Brazilians spend more than 25% of their income on housing, including water, electricity, gas, taxes and rent. Own car costs consume 11.5% of family income, ahead of supermarkets (10.5%), medicine and health (6.6%) and food outside the home (4.6%). Education, clothing and footwear together make up 3.4% of the budget.
The data is contained in the IPC Maps 2022 study, which predicts less than 1% growth in national consumption this year, an index below expectations. In the ranking of the 50 largest Brazilian municipalities – which together generate R$ 2.2 trillion or 39.5% of what is consumed in the country – Curitiba remains in sixth place, behind São Paulo, Rio de Janeiro, Brasília, Belo Horizonte and Savior.
PhD student in business administration and marketing expert, Sérgio Czajkowski Júnior explains shy projections and consumer behavior. “We are now experiencing the development of the pandemic, which has created bottlenecks in the Brazilian production process, created problems with the replacement of supplies for many companies and raised prices for the end consumer. “All this connected with the global crisis process, the fluctuation of the dollar and the euro, inflation and unemployment led to changes in consumption,” he analysed.
According to professors at UniCuritiba – an institution that is part of Ânima Educação, one of the largest higher education organizations in the country – the fact that Brazilians spend little on education is the result, among other factors, of a lack of subjects that teach, even in high school, the importance of strategic planning .
“Many companies and professions do not require a degree and people end up choosing alternative and free forms of knowledge, to the detriment of undergraduate or graduate studies. This significantly reduces family investment in education,” explains Sérgio, who is also a consultant in the fields of marketing, sales and strategic planning.
Curitiba, one of the luxury capitals
Curitiba stands out for its consumption. According to Sérgio Czajkowski Júnior, the city is considered one of Brazil’s luxury capitals and has a concentration of high value-added consumers. “Due to the crisis we have been experiencing since 2019, the southern region has suffered a reduction in consumption, but Curitiba, in isolation, has been an exception to the rule and has maintained good rates.”
A member of the study group created three years ago at UniCuritiba for the analysis of retail sales, the professor highlights significant changes in the last few years, such as the more intensive integration between online and offline markets, through multi-channel policies and the rematerialization of links in the production chain.
Some retail groups invest, for example, in physical sales points without stock, just to “taste” the products. In this model, the customer can get to know and try the goods, but make the purchase online and receive the order at home.
“This strategy satisfies people who are looking for goods based on subjective, sentimental, emotional values and who still want to have contact with the product before simply buying online. Thus, the store is no longer a space for commercialization and becomes an environment for experimentation,” explains the expert.
For a certain profile of consumers, the convenience of e-commerce does not completely replace the experience and therefore the physical showroom emerges as a strategy to reconcile the online and offline markets. This trend will be dealt with, among other things, by the discipline Experiences of consumption, which will be taught by Professor Sérgio this semester at UniCuritiba.
Products for a new audience
The change in Brazilian behavior is not limited to non-durable goods. The real estate market, for example, is undergoing important transformations. Sérgio Czajkowski Júnior says that families are looking for more functional, compact housing that is adapted to their needs.
“Until three years ago, there was a great demand for student life. Today there is a great demand for senior living. These properties aimed at those who live alone, especially the elderly, offer a range of adaptations and functionalities for this audience. And precisely in this way, following new patterns of behavior and income, the market is shaped and changed”, concludes the professor.