Middle Class Dominates Brazilian Investment
The changing face of the Brazilian middle class brings new challenges to domestic and foreign investment in Brazil. Once content with cheap promotions, the middle class is now more discerning and looking for quality.
This search for better products affects consumer goods across the board. From laptops to real estate, Brazilian middle class (known as Class C) is going for quality over price. Until now, they were content with cheap offers, but with higher wages and more widely-available credit, middle class Brazilians prefer quality and well-established brand names.
A recent conference hosted by Grupo Doria in Sao Paulo addressed the challenges facing Brazilian investment firms as they seek to meet this change in middle class consumers. The high number of participants at the conference demonstrates the huge interest in catering for middle class customers.
Huge Opportunities for Investment
Brazil is home to one of the world’s fastest growing middle classes. Between 2003 and 2010, some 32 million Brazilians moved out of poverty into Class C, becoming new middle class citizens. Statistics quoted in the business weekly, Istoe Dinheiro, claim 35 million more are poised to join them by 2014.
This growth will bring the middle class to 140 million in just three years time. In tandem with this increase come huge opportunities for investment in Brazil in virtually all business sectors. To make the most of these investment opportunities, Brazilian and foreign companies need to understand this new consumer class.
Change in Marketing
In an attempt to to match middle class demands, Brazilian companies are adapting their marketing strategies. Changes are apparent in a range of industries - from online commerce to air travel and from cars to white goods.
The Brazilian airline TAM, historically more orientated towards business executives, is now targeting the new middle class. Not only are TAM plane tickets cheaper but they are on sale in more outlets including universities and stores. Company representatives claim sales have soared with Class C clients among the biggest buyers.
Shortage of Brazilian Property
“Perhaps the most important part of the Brazilian middle class story is the demand for properties,” says Gary Hardacre, CEO at Obelisk International. As the number of middle class families grow so does the demand for suitable housing, which the Brazilian real estate market is currently unable to meet.
Mr Hardacre points out that some of this demand is being met by the government social housing programme, Minha Casa Minha Vida. Despite building 3 million homes, the programme falls far short of demand, which may be as high as 8 million properties. Obelisk International recognises the excellent investment potential in property in Brazil aimed at the new middle class, particularly its newest members. “We expect this market to provide solid Brazilian investments for at least a decade,” said Mr Hardacre.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter, Facebook and LinkedIn.
This search for better products affects consumer goods across the board. From laptops to real estate, Brazilian middle class (known as Class C) is going for quality over price. Until now, they were content with cheap offers, but with higher wages and more widely-available credit, middle class Brazilians prefer quality and well-established brand names.
A recent conference hosted by Grupo Doria in Sao Paulo addressed the challenges facing Brazilian investment firms as they seek to meet this change in middle class consumers. The high number of participants at the conference demonstrates the huge interest in catering for middle class customers.
Huge Opportunities for Investment
Brazil is home to one of the world’s fastest growing middle classes. Between 2003 and 2010, some 32 million Brazilians moved out of poverty into Class C, becoming new middle class citizens. Statistics quoted in the business weekly, Istoe Dinheiro, claim 35 million more are poised to join them by 2014.
This growth will bring the middle class to 140 million in just three years time. In tandem with this increase come huge opportunities for investment in Brazil in virtually all business sectors. To make the most of these investment opportunities, Brazilian and foreign companies need to understand this new consumer class.
Change in Marketing
In an attempt to to match middle class demands, Brazilian companies are adapting their marketing strategies. Changes are apparent in a range of industries - from online commerce to air travel and from cars to white goods.
The Brazilian airline TAM, historically more orientated towards business executives, is now targeting the new middle class. Not only are TAM plane tickets cheaper but they are on sale in more outlets including universities and stores. Company representatives claim sales have soared with Class C clients among the biggest buyers.
Shortage of Brazilian Property
“Perhaps the most important part of the Brazilian middle class story is the demand for properties,” says Gary Hardacre, CEO at Obelisk International. As the number of middle class families grow so does the demand for suitable housing, which the Brazilian real estate market is currently unable to meet.
Mr Hardacre points out that some of this demand is being met by the government social housing programme, Minha Casa Minha Vida. Despite building 3 million homes, the programme falls far short of demand, which may be as high as 8 million properties. Obelisk International recognises the excellent investment potential in property in Brazil aimed at the new middle class, particularly its newest members. “We expect this market to provide solid Brazilian investments for at least a decade,” said Mr Hardacre.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter, Facebook and LinkedIn.
Labels: Brazil, Brazil property investment, Brazilian real estate, investing in Brazil, investment in Brazil, investments, Minha Casa Minha Vida, Obelisk International, property investment
posted by Alison Kane at 5:08 pm
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