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JWT: Generation Z Brazil – Executive Summary English

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Brazil’s generation Z has been shaped by the country's spectacular economic rise in recent years, as well as its persistent social inequality. The latest report from the Innovation Group at J. Walter Thompson Intelligence covers emerging trends across technology, media, retail, beauty and more for this generation that represents more than $35 billion in annual spending power and almost 17% of the population in Brazil, one of the world’s most important emerging markets. For the full report, visit www.jwtintelligence.com

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JWT: Generation Z Brazil – Executive Summary English

  1. 1. GENERATION Z BRAZIL E XECUTIVE SUM MARY
  2. 2. Brazil’s generation Z—the generation after the millennials, currently aged between 12 and 19 years old—has grown up in the most prosperous period of Brazilian history. This makes its members quite different than their peers in the United States and the United Kingdom, who so far have mostly known economic malaise. Thanks to the internet and globalization, teen culture worldwide is more homogenous than ever before—but Brazil’s generation Z nonetheless has a unique outlook. GENERATION Z
  3. 3. GENERATION Z 3 GENERATION Z Young people in Brazil aged 10–19 accounted for some 34.9 million people as of July 2015, about 16.7% of the country’s total population, according to the United Nations Population Division. This is roughly equal to the total number of people in Canada. Based on research into the amount of weekly spending money this group receives, conducted by SONAR™, J. Walter Thompson’s proprietary research unit, we estimate the annual spending power of generation Z in Brazil at a minimum of $35 billion per year, representing a major opportunity for marketers. However, a single number cannot hope to reflect the realities on the ground in Brazil. The country is known for extreme economic inequality, which is reflected both within urban areas and in the divide between the country’s cosmopolitan urban centers and its far- flung towns and provinces. A 2013 report from the Data Popular research institute found that the millions of Brazilians living in favelas (informal urban settlements) would, considered as a single population, make up the country’s fifth- largest state; while in 2015 the number of billionaires has increased to 56, up from 48 in the previous year, representing a combined wealth of $148 billion, according to the Hurun Research Institute. Brazil’s generation Z spent childhood and early adolescence in a time of sunny optimism in the country. Today’s 19-year-olds were born two years after the implementation of Plano Real, a 1994 plan that stabilized the country’s currency, reined in runaway inflation, and laid the groundwork for the economic boom to come. INTRODUCTION Brazil protests against President Rousseff, 2015. Photography by Paulo Whitaker/Reuters.
  4. 4. GENERATION Z 4INTRODUCTION As public attention in Britain and the United States focused on austerity policies and crippling unemployment, the future looked bright in Brazil. Suddenly, many families could afford luxuries like foreign trips for the first time. About 400,000 Brazilians visited Disney World in 1997, up from about 85,000 in 1985, according to the Florida state tourism division. A trip that had once been a luxury of the wealthy had become an achievable journey for families enjoying newfound security in the upper middle classes. By late 2009, while the West was still reeling from the Great Recession, Brazil had emerged from a brief economic contraction to reach GDP growth of 5%, The Economist reported, in an edition with Rio de Janeiro’s famous Christ the Redeemer statue on its cover, launching into space like a rocket. The Economist further noted that various forecasters claimed that Brazil was on course to become the world’s fifth-largest economy, overtaking both Britain and France; and declared that the biggest danger facing the country was “hubris.” The World Bank registered healthy GDP growth of 7.6% in 2010. As public attention in Britain and the United States focused on austerity policies and crippling unemployment, the future looked bright in Brazil. A 19-year-old today remembers little of the global recession that began in 2007, while a 12-year-old remembers only a climate of optimism and growth, until quite recently. From 2010, Brazil has consistently achieved unemployment rates under 8% and these fell as low as 4.3% in December 2013, according to the country’s national statistics agency—its best performance in recent decades. At the moment, Brazil sits between two major events: the 2014 World Cup and the 2016 Olympic Games in Rio de Janeiro. The country has never previously occupied such a central position in global culture, or achieved such economic and political clout.
  5. 5. GENERATION Z 5 Nonetheless, Brazil is now experiencing an economic crisis worse than anything it weathered during the Great Recession. By September 2013, The Economist was asking whether Brazil had “blown it,” with a cover depicting the same iconic Christ the Redeemer statue, again as a rocket, but this time sputtering and plunging off course. As of August 2015, experts are telling Brazilians that the current recession could be the country’s worst in 25 years, according to Bloomberg, with 2016 growth estimated at a sluggish 0.33%. At the time of writing, Brazil’s president Dilma Rousseff, who entered office in 2011 after popular predecessor Luíz Inácio da Silva (known as Lula), had an approval rating of just 8%—a record low, according to The Wall Street Journal. While Brazil’s achievements of the past decade have lifted the country’s middle class and expanded its wealth, members of the country’s generation Z must contemplate significant political turmoil and economic uncertainty for the first time in their lives. Top: MC Ludmilla, real name Ludmila Oliveira da Silva, from Rio de Janeiro, aged 20. Bottom: Teenage Brazilian Barbers for Vice Media Brasil. Photography by Guilherme Santana, 2015. INTRODUCTION
  6. 6. GENERATION Z 6TRENDS G E N E R ATIO N Z BY N U M BE RS They’re ambitious about their role in the future… 78% agree “It’s up to my generation to change the world” …but jaded about institutions 92% agree that “politicians today are corrupt” They love YouTube… 50% watch more than two hours of YouTube content each day …but with poor internet connections, traditional media remains popular Only 12% stream movies online in a typical week, while 51% watch movies in a theater They still love Facebook… 94% use Facebook, far more than any other social network …but they’re cautious about what they post 87% think carefully about what they put on social media They’re happy shopping online… 72% say they are as comfortable purchasing online as offline …but they prefer shopping offline 64% would rather shop in stores They’re progressive about race… 59% participate in online or offline events fighting racial discrimination …but acknowledge there’s more to be done 93% agree racial discrimination still exists today They think men and women are equal… 77% say that men and women are pretty much equal today …but they still see discrimination in the workplace 47% think men and women are treated equally in the workplace
  7. 7. GENERATION Z 7TRENDS ATTEND MUSIC CONCERTS STREAM MOVIES PLAY A SPORT WATCH MOVIES IN A MOVIE THEATER 100% 75% 50% 25% 0% 100% 75% 50% 25% 0% 100% 75% 50% 25% 0% 100% 75% 50% 25% 0% UK 12% UK 32% UK 41% UK 24% 11% US 32% US 37% US 22% US 22% BRAZIL 12% BRAZIL 46% BRAZIL 51% BRAZIL Leisure activities during a typical week
  8. 8. GENERATION Z 8 Student Paulo de Faria, São Paulo state I go to a private school which is about 36 km from where I live, in a small city. I’m studying to do a course in medicine, which is the career I want to have. I also take English classes, as ever since I was a child I have always wanted to communicate with other people in the world. Now I can have a reasonable conversation with my American friends. I use Facebook, Instagram, WhatsApp and occasionally Snapchat. WhatsApp is used a lot in Brazil. I don’t follow anyone famous on Instagram. I’m not very interested in the world of fame, but I love the vlogger JoutJout Prazer with a passion. She uses simple analogies to talk about serious topics. I admire my former teacher who published three books, as he came from a poor family and I see him as like a father to me. The situation in Brazil has gotten a lot better. My father, a lorry driver, knows how to write his name and has managed to get ahead professionally, with a lot of effort, and my mother has finished school. GABRI E L A ROSSI , 16 8 The situation in Brazil has gotten a lot better. 8GENERATION Z 88CASE STUDIES
  9. 9. GENERATION Z 9 I am classified as someone with an upper-middle-class income now. But the government invests in some things to make us smile, and takes away our happiness with others. They are always short-term solutions. I think feminists can be over the top, though most of the time I support their causes. I think the rapist is to blame, not the victim, and short, low-cut clothes are not an invitation for rape. But I think that your appearance is what you are selling to the world about what’s inside. I’ve got dyed red hair and I’ve never been bullied for it, but I’ve seen it happen to others. Once I qualify as a doctor, I will change my hair back, as it could make me seem adolescent or even a bit of a rebel. Brazil is still quite conservative, I think. I don’t like to spend too much on clothes as I already spend a lot on my studies, so I buy a lot from fairs which my dad takes me to. The first time I dyed my hair, it was in the salon, but I maintain it at home with L’Oréal Professionnel. I love makeup and I use Maybelline— I think it’s great quality for something you can buy in the pharmacy. When it comes to Brazilian brands, Vult is good, it has the best translucent powders. I haven’t had a smartphone for three months. As the economy isn’t great at the moment, I haven’t bothered my parents about it. I survived before I had one and I can carry on without one perfectly well. 99GENERATION Z 99 Brazil is still quite conservative, I think. CASE STUDIES
  10. 10. The Innovation Group is J. Walter Thompson’s futurism, research and innovation unit. It charts emerging and future global trends, consumer change, and innovation patterns—translating these into insight for brands. It offers a suite of consultancy services, including bespoke research, presentations, co-branded reports and workshops. It is also active in innovation, partnering with brands to activate future trends within their framework and execute new products and concepts. It is led by Lucie Greene, Worldwide Director of the Innovation Group. The Innovation Group is part of J. Walter Thompson Intelligence, a platform for global research, innovation and data analytics at J. Walter Thompson Company, housing three key in-house practices: SONAR™, Analytics and the Innovation Group. SONAR™ is J. Walter Thompson’s research unit that develops and exploits new quantitative and qualitative research techniques to understand cultures, brands and consumer motivation around the world. It is led by Mark Truss, Worldwide Director of Brand Intelligence. Analytics focuses on the innovative application of data and technology to inform and inspire new marketing solutions. It offers a suite of bespoke analytics tools and is led by Amy Avery, Head of Analytics, North America. Contact: Lucie Greene Worldwide Director of the Innovation Group J. Walter Thompson Intelligence lucie.greene@jwt.com Report authors: Lucie Greene and Shepherd Laughlin

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