Meet-the-new-Brazilian-consumer.pdf

Meet-the-new-Brazilian-consumer.pdf - Meet the new...

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Meet the new Brazilian consumer Mariana Donatelli Fernanda Hoefel Suzana Resstom Fábio Stul Consumer Packaged Goods and Retail June 2016
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2 So much can change in just a few years. For most of the past decade, up until a couple of years ago, Brazil enjoyed a dramatic boom in consumption. Thirty-five million Brazilians—18 percent of the population—ascended to the middle class. As of 2012, Brazil’s middle class encompassed 115 million people, or more than half of all Brazilians. 1 But economic conditions in Brazil have taken a negative turn. Today, the country is facing one of the most severe recessions in its history. Will this recession be a short-term dip or a long slog? How are consumers changing their buying behavior? What can consumer-packaged-goods (CPG) and retail companies expect, and how should they adjust? What can Brazil learn from other countries’ postrecession experiences—and are those lessons even applicable in Brazil? Our recent survey of 1,000 Brazilian consumers confirms that most of them are indeed worried about their financial prospects and curtailing their spending. The Brazil survey was part of our broader global survey involving more than 22,000 respondents in 26 countries. Our aim in conducting the survey was to understand how consumers feel about their financial prospects and how these sentiments are affecting their buying behavior (see sidebar, “Our survey methodology”). We found that even amid sharp declines in consumer confidence and private consumption, consumer companies can still find pockets of opportunity in Brazil. Cautious, concerned, and conservative Consumer confidence in Brazil was the lowest among 26 countries surveyed: only 8 percent of Brazilians were optimistic about the national Meet the new Brazilian consumer Amid one of the country’s most severe recessions, how can consumer- goods companies and retailers succeed in Brazil? Our survey methodology The online survey was in the field from September 3 to 27, 2015, and garnered responses from at least 1,000 consumers in each of 21 countries, including Brazil, plus another 1,000 consumers across the Middle East and 250 consumers in Taiwan. Because the survey was administered online, the sample largely reflects the characteristics of the typical online population—younger, urban, and more affluent. The country results are weighted by age based on census data and weighted by income based on panel data. The category-specific results are weighted by purchase incidence. The weighting of region- and country-specific data aligns with the procedures used by the McKinsey Global Institute. In particular, responses to survey questions on consumer confidence are weighted according to the size of the consuming class; responses to questions on consumer behavior are weighted according to both the size and per capita consumption of the consuming class.
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3 Optimism was lowest in Brazil, out of 26 countries surveyed.
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