ÁBACO BBB#12 Brazil Business Bulletin

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1 New insights: Why your colleagues, competitors, clients - and hopefully you - call Brazil a MUST market for new business potential ÁBACO BBB#12 Brazil Business Bulletin Contact Ábaco s A-Team! Abaco@AbacoResearch.com Massive Sociocultural and Economic Shift: Brazilian women take over the market and household Gender Presence in Higher Education: University Students More qualified, but more workload Brazilian women now outnumber men in universities. Expect heavy impact in work-place and GENDER ROLES. Financial autonomy and household decision power don t end domestic chores. Result: women still work 30 hours more than men per month. Age When Women Marry % which leads them to marry later Couples are tying the knot with more maturity: Many women wait to marry after 30, although the majority of brides are still younger. delaying childbirth a LOT! In 2005 over half the women in maternity wards were under 25. Only a decade later, sub-25 s are fewer than 40%. Now a typical new mom is 30+, a startling shift. Tiny contingent of mothers 40+ surged from 2.0% to 5.2%. Women have fewer births, dedicate more years to education, well paid employment, and maturity for child rearing. WHAT DOES IT MEAN? Vast implications for public health and industries such as child care products and services. % 2005 AGE 2015 % Source: IBGE and reducing the size of Brazilian families. Number of births per woman plunged since the 1960s. In 1970 the average Brazilian woman gave birth 5.8 times. Today fertility falls below the 2:1 replacement rate at 1.7. Population decreases, demanding many policy reforms. ABACO is a Founding Corporate Member of Esomar: World Association of Marketing Research Professionals 1

2 MEDICINE BECOMES A PREDOMINANTLY FEMALE PROFESSION Brazil s largest state, São Paulo, has 1,300 urologists, but only 2% (26) female. However 77% of dermatologists are women. Beyond obvious gender-related factors, female MDs often select specialties that permit defined schedules, private clinic practice, and dedicated family time. A striking trend is that women will become the MAJORITY of São Paulo`s MDs % Female MDs by Age 32 State of São Paulo Source: O Estado de São Paulo and CREMESP 2014 BRAZILIAN WOMEN SPEND MORE TIME ONLINE THAN ANY OTHER ACTIVITY Online and off-line habits of Brazilian women 93% of Brazilian women spend, on average, 3 hours daily on social networks, vs. 2.4 hours daily watching a TV screen. HOW DO THEY USE INTERNET? 36% only for what they deem necessary ; they prefer to spend time watching TV or listening to the radio. 32% are communication leaders: use internet to influence others and are hard to reach by traditional means. 18% observers: The web is their information source. They stay close to the digital world but dislike social media. 14% form the connected group. Social networks are their main channel of information in general. 100% RISE OF INTERNET USE IN BRAZIL Brazil ranks among the top five internet populations: 139m people online. From , the proportion of Brazilians online by phone tripled. 1 in 5 internet users accesses the web only via phone: computer sales shrink! Classes C and D include 30m unconnected homes, where 60% cite price as the barrier % Internet Usage by Age % 64% 40% 16% Sources: TIC Domicílios and Mundo do Marketing 2

3 Meet ABACO s president, Alan Grabowsky, representing Brazil at these research conferences. Congress 2017 Amsterdam, September Insights Association Chicago, October Congress 2017 Orlando, October BRAZIL IS PET CRAZY! 76% of Brazil s ~65m households have pets. Brazilian pet owners, 2.7% of world population, account for 8% of global pet care spending. Brazil is second only to the US in number of pet dogs. The population of 207m humans has 37.1m canines. Brazil has highest per-capita ownership of small dogs. Delayed marriage and childbirth together with rising divorce rates = more pet ownership. Despite negative GDP growth in 2016, pet care spending increased. NESTLÉ is investing $500M in pet food factories in São Paulo and MARS is opening a factory in Paraná. 50% of all pet care spending goes to pet food. Metro Journal Three in every four Brazilian homes have pets! 2 nd LARGEST PRIVATIZATION OF PUBLIC CORPORATIONS IN HISTORY President Temer s administration plans to auction off 57 publicly administered assets by EOY 2018, Private enterprises will bid for these operations and increase efficiency, injecting fresh capital. The only administration that privatized more public assets was that of Fernando Henrique Cardoso ( ). Includes Brazil s National Mint, shipping AIRPORTS TO BE PRIVATIZED ports, numerous airports, electricity transmission lines, and Jaguará power-plant. 11 transmission lines crossing 10 states. 15 shipping ports in northern states of Pará and Rio Grande, and Paraná in the south.. AIRPORTS São Paulo s Congonhas airport, the country s 2 nd largest, attends 21m travelers annually. Six in main northeast cities. Five in the state of Mato Grosso. One airport each in Natal and Rio de Janeiro. 3

4 BRAZILIAN LABORATORIES GAIN SPACE ON SKINCARE SHELVES Brazilian pharmaceutical companies invest in new entries and competitive prices to gain share in skincare, long dominated by multinational L Oréal. Local labs Aché, Hypermarcas, and Libbs lead category growth. SKINCARE SALES IN R$MM 2016 x 2015 Source: O Estado de São Paulo GAY MARRIAGE ON THE RISE Gay marriage increases in Brazil five times faster than union between men and women. Other recent trends: slightly fewer divorces and upswing in shared child custody. 3, % 2015 Source: Metro Rio 5,614 BRAZILIAN GRAIN HARVEST BREAKS RECORD! 2016/17 grain production is estimated at 239m tons, vs. 185m tons in 2015/16. Demonstrates amazing flexibility of Brazilian agriculture whenever economic and market factors are favorable % 1,048,777 +7% 1,131,734 OUR DEAR SÃO PAULO Main financial center of the Southern Hemisphere; Largest population in the Americas and in the entire Western World, with 12m residents; World s 10th largest GDP, 10.7% of Brazil s GDP; Headquarters location of 63% of its multinationals; Great ethnic diversity: NO city has more people of Italian, Portuguese, Japanese, Spanish, Lebanese and Arabic origins outside their native countries. OTHER EVENTS IN BRAZIL It s not all business! In addition to some 400 major international expositions and trade fairs each year, Brazil has events like these: Rock in Rio, September and Lady Gaga, Guns n Roses, Aerosmith, Bon Jovi, The Who Oktoberfest Blumenau, October 4-22 Since the first 1984 festival, the world s #2 Oktoberfest drank 11m liters of draught beer. Formula 1 Grand Prix, November 12 São Paulo is among the world s 20 race sites. 4

5 To guarantee total quality for our own full-service research and for demanding international clients, ÁBACO maintains complete, modern, and secure Qualitative and Quantitative Facilities at São Paulo s ideal location, near top hotels, financial and medical centers. CATI, FocusVision, and audience testing venues are powered by hands-on veteran bilingual researchers. ABSOLUTE QUALITY & CONVENIENCE IN NEW ÁBACO-LAB FACILITY Two FocusVision FGI suites for <15 observers and a 50- seat auditorium, all at Brazil s ideal address for research ÁBACO-LAB, the only full-service qual/quant research facility with all these features: Large audience facility and two one-way mirror rooms in the same venue Comfortable space for 15+ observers High-def video recording (1080p) and big screen TVs for close-up view Kitchen for F&B testing, hot meals and snacks for observers Venue near 5-star hotels to avoid São Paulo traffic jams 24 hour security and entrance control Enjoyable proximity of malls, fine restaurants, and cultural attractions 20 varied restaurants within the building (plus Starbucks) for all appetites Simultaneous translators tested and monitored by Native English Speakers Structure to use two translators at once, for global studies Assistance and all communications by fluent English speaking logistics team Call ÁBACO s Multilingual A-Team Call Abaco s USA tie-line by appointment: ABACO Marketing Research - Av. Paulista th floor São Paulo, Brasil - (+55-11) Abaco@AbacoResearch.com 5

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