Brand Genetics' latest Speed Briefing offers a succinct look at Brazil, a country that has changed rapidly over the last decade, and will soon be the focus of global attention with the FIFA World Cup in 2014 and The Olympics in 2016. But, as the recent protests there have shown, such progress is not always smooth - and Brazil remains a complex market. We hope these insights into the world of the Brazilian consumer are both thought provoking and useful. As insight and innovation specialists, Brand Genetics is constantly working to understand the direction of change in global markets and identify the implications and opportunities for brands.

1. HOT FROM BRAZIL!
7 insights into the Brazilian Consumer and Market

2. THE GIANT AWAKES?
Brazil’s rise has been one of the successes of
the last decade. Millions lifted out of poverty, a
booming middle class & record foreign
investment have helped make it South America's
most influential country - a vibrant marketplace
for global brands.
Forecasts show Brazil will be one of the world’s
five largest consumer markets by 2020. Before
that it will hold the attention of global audiences
with 2014 FIFA World Cup & 2016 Rio Olympics.
Brazil is hot!
But recent events suggest a more complex story
– Brazil still has huge income disparities, and
these are now coupled with slowing growth and
growing unrest. The future looks far from clear.
For brands to succeed requires insight into the
factors driving consumer behaviour in Brazil – we
hope this brief snapshot will prove both thought
provoking & useful.
http://www.youtube.com/watch?v=o38xx3yMvek

3. 7 INSIGHTS – WITH SUGGESTED IMPLICATIONS – TO
HELP YOU SUCCEED IN BRAZIL:!
INTRO - A brief word on the recent protests
1. ‘No Rain, No Rainbow’
2. Horizontal, not Vertical
3. Fusion Culture
4. Cleanliness = Brazilian-ness
5. Sociable Commerce
6. A Very Mixed Middle
7. Growth Spreads

4. A WORD ON THE RECENT PROTESTS:
Traditionally Brazilians opt for negotiation over confrontation, but as one observer* notes ‘It is hard to build
a better society this way.’ Despite the huge leap in living standards over the last decade there is still plenty
to object to: crime & corruption are commonplace, Brazilians pay taxes at rich-world rates (36% of GDP)
but get little in return; the cost of living is startlingly high.
A rise in bus fares proved the straw that broke the camel’s back – sparking huge protests. Whilst many
Brazilians have escaped poverty, most remain only one payday from slipping back, and see further gains in
living standards as a right. The protests are a clear sign that Brazilians believe they deserve more & are
willing to fight for it: decent public services, not just shiny stadiums; honest politicians, not simply
worthless promises. In short, they showed they no longer fear confrontation if it leads to a better future.
*Alfredo Behrens at Sao Paulo’s FIA Business School

5. 1. ‘NO RAIN, NO RAINBOW’
Brazilians are naturally optimistic; the greeting of
‘Tudo Bem’ (‘Everything good?’) is more
statement than question. It feeds an intrinsic
Brazilian desire to celebrate things: ‘We may
have debt, but we still go to Carnival’.
It shows in consumer behaviour: almost
anything — from home appliances to Barbie
Pop Star — can be purchased on in-store
installment plans. Brazilian consumers are more
open to using credit than those in other
emerging markets (60% of people use credit in
Brazil vs. 30% in India & 13% in China).
IMPLICATIONS
Positivity is part of the national psyche. FMCG
brands that find ways to add a little celebration
into everyday tasks can reap the rewards; while
bigger ticket items can look into ways to spread
payments to help consumers live out their
aspirations.

6. 2. HORIZONTAL, NOT
VERTICAL
Brazilian culture is built on relationships rather
than hierarchy. People are more important
than things; relationships take precedence.
Brazilian culture puts a high premium on family
ties and the extended family kin group (the
parentela) is often the core of social life.
This can prove perplexing to the outsider:
business people prefer face-to-face meetings
to more impersonal phone calls; if you see a
doctor they don’t sit behind a desk, but on the
sofa with the patient, and they talk about the
person (not just the ailment).
IMPLICATIONS
Word of mouth has huge impact; brands need
to create and curate experiences to facilitate
the spread of product stories through face-to-
face encounters & personal relationships.

7. 3. FUSION CULTURE
Brazil is a melting pot of different cultures – from
native races, to Portuguese settlers, to the
largest expat Japanese population. The idea of
racial and cultural mixture – known as
mestiçagem – has long been core to Brazilian
life. Whilst this does cause tensions, this is also a
society confident to ‘mash-up’ different cultural
influences.
This has proved a great bonus in a time of
globalization. More recently as the US and
Europe have suffered financial crisis, Brazil’s
established connections with markets like China
and other emerging economies have grown
more important.
IMPLICATIONS
Brazilians enjoy experimenting with new mixes:
from flavor fusions, to cultural mash-ups or new
hybrid ideas. Equally, global brands should find
ways to mix Brazilian culture into their products
to create their own ‘mestiçagem’

8. 4. CLEANLINESS = BRAZILIAN-NESS
Rich or poor, Brazilians take great pride in how they present
themselves. It is the 3rd biggest market for beauty products.
People can shower 5 times a day and, notes Ricardo
Patrocínio, marketing director at Avon, “It’s hard to find a
woman who would leave the house without lipstick &
fragrance.”
This extends to the home: yards are regularly hosed down,
clothes changed if they have been worn ‘on the street’ &
plastic covers left on furniture. Spotless homes offer a
sanctuary from the dirty outside world (contrasting ‘private
prosperity, public squalor’).
IMPLICATIONS
Brands can tap into this pride in appearance by themselves
‘smartening up’ to help add something to consumers’ image.
There is also an opportunity to support the home ‘cocoon’ –
adapting experiences from the outside world for the home
(eg. improved in-home drinking experiences with professional
home beer taps)

9. 5. SOCIABLE COMMERCE
While the internet has reached more than half the
population, mobile broadband is expected to reach
85% by 2015. Given Brazilians’ natural sociability
it’s no surprise 86% of Internet users belong to at
least one social network (the global average is
70%), and Brazil is the world’s 2nd largest market
for both Facebook & Twitter.
This is important for both communications and
retail: retailing in Brazil is more socially networked
than anywhere else in the world. About 30% of
Internet users “follow” retailers (vs. 12% in Britain)
and use social media to identify and share deals
and purchases.
IMPLICATIONS
To succeed in Brazil every brand needs a social
commerce strategy - actively engaging consumers
through online promotions and delivering services
that help them in their lives. This can generate both
new revenue streams & build consumer loyalty/
advocacy.

10. 6. A VERY MIXED MIDDLE
More of Brazil's growth is now going to those on
modest incomes and the middle class is growing
rapidly (by 36m people in the past 10 years). But this
‘C-class’ is hugely diverse – ranging from the
established middle class (often professionals) to
those earning just !
R$291 [£85] per month (the working poor).
So although the latter may have some trappings of
wealth (eg. TVs / fridges bought on credit) they
cannot escape poor public services by going private.
Equally, they shop differently; making up half the
consumers of traditional ‘mom-and-pop’ shops,
while richer consumers do most of their shopping at
super- and hypermarkets.
IMPLICATIONS
Brands that support areas where public services
struggle (eg. improved health through soaps or
functional foods) can gain traction. Equally, to reach
this diverse middle means being adaptable to a
range of retail environments rather than one-size-fits-
all.

11. 7. GROWTH SPREADS
Brazil’s North & North-East have long lagged
behind the more prosperous South-East
(Brazil’s richest region). But over the next
decade these will be Brazil’s fastest growing
regions with consumer spending expected to
triple – narrowing the gap with the South-
East.
Equally, where growth has been led by Sao
Paulo and Rio de Janeiro, now small & mid-
size cities in the interior are set to grow even
faster. Though these areas are home to many
of the country’s new middle classes, they still
receive far less attention from global business.
IMPLICATIONS
Companies need to look beyond more
established cities to emerging regions and
smaller cities. This requires a shift in strategy
more reminiscent of reaching China’s 2nd and
3rd tier cities.

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If you're interested in how we can help you understand how global markets are changing
& what this means for your brands, we'd be delighted to talk further
www.brandgenetics.com
Tom Ellis
tom.ellis@brandgenetics.com
+44 (0) 7815 896 098
Andrew Christophers
andrew.christophers@brandgenetics.com
+44 (0) 7967 175 623
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With thanks to our Brazilian partners In Tune Research for
their support & collaboration
www.intuneresearch.com