Apparel and Footwear Retailing in Brazil: Trends and Prospects

Aspirational middle class with high levels of discretionary spending

With non-grocery retail in Brazil taking a higher proportion of total retail spend than the global average, the Brazilian proclivity for discretionary purchases is benefiting the apparel and footwear market.

Second- and third-tier cities grow in importance

As the retail environment in first-tier cities matures, retail development is moving to less-saturated second- and third-tier markets, where rising incomes are fuelling demand.

An uncertain future for credit-fuelled consumption

Accessibility to credit has been a major driver of expenditure growth in Brazil. However, with consumer sentiment shifting in favour of reducing debt, spending levels could be hit in the short to medium term.

Domestic apparel and footwear retailers are the biggest winners

While the Brazilian apparel and footwear specialist retailers market is highly fragmented, domestic players have seen the strongest growth in share. Their strength in lower-tier cities also holds them in good stead for future growth.

International fashion brands challenged by the “Brazil cost”

International brands are yet to crack the Brazilian market, despite its allure. High costs of operation and polar opposite seasonality to the northern hemisphere remain the primary challenges.

Aspiration factor ranks highly in womenswear

Within womenswear, affordable brands with an aspirational image have been the best performers, with celebrity endorsements and designer collaborations being popular marketing strategies.

Menswear is an untapped opportunity

The spending power of Brazilian men is growing rapidly, and remains double that of women. Growing awareness over personal grooming and appearance also heralds a bright future for menswear.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment