Sunglasses in Brazil

2021 DEVELOPMENTS

Reduced flows of touristic activity continue to negatively impact sunglasses in 2021

In the context of the pandemic, sunglasses continues to be one of the most impacted eyewear categories. The same trends that moderated demand in 2020, including the lack of touristic activities, less out-of-home occasions, and the financial difficulties of a large portion of the population, are slowing the start of recovery in 2021.

Despite having a relatively limited presence, locally produced sunglasses are benefitting from competitive advantages

Even though most companies’ strategies rely on imported items, the few players working with local production are seeing the benefits of importing large scale supplies for local production. For example, some of these players managed to get through the most severe months of the lockdowns without pausing their production and, consequently, reducing the inflationary pressure on their products.

Illegal trade, which has been worsened by the pandemic, continues to pose the biggest threat to sunglasses

Sunglasses in Brazil have been historically faced with the challenge of competing with illegal trade as counterfeit products are distributed across the whole country. Furthermore, these products eventually go through a process of conversion in which they “become legal” and can eventually be found and sold in legal stores.

PROSPECTS AND OPPORTUNITIES

In the forecast period major players will have potential for growth with the expansion in points of sales and a focus on fashionable appeals

Brazilians are traditionally very attached to brands and fashionable items that count on differentiations, such as licensing, or other popular appeals that tend to be welcomed by a large portion of middle-class consumers. Some players’ strategies are focused on making connections with music festivals, DJs and popular celebrities.

Players shifting to spectacles for correction could shade the evolution of sunglasses

Some of the major players in sunglasses have started to play in the segment of spectacles during the last years, seeing stronger drivers of demand in products for correction. For instance, Chilli Beans and Hot Buttered are increasing their investments in spectacles, marking a shift in their core business.

Despite the challenging import environment, licensing and portfolio extensions will be on the rise

The recent oscillations brought upon by the pandemic made Brazil’s currency among the most devaluated globally. The uncertainties regarding Brazil’s economic environment will make imports a risky investment in the long term.