Tag Archives: What Brazil’s Huge Middle Class Will Buy in 2014

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What Brazilians are Buying in 2014

Besides understanding consumer behavior and the trends in consumer attitudes among Brazilians, it’s also helpful for agencies to see which products they are purchasing in greater quantities. So we took a look at recent sales figures and highlight important increases with key products.

1 books
Books

While no figures are yet available for 2014, in 2013 book sales went up by more than 4% in Brazil. This is consistent with earlier growth trends, including a 3% sales increase in 2012 and 7% increase in 2011.
Source: Fundação de Pesquisas Econômicas

2 beer
Beer

During the first 3 months of the year, beer sales in Brazil went up by nearly 11%. The World Cup also helped boost beer sales, as Nielsen reported beer sales increasing by 11% during June 2014.
Sources: AB InBev, Nielsen

3 meds
Generic Medications
Compared to the first half of 2013, sales of generic medications in Brazil went up by more than 11% during the first half of 2014, with more than 416 million units sold. Revenues from generic drug sales in Brazil reached R$ 7.5 million in the first half of 2014, an increase of 18% compared to the same period in 2013.
Source: Associação Brasileira das Indústrias de Medicamentos Genéricos

4 printer
Printers

Printer sales went up by more than 8% in Brazil during the first quarter to reach more than 1 million units sold.
Source: IDC

5 shoes
Shoes

Brazilians are projected to spend more than R$ 43 billion (US$19 billion) on shoes in 2014, a 7.6% increase compared to 2013. Classe C has the highest consumption potential among all socioeconomic classes in Brazil, with 43%, whereas Classe B is at 40%, Classe A is at 9% and Classes DE are at 8%.
Source: Pyxis Consumo 2014-IBOPE Inteligencia

6 scooter
Scooters

During the first half of 2014 more than 20,000 scooters were sold in Brazil. This represents an increase of nearly 32% compared to the first half of 2013. So far in 2014, the Honda PCX 150 was the biggest seller among scooter models, with more than 9,600 units sold. This seems to be part of a longer trend, since scooter sales went up by more than 800% in Brazil between 2008 and 2013.
Source: Associação Brasileira dos Fabricantes de Motos

10x10
Smartphones

While smartphone fever seems to have cooled a bit in Brazil, there’s no question that the product enjoys healthy popularity. In the first half of 2014 smartphone sales in Brazil went up by 71% compared to the same period in 2013. Overall, between January and May 2014, more than 28 million cell phones were sold in Brazil—and 19.5 million of these were smartphones. Overall, it’s projected that nearly 65 million cell phones will be sold in Brazil in 2014 and that smartphone sales will reach nearly 47 million units. For comparison purposes, in 2013 more than 35 million smartphones were sold in Brazil.
Sources: IDC and Associação Brasileira da Indústria Elétrica e Eletrônica

7 brinquedo
Toys

Sales of toys in Brazil went up by 6% in the first half of 2014. Overall, it’s projected that toy sales in Brazil will grow by 12% in 2014.
Source: Associação Brasileira dos Fabricantes de Brinquedos

8 traveler
Travel

Brazilians spent US$12.5 billion dollars during foreign travel between January and June of 2014, more than the same period of 2013, in which they spent US$12.3 billion. In June 2014 Brazilians spent US$2 billion in foreign travel, the largest amount ever.
Source: Banco Central

9 tv
TVs
The excitement over the World Cup helped spike TV sales in Brazil by 60% from the second half of May 2014 until June. This comes after a 55% increase in TV sales in January 2014. Overall, it’s expected that Brazilian stores specializing in selling TVs will see an increase of more than 253 million euros in revenues this year.
Sources: GfK, Confederação Nacional de Bens, Serviços e Turismo

10 car
Used Cars

While sales of both new cars and motorcycles in Brazil are down compared to 2013, used car sales went up by 4.6% in the first half of 2014, with more than 6 million vehicles sold. Overall, it’s projected that used car sales in Brazil will go up by 6 to 7% this year.
Source: Federação Nacional das Associações dos Revendedores de Veículos Automotores

11 vinho
Wines

Sales of wines went up by 2% in Brazil during the first half of 2013, with table wines and sparkling wines showing the biggest increase (6%).
Source: Instituto Brasileiro do Vinho

To find out more how we can help your agency increase its efficiencies via media services and new technology developed for the Brazilian market, please contact us.

 

 

Strongest e-commerce

The Strongest E-Commerce Markets in Latin America

According to the Instituto Latinoamericano de Comercio Electrónico, in 2013 e-commerce sales in Latin America topped US$70 billion, compared to just $1.6 billion in 2003. So in 10 years, e-commerce has grown by 40 times in Latin America.

Here’s a quick look at the hottest e-commerce markets in Latam and what online shoppers buy the most.

brazil
#1 Brazil

  • Total 2013 e-commerce sales: US$13 billion
  • Growth in e-commerce sales in 2013: 28%
  • Projected e-commerce growth for 2014: 20%

The top 10 products that Brazilians buy via e-commerce:

  1. Clothes/Accessories
  2. Cosmetics and perfumes
  3. Appliances
  4. Books/magazines
  5. Tech products
  6. Cell phones
  7. Home décor
  8. Electronics
  9. Sports and leisure products
  10. Toys and games

Mobile commerce: 2.5% of all e-commerce purchases made by Brazilians in 2013 were from mobile devices, yet in December 2013, mobile devices accounted for 4.8% of all e-commerce purchases

Source: E-bit

Mexican boy
#2 Mexico

Total 2013 e-commerce sales: US$9 billion

Growth in e-commerce sales in 2013: 28%

Projected e-commerce growth for 2014: 20%

The top 5 products that Mexicans buy via e-commerce:

  1. Music/movies
  2. Computers
  3. Clothes & accessories
  4. Tickets to shows
  5. Hotel reservations

Source: Asociación Mexicana de Internet
Argentine boy
#3 Argentina

Total 2013 e-commerce sales: US$3.1 billion

Growth in e-commerce sales in 2013: 48%

Projected e-commerce growth for 2014: 50%

The top 5 products that Argentines buy via e-commerce:

  1. Travel products (tickets, hotel stays)
  2. Electronics
  3. Food, drink and cleaning products
  4. Cell phone products
  5. Appliances

Source: Cámara Argentina de Comercio Electrónico

Colombian boy
#4 Colombia

Total 2013 e-commerce sales: US$2.5 billion

Growth in e-commerce sales in 2013: 40%

Projected e-commerce growth for 2014: 45%

The top 5 products that Colombians buy via e-commerce:

  1. Electronics & computer products
  2. Fashion
  3. Entertainment
  4. Travel
  5. Telecommunications (cell phone, Internet, cable TV)

Source: Cámara Colombiana de Comercio Electrónico (CCCE)

chile
#5 Chile

Total 2013 e-commerce sales: US$1.6 billion

Growth in e-commerce sales in 2013: 23%

Projected e-commerce growth for 2014: 25%

Source: Cámara de Comercio de Santiago

Peruvian boy
#6 Peru

Total 2013 e-commerce sales: US$800 million

Growth in e-commerce sales in 2013: 20%

Projected e-commerce growth for 2014: 20%

Source: Cámara de Comercio de Lima

Taking Advantage of This Growth
E-commerce is not the only powerful online growth trend. In recent years, a number of large studies have shown, over and over, that Latin Americans are power users when it comes to social media. In fact, in several individual country studies, it’s obvious that social media is the #1 reason that Latin American Internet users go online in the first place. And while other social sites have made some modest gains with Latin America, Facebook is by far the leader in the most crucial metric: time spent. In 2013, comScore reported that Facebook takes up 94% of the time that Latin American Internet users spend on social media. And Facebook itself reported in August 2013 that it has more than 200 million users in Latin America. When you consider that eMarketer reported that there were 299.5 million Internet users in Latin America in December 2013, these figures have major significance.

Quite simply, for the majority of brands trying to reach Latin American Internet users—especially clothing, cosmetics, mobile phone and tech brands—Facebook has to be a key part of their digital strategy. And one tactic in particular ties together Facebook’s deep reach in Latam and the region’s growing e-commerce market: Facebook retargeting.

The article here explains how this tactic works.

To find out more how we can help you use Facebook retargeting to take advantage of this massive surge in e-commerce in Latin America, please contact us

7 facts Mexico internet users

7 Surprising Facts about Mexican Internet Users

Recent research from the World Internet Project offers an in-depth look at Mexican Internet users. This analysis included some unexpected revelations about this audience, and we decided to break down some of the main ones to help media, marketing and advertising professionals develop their future online campaigns in Mexico.

#1 Massive Growth
The World Internet Project reported that there are 59 million Internet users in Mexico, significantly more than the 52 million reported by IAB Mexico in July 2013 and the 45 million indicated by Asociación Mexicana del Internet in May 2013. With a total population of 118 million in Mexico, this means that Internet penetration in Mexico is at 50%, a rate comparable with that of Brazil, Latam’s #1 Internet market in terms of users. In addition, the country seems on track to exceed the 65 million mark of Internet users that was projected for 2015 by the Latin America & Caribbean Network Information Centre.
Taking advantage: Given this rapid expansion of the Internet audience in Mexico, brands clearly should increase their online ad investment. Beyond targeted buys on premium sites, programmatic buys may also be a good solution for reaching this massive audience.

#2 Targeting Teens
The largest age group among Mexican Internet users is 12 to 18. Teens make up 24% of Mexico’s Internet users and total 14.3 million. This is significant for advertisers since studies show that 41% of Mexico’s teens have jobs. Nearly half (49%) spend most of their income on food and drinks for their homes since many are highly involved in helping to support their families.
Taking advantage: Investing more in online when promoting a product that is a strong fit for this demographic, including gaming, acne medications, etc.

#3 Changing Classes
While Internet penetration was virtually unchanged between 2012 and 2013 for ABC+ and C Típico classes in Mexico, the D+ class showed a 7% increase in Internet penetration between 2012 and 2013.
In fact, while classes ABC+ are still the largest socioeconomic group among Mexican Internet users in terms of sheer numbers (17.4 million), D+ has become the largest group from a percentage standpoint: 36% of Mexican Internet users are from this socioeconomic class. In contrast, 27% are from classes ABC+, 19% are from Class C Típico and 17% are from class D-.
Taking advantage: Brands should evaluate the fit between a their products and Class D+ and explore using online campaigns to target this segment if the fit is there.

#4 Make It Mobile
In 2012, only 34% of Mexicans reported using their cell phones to go online. But in 2013 more than 6 out of 10 Mexican Internet users (64%) said that they use cell phones to go online.
Taking advantage: Besides creating mobile-friendly landing pages and sites, adding a strong mobile component to all online ad campaigns in Mexico.

#5 More Time Online
One advantage in targeting Mexican Internet users is the huge amount of time they spend using the medium. According to World Internet Project, Mexican Internet users average 41 hours a week online, nearly 6 hours a day. In contrast, Mexican Internet users only spend 13 hours a week watching TV, 14 hours listening to the radio and 3 hours a week reading newspapers.
Taking advantage: Weighing ad investments targeting the Mexican online audience according to their clear preference for the Internet above all other media.

#6 Multitasking
The study results show more multiscreen use among Mexican Internet users than ever before. More than 4 of 10 (43%) always perform another activity while watching TV, and the two most popular activities are surfing the Internet with a cell phone and going on social media. Mexican Internet users also report going on social media as the #1 activity they engage in while using their cell phones or listening the radio.
Taking advantage: Explore Shazam’s advertising solutions because they integrate TV, social media and mobile.

#7 Social Media Rules
Not surprisingly, the study shows how social media have become the prime reason that Mexicans go online, following a similar pattern that exists in the United States, Europe and the rest of Latin America. Except for using the Internet to make or receive phone calls, other online activities that were once popular have gone down in popularity, including checking email, instant messaging and chatting in forums. In addition, 45% of Mexican Internet users follow a brand on social media and the most popular reason for doing this is to get discounts.
Taking advantage: Brands can try tests with Facebook retargeting to take advantage of the dominance of this social site, as well as ad campaigns using sponsored posts and other options.

To find out more about how we can help you take advantage of these developments in Mexico’s Internet audience via our range of targeted solutions, please contact us.

 

15 fast facts brazil mobile market

15 Fast Facts about Brazil’s Mobile Market

In planning mobile campaigns in Brazil or anywhere else, it’s helpful to know the latest numbers. So we put together a quick presentation of key Brazilian mobile market numbers to help our clients and colleagues at agencies and brands.

68 per minute
In 2013, Brazilians bought 68 smartphones per minute.

272,000,000
The amount of active mobile lines in Brazil as of the end of the first quarter of 2014.

134%
Overall mobile penetration in Brazil as of the end of the first quarter of 2014.

140 million
The number of active mobile Internet subscriptions in Brazil as of February 2014, a 50% increase compared to February 2013.

123%
The growth in smartphone sales in Brazil in 2013.

35,600,000
The amount of smartphones sold in Brazil in 2013.

23%
The projected growth of sales of smartphones, PCs, tablets and notebooks in Brazil during 2014—a total of 71 million units.

67.8 million
The amount of cell phones sold in Brazil in 2013, a record-breaking figure.

26%
The level of smartphone penetration among Brazil’s Class A.

5 inches or more
58% of Brazilians buy cell phones with screens that are 5 inches or more, 32% pick phones with screens that are 4.5 to 4.9 inches and 31% pick cell phones with screen sizes ranging from 4.0 to 4.4 inches.

8% to 17%
The change in smartphone penetration rate among Brazil’s Classe C middle class between 2012 and 2013. Classe C now numbers 108 million people.

3,000,000
The amount of tablets sold in Brazil during the last quarter of 2013. This marks the first time that tablets have outsold notebooks in Brazil.

157%
Growth in tablet sales in Brazil during 2013. Total 2013 sales of tablets in Brazil were 8.4 million.

101.4 million
The amount of 3G subscriptions in Brazil as of the end of February 2014.

1.8 million
The amount of 4G mobile subscriptions in Brazil as of the first quarter of 2014.

Sources:  IDC, Anatel, Telebrasil, KantarWorldpanel

To find out how we can help you reach Brazilian mobile users with a targeted campaign, please contact us.

argentina 2

Argentina Leads the World in Social Media and Mobile Internet Use

A recent report entitled We Are Social outlines several key points about how Argentines use both social and mobile media. Below we highlight the statistics that could have impact on your next campaign.

#1 Argentina Is a World Leader in Internet Use
Argentines spend an average of 5 hours and 11 minutes a day using the Internet. In time spent online, Argentina leads Australia, Canada, China, France, Germany, Italy, Japan, Russia, South Korea and the United Kingdom. In addition, Argentina is practically tied with the United States in the average time Internet users spend online: U.S. internet users average 5 hours and 13 minutes a day online, just 2 minutes more than Argentine Internet users.

#2 Argentina Leads the World in Social Media Use
Argentine Internet users spend an average of 4.3 hours per day on social media, the highest average in the world, exceeding the social use of Mexico (3.8 hours per day) and nearly double the amount of larger Internet markets like the United States (2.3), Canada (2.3) and China (1.5), among others.

#3 Argentina is a World Leader in Social Media Penetration
According to the report, Argentina is at 56% social media penetration in the sense of having more active users of its largest active social network. Argentina is at the same level as the United States, just below the United Kingdom (57%) and higher than Mexico (43%) and Brazil (43%).

#4 Argentina is a World Leader in Mobile Internet Use
Argentina’s mobile internet penetration rate is 42% and Argentine mobile Internet users spend an average of 3 hours and 25 minutes a day using mobile Internet. While a number of other countries have a deep mobile Internet penetration rate, Argentine mobile users use the Internet for much more time than users in Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russia, Singapore, the United Kingdom and the United States.

To find out more about how we can help you reach Argentina’s Internet users via a targeted online campaign that maximizes these market tendencies, please contact us.