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Home and Garden in Brazil

Brazil home products market: Retailers adopting a wider product mix

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2014-01-22 23:41:02 - Home and Garden in Brazil - a new market research report on

Economic growth lost momentum in 2012 and, 2013 prospects are not optimistic. So far, home and garden sales have sustained growth rates above GDP growth, stimulated by improved income levels among lower income segments combined with easier access to credit. As economic activity cools down, consumers begin to fear for their jobs and higher inflation. However, Brazil´s housing deficit combined with the growing number of new households present a hopeful perspective.

Home and garden specialist retailers increasingly adopt a wider product mix in order to meet consumer needs. Demographic as well as lifestyle characteristics of the emerging middle class have prompted retailers to look for smaller store formats, locations in less affluent neighbourhoods as well as wider product assortments. Changes reflect



retailers´ attempts to reach the growing number of lower income consumers who have been at the core of home and garden sales growth.

Female presence at home improvement stores becomes more prevalent. More women live alone or, are the ones in charge of their families and households, including small repairs around the house. Aware of such changes, manufacturers and retailers alike, attempt to reach the new female segment through educational marketing communications and women-friendly store environments.

If the last decade has been about the expansion of the Brazilian middle class, the coming decade is expected to be about the ramifications of Brazil´s ageing population. For the first time in its history, Brazil will have a larger adult population number than children and youngsters. This means more people in the work force and new households. Additionally, a growing number of pensioners also bodes well, particularly, for garden care sales.

Brazilians enjoy gathering family and friends for ´churrasco´ (barbecues). Charcoal barbecues are the most common and can be found in all sizes and different shapes at Brazilian households. A wide range of portable charcoal barbecues is available; from low unit price items to highly sophisticated ones. Sales opportunities can be contemplated across the whole market spectrum, from low income consumer groups to affluent segments.

A nice ´churrasco´ involves not only a quality barbecue but also, a wide range of accessories and homeware including dinnerware, beverage ware, cutlery and knives

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