With high brand engagement and rising consumer sales, Brazil is an ambitious company’s dream. But to convince customers to buy what you’re selling, you’ll need in-depth knowledge of Brazilian consumer behavior.
In just a few decades, Brazil has transformed itself from a slow-growth economy into a consumer-based powerhouse. It’s had its share of recent economic woes, which has shaken consumer confidence. But Brazil remains a great market opportunity because of its fast-growing eCommerce market and high brand engagement on social media.
Consider, though, that Brazil is a large territory, with several culturally distinct regions and a level of diversity that adds nuance to engaging Brazilian customers. Here are some consumer behavior trends to be aware of before you dive into the market.
Economic conditions have resulted in 75% of Brazilians looking for ways to spend less. To save money, Brazilian consumers often shop in popular discount chains and in atacarejo – shops combining retail and wholesale.
Although Brazilians are typically brand loyal (one-third of consumers stick with their favorite brands), there’s a catch – 19% shop around to find retailers selling the brand’s products at lower prices, and 14% wait for sales. What’s important to note is that 60% of Brazilians won’t go back to a more expensive brand once they’ve made the switch.
In general, Brazilians have a lower-than-average trade-up rating of just 5%. But in a few sectors – like alcohol and personal care – customers are more willing to trade up.
Getting your price point right from the outset will go a long way in generating brand loyalty, as well as controlling the prices that retailers sell your products for. Lastly, establish effective, consistent marketing campaigns to drive sales.
A lower price point doesn’t mean you can compromise on quality. Brazilian consumers want to feel special.
The Brazilian boutique experience is an indication of how seriously customers take service. Carrying shoppers’ clothes, compliments in the changing room – it’s a highly interactive shopping experience.
To win consumer’s hearts, a personalized shopping experience is important. 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 went as far as launching products in customers’ houses, providing souvenirs for guests. Product personalization is also valued. One luxury clothing brand, for example, designed products for different regions of Brazil, using lighter fabrics for the warmer North-East.
Brazilian consumers also want their products straight away and expect products to be in stock. For luxury brands, it’s fairly common to accommodate in-home product testing – at no extra cost.
A high-touch approach to your brand experience will likely reward you with sales and customer loyalty.
FOUR BRAZILIAN CONSUMER PROFILES
Consider dividing your Brazilian customers into regional subgroups to be more precise with your targeting. You may also be able to segment your audience in other ways, too. Based on in-market research and a study carried out by Euromonitor, here’s our take on four buyer profiles based on Brazilian consumer behavior.
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, experience, and connection to win this Brazilian buyer over.
To succeed in the Brazil market, know your customer. It’s a diverse region, with varied and nuanced consumer behavior. Do your research, find out what your target audience wants, and adjust your strategy accordingly.