This blog post is by Hall & Partners, based on their Brazil Now report. Warc subscribers can read more about marketing in Brazil on the Brazil topic page.
With all eyes on Brazil for the 2014 World Cup and the upcoming 2016 Olympics, there is no better time than now for brands exploring opportunities to break into the Brazilian market. With the assistance of Daniel Buarque, MA candidate at Brazil Institute at King's College in London and a former reporter and editor in Brazil, we developed our Brazil Now report in an effort to identify and understand the key socioeconomic factors and cultural trends effecting brands within Brazil.
Brazil is a young nation; the average age is 30.7 while 51% of Brazilians are aged under 30 years' old. Within that, Brazilians are amongst some of the most socially-engaged people in the world and the prevalence of digital media creates endless opportunities for brands. Some topline stats:
Brazilian consumers use social media to broadcast their experiences and opinions. Thus, there is a huge opportunity for brands to develop influential and passionate brand advocates.
And the development of new markets in different Brazilian cities offers opportunities for global brands with ambitions to expand.
There is an emerging rich class within Brazil: the country is home to 124 billionaires and some 194,000 millionaires ‐ the 12th largest group of millionaires in the world. Further, Brazil expects 46 new millionaires to emerge, per day, in 2014.
Thus there is an increasing demand for luxury products which has prompted brands like Tiffany & Co., Prada, Bentley, Hermés and Ferrari to successfully open stores in the country in recent years. A key symbol of this growing wealth is the ever-expanding aircraft market, which sees São Paulo maintain the largest city helicopter fleet in the world.
Meanwhile, a new middle class of empowered millennials has emerged ‐ a large consumer group equivalent to the size of the population of the UK. This cohort demand higher quality services, better products and fair prices. Further, they are cautious consumers who take time to research and reflect on where and how they should spend their money and are increasingly likely to research and purchase products through online marketplaces. Interestingly, our study revealed that 81% of Brazilians believe spending wisely is more important than earning more money.
Brazilians are an incredibly proud people; while they recognise their country's flaws they also protect and promote its strengths with great passion. Although their fun and vibrant culture is ever apparent, international brands that wish to succeed in this country must develop a deep understanding of Brazilian culture and needs, which differ not only from the rest of the world, but from city to city too.
Brazilian consumers are increasingly demanding higher quality products from both global and local brands. And with 8 out of 10 Brazilians saying they trust local brands over international brands those hoping to harness the Brazilian market should think about ways they can become committed and invested parts of the community as this will help build consumer trust.
Thus, local investment is critical for global brands that wish to succeed in Brazil. For example it is inadequate to simply import cars into the country as consumers expect car parts to be available locally, and expect brand specialised mechanics to service their vehicle.
Similarly, adapting marketing campaigns and products to embrace what matters and what is needed is necessary for a brand's longevity within Brazil. By way of example, McDonalds, the fast food restaurant, adapted its menu to reflect local tastes by including rice and beans.
To learn more about Brazil and the factors that affect brands please take a look at our Brazil Now report.
Warc subscribers can read more about marketing in Brazil on the Brazil topic page.