Download - The Product Mindset Brazilian Market
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CONSUMERS
MANUFACTURERS
MANUFACTURERS
THE PRODUCT MINDSET 2013 BRAZIL REPORT
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The Product Mindset is an annual study created to better understand manufacturer and consumer concerns and priorities about the products they make, sell, buy and use. Now in its third year, the study is broader in scope and more nuanced in its findings. With Brazil added in 2013, this years study covers four continents and defines the collective mindset based on data from five of the worlds top 10 largest economies. The 2013 study has also been expanded to further explore emerging issues related to the supply chain and human health, both of which yield interesting findings relative to Brazil. We hope you find this report informative and thought provoking.
UL is a premier global independent safety science company with more than 118 years of history. Building on our product safety heritage, we created The Product Mindset to help businesses better understand the growing concerns and priorities of your diverse constituents and peers. The studys insights can provide a platform for you to consider how you think, plan and deliver in todays complex product ecosystem.
THE PRODUCT MINDSET 2013
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THE BRAZIL REPORT
This report focuses specifically on the context, findings and rankings that define the mindset in Brazil, highlighting the areas where Brazilian manufacturers or consumers differ significantly from their peers in China, Germany, India and
the U.S. This report should be viewed as complementary to The Product Mindset 2013 full report, which contains the complete set of key global findings.
AUDIENCES
Director-level executives specializing in management, research and development,
marketing and sales, quality control, sustainability, product management or design
CONSUMERS
A representative mix of age, gender, education and income
MANUFACTURERS
306 - BRAZIL 302 - BRAZIL
1,521 - GLOBAL 1,528 - GLOBAL
TABLE OF CONTENTS
CONTEXT 4
FINDINGS 7
RANKINGS 16
MORE PRODUCT MINDSET 19
ACKNOWLEDGMENTS & METHODOLOGY 20
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BRAZIL: CONTEXT
Despite Brazils advancement and worldwide recognition, the mood in the country appears to reflect a more restrained optimism. Brazils economic growth outpaced the global average by more than three times during the early years of the economic crisis (2008-2010) but has slowed the past two years.1 Brazil is now the seventh-largest economy in the world2 and will celebrate the 2014 World Cup and 2016 Olympic Games, making it the powerful focus of the global stage.
Today, Brazilian manufacturers exhibit a more realistic outlook. They are significantly less global in their sourcing than manufacturers are in developed economies, but their industries are fast becoming
more complex. A point of difference is that manufacturers in Brazil are much more open than their global counterparts in expressing a need for across-the-board business improvements.
Consumers are positive about the improving product quality in Brazil although less so than consumers in other emerging economies. Additionally, the vast majority of Brazilian consumers desire more stringent governmental regulation of manufacturers. This may be linked to the serious concerns these consumers express about the environment and to their overall growing sophistication.
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CONTEXT
BRAZIL: GLOBALIZATIONBrazil is less globalized than developed nations today, particularly relative to sourcing, which translates into less complexity; however, there are signs that Brazil is rapidly becoming more global and complex
Significantly fewer Brazilian manufacturers operate globally, but the vast majority see the benefit of it
Distribution/Sales is Brazilian manufacturers most global function today, which is on par with the global average (61%) globally, sourcing is the most common multinational function (70% of manufacturers), and here Brazil lags
SAY: They operate multinationally, significantly below the current global level (78%)
AGREE: Global sourcing is a means to improve product quality, which is significantlyabove the global average (78%)
64% 89%
Percentage of manufacturers that operate multinationally in the following areas:
62% | DISTRIBUTION/SALES
52% | SOURCING
42% | MARKETING/PROMOTION
37% | MANUFACTURING
Significantly more Brazilian manufacturers than the global average (48%) state they will increase global sourcing over the next five years...
...and they are 56% more likely than global manufacturers to source from new countries
57% 39%THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 5
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BRAZIL: MOODBrazilian consumers feel better about product quality but still want to see more regulation of manufacturers
CONTEXT
Brazilian consumers believe product quality is better than it was five years ago...
EMERGING
DEVELOPED 50%
61%
79%
59%
88%
Similar to manufacturers around the world, those in Brazil already feel stringently regulated...
88% 83% 86% 86%
87%
53%
DEVELOPED EMERGING
63% 79% 81% 92%
...but the vast majority of them desire more stringent governmental regulation
Cost Ethical SourcingEnv. Friendly ManufacturingEnv. Friendly ProductsHealth Impact
94%...but they are significantly more likely to see a need for improvement across 13 business success measures
13 measures:InnovationPerformance Quality Reliability Safety
Speed to Market Traceability Transparency
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BRAZIL: FINDINGS
The findings identify the key considerations where Brazil stands apart from China, Germany, India and the U.S. Manufacturer improvements, the environment, the impact of environmental products, Quality, supply chain Transparency, Country of Origin and the Health Impact
of products are all areas where Brazilian manufacturers and consumers differ from their peers. Highlighting these differences helps us understand what is distinctive about the Brazilian mindset.
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Across 13 business success factors, Brazilian manufacturers express a far greater need for improvement than do manufacturers in other countries, which may reflect a higher degree of openness about their issues, pessimism about their prospects or need
relative to their competitiveness
BRAZIL STANDS APART
see a need for improvement64%
CHINA | 41%
INDIA | 40%
USA | 35%
GERMANY | 42%
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BRAZIL DESIRES PROGRESSThe environment has continued to advance as a priority in Brazil; however, consumers seem to doubt the intentions of manufacturers in terms of their
commitment to environmentally friendly products and manufacturing procedures
#1RANK
MOST IMPORTANT
RISING PRIORITY
#2RANK
MOST IMPORTANT
RISING PRIORITY
48% of Brazilian consumers 26% more than in other countries dont think manufacturers are doing enough in terms of environmentally
friendly manufacturing procedures or products
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BRAZIL THINKS ENVIRONMENTOnly in Brazil do consumers see the environment as the most
important impact of environmental products
CONSUMERS AGREE: Impact to human health is more
important than the impact on the environment
INDIA | 60%
USA | 64%
CHINA | 79%
GERMANY | 62%
59%BRAZILIAN CONSUMERS AGREE:
Impact on the environment is more important than the impact to human health
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BRAZIL WANTS TRANSPARENCYGaining visibility into all aspects of the supply chain is a Rising Priority that is more important in Brazil
+30%
87%YET
BRAZILIAN CONSUMERS: Are significantly more likely than their global peers to agree that manufacturers do not provide sufficient
transparency into their supply chains
BRAZILIAN MANUFACTURERS AGREE: Internal and external stakeholders are increasinglydemanding supply chain transparency, which makes them significantly more likely than their counterparts
in other countries to agree
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BRAZIL WANTS REAL QUALITYAlthough it is the most important manufacturer and consumer priority in Brazil, Quality appears to be an area where as in the rest of the
world there is a sizable gap in consumer confidence
93%VS.
53%BRAZILIAN MANUFACTURERS BELIEVE: Product quality is important, making it their No. 1 overall consideration
BRAZILIAN CONSUMERS BELIEVE: Manufacturers use the lowest-cost materials
in their products regardless of quality
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Cost/Price is a critical consideration for Brazilian manufacturers on par with those in the developed economies and significantly more
important than it is to manufacturers in the other emerging economies
BRAZIL FOCUSES ON COSTDEVELOPEDEM
ERGING
79% 85%92% 93% 95%
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Outsourcing/Country of Origin, which takes into account where products are made, is an area of growing awareness where there is
significant alignment between Brazilian manufacturers and consumers
BRAZIL AGREES ABOUT ORIGIN
of both groups agree that consumers are aware of the Country of Origin, which is significantly higher than the global averages
for manufacturers and consumers
78 %
AND
82% of manufacturers and 67% of consumers believe that its important to know the Country of Origin
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BRAZILS HEALTH IMPACT GAPIn Brazil, consumers see a critical need to improve the Health Impact of products, but manufacturers dont see this as an improvement priority
#6
#1 2
1
3
2
4
3
5
4
6
5
VS.
RISING PRIORITYFOR IMPROVEMENT
RISING PRIORITYFOR IMPROVEMENT
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BRAZIL: RANKINGS
This year, our research revealed insights that resulted in a new way to classify the complex and growing considerations facing manufacturers and consumers today. We divided them into two categories to compare like-minded issues. The Fundamentals are the most important factors driving behavior, including considerations such as quality and product safety. The
Rising Priorities are newer factors that are becoming increasingly critical in todays marketplace, including supply chain transparency and making environmentally friendly products. The Rankings highlight both what Brazilian manufacturers and consumers prioritize and how their priorities differ from those of their peers around the world.
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1 3 52 4 6 71 3 52 4 6 7
BRAZIL: FUNDAMENTALSThe Fundamentals are the essential considerations that are the primary
drivers of manufacturer success and consumer choice
FUNDAMENTALS
IMPORTANCE: (PRIMARY DRIVER OF SUCCESS/CHOICE)
IMPROVEMENT: (AREA MOST IN NEED OF
ENHANCEMENT)
Quality
Cost/Price
Innovation
Reliability
Product Safety
Performance
Speed to Market/Newest Features
RANKINGS
most to least most to least
global average brazil
In terms of how Brazilians rank the Importance of the Fundamentals, manufacturers and consumers are more closely aligned than are their global counterparts.
Cost/Price is a more important consideration to both Brazilian manufacturers and consumers than it is to the rest of the world.
Innovation is not as important to Brazilian manufacturers as it is to their global peers.
Performance is not as important to Brazilian consumers as Reliability, which is the opposite of how global consumers prioritize these considerations.
OBSERVATIONS
Brazilian manufacturers and consumers are closely aligned on Improvement, but there are two key differences relative to their global peers:
Brazilian consumers place greater emphasis on improving Cost/Price, which reflects the overall importance of this consideration in Brazil.
Brazilian manufacturers and consumers place much less emphasis on Product Safety than do their global peers.
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BRAZIL: RISING PRIORITIESThe Rising Priorities are emerging considerations that are increasingly
important to both manufacturers and consumers
RANKINGS
global average brazil
1 3 52 4 6 7
RISING PRIORITIES
1 3 52 4 6 7
Environmentally Friendly Manufacturing
Health Impact
Environmentally Friendly Products
Transparency
Outsourcing/Country of Origin
Traceability
Ethical Sourcing
N/A
N/A
N/A
N/A
IMPORTANCE (PRIMARY DRIVER OF SUCCESS/CHOICE)
IMPROVEMENT: (AREA MOST IN NEED OF
ENHANCEMENT) most to least most to least
N/A
N/A
N/A
N/A
OBSERVATIONS
Relative to Importance, Brazilians closely mirror the rest of the world in their rankings of Rising Priorities.
In terms of Brazilian Improvement priorities, however, there are a number of substantial differences:
There are large gaps between Brazilian manufacturers and consumers in Health Impact and Environmentally Friendly Products because Brazilian manufacturers do not prioritize the Improvement of either consideration.
Brazilian manufacturers prioritize Outsourcing/Country of Origin, Traceability and Ethical Sourcing much more than do their global peers.
Brazilian consumers see Improvement in Traceability and Ethical Sourcing as low priorities, which is consistent with their global counterparts. This creates gaps with Brazilian manufacturers who emphasize Improvement in these areas over Health Impact and Environmentally Friendly Products, which are much more important to consumers.
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MORE PRODUCT MINDSETThis year, we have made the results of The Product Mindset more interactive. An online data visualizer will enable you
to explore and compare the information in meaningful ways. We will also field questions and comments from our many subscribers around the world and engage in dialogue through social media channels.
Visit: www.ul.com/productmindsetEmail: [email protected]
Call: +1 847.664.2226
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CONSUMERS
MANUFACTURERSTHE PRODUCT MINDSET 2013 U.S. REPORT
MANUFACTURERSCONSUMERS
MANUFACTURERSTHE PRODUCT MINDSET 2013 INDIA REPORT
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THE PRODUCT MINDSET 2013 GERMANY REPORT
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MANUFACTURERSTHE PRODUCT MINDSET 2013 CHINA REPORT
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THE PRODUCT MINDSET 2013 BRAZIL REPORT
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ACKNOWLEDGMENTS
EXECUTIVE EDITORSuzanne Lavin, Vice President, Corporate Marketing
This study was concepted and created in partnership with
METHODOLOGY
SOURCES
During the winter of 2012 and spring of 2013, UL employed an independent research firm, ORC International, to conduct a global quantitative survey among 1,528 consumers and 1,521 manufacturers across five countries: Brazil, China, Germany, India and the United States. The two samples each have a margin of error of 2.5% at the 95% confidence level. To meet the objectives of the survey, manufacturers across the high-tech/consumer electronics, food, home building materials and smart appliances sectors were interviewed by phone, and consumers were interviewed through an online survey. Manufacturers were director-level executives specializing in management, research and development, marketing and sales, quality control, sustainability, product management or design. Consumers were a representative mix of age, gender, education and income. Data tabulations among subgroups have been tested for statistical significance at the 90% and 95% confidence levels. Considerations in The Product Mindset were selected based on the importance and overall significance of the data.
All reported differences are statistically significant at the 90%+ confidence level, unless otherwise noted. Also note that agree and believe denote a 6+ rating on a 10-point scale.
2014 UL LLC. ALL RIGHTS RESERVED. THE PRODUCT MINDSET CANNOT BE COPIED, REPRODUCED, DISTRIBUTED OR DISPLAYED WITHOUT ULS EXPRESS WRITTEN PERMISSION.
UL AND THE PRODUCT MINDSET ARE REGISTERED TRADEMARKS OF UL LLC.
1. GDP Growth, The World Bank, 2013. Web: 3 Nov. 2013. http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG. 2. GDP Ranking, The World Bank, 2013. Web: 3 Nov. 2013. http://data.worldbank.org/data-catalog/GDP-ranking-table.
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