Homewares in Brazil

PROSPECTS

Downgrade of materials hinder growth in value

Homewares in Brazil witnessed strong price competition in 2018 in most categories, led by a fragile economic recovery tied to marginal gains in families’ spending power when compared to the previous year. A stable inflationary environment helped to minimise the negative impact on homewares performance, as manufacturers and retailers were not forced to pass along their increases in prices.

Product quality policies expected to impact imports and low-cost brands

A national policy raised by 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, sets adherence standards towards stovetop products. This technical requirement will lead manufacturers to comply with requirements until April 2019 and it is set to deliver higher-quality products to consumers.

Cooking enthusiasts are a big target for increasing margins

The spur of locally produced international cooking television programmes such as Masterchef, accompanied by the effect of social media – especially Instagram – is increasingly expanding the number of consumers more willing to spend time and money on better cooking ingredients and foods and homewares. Manufacturers aware of this rising segment of consumers are starting to focus on more value-added products, from kitchen utensils to cookware, which are the most positively affected.

COMPETITIVE LANDSCAPE

Tramontina maintains its lead despite its positioning

The sizeable leadership of Tramontina continues, driven by its brand reputation for superior quality and reliability; yet technically speaking other manufacturers such as Groupe SEB owning Rochedo and Clock offer comparable or even higher-quality stovetop products. Tramontina’s wide homewares portfolio compared to that of other competitors means that the company can stay in contact more frequently with consumers on everyday kitchen basis.

Brinox boosts sales with popular woks and kitchen utensils

Brinox posted amongst the fastest growth rates in 2018, driven primarily by its rapid movement to widen its portfolio of products that are gaining popularity such as wok models in cookware and its positive performance in kitchen utensils driven by its brand Coza. The manufacturer also formed partnerships with important retailers such as Havan.

Nadir Figueiredo dominates glassware products

Nadir Figueiredo ranked third in homewares overall and first in beverageware and dinnerware in 2018. Its offer in these categories and in ovenware is limited to glass formats.

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