Entrepreneuring to Meet US$ 601,09 Billions Consumer Demand Of The New Brazilian Middle Class

According to Data Popular surveys, seven out of 10 companies that work in the low-income market admit some type of prejudice or internal resistance at their organizations when it comes to serving low-income consumers.


There are increasingly more new business opportunities right in front of you, as long as you are able to communicate with even a minimum fraction of the 91.8 million Brazilians, the low-income consumers from the new middle class, who spent US$ 601,09 billions in 2011, according to the Brazilian Federal Government’s Strategic Affairs Department.

It is more than the sum of the annual Gross Domestic Product (GDP) for Argentina, Paraguay, Portugal and Uruguay. Despite this tsunami of consumption, this new middle class paid US$ 53 billions in implicit interest in 2011 without realizing it.

These new consumers, who are right within the reach of new entrepreneurs, are prepared to try out new commercial relationships that replace the deeply-rooted habit large corporations have of forcibly shoving merchandise and implicit interest at them.

Organizations that maintain the standards of their advertising and marketing campaigns, without making adjustments based on the consumer expectations of the new middle class, which extend far beyond “Food.” As musician Arnaldo Antunes from the rock group Titãs puts it, “We don’t just want food.”
Today, with their wallets increasingly fuller with stable Brazilian reais, these new customers are increasingly more aware of their purchasing power and sing in unison: “We don’t just want money; we want it all and not just half.”
With the sudden arrival of more than 38 million new consumers over the past decade, who bring with them their families, regionalisms, cultures and religious beliefs, it is the season for new opportunities for the more perseverant entrepreneurs.

The new entrepreneurs must simply be willing to identify and respect the cultural, religious and regional expectations of this new class and primarily the will to reaffirm their position as citizens and consumers in full and not just half-way

Entrepreneuring to serve this public would increase the chances of winning new business, primarily in terms of the enormous difficulties that traditional corporations are facing to cope with this immense group of customers, which constitute nearly half of Brazil’s population.

Differently than the large organizations, the new entrepreneurs can easily access and consolidate their market niches when they avoid repeating the obsolete communication clichés adopted unilaterally by the major companies operating in the market, with a decaying language directed only at elite consumers over the past 50 years.

According to Renato Meirelles, partner and director of Data Popular, “the main difficulties for reaching the ascending market include the lack of knowledge and ineffective communication.” And in a recently published interview, Meirelles concluded: “The corporate world does not speak the same language as the low-income consumer.”

In addition to the fact that the large economic groups have a hard time communicating with new consumers, to top it all off (or precisely because of this), they admit to being prejudiced when it comes their relations with the base of the pyramid.

According to Data Popular surveys, seven out of 10 companies that work in the low-income market admit some type of prejudice or internal resistance at their organizations when it comes to serving low-income consumers. Only 20% of professionals consider that they are, in fact, prepared to do business with this public.

For this reason, many traditional companies that improvise their campaigns focused on the new middle class prefer to invest in low price or in small packaging or low product quality. Or everything together in “poor people packaging.” They forget that the new middle class now chants: “We want it all and not just half.”

Brands abandoned by low-income consumer -- To reinforce the opportunities out there for new entrepreneurs together with low-income consumers, the survey “Low-Income Consumers and Brands” confirms that the new middle class has abandoned the major brands.

The analysis involved ample field work, with 3,003 interviews and 20 ethnographic experiences. The information and opportunities for new entrepreneurs are visible from the very first conclusions of the survey, which focused on four specific markets: Beer, Fast Food, Financial and Telecom. And it analyzes the consumers’ relationship with the product, distribution, price, assistance, communication and brand.

To view the details of the survey, click here http://www.brandinsights.com.br/pagina/29
and discover that “of the 64 brands surveyed, only 3% establish a lasting and sustainable relationship with low-income consumers. In other words, more than 96% are still seeking alternatives for winning the trust of this new consumer.”

Company Contact Information
Agência Consumidor Popular
Marco Roza
Rua Guimarães Passos, 82
04107-030
551132995999

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Original Source: Entrepreneuring to Meet US$ 601,09 Billions Consumer Demand Of The New Brazilian Middle Class