Home Economy Price is an impediment for most Brazilians to support small brand

Price is an impediment for most Brazilians to support small brand

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A survey by the consultancy NielsenIQ shows that Brazilians are less likely to support local or small business products if they are more expensive.

In Brazil, 46% of consumers prefer to buy products made locally by small businesses, practically the same percentage as the global average (48%).

Despite the preference reaching almost half of respondents, there is a restriction to this support, which is the issue of prices.

Among Brazilians, 32% believe that small brands are more expensive, but are willing to pay a little more. On average across the countries evaluated, 47% would spend more on these products.

Another issue is the availability of these brands. According to the survey, 58% of respondents in Brazil (57% worldwide) try to support small brands when possible, but say that it is difficult to find them on the shelves.

“In European countries, for example, there is a culture through its own brand, regional, much more consolidated than in Brazil. We are a little behind, yes, but we are not so far away and we are going in the same direction, to make room for these products “, says Domenico Filho, director of NielsenIQ.

According to the Executive, the current scenario of consumption is favorable to local, independent brands, which do not belong to large manufacturers. Either because of the cost/benefit equation, when small producers are able to have more competitive prices, or because of greater confidence in the production processes and in what is delivered to the consumer.

“There is an appreciation of local brands not only to help the small producer, but for safety reasons, a perception that this product reaches the hands through a more reliable process.”

According to the study, 41% of Brazilians believe that small brands are more authentic and trustworthy than large ones. The percentage reaches 51% on the global average.

Domenico Filho says that the pandemic and the return of high levels of inflation are driving a trend that was already seen before. He also highlights that many of these smaller brands have taken advantage of market niches, as in the case of vegan products.

“This movement already existed and was intensified by people’s feeling of security, by greater confidence in the processes of these brands and by inflation. The increase in prices makes consumers want to try more products, seek diversification. loyal, begins to visualize these smaller brands.”

Although the increase in inflation is a global phenomenon, the sharp rise in prices seen after the beginning of the pandemic reached Brazil first, which has one of the highest rates today.

Consumers also suffer from the drop in income, despite the improvement in labor market data.

A Datafolha survey showed that almost 7 out of 10 Brazilians are looking for cheaper branded products, often buying lower quality food, close to expiration or outside traditional standards, to save money on purchases.

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