The Struggle for Brazil’s Emerging Middle Class

The emerging middle class will have a tremendous influence on the Brazilian packaging industry.

Overview of the favela Rocinho in Rio de Janeiro

In O Globo of 02 April 2011, Vivian Oswald wrote an article titled: “De refrigerantes a seguros: empresas criam produtos específicos para a classe D” (From soft drinks to insurance: Companies create products specifically for the lower-income class). What I write here is a very, very free interpretation of Vivian’s article, while I also add some more facts and my personal vision.

In my article “Recycle – Sail the Amazon River with Nestlé and Tetra Pak” I related the story that Nestlé Brasil, with the slogan “Nestlé Até Você a Bordo” (Nestlé Takes You Onboard), launched the first floating supermarket, a 27.5 meter long vessel, to service the ribeirinhos (people living at the river side) of the Amazon region. The vessel is estimated to be able to service a public of 800 thousand people/month, extending the presence of Nestlé brands in the low-income Brazilian (river)homes.

In an emerging market consumer products companies smell new opportunities. Brazilian companies are investing in the expanding purchasing power of class D. With the official minimum salary at BRL 540 (USD 317), class D has a monthly income ranging from BRL 705 to BRL 1,126 (USD 440 to USD 700), which increased by no less than 50% between 2003 and 2009, creating an army of about 45 million consumers of whom still little is known about their habits. Consumer goods companies try to imagine what this ……. read the full article

2 Respostas para “The Struggle for Brazil’s Emerging Middle Class

  1. If you are talking about the middle class, why did you use a picture of a FAVELA? Brazil will become the 4th largest economy, and it will be “journalists” showing the same favela (Rocinha). It´s difficult to change the mind of humans…

    • José, thanks for your comment, however I have to say that you have to read the article more carefully.
      First it is stating that the general world view of the word favela isn’t correct (anymore) for most of Brazilian communities. They are emerging working class neighbourhoods.
      Second as the article states it is exactly there where the large companies and supermarket chains see their future customers.
      I haven’t degraded the Brazilian upcoming middle class as they are from the (what was and often still is called) favelas. I am living in favelas already for more than 20 years and have seen the development nearby.
      I think (and my intention was) that the article explicitly describes the promising future of the Brazilian (working class) people.
      Your claim that Brazil will become the 4th largest economy is a farce. Becoming a large economy doesn’t imply prosperity for the common people.
      As said read the article with an open mind, it is doing exactly what you want it to do, namely changing the mind of humans …… worldwide.

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