The number of computers in Brazil has doubled in the last four years. According to a survey by Fundação Getulio Vargas (FGV), one of the top higher education institutions in Brazil, there are 118 million computers in the country, including both home and office computers. The computer-to-person ratio is currently three to five.
The study also says that Brazil is expected to have one computer per person, or 200 million units, in three years. The increase will be driven by higher sales of tablets, which the survey considers to fall under the computer category. FGV estimates that 22.6 million units will be sold in 2013.
There are 118 million computers in the country, including both home and office computers
The performance of the Brazilian economy does not seem to be very encouraging in early 2013. However, consumer spending is expected to reach a record high. IPC Maps 2013, a study conducted by the consulting firm IPC Marketing, shows that consumer spending will amount to US$ 1.5 trillion this year, up almost 10% from 2012.
The findings indicate that household spending will grow much more than the Gross Domestic Product (GDP) and the population will increase by 0.84%, passing the mark of 195 million. The urban population will account for 84.6% of the total population, with an annual consumer spending per capita of US$ 8,462 vs. US$ 3,315 among inhabitants of rural areas.
Despite a slight drop, the middle class still has the highest purchasing power: US$ 680 billion, or 48.5% of the total consumer spending in 2013 vs. 50% in 2012. Lower-middle class consumers will spend US$ 259.4 billion whereas upper class consumers will spend US$ 270 billion. Finally, the lower class is expected to spend US$ 58.3 billion, up 10% year-on-year.
Household spending will grow much more than the Gross Domestic Product (GDP)
]]>In contrast, no more than 5% of the Brazilian companies surveyed said that they were planning to reduce their marketing teams. Daniela Ribeiro, senior manager in Robert Half's Engineering and Marketing & Sales Division, explains that the demand for marketing professionals has been rising since last year.
"This is due to the large share of consumer spending in the Brazilian GDP currently. Companies are investing heavily to boost sales, and marketing departments are being recognized as important. The fact that the World Cup and the Olympic Games, both of which to be held in Brazil, are coming up is another contributing factor. Companies are hiring marketing professionals because that is where strategies are designed," believes Daniela, stressing that sales professionals are even more sought after than marketing professionals.
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The study "Brazil's Most Valuable Brands" has ranked Coca-Cola as The Strongest Brand and Skol as The Most Valuable Brand. The survey revealed the top 50 brands in the Brazilian market, worth US$ 53.4 billion put together.
Conducted jointly by BrandAnalytics, Millward Brown and the WPP Group, the study takes into account the brand's contribution to the company's net income and covers local and global brands. The coordinators examine financial data for Brazilian publicly-held companies provided by Bloomberg to determine the most "valuable" brand.
Surprisingly, Skol rose from the third position in 2012 to the top of the ranking of most valuable brands this year, surpassing Petrobras, which now ranks second. The brand is worth an estimated US$6.5 billion, vs. US$ 4.6 billion in 2012. In turn, Petrobras is worth US$ 5.7 billion, against US$ 10.5 billion last year.
Check out the list of the top 10 brands according to the study below.
1. Skol_______________ US$ 6,5 bi
2. Petrobras___________ US$ 5,7 bi
3. Bradesco___________ US$ 5,4
4. Itaú_______________ US$ 4 bi
5. Brahma____________ US$ 3,8 bi
6. Natura_____________ US$ 3,7 bi
7. Sadia______________ US$ 1,9 bi
8. Banco do Brasil______ US$ 1,4 bi
9. Antarctica__________ US$ 1,2 bi
10. Lojas Americanas_____ US$ 1 bi
Coca-Cola is ranked as The Strongest Brand and Skol as The Most Valuable Brand
]]>IBRAC (Brazilian Institute of Cachaça) has confirmed that the U.S. officially recognized this week the use of the term "cachaça" as a reference to the Brazilian beverage following the standards set by the organization. Many Americans are more familiar with caipirinha than with cachaça itself, which they call "Brazilian rum."
However, the talks between IBRAC and the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) were not easy. They dragged on for a decade and involved representatives of several ministries, producers and traders from both countries. With the new measure, the term "cachaça" now refers specifically to the beverage produced in Brazil and does not fall under categories like "vodka" and "rum", produced in many places.
In addition, Brazilian brands of cachaça are in a better position to market their products out of Brazil, just as Colombian market their coffee. This is an achievement for the Brazilian industry, similar to that which the French obtained for "champagne" and the Mexicans for "tequila."
On the other hand, Brazil has to recognize two beverages originating in the U.S. – Bourbon and Tennessee Whiskey – formally within one month. This trade-off is worthwhile since cachaça is estimated to generate US$ 15 million in annual revenue, US$ 2 million of which in the U.S. market alone.
Americans are more familiar with caipirinha than with cachaça itself
]]>Consumer data suggests that Brazilians are the world's best-smelling people. Data from ABIHPEC (Brazilian Association of the Cosmetic, Toiletry and Perfumery Industry) confirms that Brazil remained the world leader in perfume and deodorant sales in 2012. Last year, net ex-factory sales (factory sales net of sales taxes) rose by 15.6% to US$ 17 billion. In terms of consumer prices, the industry hit the mark of US$ 42 billion, up 0.3% against 2011.
Perfume and deodorants respectively generated US$ 2.7 billion (15.9% of total revenues) and US$ 1.6 billion (9.7%). Brazil also recorded high sales of other product categories, in which it ranks second worldwide. These include bath items (US$ 1.7 billion); hair care products (ranking first in the Brazilian market at US$ 3.8 billion revenues); baby and child products (US$ 650 million); men's grooming products (US$ 2 billion); and sun protection products (US$ 550 million).
Overall, Brazil is still the world's third largest market with a 9.6% share, behind the U.S. (15.9%) and Japan (10.9%). The Brazilian market has been growing at a two-digit rate for the last 17 years and is expected to continue growing as quickly until 2017. Companies from the industry invested US$ 6.8 billion – mainly in assets, R&D and brand strengthening – in 2012, up 18% year-over-year.
Perfume sales generated US$ 1.6 billion in 2012, or 9.7% of the market
]]>The launch of the portal has been rescheduled for 2014. The decision was due to the repositioning of the group, which is going to invest more heavily on the NY Times brand. The executives are focusing on this process currently.
The company has put up for sale the products of The New England Media Group (the business unit responsible for The Boston Globe) and has recently announced that The International Herald Tribune will be renamed The International New York Times.
In addition to its institutional operations, the publication is trying to capitalize even more on digital subscriptions. In 2012, circulation generated more revenue than ad sales for first time in the newspaper's history. However, the announcement emphasizes that the group is still "very interested in the Brazilian market."
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João Havelange Olympic Stadium, known as Engenhão, was built at a cost of US$ 190 million for the 2007 Pan American Games, in Rio de Janeiro. However, it was closed by the City of Rio de Janeiro due to structural problems on Tuesday, March 26.
Botafogo soccer club, which won a bid to manage the facilities for 20 years in 2007, will probably incur losses. The team will lose revenues from leasing the facilities to other soccer clubs and event organizers. In addition, it will have to bear the monthly maintenance costs (about US$ 200,000) despite not being able to use the stadium. In turn, stadium sponsors like Brahma will lose exposure.
This incident serves as a warning signal for the new arenas being built for the 2014 World Cup at an astronomical cost. Construction works are behind the schedule set initially by Fifa in some of them.
Stadium sponsors like Brahma will lose exposure Crédito: Celso Pupo/ Folhapress
]]>Of all 3.1 million devices sold last year, 77% ran the Android operating system and almost 50% cost less than US$ 250. The consulting firm's analysts say that the sharp growth in sales was due to products in this price range. Home users accounted for 88% of all tablet sales in 2012 whereas the remaining 12% were sold to the corporate market.
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In contrast to the global market, the Brazilian videogame console market grew by 43% (to about R$ 500 million) in 2012. For example, most European countries recorded a two-digit drop between 2011 and 2012. These are the findings of a survey by the market research company GfK.
The Brazilian software market also stood out. Games generated US$ 315 million in revenue in 2012, up 72% year-over-year. GfK analysts believe that this performance indicates that consumers are increasingly buying authentic products. Game sales in the U.K., for example, totaled about US$ 1.5 billion in 2012, down 27% year-over-year.
Although average console prices are much higher in Brazil than in other countries – US$ 470 vs. US$ 240 in Germany, for example -, game prices are not so much higher. The study shows that games cost US$ 51 on average in Brazil, slightly more than in Germany (US$ 46).
Performance indicates that consumers are increasingly buying authentic products
]]>Censored Tweet, an initiative developed by DM9Rio agency for Amnesty International, has reached 10 million people on Twitter alone. The hashtag was created as part of a broad effort to engage citizens in the defense of human rights. The campaign has reached 115 countries, including China, Pakistan, Saudi Arabia, Indonesia, Egypt and Vietnam, in the 20 days it has been running.
The latest news is that it has been launched in Turkey, on request of the chapter of Amnesty International in that country. The project page is available in six different languages and automatically recognizes the country in which it is being viewed.
On the Censored Tweet page, the users of the social platform tweet black bars of censorship as if their tweets were being banned on their timelines. A link at the end of the message encourages the followers of the profile to click and unravel the action.
They are also invited to join the initiative by creating their own "censored tweets" automatically. The tagline of the campaign is: "In many countries, this is what happens to those who try to express themselves."
The users tweet black bars of censorship as if their tweets were being banned on their timelines
]]>As a result, the average ticket rose from US$ 169 in 1H12 to US$ 173 in 2H12, and stood at US$ 171 at the close of the year. In addition to higher sales for Fathers' Day, Children's Day and Christmas (which accounted for US$ 1.5 billion of total sales), Black Friday sales also increased. Sales of consumer packaged goods came to R$ 122 million.
About 66.7 million orders were placed in the year, up 24.2% from 2011. The number of online shoppers also rose by 10.3 million. As a result, over 42.2 million people in Brazil had shopped online at least once by the close of 2012.
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The 2012/13 UEFA Champions League, Europe's premier soccer club tournament, is nearing its end. Heineken, which sponsors it, is going to bring some of the excitement of the competition to Brazil.
The beer brand is going to present the Trophy Tour, an annual event in which the tournament's trophy is exhibited in three countries, in March. This year, the tour is starting in Brazil. The initiative is part of a US$ 10 million investment plan to promote the UEFA Champions League in Brazil this year.
The Trophy Tour Exhibition will take place at Espaço Lagoon, in the Lagoa District, in Rio de Janeiro, on March 23 and 24. There will also be an interactive exhibition with curious facts about the Champions League stars and the tournament's history.
Clarence Seedorf, a Champions League winner with Ajax, Real Madrid and Milan, will be Heineken's ambassador at the Tour whereas former Brazilian National Team star Bebeto will be UEFA's representative. The organizers are expecting a total of 5,400 visitors.
After Brazil, the Trophy Tour will continue to visit Africa (Kinshasa, in the Democratic Republic of the Congo) and Asia (Jakarta, in Indonesia). The trophy will then go to Wembley Stadium.
The Trophy Tour is part of a US$ 10 million investment plan to promote the UEFA Champions League in Brazil this year
]]>Serasa Experian has released digital marketing tool Hitwise data indicating that Yahoo is the search engine with the highest success rate in Brazil. The survey was conducted between February and March and took into account the number of users who effectively clicked on a link on the search results page, thus leading to an actual visit to a website.
Yahoo Brasil had an 82.14% success rate, followed by Bing Brasil (81.64%), Ask (77.18%) and Ask Brasil (77.01%). Surprisingly, Google.com ranks only fifth, at 72.97%.
However, it is the most used search engine in the Brazilian market, having accounted for 75.22% of all web searches in the period.
All its competitors have very small market shares in comparison to Google Brasil. Microsoft's Bing ranks second (8.74%), followed by Ask Brasil (6.93%) and Google.com (5.78%).
Yahoo Brasil had an 82.14% success rate, but Google accounted for 75.22% of all web searches in the period
]]>Apple may be close to an out-of-court settlement with IGB Eletrônica (previously Gradiente) concerning the rights to use the iPhone brand in Brazil. The companies have declared a truce in their legal dispute and are now moving toward a peaceful negotiation.
The settlement has not been confirmed, but the main evidence of negotiations is a document requesting that the legal action be suspended for 30 days. It was filed by the lawyers involved in the litigation with the Rio de Janeiro State Judiciary in late February.
Apple has resorted to this alternative in other countries, such as Mexico and the United States, also regarding the iPhone, and China, regarding the iPad. Gradiente applied for registration of the trademark in 2000. INPI (Instituto Nacional da Propriedade Industrial, or National Industrial Property Institute) granted the application in 2008.
However, the company launched its iPhone only in December 2012, just one month before the deadline set by INPI to use the brand. In turn, Apple submitted its application in 2006, but it was rejected by INPI, which explained that Gradiente had already applied for registration.
The Neo One is the first model of Gradiente's iPhone family, launched in December 2012
]]>"These are our best sales figures ever," revealed Valcke, referring to the presale figures, the highest in the history of the tournament. There are still 300,000 tickets available for sale.
Even though Fifa allows selling alcoholic beverages at stadiums during events like the Confederations Cup – which is going to take place between June 15 and 30 – and the World Cup, it has become stricter about smoking. However, it is a partial ban since there will be smoking areas during the games. The idea is to prevent second-hand smoking.
In turn, the sale of cigarettes or other tobacco products, as well as well as tobacco-industry advertising, promotion or even sponsorship displays, will be strictly forbidden in the vicinity of stadiums.
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The BIE (Bureau International des Expositions) will vote on the winning host city in Paris in November. Other candidate cities are Yekaterinburg (Russia), Ayutthaya (Thailand), Izmir (Turkey) and Dubai (Arab Emirates). With the theme "Power of Diversity, Harmony for Growth," Expo 2020 is intended to encourage the development of innovation projects, new social and economic policies, programs to fight climate change, environmental policies, new electric power production and distribution systems and infrastructure solutions.
If São Paulo wins the bid, the organizers of its candidacy expect the exhibition to draw 30 million visitors between May 15 and November 15, 2020. Expo 2010, in Shanghai, had 73 million visitors. The next edition of the event will be in Milan in 2015.
The São Paulo project includes building new facilities in the northwestern part of the city (Pirituba district), with an area of 53.8 million sq. feet – four times larger than Anhembi, the largest exhibition center in São Paulo at present. The Pirituba Convention and Exhibition Centre will have a conference center, an exhibition area, a shopping mall, hotels, facilities and services.
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According to projections, women will mainly buy mobile phones and TVs – 6.5 million and 6.0 million respectively.
The main reason for this change is the increasing presence of women in the labor market, indicated by the 162% rise in the number of women with payroll jobs. The study also shows that the presence of women has grown by 36%, with 11 million women having entered the formal labor market in the last two decades.
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About 20% of the households receiving pay TV in Latin America have access to pay channels illegally. In Brazil, the estimated figure is nearly 10% and may rise even more in coming months. Companies from the industry have decided to join forces to solve this problem by putting into place a "war plan" to fight piracy.
To this end, they launched the Alliance against Pay-TV Piracy, which brings together companies from the whole region, such as Sky, Globosat, HBO, Televisa, Fox International, Discovery, Disney & ESPN among others, during the NATPE (National Association of Television Program Executives) Conference, in Miami this week.
ABTA (Brazilian Pay TV Association) is one of the organizations involved in the project. Its mission is to create a single action plan to try to curb illegal use and raise awareness of the risks of piracy.
The industry's main problem, which used to be illegal connections, is digital converters at present. These devices have software connected to original converters and are able to receive the signal of the whole package of a given operator and give access to all the channels on the TV to which they are connected.
The industry's main problem, which used to be illegal connections, is digital converters at present
]]>The creative concept behind the poster created by Brazilian agency Crama is "An entire country at football's service – Brazil and football: one shared identity." The artwork depicts Brazil's beauty and diversity with a colorful design that outlines the map of Brazil.
The winning entry was selected by a judging panel made up of the Fifa Secretary General Jérôme Valcke, Brazilian Minister of Culture Marta Suplicy, LOC (Local Organizing Committee) President José Maria Marin, Brazilian artist Romero Britto, as well as the LOC Board of Administration members Ronaldo and Bebeto.
The creative concept behind the poster created by Brazilian agency Crama is "An entire country at football's service – Brazil and football: one shared identity"
]]>Grupo Consultores conducts the agencyScope study in nine countries, and Brazil is that in which agency-client relationships last the longest. The average relationship length increased from 4.6 years in 2006 – when the company conducted its first survey in the country – to 6.6 years in 2012.
As a result, Brazil climbed to the top of the global ranking compiled by the company, ahead of the U.K. (6.1 years), Chile (5.2), Argentina (4.5), Spain (4.5) and China (3.5), countries in which the same study was carried out last year.
Brazil also recorded a longer average relationship length than three other countries in which the survey was conducted in previous years: Portugal, at an average 5.5 years, in 2011; Mexico, at 4.9 years in 2010; and India, at 3.6 years in 2009.
"Since there are no media agencies in Brazil, agency-client relationships last longer than the global average. In other countries, we've found that relationships with media agencies last longer than those with creative agencies," explains César Vacchiano, global CEO at Grupo Consultores.
"Since there are no media agencies in Brazil, agency-client relationships last longer than the global average" says Grupo Consultores' global CEO César Vacchiano
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