brazil report 2007

In brazil trends connected with the principles of

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Unformatted text preview: s of “quality of life”, convenience, price-consciousness, brand loyalty and others are very present in the market. In fact, many companies in Brazil already provide products and services that meet the consumer needs derived from those trends. For instance, Nestlé has announced another new unit in the North of the country, for the demand of the lower income (C/D/E) classes, which will probably include the development of new products to meet their specific needs. LIFESTyLES/ SHOPPING HABITS Shopping for leisure in urban areas Shopping is definitely integrated into the lifestyle of the Brazilian urban population, as an usual and necessary activity and as an entertainment programme. Shopping malls, outlets, hypermarkets, supermarkets and convenience stores have been designed to fit the profile of the relevant customer. Regardless of whether the consumer’s profile is of high or low consumption, quality-service or price-oriented, or attracted to branded or private labels, in most developed cities it is possible to find places that best meet these characteristics. Many of these places are designed to offer a wide range of services (for example, restaurants, coffee shops, fitness centres, beauty parlours, shoe repairs, post offices, bank services and dry-cleaners among others) and to provide some entertainment with cinemas, cyber-cafés and play areas for children. BRAND/PRICE SENSITIVITy Well-developed brand awareness The Brazilian consumers distinguish products by the brand, associating them with concepts of high quality, trust, loyalty and status. The Brazilian consumer market has plenty of examples of local or international brands that have historically maintained a significant market-share. Despite the fact that Brazilian consumers recognise distinct brands, they are influenced by those brands in their purchasing decisions, and eventually contribute as opinion makers to attract new consumers to the brands, it is important to point out that there has been a real increase of price-conscious customers in Brazil. Large retail chains have been decisive in stimulating this consumer behaviour, through an aggressive implementation of discount format stores and by expanding the portfolio of private label products. 10 2006/2007 FROM SÃO PAULO TO SHANGHAI New consumer dynamics: the impact on modern retailing* Brazil RETAIL AND CONSUMER SECTOR PERFORMANCE MAJOR CONSUMER GOODS PLAyERS Most consumer goods production segments in Brazil have a significant presence of multinational companies. Historically, the major consumer goods players have invested in their growth through acquisitions of local operations or competitors that own leading domestic brands, in addition to their organic expansion. Some of these global companies today have lengthy experience of doing business in Brazil. Key consumer goods companies Category 2005 Gross Sales (USD m) Controlling Shareholder Ambev Beverages 12,343 Belgian Cargill Food 5,896 American Bunge Alimentos Food 5,324 Bermudan Nestlé Food 3,575 Swiss Sadia Food 3,559 Brazilian Souza Cruz Tobacco 3,404 British Brasmotor Home Appliances 2,735 American Perdigão Food 2,510 Brazilian Unilever Food 3,850 British Friboi Food 1,756 Brazilian Avon Cosmetics 1,710 American Food 1,656 French Natura Cosmetics 1,386 Brazilian Schincariol Beverages 1,329 Brazilian Coca-Cola Beverages N/A American Kraft Foods Food 1,318 American Electronics 1,302 Korean Elma Chips Food 973 American Coamo Food 1,160...
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