Consumer Market in Brazil is Investment Winner
As Brazil’s economy grows, so does the Brazilian consumer market. From toothpaste to real estate, Brazil’s middle classes offer a wealth of investment opportunities.
Brazil is fast becoming one of the world’s top markets for all kinds of consumer products. 2010 has been a particularly good year for consumer spending – Brazilians will have spent R$2.2 trillion by December, the equivalent of Spain’s GDP. As a result, more and more multinationals have earmarked Brazil as a top investment priority.
The latest edition of the business magazine, Negócios, reports that a number of big global names have experienced record sales in Brazil this year. Unilever has discovered that its Brazilian subsidiary has now overtaken the UK to become Unilever’s second largest market. Renault, LG and Pepsico report similar patterns. And unsurprisingly, all these companies have big plans for further investment in Brazil.
According to Negócios, the consumer profile in Brazil has changed radically over the last year. Not only are the Brazilians buying more, they are looking for better quality goods. Items once regarded as luxury are now part of the daily shopping list as more and more Brazilians see their purchasing power rise.
Brazilian tastes are now more discerning. Pepsico has seen sales of its healthy food range grow by 1000% this year. LG is currently selling 10,000 washer-driers a month compared to 2,000 a year ago. LG has also seen big sales in side-by-side fridges, home theater systems and flat-screen televisions. Consumer spending in Brazil is undoubtedly big business.
The same trend is also obvious in more expensive consumer goods. Car sales in Brazil overtook those in Germany this year and for both cars and motorbikes, Brazil is now the world’s fourth largest market. Many global car brands such as Fiat, Ford and Volkswagen have been making major investments in Brazil since 2009 to take advantage of this booming market.
Big spending has also reached property. Brazil’s second largest real estate company, Gafisa, has just posted record net income profits in Q3. In the third quarter, the property giant made R$116.6 million, an 83% rise on the same quarter last year.
Sophistication is also reaching real estate as Brazil’s upper middle classes demand larger and better-quality properties. Many experts believe this is a niche market and one of the best areas for investment in Brazil along with the market for social housing catered for by the government programme, Minha Casa Minha Vida.
Obelisk market research has noted the huge rise in consumer spending since Brazil left its brief recession behind in Q1 2009. We believe the new middle classes with their aspirations for more and better consumer items are a fundamental behind many investment opportunities in Brazil. And as middle class purchasing power continues to rise, Obelisk is convinced that these opportunities will only get better.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Brazil is fast becoming one of the world’s top markets for all kinds of consumer products. 2010 has been a particularly good year for consumer spending – Brazilians will have spent R$2.2 trillion by December, the equivalent of Spain’s GDP. As a result, more and more multinationals have earmarked Brazil as a top investment priority.
The latest edition of the business magazine, Negócios, reports that a number of big global names have experienced record sales in Brazil this year. Unilever has discovered that its Brazilian subsidiary has now overtaken the UK to become Unilever’s second largest market. Renault, LG and Pepsico report similar patterns. And unsurprisingly, all these companies have big plans for further investment in Brazil.
According to Negócios, the consumer profile in Brazil has changed radically over the last year. Not only are the Brazilians buying more, they are looking for better quality goods. Items once regarded as luxury are now part of the daily shopping list as more and more Brazilians see their purchasing power rise.
Brazilian tastes are now more discerning. Pepsico has seen sales of its healthy food range grow by 1000% this year. LG is currently selling 10,000 washer-driers a month compared to 2,000 a year ago. LG has also seen big sales in side-by-side fridges, home theater systems and flat-screen televisions. Consumer spending in Brazil is undoubtedly big business.
The same trend is also obvious in more expensive consumer goods. Car sales in Brazil overtook those in Germany this year and for both cars and motorbikes, Brazil is now the world’s fourth largest market. Many global car brands such as Fiat, Ford and Volkswagen have been making major investments in Brazil since 2009 to take advantage of this booming market.
Big spending has also reached property. Brazil’s second largest real estate company, Gafisa, has just posted record net income profits in Q3. In the third quarter, the property giant made R$116.6 million, an 83% rise on the same quarter last year.
Sophistication is also reaching real estate as Brazil’s upper middle classes demand larger and better-quality properties. Many experts believe this is a niche market and one of the best areas for investment in Brazil along with the market for social housing catered for by the government programme, Minha Casa Minha Vida.
Obelisk market research has noted the huge rise in consumer spending since Brazil left its brief recession behind in Q1 2009. We believe the new middle classes with their aspirations for more and better consumer items are a fundamental behind many investment opportunities in Brazil. And as middle class purchasing power continues to rise, Obelisk is convinced that these opportunities will only get better.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Labels: Brazil, Brazil property investment, Brazilian middle classes, Brazilian real estate, investment in Brazil, middle classes in Brazil
posted by Alison Kane at 3:08 pm
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