of Latin America.

#3 Room to Grow
In these 4 countries, each viewer spends an average of 11 to 13 hours a month watching online videos, while in the United States, a more mature market, viewers spend 22 hours per month watching online videos. This means that there is good potential for online videos to take up more and more online time of Latin American Internet users. The same applies when you look at the amount of videos watched per user: between 120 and 168 per month in these 4 countries, compared to 245 online videos per month in the U.S.

#4 Market Evolution
First, numbers from IBOPE show that free TV has a penetration of over 90% in Argentina, Brazil, Chile and Mexico. Numbers from LAMAC show that pay TV is growing its reach in these countries: 74% penetration in Argentina, 61% in Chile and 40% in both Brazil and Mexico.

Beyond the reach of TV, a comScore study shows that 71% of online video viewers do this because they missed an episode of a TV show and 57% watch online videos for convenience. Only 38% watch online videos to avoid commercials. In addition, online video watchers indicate in surveys that they are open to seeing at least 6.5 minutes more per hour of ads.

Finally, according to comScore, advertisers fail to reach at least 30% of the audience via just television. On the other hand, according to comScore’s projections, the effective reach of the target audience can go up by 16% when advertising on TV is combined with online video ads. This could be why more American advertisers are investing more in online videos: they spent $1.8 billion in 2011 on online video ads, a 40% increase compared to 2010.

Without a doubt, we’ve been able to help various firms take advantage of the reach of online video in Latin America through our Jumba Video Network.

To explore how we can help you reach Latin America via online video or another medium, please contact us.

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Brazil luxury final

3 Reasons Why Brazil Has Become a Major Luxury Market

In 2011, Brazil’s luxury market grew by 4.7% in terms of designer clothing and footwear while sales of luxury accessories went up by 3.5% to reach US$294 million, according to research firm Euromonitor.

Overall, Brazil’s luxury market doubled its growth rates between 2008 and 2012. As such, the country’s luxury goods market is worth more than US$7 billion. Mexico is in second place—Euromonitor reports that its luxury market is worth US$1.5 billion.

The following factors are driving Brazil’s growth as a luxury market:

#1 Economic growth
Despite relatively weak economic growth of 1.5% in 2012, Brazil’s economy should grow by 4% per year from 2013 through 2016. In addition, a recent study from IPC Marketing Editora projects that Brazilian consumption will surpass 2.7 trillion reales in 2012, with household spending growing by 3.6%, more than double the growth of the country’s GDP this year.

#2 Many HNWIs
According to research firm Global Information, Brazil has the largest amount of high net worth individuals (HNWIs) in Latin America. In fact, the country ranks 11th in the world in terms of the amount of high net worth individuals. In addition, a recent report by McKinsey&Company estimates that 3 million Brazilians can afford luxury goods and that the country has 24 billionaires and 155,000 millionaires—and a third of the millionaires are under 35.

#3 Projected future growth
MCF Consultoria & Conhecimento, a retail and luxury consultancy firm based in Sao Paulo, estimates that Brazil’s luxury market will grow by 25% in 2012. In addition, Euromonitor forecasts that BRIC countries (Brazil, Russia, India, China) will account for 16% of global luxury sales by 2016, up from 11% in 2012.

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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