THE WORLD LUXURY INDEX™ Brazil TOP 50 MOST SEARCHED FOR LUXURY BRANDS IN BRAZIL
April 2013
In partnership with
A new luxury benchmark is born. Created as a way to provide luxury brands and service providers with a standardized way of measuring brand interest at an international level, Digital Luxury Group, in partnership with Luxury Society, has unveiled: An international ranking and analysis of the most searched-‐‑for brands within the luxury industry.
The World Luxury Index.
Notable past reports include:
© Digital Luxury Group, SA
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The World Luxury Index Brazil. Covering:
300+ brands 6 Key Segments
20 million+ searches*
Cars Fashion Beauty Hospitality Watches Jewelry
Unbiased insights from the top search
engine in Brazil: over 90% market share © Digital Luxury Group, SA
* From January to June 2012
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The Market. The global luxury Brazilian market is estimated at 11,94 billion USD in 2012. 80% of luxury products acquired by Brazilians are purchased abroad. Brand interest for luxury increased by 24% in 2012. MCF Consultoria and GfK Custom Research ; Digital Luxury Group © Digital Luxury Group, SA
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Brazilians, valuable luxury travelers. “The Brazilian has become a constant traveler, being the main customer in several luxury markets worldwide.”
Carlos Ferreirinha, MCF Consultoria
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The Consumer. Brazilians are sophisticated, educated and keen to follow trends, with a desire of immediate consumption of the best.
Night view of Copacabana Beach, Rio de Janeiro ©Catarina Belova
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What are the most searched for luxury brands in Brazil?
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Top 50 Most Searched For Luxury Brands in Brazil. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 © Digital Luxury Group, SA
Audi BMW MAC Cosmetics Mercedes Benz Range Rover Ferrari Porsche Chanel Volvo Armani Lamborghini Omega Hilton Sheraton Rolex Lacoste BugaYi Calvin Klein Dior Tivoli TAG Heuer Ralph Lauren Hermès Renaissance Intercontinental
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
Gucci Louis VuiYon Lancôme Cadillac Regent Cartier Burberry Swarovski Make Up For Ever Jaguar Infiniti Prada Lexus Bulgari Breitling Celine Lotus Pagani Christian Louboutin Kenzo Clinique Dolce & Gabbana McLaren Aston Martin Michael Kors January – June 2012 Source: Digital Luxury Group
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By Luxury Segment. CARS
FASHION
BEAUTY
HOSPITALITY
WATCHES
JEWELRY
#1 #2 #3 © Digital Luxury Group, SA
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Automobiles represent 50% of the Brazilian luxury market.
Hospitality 11%
Watches 7%
Beauty 18%
Fashion 13% Jewelry 2%
© Digital Luxury Group, SA
Cars 49%
January – June 2012 Source: Digital Luxury Group
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Beauty, second largest luxury segment. “Brazilians are truly beauty junkies.” Paula Larroque, Senior VP Latin America, Sephora
Photo Source: Sephora Brazil
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Brazilians’ love for Appearance boosts the Beauty sector.
Consumer interest for Beauty brands grew by 49% in 2012. Per capita spending on beauty and personal care products is around $260, which is similar to the one in the USA¹.
© Digital Luxury Group, SA
(¹) Associated Press, February 2013 12
Brazilian Beauty = Perfume + Make Up. Perfumes and make up are driving the beauty sector, representing over 90% of consumer interest. BREAKDOWN OF BEAUTY SEARCHES BY CATEGORY Skin care 7%
Perfumes 48% Make up 45%
© Digital Luxury Group, SA
January – June 2012 Source: Digital Luxury Group
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Top Beauty Brands by category. PERFUMES
MAKE UP
SKIN CARE
#1 #2 #3 © Digital Luxury Group, SA
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Focus on the Brazilian Beauty leader: MAC. MAC Cosmetics is an undeniable leader in Brazil gathering 66% of make-‐‑up market share. MAC Cosmetics benefits its first mover advantage, with a presence since 2002 and 25 stores in 2012.
In 2009, sales of the lipstick Snob, by MAC, featured in a telenovela, exploded. In 2011, for the first time, Brazil was selected for the international launch of Semi Precious, a make-‐‑up collection. © Digital Luxury Group, SA
MOST SEARCHED FOR MAC PRODUCTS Other 16% Powder 7%
Lipstick 41%
Mascara 10% Blush 11%
January – June 2012 Source: Digital Luxury Group
Base 15%
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Meet the Brazilian Beauty fast-moving challengers. MOVERS: FASTEST MOVING BEAUTY BRANDS
+745 %
+225%
+108%
SHAKERS: BEAUTY BRANDS WITH SLOWEST GROWTH
-32%
© Digital Luxury Group, SA
-46%
-47%
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Consuming Beauty becomes a need. “A make up revolution happened in Brazil in 2012. I believe that soon, make up will become a commodity as common as a toothbrush.” Chloé Renard, Brand Manager, Benefit Cosmetics Brazil
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Brazilians are Fashion addicts.
“Style is to Brazil what precision is to Switzerland.” David Sadigh, Founder and CEO Digital Luxury Group
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Top 10 Most Searched For Fashion brands. #1
#6
#2
#7
#3
#8
#4
#9
#5
# 10
© Digital Luxury Group, SA
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Brazilians love Casual fashion. Apparel is the leading fashion category (43%), led by casual luxury brands Ralph Lauren, Lacoste and Armani. BREAKDOWN OF FASHION SEARCHES BY CATEGORY Sunglasses 5% Shoes 14%
Bags and wallets 38% © Digital Luxury Group, SA
TOP 3 MOST SEARCHED FOR BRANDS FOR APPAREL
#1 Apparel 43%
#2 #3
January – June 2012 Source: Digital Luxury Group
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Lacoste, casual chic. Consumer interest for the Lacoste grew by 78% in 2012. Brazil is Lacoste’s fifth biggest market in brand interest (9%). Strong brand expansion: from 130 points of sale in 2007 to over 750 in 2011, and to 80 unique stores. © Digital Luxury Group, SA
Collaboration with the Campana brothers in 2009
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Lacoste: affordable Polo as a key revenue generator. BREAKDOWN OF LACOSTE SEARCHES BY PRODUCT Handbags 4%
Typical entry point to mid-‐‑range luxury, at around $100, Polos are Lacoste’s key products with 55 % of brand searches. P r o d u c t i o n i n L a t i n A m e r i c a (MERCOSUR) allows for competitive prices within the mid-‐‑range luxury segment. © Digital Luxury Group, SA
Sunglasses 1%
Shoes 28% Polos 55% Apparel 12%
January – June 2012 Source: Digital Luxury Group
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High-end Luxury brands are preferred for handbags. TOP 5 MOST SEARCHED FOR BRANDS FOR HANDBAGS
#1 #2 #3 #4 #5 © Digital Luxury Group, SA
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Discover DLG’s exclusive analysis of 120+ handbag brands in Brazil in the WorldHandbagReport™
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Sunglasses are an entry point to luxury. Sunglasses rank particularly high: they represent over 5% of fashion-‐‑related searches in Brazil. MOST SEARCHED FOR SUNGLASSES BRANDS Armani Prada Gucci Christian Dior Chanel
! © Digital Luxury Group, SA
Contact us for more information about the luxury eyewear market in Brazil brazil@digital-‐‑luxury.com
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Brazil shows a strong interest for Luxury cars. “Brazil is a market with tremendous potential for the future.” Ian Robertson, BMW sales chief
Photo Source: BMW website
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Top 10 Most searched for Automobile brands. #1
#6
#2
#7
#3
#8
#4
#9
#5
# 10
35,400 cars from these World Luxury Index™ Brazil Top 10 brands were sold¹ in 2012. (¹) Fenabrave, Abeiva, Jato Dynamics
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Passion for SUV and sport cars. Out of the top 50 most-‐‑searched car models, 18 are sports cars and 17 are SUVs. BREAKDOWN OF MOST SEARCHED FOR CAR TYPES
TOP 10 MOST SEARCHED FOR CAR MODELS
SUV 24.7%
Sedan 26.2%
Super car 16.8%
1 2 3 4 5 6
Audi Range Rover Mercedes Benz BugaYi Audi Audi
A3 Evoque C Class Veyron A4 R8
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BMW
1 Series
8
Porsche
Cayenne
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Hatchback 20.2% January – June 2012 Source: Digital Luxury Group
© Digital Luxury Group, SA
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Sports car 12.1%
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Lamborghini Aventador Volvo
XC60
Contact us for more information about the luxury car market in Brazil brazil@digital-‐‑luxury.com
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Evoque champions armored cars sales. Range Rover Evoque is a surprise as the 2nd most searched for car model. It was the most armored car in first half of 2012 in Brazil. A 3,343% increase in number of searches for Range Rover in Brazil in 2012. A n a v e r a g e o f 5 0 0 E v o q u e s o l d ¹ e v e r y month in 2012. Evoque represents 10% of the 4,275 cars armored¹ in Brazil in first half of 2012. © Digital Luxury Group, SA
(¹) Abrablin 28
What are the most searched for luxury watches in Brazil?
Photo Source: carrera.calibre11.com
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Sports rule Watch preferences. Most searched for luxury watch collections reveal Brazilians preferences for Men’s, Sports and Chronograph timepieces, a segment dominated by TAG Heuer, Rolex and Omega. TOP 10 MOST SEARCHED WATCH MODELS IN BRAZIL 1
TAG Heuer
Carrera
2
Rolex
Daytona
3
Omega
Seamaster
4
TAG Heuer
Monaco
5
Rolex
Submariner
6
TAG Heuer
Grand Carrera
7
TAG Heuer
Formula 1
8
IWC
Portuguese
9
Rolex
Oyster Perpetual
10
Hublot
Ayrton Senna
© Digital Luxury Group, SA
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Discover DLG’s exclusive analysis of 60+ luxury watch brands in Brazil in the WorldWatchReport™
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About TAG Heuer in Brazil. “Formula 1 actually owns a very important place in the Brazilian culture, something that cannot be found in other markets. In 1988, Ayrton Senna actually became a TAG McLaren Mercedes driver and TAG HEUER ambassador. This historical relationship definitely explains a large part of great interest Brazilian clients have for the brand and its models.” Richard Courbrant, Chief Editor TWG, WorldWatchReport™ Contributor
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Purchases abroad are Brazil’s fiercest competitor. “The “Brazil cost” is a combination of logistic costs, distribution costs, people costs, that are all heavily impacted by domestic taxes – as well as importation taxes. In average, an imported product will be 2.5 more expensive in Brazil than in the US or in France Chloé Renard, Brand Manager, Benefit Cosmetics, Brazil
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Import taxes in Brazil are among the highest. A Porsche Carrera Convertible worth USD $96,200 in the US will be sold USD $355,000 in Brazil.
USD 96,200
© Digital Luxury Group, SA
USD 355,000
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Where do Brazilians spend their money? America is the top destination for Brazilian travelers (71% of travel location searches). They rank first¹ in per capita spending amongst the top 10 groups of foreign visitors to the US. Paris, Lisbon and London are the most searched for European destinations.
TOP 5 AMERICAS DESTINATIONS #1 #2 #3 #4 #5
Miami NYC Cancun Buenos Aires Orlando
© Digital Luxury Group, SA
TOP 5 EUROPEAN DESTINATIONS #1 #2 #3 #4 #5
Paris Lisbon London Milan Madrid
(¹) Euromonitor, March 2012 34
Most searched Hotel Brands by Location. Americas
Miami
Europe
NYC Cancun
Paris
Lisbon
London
#1 #2 #3
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Contact us for more information about the luxury hospitality market in Brazil brazil@digital-‐‑luxury.com
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Brazilians love malls. “Brazil is an indoor commerce country.” Carlos Ferreirinha, President, MCF Consultoria
Village Mall, in Rio de Janeiro
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High-end Luxury malls are a success. Two high-‐‑end luxury malls were successfully launched in 2012: JK Iguatemi in São Paulo and Village Mall in Rio de Janeiro. Nearly half a million searches for those malls were recorded over the year. SEARCH TREND OF LUXURY MALLS OPENINGS IN BRAZIL 70000 60000 50000 40000 30000 Shopping JK Iguatemi 20000 10000
Shopping Village Mall
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Source: Digital Luxury Group
© Digital Luxury Group, SA
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Malls are an entry point to the Brazilian market. High end luxury malls have been the privileged locations for brands to open their very first own stores in Brazil. Some of the brands that opened their first Brazilian stores in malls in 2012:
© Digital Luxury Group, SA
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Interested in More Information? Digital Luxury Group offers the opportunity to subscribe to a business intelligence service, which monitors the changing consumer interest of luxury prospective clientele. Through unique benchmarking metrics, luxury brands receive timely updates on the consumer demand for brands, competitors, product categories as well as various insights on key marketing drivers capturing the aYention of luxury consumers worldwide.
For more information, contact us:
brazil@digital-‐‑luxury.com
ABOUT. The World Luxury Index™ is an international ranking and analysis of the most searched-‐‑for brands and services within the luxury industry. Covering over 400 companies within six key segments (fashion, beauty, jewelry, cars, watches, and hospitality) in ten key luxury markets, the World Luxury Index™ provides insights on the unbiased search inputs coming from global luxury consumers in the world’s top search engines (Google, Bing, Baidu, Yandex). The result is a one-‐‑of-‐‑a-‐‑kind benchmark of the luxury brands capturing the aYention of luxury-‐‑minded consumers around the world. Digital Luxury Group has a history in luxury industry market intelligence. Since 2004, the WorldWatchReport™ has provided the luxury watch industry with unmatched insights and garnered aYention from the world’s leading publications, such as:
© Digital Luxury Group, SA
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ABOUT.
www.digital-luxury.com
www.luxurysociety.com
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With offices in New York, Geneva, Shanghai, and Dubai, Digital Luxury Group (DLG) is the first international company to provide luxury industry market intelligence and use this strategic viewpoint to create and implement digital marketing and communication strategies for luxury brands.
Luxury Society is the world'ʹs most influential online community of top luxury executives. Based in Paris, with members in more than 150 countries, Luxury Society informs and connects CEOs, managers, journalists, consultants, designers and analysts from across the luxury industry.
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