A survey by Euromonitor indicates a substantial growth of the middle class in Latin countries. Data collected last year in 13 Latin American countries and now consolidated show the existence of 36.4 million “heads of families” with incomes of up to $ 5000, and 64.1 million of other citizens whose financial transactions are under $ 10000. In 2013, 10% of this lower income group had, together, a buying power around $ 77 billion. And there’s more. Of the 87 million Latins with incomes between $ 10, 000 and $ 45, 000, 60% is in Brazil and Mexico. This huge mass of middle-class consumers have enhanced the expenditure profile in recent years. The expectation among the luxury segment is that consumers will move from buying entry-level products to consume more sophisticated – and expensive – brands. Recently, Brazil has experienced up close the firepower of the aspiring middle class luxury market. The boom of success of two of these two entry-level brands, Sephora and Forever 21. In both cases, with design products and good cost/benefit ratio, these brands have had crowds packing their stores in São Paulo and Rio de Janeiro on opening dates and continue to expand its local networks.
For Euromonitor’s expert, Sarah Boumphrey, understanding how these people earn and spend their money, as well as buying trends by demographic region is essential for the adoption by brands for a successful strategy market. “These are consumers willing and able to pay for good service, high quality products and with a certain amount of design,” she adds.