While trading up in terms of home ownership is common amongst higher-income consumers in Brazil, according to new research from Mintel, it is starting to become a reality for other consumers as well. Mintel’s research released today looking specifically at Brazilian C class consumers reveals that 37% of Brazilian consumers either intend to move or buy a house within the next year – increasing to 42% of those aged between 35 and 44 years. Indeed, it seems home is increasingly becoming a leisure centre for Brazilian middle-class families, especially if they have children. Some 43% of the class C respondents claim that they are planning to spend their money on their home over next year. Furthermore, many appear to be looking for leisure activities that are more affordable and involve all members of the family as 80% of adults in in this group claiming to regularly watch TV and 31% to regularly do DIY around their homes. Sheila Salina, Senior Lifestyles Analyst Brazil at Mintel, said: “The home is a huge priority for Brazilian C Class consumers – and the 37% looking to move or buy property are likely to be trading up to a bigger and better house, with aspirations of nice decoration and furniture in the kitchen, living room and bedroom. As a result, there is strong potential for homewares companies and brands who provide products that encourage people to make their home surroundings more inviting and comfortable for people who spend a lot of free time inside. Items such as plush furniture and premium electronic offerings, for example, all stand to benefit.” In addition, Mintel’s research revealed that financial investment is a key priority for this demographic in the short term. When asked how they would be spending their money in the coming three months 26% of C class consumers said they would like to make a financial investment. Meanwhile, 21% said they are planning to invest in education courses, the same number (21%) on spending money on their own home (21%), 19% that they would be buying or replacing electrical equipment and 19% buying or replacing major households appliances. Highlighting the trend towards prudency in the long term, putting money in a savings account is the most popular type of the investment for the future for Brazilian consumers in this demographic, with 65% of the respondents saying they intend to open a savings account at some point in the next year. “While consumers in group C have enjoyed a lot of spending power of over the past few years as Brazilian companies saw opportunity in this emerging class, a large number of this group are now facing debt and repayments spread over several months as a result of purchases on payment plan. Therefore, consumers from this group have already started to slow down their buying habits and are now focusing on how to better deal with their finances, trying to ensure they pay all their bills. However, after debts are paid, C class consumers are looking to prioritise more indulgent products as the majority already have their essentials. In the long term, they will be looking to products and services that bring them more comfort such as vacations, cosmetics and electronic devices.” The majority (38%) of respondents from this socioeconomic group say that their financial situation is “OK and they get by, but there is not much left after the basics are taken care of”. However, when examining the highest percentages of the social groups in “tight” or “struggling” financial situations, it is adults from socioeconomic group C with a “family” profile (35-54 years old), that are the ones that make up the majority – with 17% of those between 35-44 years old saying that they’re in danger of falling behind with bills or loan repayment. Adults aged 16-34 from socioeconomic group C are the most likely to indicate their financial situation is healthy or OK (27%). But seems the priority for young adults to invest in is education – even at the expense of discretionary lifestyle items. Indeed, over a third (36%) of those aged between 16 and 24 years old claim that they want to invest their money in an educational course, compared to just 25% of those in the same group who say they intend either to buy or replace their smartphone. “Younger C class consumers want to buy a smartphone, clothes and go to parties in the same way that those from the A and B social groups do. However, their financial situation is more complicated as they are not helped by their parents and often have to help their families to pay home bills. They are aware that with their current jobs it is not possible to buy ‘whatever they want’ but that it is possible to make more money and buy indulgences through professional development. As a result, demand for education and professional courses has seen rapid growth within this demographic.” Sheila concludes. You might also be interested in: No related posts.