Homewares in Brazil

PROSPECTS

Price-sensitive consumers still choose design over quality to cheaply update kitchens with accessible homewares

The review period witnessed a downgrading by manufacturers within cookware by using a higher proportion of lower-cost raw materials such as aluminium in order to remain competitive and attract price-sensitive consumers following the recession. This behaviour was mainly notable within stove top cookware, comprising products with an economy to mid-priced positioning which led to the emergence of low-end brands such as Panelux from Alcast do Brasil, which continued to record a strong performance in 2019 as its average prices are up to 80% lower compared to leading brands such as Tramontina, negatively impacting the latter.

Influenced by home-cooking trend and popular celebrity chefs, affluent Brazilians look to invest in premium quality stove top cookware

Mid- to upper-income consumers spanning millennials to older generations have become increasingly interested in the emergence of locally-produced international cooking television programmes such as MasterChef. These programmes are inspiring them to create their own dishes using high-quality ingredients and premium cookware and kitchen utensils.

Design could increasingly become differentiating factor following implementation of quality standards

Legislation for quality control in Brazil has lagged behind other countries in what is deemed acceptable amongst large producers of cookware. The National Institute of Metrology, Quality and Technology (Inmetro), which is the institutional body responsible for overseeing and certifying the quality of goods and services, has therefore raised a national policy whereby all manufacturers had to comply with technical requirements by April 2019 covering stricter control of Teflon quality as one example.

COMPETITIVE LANDSCAPE

Leading player Tramontina aims to recover lost ground over forecast period with new cast iron cookware range

Tramontina SA retained its leadership of homewares in 2019 offering a wide product portfolio which covers dining and kitchen, and more specifically stove top cookware. However, following a fluctuating performance over the review period, the player lost notable value share in 2019 as it was challenged by more dynamic players including Brinox Metalúrgica Ltda, and an increasing number of smaller players under “others”, in addition to larger chained retailers such as GPA Malls with its Finlandek private label line.

Brinox continues to make impressive gains with expanding product portfolio

Brazilian player Brinox Metalúrgica Ltda recorded another year of impressive current value growth and share gain in 2019, placing further pressure on Tramontina. The company’s success has been mainly driven by the rapid expansion of its product portfolio under the brands Brinox and Coza, where in addition to cookware including popular wok models, it has gained ground within food storage, kitchen utensils, dinnerware, and cutlery.

E-commerce attracts young homeowners searching for contemporary and affordable homewares

E-commerce continued to gain share in the distribution of homewares in Brazil in 2019, recording another year of double-digit current value growth. Food storage and kitchen utensils are particularly popular homewares products that are purchased through websites such as Amazon and Camicado.

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