February 13th, 2010 - one response
The financial Times reports on Avon (the US direct sales cosmetic giant) sales in Brazil taking over sales in the US since the third quarter of 2009. Natura, the local Brasilian market leader is even bigger though with US$ 2,1 billion sales compared to US$ 1,67 billion sales for Avon Brasil.
Sales of Avon grew at a 27% rate last year. Last year the company opened a massive new distribution center in Cabreuva, an hour north of Sao Paulo.
The Financial times reports on the rising new consumers in Brazilian favelas. More than 20 million Brazilians have emerged from poverty over the past six years. Since last year, for the first time ever, more than half of Brazil’s 200 million people can be classified as middle income (earning an income between 1800 € and 450 €).
Tags: brazil avon, brazilian middle class
February 8th, 2010 - one response
Globo reported yesterday on the record growth of income of the Brazilian Classe C. Classe C are people who earn monthly between R$ 1.115 and R$ 4.807 (between 432 and 1.862 €) and counts more than 91 million Brazilians today ! This group now earns 46% of the total Brazilian yearly income. This used to be 37% in 2003 !
In 2009 the two upper classes (A and B) earned 44% of the total income.
When investing in real estate the most important rule is: go where the middle class is.
In Europe the middle class is under heavy gunfire and in countries like South Africa the middle class is close to be extinguished.
Brazil on the other hand has a fast growing middle class of 91 million people earningbetween 432 and 1.862 €.
Just look at the Gini coefficient figures: the lower the figure, the more even is the income distributed
South Africa worsened from 59,3 in 1994 to 65 in 2005 and 67,9 in 2008. Soon the country will reach a staggering Gini index of 70 !
Brazil improved form 60,7 in 1994 to 56,7 in 2005 and is now going direction 50.
Read the full Globo article here.
Foreign policy also devoted an excellent article on the growing Brazilian middle class, read it here.
Tags: brazilian middle class, classe c
July 5th, 2009 - one response
The Brazilian middle class keeps growing
Globo reports on the contuing strong growth of the Brazilian middle class.
In between 2006 and 2007, the Class C population grew very strong (10% growth). In 2008 it remained more or less stable on 45% of the population.
Today the absolute numbers are:
> The richest classes A and B grew from 28,08 million to 29,4 million people in 2008.
> Class C now has 84,6 million people
> The poorest classes D and E went slightly up from 72,9 to 75,8 million people
In 2008, the family income of all Brazilian people went up 11%.
> The people in the richest class A and B saw there income go up with 16,5%; the average income per person of the two classes went up from R$ 2.217 to R$ 2.588.
> The income of the people of class C went up 13%, the average grew from R$ 1.062 to R$ 1.201
> The income of the people of class D and E grew the least (12%) and went up from R$ 580 to R$ 650.
The Economist is digging up again the concept of decoupling and calls it “decoupling 2.0″; read more here.
Tags: brazilian income, brazilian middle class, decoupling 2.0, middle class
