Paulistanos, the residents of São Paulo city, Brazil, have great plans for
consumption in 2008. They want to buy more, travel more and take greater care of
their well-being and appearance. Apart from that, they also say they intend to
save more and diversify investment.
These are some of the conclusions of a study prepared by H2R Pesquisa Avançada (H2R Advanced Research) in December 2007 in the city of São Paulo.
The “Behavioral H2R Flash” asked how the residents of São Paulo spent their money or invested their money in 2007 and what their plans were for 2008. A total of 450 people were heard, including men and women who live in the city of São Paulo. The people were in the upper, upper middle, middle and lower classes and were aged between 14 and 65.
“Great optimism may be identified. People want to do everything that they could not do in 2007,” explained Rubens Hannun, the president of H2R.
According to him, at the same time as consumption items like clothes, household appliances, vehicles, real estate and trips presented a significant increase in purchase intention, consumers forecast greater financial investment.
One of the examples mentioned by Hannun is investment in the stock market. In 2007, just 1% of people stated that they made this kind of investment. For 2008, those who intend to invest in the market have risen to 10%. “This shows that even if these people do not invest, the population’s awareness to the stock market has risen,” pointed out the businessman.
H2R Pesquisas Avançadas is specialized in developing solutions for companies in incentive marketing and programs for generation of fidelity and relations. Apart from that, the company, established in 1988, also promotes customer satisfaction research, market potential studies, evaluation of products and services, opinion, habit and consumption polls and also political research.
Garments and accessories are articles of high consumption, in which almost all the residents of São Paulo spent their money in 2007. Even the lower classes, which purchased the lowest volume, have results over 70%.
Among the elder people (51/65 years of age) 78% also made this kind of expense. Women purchased these products more than men (92% against 84%). The intention for 2008 is for more residents of São Paulo to spend money with this item.
In 2007, personal appearance was the target of special care, mainly among women (79%), much more than men (61%). And this also seems to be the movement among youths and adults (between 26 and 35 years of age).
Around 70% of these people spent money on their appearance last year, while little more than half of the people in their fifties (56%) took this care. Single people (73%) took more care of their appearance than married people (66%) and those who are separated (65%).
Last year, between 60% and 70% of the residents of São Paulo did something special for their well-being. But some exceeded this level, up or down. Most of those in the upper class (92%) invested in their well-being, possibly due to their greater buying power.
On the opposite side of the balance, not even half (42%) of the lower class invested in this aspect. Those in their fifties not only didn’t take very great care with their appearance (56%), but invested even less in their well-being (47%).
It is probable that in the line of “new year’s resolutions” for 2008, many residents of São Paulo decided to do something good for their well-being.
“No matter what gender, age group, marital status or economic class, between 80% and 90% of people plan to invest in this area,” stated Hannun.
The upper class is obviously the ones that intends to take greater care of its well-being (96%) whereas the lower class is the one that is less turned to this matter (76%).
The dream of buying a house is also in the plans of the residents of São Paulo in 2008. Last year, few managed to reach this objective. But, when talking about redoing and building, the residents of São Paulo over the age of 26, in the upper classes, are those who say that they redid their home somehow, or even built a house in 2007. For 2008, this step is in the plans of women aged 26 to 65, married people and people in the upper middle and middle class.
Vehicles are also objects desired by the majority. Only the elder people (51 to 65 years) do not have greater plans to buy cars than they did last year. Of all the others, more residents of São Paulo plan to make new purchases of this kind in 2008. Around 20% of the adolescents interviewed should become 18 this year as they plan to buy vehicles, much more than the 5% who purchased them last year.
“It is worth recalling that the dream of purchasing durable goods, like a car or house, is not always accomplished. Whereas those who plan specific expenses for non-durable goods, like clothes, for example, generally spend more than planned,” explained the businessman.
Around 40% of the residents of São Paulo travelled around Brazil on holiday in 2007, with variations mainly by class of income: 85% of the people in the upper class travelled last year. This figure is much higher than the 54% in the upper middle class and the 25% in the middle class, once again showing the difference of economic possibilities in the choice made by the residents of the city.
In 2008 more residents of São Paulo plan to travel around the country, maintaining the average difference between economic classes from last year.
The citizens of São Paulo who travelled around Brazil on business were the minority, less than 20%. And the plan for 2008 is very similar. That is, this is an activity that should remain stable. Travelling abroad on business was also restricted. The figures shows that in 2008 there should not be significant change. The upper and upper middle classes are those who invest more in this possibility.
International trips on holiday were only made by few São Paulo residents. But, for next year, between 10% and 20% plan to do so. “It cannot be ignored that the upper class greatly exceeds this expectation: almost 60% plan to travel abroad on holiday”, pointed out Hannun.
Savings and Investment
Investment in fixed income investment plans and deposits in savings accounts were also possible for 69% of the upper class in 2007, 54% of the upper middle class, 47% of the middle class and just 32% of the lower class. The plan of the classes for 2008 is to manage to save more.
Adolescents were the ones who least invested in this area (16%) in 2007. Young adults (26 to 35 years of age), probably at the start of their careers or married life, were the ones who invested most in this area (50%) and are also the ones who plan to invest most in 2008 (79%).
Separated people (57%), more than married ones (39%) and single ones (35%), also managed to save in 2007 and intend to increase this kind of investment in 2008 (74%).
The great novelty may be for investment in the stock market. In 2007, just 1% of those interviewed invested in the stock market. For 2008, 10% show interested in risking themselves. Most of them are young adults (26 to 35 years of age) in the upper and upper middle class.
According to Hannun, the study will serve as a basis for better analysis of future research on the matter, as it is fundamental to understand people’s consumer habits and dreams and also to support the current clients.
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