+2%

BRAZIL
THOUGHT LEADERSHIP
TOP 50 MOST VALUABLE LATIN AMERICAN BRANDS 2015
CHALLENGES FOR
BRANDS IN THE
BRAZILIAN MARKET
The BrandZ ranking for the most valuable brands in Brazil
consolidates Skol as a three-time winning brand. Consistent
communication investment by Skol and relationship building
aimed at the brand target’s interests, especially music (music
festivals), are the basis for this success. The ranking also shows
Ambev’s expertise in the proper management of its brand portfolio,
positioning four brands among the ten most valuable in Brazil.
VALKIRIA GARRÉ
Managing Director
Millward Brown, Brazil
Valkiria.Garre@millwardbrown.com
Even in challenging times, the brands in this segment
can still grow in value, and Bradesco and Itaú are
positioned as second and third respectively.
Petrobrás is the brand most significantly affected by
the economic crisis, mainly due to the lack of brand
value. In 2015, it was the brand most impacted by
political issues. In the past the most valuable brand
in Brazil, it has lost 75% of its value, falling back 8
positions in the ranking for 2015. The political issues
and allegations of corruption at the company have also
significantly affected the economy of some Brazilian
regions and cities that were closely linked to the oil
exploration industry.
The slowdown and disruption or freezing
of contracts in the construction
area of major infrastructure projects
have added to the current level of
unemployment.
In a scenario of problems and
challenges, a positive indicator stands
out. Reaping the results of ‘Bolsa
Familia’ — the federal program for
income distribution — the HDI (human
development index) rose one position,
according to UNDP (United Nations
Development Program). It ranks 79th
in the world surpassing the average for
Latin America and the Caribbean.
CONSCIOUS
CONSUMPTION
The government’s social programs
(and specifically the ‘Bolsa Familia’),
combined with easy access to credit and
the economic stability, helped realize
the dreams of many people, giving them
access to aspirational items.
However, the 2015 global economic
crisis coupled with the disruptive
scenario of the local political arena has
created quite a challenging environment
for the economy and for brands.
Affected by the crisis, people had their
earlier dreams shattered. Credit has
become more rare and more expensive,
the level of debt is significant and
the population is under pressure to
practice conscious consumption. This
means buying only what is necessary,
significantly changing purchasing
patterns.
The trading-down process permeates
behaviors in every social class: trading
a trip to Disney for a Brazilian beach;
instead of eating out in restaurants
a shared lunch at family’s or friends’
home; young people crowding the streets
drinking beer kept in coolers; cars
replaced at longer intervals, often for
less aspirational brands or used cars –
there are many more such examples.
This prevailing attitude has also seen the
informal economy grow, with the sale
of homemade products and handmade
items sold by street vendors.
CONCERNS FOR
THE FUTURE
The major change in the economy a
return to very high interest rates and
inflation, which had been under control
for almost two decades.
The economic instability requires
government intervention in the exchange
rate, significantly devaluing the Real
(local currency). This devaluation
positively meets the expectations of the
export market, especially in agricultural
and mineral raw commodities, making
it more competitive. On the other hand,
the devaluation creates challenges in
the investment field especially when it
comes to expanding production capacity.
Brazil still depends on importing
technology and equipment developed
abroad.
With the growth and stability of two
decades slowing down, 2015 is a year of
change. In this landscape, brands may
need to dig deep in order to grow back.
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