What Brazilians Buy

Latin Link
By Bruno Almeida
November 11, 2011

This post is also available in: Spanish

What Brazilians BuyWe’ve tracked the results of dozens of recent studies to measure the hottest products among Brazilian consumers and the latest info about their buying habits. Here’s a quick and easy breakdown for marketers, advertisers and agencies.

• The Brazilian beauty market quintupled its sales between 1996 and 2010, reaching $27 billion reales, with 30% growth projected for 2011*
• The Brazilian beauty market is #3 in the world, just behind the United States and Japan*
• Class C Brazilian women spend 19 billion reales a year on beauty products—more than all other socioeconomic classes**
• 79% of Brazilian women use beauty products regularly***
• 88% of Brazilian female Internet users go online to research beauty products***
• Class C women between 18 and 24 spend 71% of their income on beauty and fashion products***
*Source: Associação Brasileira de Indústrias de Higiene Pessoal, Perfumaria e Cosméticos
**Source: Data Popular
***Source: Sophia Mind

• Brazilian shoppers bought more books in 2010 than in 2009, spurring an 8% growth in sales and a 13% increase in copies sold*
• Books ranked #4 among products bought by Brazilians online**
*Source: Produção e Vendas do Setor Editorial Brasileiro
**Source: “Webshoppers,” by e-bit and Câmara Brasileira do Comércio Eletrônico

• Sales set a record in 2010, reaching 3.5 million, up 12% from 2009*
• In 2011, sales are projected to hit 3.69 million, up 5% from 2010*
• Fiat is the market leader with sales of 600,000+ vehicles projected for 2011, followed by Volkswagen AG, General Motors and Ford*
• Hyundai sold 80,000 units in Brazil in 2010, up 19% from 2009, and projects sales of 93,000 cars in 2011**
• Subcompacts are the most popular segment sold in Brazil***
• In the first-ever J.D. Power survey done with Brazilian car buyers, the Volkswagen Gol G5 ranked #1 among subcompacts, the Volkswagen Crossfox was #1 among compacts and the Honda Civic was #1 in the midsize category
*Source: Anfavea
Source: **Hyundai
Source: ***J.D. Power and Associates

• In 2010, 55% of Brazilian consumers bought a cell phone and Brazil was #1 in cell phone sales compared to 8 major countries, including the United States, Japan, Germany, France, Russia, India and China*
• 60% of Brazilians polled said they would buy electronics in 2011*
• Cell phones are the #2 platform that Brazilians use to play online games: 24 million of the 35 million cell phone users in Brazil use the phones to play games**
• Smartphone sales in Brazil went up 165% in the first half of 2011***
• Smartphone sales in Brazil will total 10 million units in 2011 but hit 47 million units by 2015****
• Nokia is the most popular cellphone brand in Brazil, with 47% market share, followed by Samsung at 21%*****
• The iPhone has a 6% market share in Brazil****
*Source: Accenture
**Source: Newzoo and Real Games
***Source: Niesen no Brasil
****Source: IDC Brazil
*****Source: icrossing.uk

• 58% of households in metropolitan Brazil have computers
• 19% of Brazilian households have more than one computer
• 56% of class C households in Brazil have a PC
• 22% of class D households have a desktop computer
• 196,000 Brazilians owned tablets in the first half of 2011
• Over 66% of tablet owners in Brazil say that the Internet is the greatest influence for purchase
Source: “Tech Metrics Brazil,” produced by Ipsos Brazil

• 72% of Brazilians have credit or debit cards in 2011, up 4% from 2010
• Nearly half of Class C members own a credit or debit card: 47%, up 11% compared to 2009
• By 2012, 76% of Brazilians will have credit or debit cards
Source: Associação Brasileira das Empresas de Cartões de Crédito e Serviços

• Brazilian shoppers spent 8.4 billion reales (US$4.7 billion) in online buys in the first half of 2011
• The #1 e-commerce category among Brazilians is appliances, followed by computer products and health/beauty products, with books ranking #4
• 18.7 billion reales (US$10.2 billion): the projected amount Brazilians will spend on e-commerce in 2011, up 26% from 2010
• Men account for 54% of e-commerce purchases in Brazil and women account for 45%
• 61% of new entrants in Brazilian e-commerce between January and June 2011 are low-income, earning 3,000 reales per year
• 46.5% of class C members are buying online
• As an e-commerce category, clothes have gone from 26th place in 2006 to 6th place in 2011
Source: “Webshoppers,” by e-bit and Câmara Brasileira do Comércio Eletrônico

• The Brazilian luxury market rose to 15.1 billion reales (US$9 billion) in 2010, up by 23% from 2009
• H Stern is Brazil’s top local luxury brand (24% market share), followed by Daslu (20%), Fasano (5%), Osklen (4%) and Victor Hugo (3%)
• The top international luxury brand in Brazil is Louis Vuitton (30% market share), followed by Hermès (12%), Chanel (8%), Giorgio Armani (6%) and Gucci (5%)
• 55% of Brazilians buy luxury brands overseas, mainly in New York (36%), Paris (21%), Miami (15%) and Buenos Aires (6%)
Source: DBM Consulting and GFK

• Brazilians bought 9% of the homes and apartments sold to international buyers in Miami between 2009 and 2010*
• 20% of Miami homes and apartments sold in 2011 will be bought by Brazilians*
• 85% of all Brazilian buyers pay cash*
• Within their country, 9.1 million Brazilians plan on buying a house in 2011**
• Besides Miami, Brazilian buyers are also focused on Fort Lauderdale, Orlando and other Florida cities***
*Source: Miami Association of Realtors
**Source: Data Popular
***Source: National Association of Realtors

• In 2010, 50 million Brazilians traveled—taking a total of 186 million trips*
• 32% of Brazilians say they will travel in 2011**
• Brazilian travelers spent US$8 billion from January to June 2011, a new record***
• On average, every Brazilian tourist who visits the United States spends US$5,918****
• Spending by Brazilian tourists in the U.S. has gone up by 250% since 2003****
• 1.2 million Brazilians visited the United States in 2010, a 34% increase from 2009****
• Top destinations favored by Brazilian travelers include Paris (214% growth in bookings between 2010 and 2011), Milan (210% growth), Miami (198%) and Mendoza (182%)*****
*Source: Ministério do Turismo do Brasil
**Source: BGN Cetelem & Ipsos Public Affairs
***Source: Banco Central do Brasil
****Source: U.S. Department of Commerce
*****Source: Hotéis.com