Last updated: 6 March 2015
The Brazilian audience for luxury products continues to grow year on year, which presents an opportunity for online advertisers. In this article we will look at how the luxury audience in Brazil access the internet and what product categories and brands generate the most interest.
Luxury Market and Connection Habits in Brazil
The Brazilian luxury market displays signs of growth even amidst the challenging and unfavorable economic scenario. In 2013, this market was worth a total of USD 3 billion, increasing 11% from the previous year, an increase that can be linked to the rise of the upper classes in the country. According to research by Boston Consulting Group, in the next few years we can expect to see the Brazilian upper classes grow even more rapidly than the middle class, gaining 11 million new individuals between 2010 to 2020.
Understanding the internet usage and purchasing habits in the luxury market is a crucial aspect in the process of finding and targeting potential luxury consumers online. For example, Brazilian consumers in the upper classes are much more likely to browse the internet through mobile devices, according to research by ComScore from Q3\2014. Their survey data found that 92% of individuals in the category with the highest monthly earnings browsed the internet through smartphones, compared to 75% of middle class individuals.
Interestingly, their research also found that this category are also more likely to click on display ads, with 54% of surveyed upper class internet users stating that they’re used to clicking on web page advertisements, compared to 48% of middle class users. These statistics present an interesting scenario for luxury market advertisers, considering their target audience not only connects to the internet using more devices, but are also more engaged with online advertisements.
Luxury Item Categories, Online Sales Channels and Outlets
Some types of products and services are more commonly sought after by the Brazilian luxury audience, as indicated by research from 2013 by market intelligence provider Digital Luxury Group regarding the most searched brands by the country’s consumers.
Luxury automobiles from manufacturers like Audi, BMW, Mercedes Benz and Range Rover are by far the category Brazilian consumers are most interested in, represented by almost half of all online searches for luxury brands in the country. Many manufacturer websites allow customers to configure their desired car and subsequently check pricing and the location of nearby dealers with available models. Additionally, media outlets like Exame, Valor Econômico and Brasil Econômico are where these vehicles are most featured in the country.
Fashion and Accessories
The fashion segment is representative for luxury product consumers in Brazil, with brands like Lacoste, Calvin Klein, Forum and Osklen receiving the most interest. These brands have not only established official e-commerce stores to serve the Brazilian public but are also found on large online stores in this sector like Dafiti and Farfetch. Some of these products gather the interest of their online audience through the influence of social media, in which celebrities and friends can be found wearing a brands’ most recent collections.
Luxury jewelry categories are recognised through brands such as Swarovski and Cartier and also national brands like H. Stern. Similar to fashion items, these products gather the interest of Brazilians through means such as social media. Foreign brands have not yet established official online stores in the country, although their websites offer information about their latest collections as well as the locations of licensed boutiques in the country.
Watch brands such as Rolex and Tag Heuer gather the most interest from Brazilian consumers and have localized their websites to provide information about their history and recently released collections, as well as displaying the location of licensed resellers in the country. The country’s consumers can also discuss and find information about the latest collections through online forums such as Relogioserelogios.com.br. These brands also present content marketing to media outlets in the country, such as Exame and Valor Econômico.
Travel and Hospitality
Destinations such as the Pacific Islands, South Africa and the Mediterranean are the most popular destinations for Brazilian luxury consumers, while hotel networks the Four Seasons, Mandarin Oriental and national network Fasano are the most sought after by the country’s audience. Some service aggregators, like Voyage Prive, are specialized in offering luxury travel packages to a select public in the country. Social media and blogs are some of the main outlets where Brazilian consumers receive information about travel destinations and hospitality.
Considering recent studies, the Brazilian public does not seem to show much interest in certain luxury product categories. High-end sports equipment, hi-fi audio or artwork, for example, have minimal representation in the country as online retailers of these items are scarce and have low volume of searches in the most used engines. The segment of gourmet food, however, shows signs of expansion in the country and could be a significant part of the luxury market in the coming years.