Brazil's Business Environment: Consumption in Economic Slowdown

250_brazilBusiness-v1.0On the surface, Brazil looks like an attractive market. It is the seventh largest global economy and has a population of 200 million, with high consumer expenditure and high demand for commodities.
But Brazilians are spending less, industrial confidence is deteriorating, and inflation is rising, meaning a future of slow growth and economic recovery.

Consumer goods companies operating in Brazil need to adapt their strategy to integrate the global market place. What are the reasons behind this slowdown and how can organisations work it to their advantage? 

Download our white paper today to learn:

› How Brazil’s rapid currency depreciation has affected its economy and consumers 

› Which consumer industries are slowing down and which have new opportunities

› Why the middle class is changing Brazil’s economic landscape

Download-Now

May 28, 2015

The State of the Travel Industry in 2015

According to new travel research released this week by Euromonitor International, global arrivals are forecast to grow by 4% in 2015, after a slowdown in 2014. In this presentation, Euromonitor International’s analysts highlight the key trends driving growth in the travel industry, as well as disruptive factors influencing travel brands’ future strategies.

Key Trends Emerge in New Travel Research

Euromonitor's Travel research team identifies key trends in their research sectors, including lodging, airlines and online travel. Watch the video for complete insights.

The Old Spice Factor

Fernando-CruzAnalyst Insight by Fernando Cruz - Research Analyst

In an effort to further boost its growth in men’s grooming, Procter & Gamble is looking to capitalise on opportunities in Latin America through its brand Old Spice. However, the image the brand is creating appears to be out of sync with current trends in how men perceive grooming in the region. Men’s shaving is only expected to record annual growth of 2% over the next five years, while men’s skin care is set to increase by a 5% annual rate in the same period. For example, the image from an Old Spice commercial shows a strong guy, with more muscle than most men, screaming to the screen. He punches other men, bombs explode. And above all, he yells. It is apparent he is rejecting bad smells, but he declares something more important than that: You only need the product he is holding with his right hand to smell good.

However, the issue is that the consumer trend is evolving away from such an image of macho men, and men in the region are increasingly seen to purchase a wider array of grooming products - a phenomenon that could be described as a growing feminisation of the Latin American man. So by portraying such an image, is Old Spice trying to achieve something different to distinguish itself from its competitors and will it work for the brand?

Continue reading "The Old Spice Factor" »

May 27, 2015

The Growth of Affordable Small Appliances in Emerging Markets

Affordable small appliances enjoyed growth from 2009-2014, mainly due to increased disposable incomes as well as increased appearance awareness. Unlike developed markets like in the US, France, Germany and Japan where luxury convenience products have posted high growth, price sensitivity remains a key factor in emerging markets.

Thidathip TawichaiVideo Features Thidathip Tawichai - Consumer Appliances Research Analyst

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Euromonitor to Speak at FederSalus 2015

FederSalus

Euromonitor is pleased to speak at FederSalus and Parco Tecnologico Padano International Workshop: Global trends, Regulation and Innovation in Food Supplement Products

Date: Friday, 29  May 2015

Location: Lodi, Italy

Event Description: FederSalus – Italian Association of Health Products Manufacturers and Distributors and Parco Tecnologico Padano organize the International Workshop: Global trends, Regulation and Innovation in Food Supplement Products

Continue reading "Euromonitor to Speak at FederSalus 2015" »

Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing

Bernadette-KissaneAnalyst Insight by Bernadette Kissane - Apparel and Footwear Associate

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For many fashion brands, South Africa has been the stepping stone into the sub-Saharan region due to the attractive economic growth and affluent market. But has the time now come to start expanding north? According to Euromonitor International, sales through apparel and footwear specialists in Nigeria and Kenya are expected to grow by 93% and 57% in constant 2014 value terms, respectively, from 2014 to 2019, highlighting growth opportunities outside the wealth-hub of the region. This is the first of a 2-part series of articles that sets out to examine growth drivers in the region, as well as the competitive landscape in store-based retailing; the second article will review dynamic growth in e-commerce.

Continue reading "Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing" »

May 26, 2015

New Travel Research: Key Findings

Caroline BremnerAnalyst Insight by Caroline Bremner - Head of Travel Research

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Euromonitor International is pleased to announce that our new Travel research will be published this week. The new research provides the latest insights into how the travel industry performed over 2014 and future expectations to 2019.

In this article we provide a sneak preview of trends and expectations. Check back throughout the week for more travel market research and subscribe to our email bulletins for more travel information.

Tourism flows hampered by geopolitics

Growth in the travel industry was tempered in 2014 by ongoing geopolitical tensions as regional conflicts took their toll on tourism demand. Russian outbound demand declined sharply in 2014 by over 15%. This downward trend is expected to continue in 2015 as the Russian economy contracted in the first quarter of the year and consumer confidence fell to its lowest level in six years as a result of the conflict in Ukraine and ensuing international sanctions, compounded by falling oil revenues. Falling outbound Russian demand had a knock-on effect on destinations far and wide, including Turkey, Greece, Switzerland and Thailand.

Continue reading "New Travel Research: Key Findings" »

May 25, 2015

Mondelez Aims to Breathe Life into Gum Sales with Launch of Trident in China

Jack SkellyAnalyst Insight by Jack Skelly - Food Analyst

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Despite an apparent slowdown in the Chinese market, it still appears to be the Holy Grail of sales growth for nearly every company in the confectionery world, with the notable exception of Lindt. Indeed, Mondelez is continuing its relentless effort to expand into Asia Pacific, where it acquired Vietnamese biscuit manufacturer Kinh Do in 2014. It has announced plans to adopt this acquisition strategy in several other countries in the region and, in May 2015, announced plans to launch its global gum brand Trident into China, despite already achieving some success in the country with its Stride range. The reasons for the move appear to be rooted in the gum world’s sclerotic growth.

Gum falling out of fashion in developed markets

On the surface, Mondelez’s gum sales appear solid; globally, the company added US$1 billion in sales between 2009 and 2014, equating to a 3% CAGR. However, this hides the fact that sales underperformed in North America and Western Europe, with the company’s combined sales declining by US$330 million. While gum sales have declined in both markets, Mondelez’s poor performance accounts for over 40% of the US$800 million combined sales decline of these gum markets. The decline is due to gum becoming socially stigmatised - it is viewed as being both anti-social and a public nuisance in that it contributes to littering.

Continue reading "Mondelez Aims to Breathe Life into Gum Sales with Launch of Trident in China" »

Fibre vs Protein: Which Will Be the Winner?

Simone_BarokeAnalyst Insight by Simone Baroke - Consulting Analyst

Protein, protein everywhere. High protein is usurping high fibre, which makes little sense, at least from a public health point of view. Consumer perception that a high-protein intake is healthy and essential for achieving and maintaining an optimum body weight has been drowning out the message that fibre-rich whole grains have much to offer on multiple health fronts, including weight management. The immediate future belongs to protein-fibre combination products, but in the long term, fibre is destined to regain the upper hand. 

Protein pushes grains off the plate

Right now, it seems, all that consumers want is protein, while carbohydrate-rich grains, whole or otherwise, are low down on the list, for the simple reasons that cereals are low in protein, while animal-derived products, such as dairy, eggs, meat and fish, by contrast, offer plenty of this fashionable nutrient. Grain-based foods have just as many calories as protein foods, and in a tussle for plate space, it is grains that are losing out in the current climate. The unfortunate fact that animal-derived foods are devoid of fibre does not seem to concern consumers all that much at the moment. 

Continue reading "Fibre vs Protein: Which Will Be the Winner?" »

BRIC Consumers in 10 Charts

Sarah-B-Banner

View Sarah Boumphrey's profile on LinkedIn

In 2015 BRIC consumers will be responsible for almost one-in-five US$ spent globally. But where do their differences and similarities lie?

In 2014, the average Brazilian consumer spent seven times more than the average Indian consumer:

1. Per Capita Consumer Expenditure in BRIC: 2014

Consumer Expenditure 2014

Source: Euromonitor International from national statistics/Eurostat/UN/OECD

Continue reading "BRIC Consumers in 10 Charts" »

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Recent Posts

The State of the Travel Industry in 2015

Key Trends Emerge in New Travel Research

The Old Spice Factor

The Growth of Affordable Small Appliances in Emerging Markets

Euromonitor to Speak at FederSalus 2015

Looking Beyond the Obvious in Sub-Saharan Africa, Part 1: Venturing North in Store-Based Fashion Retailing

New Travel Research: Key Findings

Mondelez Aims to Breathe Life into Gum Sales with Launch of Trident in China

Fibre vs Protein: Which Will Be the Winner?

BRIC Consumers in 10 Charts