View
218
Download
2
Category
Tags:
Preview:
DESCRIPTION
Â
Citation preview
LOCAL MATTERS
BRAZIL
LOCAL MATTERS
LOCAL MATTERS
4 BRAZIL NOW . LOCAL MATTERS
Increasingly our connected world feels
smaller, familiar and more similar.
However, this can be an illusion. What
people do, think and feel within their own
environment and culture can be vastly
different, often in surprising ways.
We help our clients build relationships that
really matter to people, wherever they are.
We recognize that digital technology is
transforming the way we all experience and
interact with brands, allowing people to
experience different things in different places.
We explore beyond individual desires and
needs, to understand cultural context and the
power of social influence and uncover what
really matters locally. We watch what people
do and delve deeper into what they feel and
think. Only then can we build the most vivid
picture of what matters to people.
With all eyes on Brazil in anticipation of the
2014 World Cup and 2016 Olympics, there
is no better time than now for brands to be
breaking into the market. Brazil Now explores
what matters to Brazilians in a defining
moment for the country.
5
WHAT WE SEE Brazil is an emerging power, with millions of new middle
class consumers. The growth extends right across the
country, beyond its famous two cities of São Paulo and Rio
de Janeiro, resulting in tremendous opportunity for brands
willing to expand. There is also a new, growing, rich class
in the country, driving a further appetite for luxury among
this already fashion-forward society.
Their young population is also
shaping the way people think about
consumption in Brazil. They have
access to more information and are
demanding more - higher quality
service, better products and fair prices,
while retaining their strong sense of
nationality. The resulting cultural
fusion is a natural offshoot of this.
6 BRAZIL NOW . LOCAL MATTERS
With a sexy, party-loving reputation,
Brazilians have become global
broadcasters of their happiness and
life through a strong presence on
social media, and the Internet is further
driving leisure and consumption
among these digital pioneers.
The 2014 World Cup and the 2016
Olympic Games will increase the
exposure of the cool, happy Brazil.
7
AN EMERGING POWERBrazil is a land full of new opportunities to be
discovered. It is the fifth largest country in the
world, with a territory larger than Australia’s
and almost three times the size of India. With
the seventh biggest economy, it is a country
rich in commodity and human resources, now
poised to creatively leapfrog.
Inequality and poverty are perhaps a couple
of the biggest threats after the Global
Financial Crisis. Brazil has been working hard
to combat these challenges and develop its
economy, while bringing millions of people
out of poverty and into a New Middle Class of
consumers - a group with more people than
the entire population of the United Kingdom.
These new consumers are willing to buy
clothes, electronics, cars and even luxury
goods so they can improve their standards
of life. Companies are already focusing on
this new market with brands such as Nestlé
and PepsiCo having created products that
are adapted to the taste of the Class C, the
New Middle Class, with sub-brands that offer
cheaper products. Global airlines have started
to offer plane tickets to be paid in several
instalments on credit cards as part of the
market tradition in Brazil, where the Class C
usually pay for everything in instalments.
Creative Commons. Author: Gisele Lobato
8 BRAZIL NOW . LOCAL MATTERS
2009 2014 2016
Total Brazil
population 2014
Total UK
population 2014
A rapid increase in socioeconomic inclusion creates opportunities for brands that focus on the needs of a new class looking for a better standard of life. This is important for brands that can demonstrate a social mission and commitment to helping consumers thrive.
So what?
94.9 mi
121 mi
160 mi
RISE OF C CLASS
Number of Brazilians in the New
Middle Class: Growth from 2009 to
today and its projection for 2016
1. Source: www.ipea.gov.br 9
Cre
ati
ve C
omm
ons.
A
uth
or: D
ougla
s F.
Hen
rique
10 BRAZIL NOW . LOCAL MATTERS
GROWTH ACROSS THE COUNTRYCopacabana and the Christ in Rio de Janeiro
are symbols of Brazil to the world, but
the country has gone through a national
transformation, with growth of cities and
development of markets in all of its regions.
Brazil is increasingly urban, with population
over one million in 16 of its cities, and more
than two-thirds of the country live out of the
famous cities of Rio de Janeiro and São Paulo.
These people living in five disparate regions
want to have access to goods and want to be
recognised as Brazilians with their own local
culture. The national growth in consumption
and the market of luxury goods has been
spreading in different
parts of the country.
In the Northeast of
Brazil, which used to
be associated with poverty and backwardness,
consumption accounted for more than US$
100 billion in 2013, 14% more than the year
before2. More than 20 new shopping centres
will be inaugurated in the region until 20183.
Important metropolitan regions such as Belo
Horizonte, Brasília, Curitiba and Recife have
become focus of investment in the market of
luxury goods, with brands like Tiffany & Co.,
Prada and Diesel opening stores there.
USD100Total Northeast consuption 2013
billion
2, 3. Source: Ibope
11
THE APPETITE FOR LUXURY
At the same time, there is a new, growing,
rich class in the country. About 27 million
people have become part of the highest social
classes in Brazil in the past 5 years - that’s
more than the population of Australia.
Brazil has the 12th most millionaires in the
world, a group of 194,000 people that is
expected to continue in accelerated growth,
with another 46 new millionaires per day. The
list of the Richest Brazilians by Forbes Brasil
counts 124 billionaires with combined wealth
of US$243 billion.
The increase in number of wealthy Brazilians
brings a new impulse to luxury consumption,
which is close to US$10 billion a year. Luxury
brands such as Tiffany & Co., Prada, Bugatti,
Bentley, Lamborghini, Louis Vuitton, Hermès,
Missoni and Christian Louboutin have recently
opened stores in Brazil. Today, Ferrari sells
an average of 45 sports cars worth over US$
600,000 in the country every year.
One of the main symbols of this is the
growing aircraft market. São Paulo has the
largest city helicopter fleet in the world -
larger than New York and Tokyo - with 411
aircraft registered and an average of 2,200
flights per day.
Creative Commons. Author: o-Porto Bay Hotels & Resorts
12 BRAZIL NOW . LOCAL MATTERS
The development of new markets in different Brazilian cities offers opportunities for global brands willing to expand. In particular, there is a growing appetite for luxury goods amongst the increasing number of wealthy Brazilians.
So what?
2,200
46new millionairesper day in 20144
Brazil expects
124billionaires5
Brazilians count
flights per day
FLYING HIGH
MILLIONS AND BILLIONS
São Paulo is the city with the world’s largest helicopter fleet
4. WealthInsight / Revista Veja 5. Forbes 13
DEMANDING MOREBrazil is a young country preparing itself for
the future. With an average age of 30.7 years,
51% of the population is under 30 years old.
Brazil’s younger generation is becoming more
educated, and more connected, with greater
material and service needs. The rise of the
new Millennial generation is changing the
way people think about consumption, with
increased conscious decisions.
Brazilians are tired of paying more than other
countries for the same products, and that is
one reason why price comparison websites
are especially popular in the country. Global
brands are becoming increasingly popular
when they offer good products for prices
lower than the national average. This could be
seen in 2014, when fashion retailer Forever
21 opened its first store in Brazil with prices
lower than average and sold in 24 days what
it planned to sell over three months6.
6. www.exame.abril.com.br
14 BRAZIL NOW . LOCAL MATTERS
YOUNG BRAZIL
CONSCIOUS CONSUMPTION
$URREAL
30.7
51%
81%
53%
years old7
of Brazilians are under 30 years old8
of young Brazilians believe that spending wisely is more important than earning a lot of money9
more than in the US10
The newest iPhone in Brazil cost
Brazilian average age
7, 9. JWT - Meet the BRIC millennials 8. World FactBook Brazil 10. The Economist
15
Creative Commons. Author: Vinicius Pinheiro
16 BRAZIL NOW . LOCAL MATTERS
CULTURAL FUSION
Brazilians are also demanding higher
quality products - from both global and
national brands - resulting in a cultural
fusion. However, more than eight out of
ten Brazilians still trust local brands over
international ones speaking to the pride in
Brazilian-ness.
The strong sense of nationality exists
everywhere, and Brazilian pride in their
country and their multicultural heritage
can be seen in their online presence and in
the colours of the national flag all over the
country. Local is so important that there
are examples of brands like McDonald’s
who have created a meal with rice, beans
and burgers to adapt its menu to the local
taste in Brazil, where rice and beans are the
staple meal of the country.
As Brazil raises its profile on the
world stage, Millennials in the country
acknowledge that there is work to be done
at home before their country can become
a world leader. There is a lot of pride in
Brazil, and nine out of ten Brazilians say it
is time to make a mark on the world.
The large, highly connected Millennial population in Brazil is demanding quality and fair prices. Brands need to customize their products to cater to local needs, while also keeping in mind Brazilian sensibilities and pride. Maintaining competitive pricing is critical, while tapping into the increase in cultural fusion is a real opportunity in this environment.
So what?
17
BROADCASTING HAPPINESS
18 BRAZIL NOW . LOCAL MATTERS
The highly interpersonal culture of Brazil,
which stresses social connections, is the
key reason it has been called the ‘social
media capital of the universe’. Brazilians
love technology and spend on average 32.5
hours per month online, only 3.7 hours
less than the Americans and 41% more than
the Chinese12. Digital means are great for
showcasing their pride and status to each
other and the world.
About eight out of ten young Brazilians are
on Facebook, which has more than 65 million
users in the country spending 535 minutes on
the social network every month13.
With their strong presence on social media,
Brazilians have become global broadcasters
of the life in the country.
Carnival, football, beaches and bikinis are
all global symbols of happiness and the
‘cool lifestyle’ in the country, and millions
of tourists travel to Rio de Janeiro and other
cities searching for that happiness. Important
global events such as the World Cup and the
2016 Olympic Games, along with non-stop
growth in the use of the internet, all have
the power to increase the exposure of the
Brazilian cool, happy lifestyle.
Place of Brazil in a survey
over happiness on Instagram11
HAPPY NATION
#1
11. Jetpac City Guides / Huffington Post 12. Brazilian Media survey 2014 - Observatório da imprensa 13. ComScore/Wall Street journal 19
HAPPY BRAZIL
‘Felicidade’ (happiness) and ‘Beleza’ (beauty)
are both seen as positive social expressions,
and Brazil owns this space socially
Happiness is part of Brazil’s social equity and
beauty is not far behind-both are attractive
spheres for brands to position themselves
across channels
Top 3 countries against the theme
“happiness” on Twitter (March to June 2014)14
MofaIronica @JoshDevineDrums Happiness is here in Brazil, please come back soon. We love you xo xo
morolandmorolan The Way to Happiness in Brazil http://t.co/CWH43y5zs1
RT @Aline_Chaienne @iamsrk Be happy without reason is the truest form of happiness #Brazil#Fan #LoveYou http://t.co/IKOY0hKRAa
BRAZIL OTHER
72.4%
USA
7.2% 6.5%
14. www.sysomos.com
20 BRAZIL NOW . LOCAL MATTERS
TWEETING ABOUT THE WORLD CUP AND OLYMPICS
Brazil’s status as a global player will continue to grow
during and after the World Cup and then into the build
up for 2016 Olympics
Brazil government #rio2016 officials says the Olympics will meet prep deadlines and will be held without disorder
#48daystogo till the 2014 FIFA world cup Brazil!!!!!!!!!!!!!!!!!!!!! Let’s go show the world football Brasil!
10JKR@vivab 16 days and counting! the squad is ready and so am I! Brazil!!!
21
young Brazilians are
on Facebook15
8 out of
10
Brazilians accessed the
mobile Internet in 201316
67mi
of Brazilians will be using
the internet by 201717
59.5%
15. ComScore/Wall Street journal 16. Forbes 17. eMarketer, PR Newswire
22 BRAZIL NOW . LOCAL MATTERS
DIGITAL PIONEERS
Brazilian consumers have also shown an
unusual willingness to make purchases online
using credit cards. More than 40 million
Brazilians are already searching for products,
information and shopping online - leading
product categories are household appliances
and fashion items. Global companies on the
web, like Amazon and Netflix, have created
personalised websites to offer products to the
Brazilian market.
With more than half of the population online,
Brazil casts itself as a defender of Internet
freedom with the 2014 implementation of the
Marco Civil, the national Internet bill of rights.
The law enshrines access to the Web and
the principle of net neutrality, ensuring that
Brazilian internet users enjoy online privacy
and freedom of expression.
The strong adaption of digital media is a huge opportunity for brands. Brazilians love to broadcast stories and become influential brand advocates through their social media activities. There is also a big opportunity for brands to offer online marketplaces – particularly for those who provide access to global brands and competitive offers. The 2014 World Cup and the 2016 Olympics amplify opportunities for global brands looking to make their entry.
So what?
23
A rapid increase in socioeconomic inclusion creates opportunities for
brands that focus on the needs of a new class looking for a better
standard of life.
The development of new markets in different Brazilian cities offers
opportunities for global brands willing to expand.
The increase in number of wealthy Brazilians brings a growing appetite
for luxury goods.
The large, highly connected Millennial population in Brazil is demanding
quality and fair prices. Brands need to customize their products to cater to
local needs, while also keeping in mind Brazilian sensibilities and pride.
Brazilians love to broadcast stories and become influential brand advocates
through their social media activities.
There is a big opportunity for brands to offer online marketplaces – access
to global brands at competitive offers.
The 2014 World Cup and the 2016 Olympics amplify opportunities for
global brands looking to make their entry.
SO WHAT MATTERS FOR BRANDS?
24 BRAZIL NOW . LOCAL MATTERS
Find out more »To learn more about Brazil Now, please get in touch:
Offices contacts
BOSTON » boston@hallandpartners.com
CAPE TOWN » capetown@hallandpartners.com
CHICAGO » chicago@hallandpartners.com
JOHANNESBURG » johannesburg@hallandpartners.com
LONDON » london@hallandpartners.com
LOS ANGELES » losangeles@hallandpartners.com
MELBOURNE » melbourne@hallandpartners.com
MUMBAI » mumbai@hallandpartners.com
NEW YORK » newyork@hallandpartners.com
SALT LAKE CITY » saltlakecity@hallandpartners.com
SEATTLE » seattle@hallandpartners.com
SHANGHAI » shanghai@hallandpartners.com
SINGAPORE » singapore@hallandpartners.com
SYDNEY » sydney@hallandpartners.com
TOKYO » tokyo@hallandpartners.com
www.hallandpartners.com
/hallandpartners
/hallandpartners/hallandpartners
/hallandpartners
/hall-&-partners
BRAZIL
www.hallandpartners.com
Recommended