High brand engagement. Rising sales. Brazil is an ambitious company’s dream. But to win customers, you’ll need in-depth knowledge of Brazilian consumer behaviour. Start here.
It’s a fantastic success story. In a few decades, Brazil transformed itself from a slow-growth economy into a consumer-based powerhouse.
Yes, it’s had its share of recent economic woes, and this has hampered consumer confidence. But the outlook is still bright. With a fast-growing e-commerce market and high brand engagement on social media, there’s no reason to be nervous. Brazil should still be one of your new market priorities.
But don’t jump in too quickly. Brazil is huge, with several culturally distinct regions and a level of diversity that makes it hard to pin down your Brazilian customer. Here’s our crash course on Brazilian consumer behaviour.
It’s no surprise tougher economic conditions have 75% of Brazilians looking for ways to save money. Consumers are paying increasing attention to the cost of their purchases. To save money, they’ll shop in high-brow discount chains and in atacarejo – shops combining retail and wholesale.
Brand loyalty won’t protect you either. Although Brazilians are brand loyal – one third of consumers have stuck with their favourite brands – there’s a catch. 19% shop around to find retailers selling the brand’s products at lower prices, and 14% wait for sales. And now for the scary stat: 60% of Brazilians won’t trade back to a more expensive brand once they’ve made the switch.
So it’s no surprise Brazilians have a lower-than-average trade-up rating of 5%. But research carefully, as in a few sectors – like alcohol and personal care – customers are willing to trade up.
Getting your pricing right from the outset will go a long way to generating brand loyalty. As will controlling the prices cheaper retailers use for your products. Lastly, establish solid, regular sales campaigns to seal the deal.
A lower price point doesn’t mean you can compromise on quality. Brazilian consumers want you to make them feel special.
If you’ve been in a Brazilian boutique, you’ll know they take service very seriously. Carrying your clothes, compliments in the changing room – it’s a highly involved shopping visit.
To win consumers’ hearts, you’ll need to take the same approach. And for luxury products, you can’t afford to skimp on the VIP treatment. Make your consumers feel like part of an exclusive club by including waiting areas, valet parking and event hosting. Yves Saint Laurent even launched products in customers’ houses, providing souvenirs for guests. This high-effort approach will reward you with sales.
Brazilian consumers also value immediate consumption. You might be able to cultivate a waiting list in other countries, but not here. In Brazil, customers expect products to be in stock. For luxury brands, it’s even quite common to allow them to test products at home – for no extra cost.
For premium brands, introduce personalization to your product range. One company, for example, has designed products for different regions of Brazil. They use lighter fabrics for customers in the warmer North-East. You could also offer monogramming as a service.
DOWN TO DETAIL
Consider dividing your Brazilian customers into regional subgroups. This allows you to be more precise with your targeting. Or identify behavioural traits you can use to segment your audience. Here are four consumer behaviour profiles to get you started, based on in-market research and a Euromonitor study:
1. The Adventurer
Focused on experience rather than consumerism, this Brazilian buyer has a love of live music, the outdoors, and socializing. To appeal to this group, position your brand as affordable, creative, and individual.
2. The Intellectual
Interested in cultural experiences and travel, this Brazilian buyer likes visiting museums and libraries and appreciates a global perspective. Talk to this group intellectually about the cost-benefit of your product, while remaining accessible and affordable.
3. The Party-Goer
A follower of fun and the latest trends on social media and TV, this image-conscious, tech-savvy Brazilian buyer seeks enjoyable, quality products and may be less cautious about their purchase decisions. To capture their attention, emphasize aspirational elements of your brand and focus on digital marketing.
4. The Believer
This group values trust above all else. While quality is important, this buyer’s purchasing decisions are heavily based on sentiment. Champion reliability, customer experience, and connection to win this Brazilian buyer over.
Want to succeed in Brazil? Know your customer. It’s a diverse place, and Brazilian consumer behaviour depends which group you’re looking at. Is your customer focused on price or quality? Or both? Find out and adjust your strategy.
If you need a hand identifying your target customer in Brazil, try our market research service. We rely on local experts for the insights you need to build a winning strategy. Get in touch today to start your Brazilian success story.
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