Stampede

Stampede

• 1.
  “The
Stampede”
 A
report
by
Razorfish
and
Terra
 1

• 2.
  Hello.
My
name
is
Joseph
Crump,
and
I
am
Senior
Vice
President
 of
Strategy
and
Planning
at
Razorfish.
I
consider
myself
one
of
the
 luckiest
people
on
earth
because
I
live
in
two
of
the
greatest
 ciJes
in
the
world:
ManhaLan,
and
Rio
de
Janeiro.
 I
am
really
thrilled
to
share
some
ideas
with
you
that
resulted
 from
about
five
months
of
quanJtaJve
and
qualitaJve
research
 that
Razorfish,
in
partnership
with
Terra
Networks,
did
in
the
 three
major
markets
in
LaJn
America:
Brazil,
Mexico,
and
 ArgenJna.
 2

• 3.
  As
you
can
see
from
this
chart,
Brazil
will,
over
the
next
decades,
 become
one
of
the
world’s
leading
economies.
As
such,
it’s
the
 focus
of
many
of
the
world’s
biggest
brands
and
companies.
 Everyone,
it
seems,
is
interested
in
doing
business
in
Brazil
–
and
 in
LaJn
America
generally.
 Because
of
this,
Razorfish
–
in
conjuncJon
with
Terra
Networks,
 the
largest
digital
media
company
in
LaJn
America,
undertook
a
 5‐month
study
into
the
largest
segment
of
the
populaJon:
The
 group
known
throughout
the
region
at
Classe
C.
 The
following
presentaJon
will
illustrate
why
Classe
C
is,
in
our
 esJmaJon,
both
the
most
powerful
and
the
most
misunderstood
 group
in
the
region.
 3

• 4.
  This
document
doesn’t
talk
very
much
about
markeJng.
This
is
 maybe
ironic,
considering
that
Razorfish
is
one
of
the
largest
 digital
markeJng
firms
in
the
world.
 4

• 5.
  And
I’m
not
going
to
talk
very
much
about
the
Internet.
Again,
 this
may
come
as
a
surprise,
since
Razorfish
was
one
of
the
 world’s
first
pure‐play
Internet
agencies.
 5

• 6.
  Mostly,
I’m
going
to
talk
about
looking.
About
observaJon.
And
 about
people.
This
is
preLy
much
my
favorite
topic,
because
I
was
 trained
as
an
anthropologist
and
a
journalist.
My
favorite
thing
to
 do
is
to
study
human
beings
and
how
they
behave,
and
to
try
to
 develop
insights
and
tell
stories
that
will
help
drive
user‐centered
 innovaJon.
 6

• 7.
  So
just
to
get
you
warmed
up
and
paying
aLenJon,
here’s
a
liLle
 test...
 7

• 8.
  What
do
you
see
in
this
photograph?
(And
no,
it
has
not
been
 Photoshopped.)
This
photograph
was
taken
in
the
Morumbi
 neighborhood
of
Sao
Paulo.
This
is
a
place,
like
so
much
of
LaJn
 America,
where
the
physical
distance
between
the
very
rich
and
 the
very
poor
can
be
measured
in
feet.
 So
now
for
the
test...
 If
you
were
going
to
guess,
which
community
is
more
“digital”?
 Which
community
spends
more
Jme
online?
Which
community
 represents
the
biggest
economic
force?
 You
don’t
need
to
ever
have
visited
Sao
Paulo
before.
Just
go
with
 your
gut.
Try
to
be
very
honest
and
open
about
your
assumpJons
 and
beliefs.

 8

• 9.
  Razorfish
has
been
operaJng
in
LaJn
America
now
for
about
 three
years,
and
many
of
us
have
been
living
in
the
region
for
far
 longer
than
that.
But
never
have
we
seen
such
a
rapid
change
in
 the
digital
evoluJon
of
a
region
like
we’re
seeing
unfold
in
LaJn
 America
now.
 We
see
a
digital
revoluJon
happening
right
before
our
eyes.
Let’s
 look
at
some
numbers.
 9

• 10.
  The
revoluJon
is
happening
fastest
and
most
extensively
in
Brazil,
 which
is
the
economic
powerhouse
of
LaJn
America
–
and
on
 track
to
becoming
the
world’s
fourth
largest
economy
within
10
 years.
 LaJn
America
has
a
very
extensive
socioeconomic
classificaJon
 system,
which
ranks
households
from
Class
A
(rich)
to
Class
E
 (homeless).
 And
one
thing
we
found
very
surprising,
is
that
in
Brazil,
Classe
C
 –
those
are
the
people
who
lived
in
the
slums
or
“favelas”
in
that
 photo
from
Morumbi
–
have
already
overtaken
the
members
of
 the
Classes
A
and
B
in
their
access
to
computers.
 10

• 11.
  Look
at
how
things
have
changed
in
5
years.
Today,
half
of
the
 Brazilian
internet
users
belong
to
the
emerging
classes
(Classe
C,
 D
and
E).
 11

• 12.
  And
this
phenomenon
is
not
unique
to
Brazil.
It’s
happening
in
 Mexico,
too.
 12

• 13.
  And
also,
in
ArgenJna
–
the
digital
difference
between
the
upper
 and
lower
classes
is
becoming
very
hard
to
find.
 13

• 14.
  Here
are
some
fascinaJng
facts
across
the
region.

 14

• 15.
  There
are
certainly
massive
problems
to
be
resolved
in
LaJn
 America.
We
see
them
in
the
headlines
every
day.
But
there
is
a
 criJcally
important
counter‐story
playing
out,
as
well.
The
fact
is
 that
many
of
our
assumpJons
about
LaJn
America
are
flat‐out
 wrong.
And
near
the
top
of
the
list:
The
most
digital
people
in
the
 region
are
not
who
you
think
they
are.

 15

• 16.
  Aher
months
of
qualitaJve
and
quanJtaJve
study,
Razorfish
 believes
that
it’s
Jme
for
anyone
interested
in
LaJn
America
–
 whether
marketers,
manufacturers,
retailers,
poliJcians,
 academics
–
to
rethink
their
fundamental
assumpJons.
It’s
Jme
 to
reboot
your
beliefs
and
stereotypes
and
segmentaJon
models
 and
media
plans.
Because
I
can
promise
you
that
they
are
very,
 very
wrong.


 16

• 17.
  For
anyone
who
has
been
living
and
working
in
LaJn
America,
or
 helping
global
brands
operate
there,
this
is
the
stereotypical
 image
of
the
members
of
Classe
C.
They
are
the
people
on
the
 bus.
In
the
kitchen.
They
are
the
people
who
clean
the
office.
 They
are
the
people
who
live
in
the
favelas.
And
only
in
a
very
 glancing
way,
do
their
paths
cross
with
the
“upper
classes.”
 17

• 18.
  But
guess
what:
That
stereotype
is
terribly
wrong.
Classe
C
is
the
 majority
of
the
populaJon
–
and
the
fastest
growing.
They
 understand
that
the
educaJonal
system
in
their
country
is
awful
–
 and
so
they
are
working
extremely
hard
to
educate
themselves.
 More
than
any
other
class,
they
are
adding
skills
and
moving
up
 the
economic
ladder
the
fastest.
And
the
main
driving
force
of
all
 of
this
is
the
Internet
and
digital
media.
 18

• 19.
  All
of
us
marketers
and
branders
are
focused
on
the
bulls‐eye.
 People
who
live
in
nice
houses
and
drive
nice
cars
and
aLend
nice
 schools.
We
would
like
to
suggest
that
in
LaJn
America,
the
bulls‐ eye
looks
really,
really
different.

 We
would
like
to
suggest
that
the
people
known
as
Classe
C
are
 about
to
rule
the
world,
and
shockingly
we
don’t
understand
 them
at
all
right
now.

 We
need
to
fundamentally
re‐think
–
and
in
fact,
re‐label
‐‐
these
 folks.
And
instead
of
“Classe
C”
–
a
label
which
we
have
become
 so
comfortable
with
‐‐
we
think
we
should
call
them
the
New
 Digital
Middle
Class.
Because
that’s
exactly
what
they
are.
 19

• 20.
  Our
first
step
in
the
process
of
rebooJng
our
assumpJons
was
to
 re‐set
the
demographic
boundaries
and
definiJons
within
the
 three
major
markets:
Brazil,
Mexico,
and
ArgenJna.
This
new
 group
represents
the
majority
of
the
populaJon
in
all
three
 countries,
is
between
the
ages
of
12
and
35,
and
has
a
household
 income
of
between
US
$,542
and
$,2892
annually,
depending
on
 the
country.
 20

• 21.
  Our
belief,
however,
is
that
the
numerical
data
about
the
New
 Digital
Middle
Class
only
tells
a
parJally
complete
story.
One
of
 the
most
powerful
and
unique
aspects
of
our
study
has
been
the
 ethnographic
work
that
we
did
throughout
LaJn
America.
We
 spent
Jme
at
home
with
them
in
the
favela
of
Rocinha,
in
Rio
de
 Janeiro
‐
the
largest
favela
in
LaJn
America.
 21

• 22.
  And
in
the
favela
of
Paraisopolis,
in
Sao
Paulo.

 22

• 23.
  And
in
the
Classe
C
neighborhoods
surrounding
Buenos
Aires...
 23

• 24.
  And
in
the
Classe
C
neighborhoods
outside
Mexico
City.
 24

• 25.
  We
looked
for
the
rhythms
and
rouJnes
of
their
lives
at
work
and
 home
and
play,
and
supplemented
it
with
vast
amounts
of
 quanJtaJve
data.
Seven
key
themes
began
to
emerge.
We
think
 of
these
seven
insights
as
touchstones,
as
points
of
inspiraJon
for
 brands
or
companies
who
are
looking
to
create
products
or
 services
or
campaigns
that
beLer
serve
this
emerging
majority
in
 the
region.


 25

• 26.
  The
first
insight
is
that
the
New
Digital
Middle
Classe
(NDMC)
has
 some
very
unique
behaviors
in
their
use
of
digital
devices
and
 channels.
 26

• 27.
  As
it
turns
out,
the
longitudinal
data
for
Brazil
is
more
extensive
 than
it
is
for
any
other
LaJn
American
country.
So
we
took
a
look
 at
the
digital
behavior
of
the
NDMC
over
Jme,
beginning
in
2006.
 The
next
few
pages
of
charts
illustrate
changes
in
the
usage
of
 various
digital
devices…

 27

• 28.
  28

• 29.
  29

• 30.
  30

• 31.
  So
here
is
the
summary
chart:
 1)  Aher
minimal
year‐over‐year
changes,
the
purchase
of
desktop
 computers
shot
up
15%
in
the
last
year,
largely
because
local
 Brazilian

manufacturers
are
now
producing
extremely
 inexpensive
laptops
well
within
the
budgets
of
the
NDMC.
 2)  The
number
of
landline
phones
has
dropped
17.2%,
driven
 primarily
by
the
inverse
increase
by
10.6%
in
the
number
of
 mobile
phones.

 3) And
interesJngly,
despite
the
penetraJon
of
mobile
phones,
 the
use
of
those
phones
to
access
the
web
has
increased
only
 2.4%.
This
is
a
direct
side‐effect
of
the
price
of
mobile
data
 plans,
which
are
prohibiJvely
expensive
for
the
NDMC.
 31

• 32.
  This
next
sequence
of
charts
examines
the
physical
access
 locaJons
where
Brazilian
members
of
the
NDMC
access
the
 Web,
and
how
this
has
changed
between
2006
and
2009…
 32

• 33.
  33

• 34.
  34

• 35.
  35

• 36.
  1) Over
the
last
four
years
an
increasing
number
of
people
are
 accessing
the
Internet
from
home
or
another
person’s
home.
 This
is
likely
the
result
of
the
recent
rise
in
computer
sales.
 2) As
a
result
of
the
increasing
number
of
computer
sales,
the
 number
of
people
who
access
the
internet
from
work
is
 dropping.
 3) The
use
of
LAN
Houses,
or
public
internet
cafes,
conJnues
to
 be
a
huge
force
in
Brazil.
There
are
more
than
90,000
LAN
 Houses
in
Brazil
–
compared
to,
for
example,
4,000
movie
 theatres.
 4) Mobile
is
sJll
not
a
viable
way
for
the
vast
majority
of
the
 NDMC
to
access
the
Internet.
 36

• 37.
  And
this
final
series
of
charts
illustrates
the
specific
digital
 acJviJes
that
NDMC
Brazilians
are
engaging
in,
and
their
 evoluJon…
 37

• 38.
  38

• 39.
  39

• 40.
  40

• 41.
  1.  Brazil
conJnues
to
be
a
global
leader
in
the
use
of
almost
all
 forms
of
social
media.
 2.  Downloads
of
all
forms
–
from
music
to
movies
and
games
–
 conJnues
to
rise.
 3. And
in
one
of
the
most
important
trends,
Brazilians
–
 parJcularly
youth
–
are
using
the
Web
to
supplement
poor
 public
educaJon
systems.
(More
on
that
later
in
the
report.)
 41

• 42.
  As
we
examined
the
behaviors
of
the
NDMC,
we
began
to
see
 some
common
behaviors
among
subsets
of
the
group.
Eventually,
 we
idenJfied
six
key
behavioral
segments,
and
we
then
used
 quanJtaJve
surveys
to
establish
some
preliminary
segment
sizes
 for
each
of
the
six
groups.
 42

• 43.
  The
first
segment
is
the
“Digi‐naJves.”
RepresenJng
approximately
19%
of
the
NDMC
 populaJon,
this
generaJon
was
born
in
the
2000
decade,
typically
in
a
very
crowded
 urban
community.
However,
their
life
expectaJons
are
very
different
from
their
parents.
 Economic
growth
and
social
advancement
will
help
them
reach
a
new
level
of
life.
 For
them,
all
technology
is
familiar
and
taken
for
granted.
Their
families
have
purchased
 all
the
technology
we
can
imagine:
PCs,
flat
screen
TVs,
broadband
Internet
access,
 high‐end
cell
phones.
Entertainment
is
on
the
Internet,
PlaystaJon
or
Wii…
always
 playing
the
latest
and
coolest
games.
Only
a
small
part
of
the
entertainment
is
out‐of‐ home
or
on
the
TV
set.
 If
we
consider
that
the
literacy
level
of
“Digi‐naJves”
will
be
beLer
than
ever
before,
 and
that
their
life
achievement
expectaJons
are
more
ambiJous,
products
in
the
future
 will
need
to
be
more
sophisJcated
and
communicaJons
more
elaborate.
 Nowadays,
even
the
poorest
families
are
giving
cell
phones
to
their
kids.
While
for
 parents
this
is
a
maLer
of
safety
and
communicaJon,
for
kids
it’s
a
symbolic
tool:
the
 cell
phone
means
freedom
and
inclusion.
They
use
mobile
technology
for
music
and
 games,
enjoying
only
the
ones
they
can
exchange
via
Bluetooth.
This
group
is
already
 digital,
and
they
will
be
digital
extroverts
in
the
near
future,
always‐on,
updaJng
their
 profile,
daJng
online,
communicaJng
and
entertaining
themselves
online
as
part
of
 their
daily
rouJne.

• 44.
  This
boy
is
10
years
old.
He
lives
in
Paraisópolis
–
a
favela
in
Sao
 Paulo
‐‐
with
mom,
dad
and
3
older
brothers
in
a
30
square
 meters
house.

His
mother
is
the
first
Paulistana
(born
in
the
city
 of
SP)
in
the
family.
They
arrived
10
years
ago,
aher
a
flood
in
 their
hometown
in
the
northeast
of
Brazil.

His
house
has
all
sort
 of
technologies,
including
games,
cell
phones,
PC
and
laptop.
He
 has
his
own
Orkut
&
MSN
account.
 In
the
other
photo,
there
is
a
Lan
House
in
one
of
the
poorest
and
 most
violent
areas
of
Buenos
Aires.

It
is
beauJful
Sunday
 ahernoon,
and
the
boys
are
playing
a
soccer
game
online,
instead
 of
doing
it
outside.

• 45.
  The
second
segment
of
the
NDMC
is
the
“E‐nthusiasts.”
This
group
represents
about
20%
of
the
NDMC,
 and
they
are
technology
enthusiasts.
The
Internet
is
a
door
to
a
world
of
opportuniJes:
from
educaJon
 to
easy
communicaJon
with
friends
and
families.
 This
group
is
mobile
centric,
but
the
PC
sJll
plays
a
part
in
their
connecJon,
especially
when
we
are
 talking
about
educaJon.
 Due
to
low
literacy
levels,
this
group
is
regarded
as
proficient
on
the
web,
but
actually
they
basically
use
 only
MSN
and
Orkut.
They
read
and
understand
around
3,000‐5,000
words.
 Women
in
this
group
are
shy
when
playing

internet
games
(they
must
be
at
a
low
level
of
challenge),
and
 men
are
more
proficient
gamers.
They
work
hard
during
the
day
and
go
to
college
at
night,
so
they
have
 liLle
Jme
to
enjoy
staying
online.

 Since
they
are
the
first
generaJon
of
naJve
urbans
or
being
in
the
urban
slums
since
very
young,
they
 don’t
want
the
same
desJny
as
their
parents:
a
lifeJme
of
underpaid,
low‐status
jobs.
They
want
to
take
 control
of
their
lives.
For
women,
the
idea
of
taking
the
path
to
IT‐related
jobs
is
sJll
a
distant
dream,
but
 to
young
men
it
seems
to
be
the
way.
Since
NGOs
and
schools
recognize
the
need
for
an
IT‐related
 educaJon,
many
of
them
offer
digital
literacy
courses
as
a
starter,
and
undergrad
schools
offer
 cerJficaJons
and
programming
courses.
These
low
level
courses
open
the
door
for
beLer
jobs,
which
will
 help
them
to
pay
undergrad
and
post‐grad
courses
in
the
future.
 Elkyres
(in
the
picture
above)
comes
from
a
rural
area.
She
is
24
and
lives
in
São
Paulo.
Her
parents
 decided
to
move
to
the
city
in
order
to
improve
their
chances
of
a
beLer
life.

Elkyres
had
the
chance
to
 go
to
a
public
school.
At
the
age
of
16
she
started
to
work
as
a
maid,
but
never
dropped
out
of
school.
 Part
of
the
money
she
earned
was
to
pay
an
IT
course.

Nowadays
she
works
as
admin
staff
in
a
small
 firm.
 As
you
can
see,
she
loves
cell
phones!

She
just
bought
this
one,
and
it
comes
with
TV,
Orkut
and
MSN.
 However,
she
ohen
does
not
have
enough
credits
to
use
all
of
this.

Elkyres
uses
Orkut
and
MSN
in
a
daily
 basis,
and
plays
the
app
“Colheita
Feliz”
with
friends
that
live
in
her
neighborhood.

• 46.
  SebasJán
is
19
years
old,
and
lives
in
Mataderos,
a
slum
area
with
 2.5
million
people
near
Buenos
Aires.


He
has
had
a
cell
phone
 since
he
was
5
years
old.
His
mom
gave
it
to
him

in
order
to
 know
where
he
was
during
the
day.

When
he
turned
10,
his
 sister
gave
him
a
computer.
He
never
goes
out
to
play
ball,
he
 prefers
computer
games.
He
has
recently
finished
a
computer
 programming
course
at
@
Programar.

He
is
making
2.500
pesos
a
 month,
and
is
planning
to
go
on
to
an
undergrad
IT
course.
 46

• 47.
  The
“Climbers”
are
our
third
behavioral
segment,
and
make
up
about
14%
of
the
NDMC.
Most
 of
this
group
are
parents,
with
several
kids
at
home.

Both
men
and
women
work.
However,
the
 challenge
of
raising
kids
in
an
expensive
city
arises,
and
leads
either
men
or
women
to
become
 entrepreneurs
–
ohen
managing
this
separate
career
in
addiJon
to
their
“day”
jobs.
 Technology
is
central
to
the
entrepreneurial
streak
in
the
Climbers.
Men
ohen
start
their
own
 Lan
Houses
using
their
savings
to
buy
the
first
couple
of
computers.
Some
pay
for
the
 broadband
access,
others
don’t.
Women
behave
differently,
usually
asking
for
help
from
family
 and
friends.
They
can
also
go
to
ask
for
microcredit
in
banks.
 However,
making
the
Lan
House
business
succeed
is
hard.
The
internet
access
business
is
 constantly
challenged
by
governments
and
market
iniJaJves
for
digital
inclusion
and
the
 increasingly
easy
access
to
less
expensive
PC
brands.
Because
of
this,
this
group
of
 entrepreneurs
has
to
improve
their
digital
literacy
in
order
to
offer
other
services,
instead
of
 selling
only
internet
access.
 Women
in
this
group
have
discovered
how
to
use
their
recently
acquired
skills
with
technology.
 They
use
MSN
and
Orkut
as
e‐commerce
tools
and
sell
cosmeJcs,
lingerie
and
clothes
to
people
 from
their
community
who
don’t
have
Jme
to
go
to
the
bricks
and
mortar
stores.
Natura
and
O
 BoJcario
are
the
brands
of
choice
for
female
digital
entrepreneurs.
 For
this
group,
credit
is
a
challenge,
but
they
are
financially
creaJve.
They
know
the
value
of
 money,
and
do
not
trust
loan
insJtuJons.
They
organize
their
financial
lives
around
their
credit
 card
limits
and
personal
savings.

• 48.
  This
family
is
originally
from
Bolivia.
They
have
lived
in
Bue,
a
 slum
outside
Buenos
Aires,
since
1980.
 Monica
–
on
the
right
‐‐
is
a
single
mom
and
she
owns
a
 CiberCafe.
 48

• 49.
  Her
mother
works
at
the
CiberCafe,
and
spends
most
of
her
day
 online.
 49

• 50.
  The
fourth
segment,
the
“E‐Advantagers,”
is
at
the
highest
financial
rung
of
the
NDMC.
They
make
up
 approximately
21%

of
the
NDMC
populaJon.

 Aher
a
long
journey,
these
men
(predominantly)
found
a
way
to
get
a
beLer
paycheck.
They
don’t
aim
 toward
social
climbing
like
the
“E‐nthusiasts.”
They
want
a
beLer
life
for
themselves
and
their
significant
 others.
From
almost
dead‐end
jobs
to
administraJve
staff,
they
used
educaJon
to
reach
beLer
posiJons.
 Many
found
their
way
by
learning
IT‐related
skills
,
and
now
pursue
undergrad
and
post‐grad
courses
to
 reach
their
goals.
They
have
the
highest
income
(as
individuals)
,
and
work
all
day
in
tech
related
jobs
 and/or
with
tech
tools.

 They
are
not
heavy
users
of
MSN
or
Orkut
or
Facebook.
Their
main
online
interests
are
research
and
 informaJon.
They
use
email
as
their
main
communicaJon
tool.

 They
sJll
watch
a
lot
of
TV,
but
are
digital
literates
and
have
the
best
reading‐comprehension
skills
of
all
 the
groups.
They
also
enjoy
beLer
benefits
from
their
employers,
such
as
health
insurance.
 These
are
the
big
spenders
of
the
NDMC.
CosmeJcs
and
clothing
are
luxuries
they
afford,
and
provide
for
 their
significant
others.
 Carlos
(in
the
picture
above)
is
27
years
old
and
married.
He
works
as
admin
staff
at
the
mobile
carrier
 TIM,
in
São
Paulo.
He
completed
his
two‐year
undergrad
program
in
July
2010,
and
wants
to
conJnue
his
 studies
by
doing
his
post‐grad
in
IT.
Carlos
is
aware
his
salary
will
double
if
he
does
that.
Both
Carlos
and
 his
wife
use
the
internet
for
study,
search,
entertainment
(including
on
the
cell
phone)
and
e‐commerce.
 They
buy
expensive
brands,
and
use
two
or
more
credit
cards
to
do
so.
Their
debt
includes
a
house,
a
car
 and
expensive
items
for
the
newborn
baby.

• 51.
  Ernesto
is
26,
and
an
ArgenJnian.
He
was
orphaned
at
the
age
of
 5,
and
lived
on
the
street
working
hard
just
to
survive.
3
years
ago
 he
discovered
the
PH15
program
in
Buenos
Aires,
which
trains
 youth
on
various
forms
of
digital
media.
He
learned
how
to
take
 digital
pictures.
Today
he
is
a
photography
professor,
and
he
has
 won
important
internaJonal
awards
in
photography.
His
 exhibiJon
in
Germany
was
a
success.
He
has
fans
all
over
the
 world,
and
sells
his
art
photography
from
his
Facebook
page.
 51

• 52.
  The
“Hard
Workers”
are
our
fihh
segment,
at
almost
17%
of
the
 NDMC.
Today
they
live
in
the
urban
slums,
but
life
was
not
always
 like
this.

Coming
from
rural
(always
poor)
parts
of
the
country,
 they
arrived
in
the
big
ciJes
hoping
for
a
beLer
life.
From
the
 warm
and
less
violent
rural
towns
to
the
cold
and
violent
urban
 landscape,
they
perform
the
low‐status
jobs
that
the
city
depends
 on:
Maids,
doormen,
handymen,
bricklayers
and
the
like.
Within
 the
highly
hierarchical
LaJn
American
culture,
they
are
regarded
 as
“second
class
ciJzens”.

But
the
last
10
years
of
economic
 stability
and
growth
have
helped
them
to
improve
the
path
for
 their
children,
the
“E‐nthusiasts.”
They
are
more
poliJcally
 conservaJve
and
religious.
They
watch
a
lot
of
TV,
and
use
the
 cell
phone
as
only
a
communicaJon
tool.
They
do
not
use
PCs
 without
assistance,
but
they
know
the
computer’s
value
because
 they
see
the
difference
it
has
made
in
the
lives
of
their
children
 and
grandchildren.


• 53.
  Aher
generaJons
below
the
poverty
line,
our
final
segment
–
the
“Strugglers”
–
have
 found
a
way
to
reach
a
beLer
future:
a
regular
job
that
helps
to
pay
tuiJon
for
an
 inexpensive
undergrad
school.
At
about
8%
of
the
NDMC,
for
them
technology
is
a
 crucially
important
part
of
social
and
professional
advancement
–
but
the
cost
must
be
 factored
into
the
expenses
of
daily
survival.
They
struggle
just
to
pay
the
electricity
bills,
 for
example,
and
ohen
unplug
their
refrigerators
at
night
to
reduce
consumpJon.
But
 the
internet
is
never
disconnected:
For
their
children,
the
Internet
is
the
Jcket
to
the
 future.
 Kids
prefer
online
games,
and
cartoons
on
the
TV
and
online.
For
them,
listening
to
 music
on
their
cell
phones
is
a
big
pasJme.
 The
parents
from
the
“Strugglers”
use
the
internet
to
do
research
and
homework,
even
 though
their
reading‐comprehension
skills
are
limited.
They
prefer
to
watch
less
TV
and
 enjoy
having
informaJon
and
entertainment
through
the
web.
 The”
Strugglers”
see
a
beLer
future
through
the
combinaJon
of
educaJon
(in
IT,
 because
it
offers
more
opportuniJes)
and
hard
work.

• 54.
  Claudia
Cantero,
26,
works
as
a
Programmer
and
in
Technical
Support.
She
is
a
mother
 of
two,
and
at
the
age
of
16
had
her
first
child,
Aymara,
the
girl.
She
lives
in
La
Matanza,
 a
slum
in
the
suburbs
of
Buenos
Aires.
Her
family
comes
from
the
province
of
Chaco,
 one
of
the
poorest
and
less
developed
areas
in
ArgenJna.
 She
moved
from
Chaco
to
Buenos
Aires
when
she
was
10
years
old.

The
first
computer
 she
saw
was
in
the
public
school
years
later,
when
she
was
15.
She
spent
her
days
 taking
care
of
her
family
at
home,
and
had
already
postponed
the
idea
of
studying.
But
 things
changed
a
year
ago
when
she
saw
a
pamphlet
for
Proyecto
Programar
inviJng
 those
with
secondary
school
but
no
university
studies
to
train
themselves
in
 programming
and
technical
support.
Claudia
wrote
down
the
number
on
her
mobile
 phone,
and
a
few
weeks
later
she
was
facing
a
PC
and
trying
to
understand
how
a
 mouse
works.
Aher
a
lot
of
effort,
she
graduated
at
the
top
of
her
class,
and
was
hired
 by
Pragma
Consultores.
Now,
the
whole
family
is
proud
of
her.
Before
this
profound
 change
in
Claudia’s
life,
her
household
income
was
only
$700
pesos.
Today,
it
is
$2,700
 pesos
–
and
she
can’t
wait
to
start
her
undergrad
IT
program.
 54

• 55.
  You
might
think
the
New
Digital
Middle
Class
is
poor,
and
you
 might
think
the
poor
aren’t
your
customers.
You
would
be
wrong
 on
both
counts.
 55

• 56.
  There
are
37
million
Middle
Class
families
in
Brazil,
with
a
 monthly
income
between
3
and
10
Jmes
the
naJonal
minimum
wage.
 These
Middle
Class
families
are
responsible
for
US$
242,869
billion
of
all
 Brazilian
income.
And
if
we
add
the
Classes
D
and
E
to
this
sum,
we
will
 have
another
US$
228,347
billion.

That
means
more
than
2/3
of
the
total
 of
R$
1,38
trillion
in
2010
comes
from
these
3
classes.
(SOURCE:
2010
 Trends
of
the
Majority
Study
by
Data
Popular
InsJtute)
 The
Middle
Class
produces
US$
233,560
billion
of
the
Mexican
economy.
In
 Mexico
it
represents
26.7%
of
Classe
Media,
including
C,
D
and
E.
(SOURCE:

 hLp://www.inegi.org.mx/inegi/contenidos/espanol/prensa/comunicados/ enigh2008.asp
)
 In
ArgenJna,
if
you
also
include
the
Classe
Media
Baja
(whose
average
 incomes
actually
fell
just
out
of
our
NDMC
range)
these
numbers
jump
to
 61.1%
of
the
naJonal
income.
(SOURCE:
INDEC)
 56

• 57.
  The
NDMC
is
especially
surprising
–
and
creaJve
–
in
the
way
 they
spend
their
disposable
income.

 For
example,
the
combinaJon
of
the
dollar
at
a
low
currency
rate
 and
the
availability
of
“mini‐cruises”
(which
are
shorter
packages
 of
duraJon
around
3
to
4
days)
made
the
cruise
industry
see
a
 boom
in
the
NDMC
market
during
2009‐2010.
The
demand
was
 so
high
that
for
the
first
Jme
the
cruise
ships
were
staying
along
 the
Brazilian
coast
unJl
May,
extending
the
cruising
season
in
 Brazil
to
eight
months,
which
had
never
happened
before.
 “The
New
Middle
Class
discovered
the
mini‐cruises,
which
are
 ideal
for
this
demographic,
since
these
vacaJon
packages
are
 more
accessible
than
the
trips
of
six
or
seven
nights.”
said
Adrian
 Ursilli,
markeJng
and
comercial
director
of
MSC
Cruises
 57

• 58.
  A
2009
study
by
Avenida
Brasil
Comunicações
revealed
that
the
 populaJon
with
incomes
under
R$
1,700
represented
69%
of
the
 credit
card
market.
And
Classes
C,
D
and
E
were
responsible
for
R $
111.8
billion
in
transacJons.
According
to
ABECS
(Brazilian
 AssociaJon
of
Credit
Card
Companies),
Classe
C
already
 represents
38%
of
the
140
million
credit
cards
in
Brazil,
while
 Classes
D
and
E
owns
another
20%.
 Between
2000
and
2007,
the
total
Mexican
credit
grew
from
6.5%
 to
13%.
In
Classe
C
(or
middle
class)
the
growth
in
the
number
of
 users
went
from
63%
to
74%
and
in
Classe
D+
(or
low
middle
 class)
the
change
was
from
41%
to
61%.
 SOURCE:
hLp://eleconomista.com.mx/notas‐online/finanzas/ 2009/06/09/avanza‐bancarizacion‐mexico‐visa
 58

• 59.
  A
study
by
Data
Popular
InsJtute
affirms
that
it
doesn’t
make
 sense
for
the
NDMC
to
deposit
their
money
into
savings
as
a
form
 of
investment,
because
the
purchases
they
would
be
making
 instead
(i.e.
new
clothes
for
a
job
interview,
a
PC
to
help
with
 their
children’s
educaJon)
are
seen
as
more
valuable
ways
of
 invesJng
their
money.
 59

• 60.
  Brazilian
banks
never
gave
as
many
loans
as
they
currently
do
to
the
NDMC.
According
 to
new
rules
established
by
the
Banco
Central
(Brazilian
Central
Bank),
banks
must
 direct
2%
of
all
the
deposits
to
microcredit
or
keep
this
money
as
frozen
assets.
In
April
 of
this
year,
R$
1,6
billion
(or
US$
800
million)
were
offered
to
microcredit.
This
means
 Brazilian
financial
insJtuJons
lend
62%
from
the
R$
2,7
billion
(US$
1,8
billion)
available
 for
this
kind
of
operaJon.
In
April
2009,
they
offered
56%
of
the
budget.
 A
total
of
100
thousand
contracts
are
done
monthly
and
the
average
amount
is
R$
 1,300.00
(US$
750.00).
Microcredit
is
used
in
majority
for
small
business
 entrepreneurs.
These
entrepreneurs
don’t
want
to
have
a
boss
any
longer,
and
don’t
 want
to
depend
on
regular
employment
pracJces.
They
understand
that
the
NDMC
 is
growing
and
needs
new
services,
and
that
the
best
people
to
serve
them
come
from
 the
same
class.
(SOURCE:
hLp://economia.estadao.com.br/noJcias/not_22646.htm
)
 Brazilian
women
take
out
the
majority
of

microcredit
loans,
holding
53%
of
all
 contracts.
NDMC
women
contribute
an
average
of
41%
to
all
family
monthly
income,
 while
the
richer
women
from
the
Classe
A
contribute
only
25%.
(SOURCE:
 hLp://noJcias.r7.com/economia/noJcias/mulheres‐dominam‐microcredito‐no‐brasil‐20100328.html
)
 60

• 61.
  Pictured
above:
Elektra
stores
in
San
Mar}n
Texmelucan
in
Mexico,
and
 Recife
in
Brazil
(SOURCE:
photo
by
Fabiano
Accorsi,
Época
Negócios
 Magazine,
July
2008).
 In
Mexico,
microcredits
are
growing
by
20%.
The
recent
financial
crisis
 made
533
thousand
Mexicans
cancel
their
saving
accounts
during
the
first
 three
months
of
this
year,
because
they
feared
losing
their
money
with
 “trusted”
banks.
 Banco
Azteca
makes
credit
more
accessible
and
easy
to
get
for
nearly
10
 million
people,
and
this
credit
can
be
obtained
with
as
liLle
as
$50
pesos.
 They
even
ensure
that
the
condiJons
of
the
loans
are
the
best
available
for
 that
market
segment
and
that
there
is
no
risk
to
the
consumer:
they
don’t
 raise
the
rates;
they
don’t
ask
for
advanced
payment
deadlines;
and
the
 consumer
takes
on
a
fixed
weekly
payment.
It’s
that
simple.

 Grupo
Salinas
–
also
the
owner
of
Elektra
Stores
–
sells
low‐cost
household
 products
and
gives
opportuniJes
to
the
boLom
of
the
pyramid
to
get
 access
to
basic
goods
and
services
through
installment
plans.
 61

• 62.
  The
NDMC
is
both
realisJc
and
pracJcal.
They
understand
that
 the
public
school
systems
are
not
very
good
–
and
if
their
children
 are
going
to
get
a
good
educaJon,
it’s
because
they
used
special
 weapons
and
tacJcs
–
like
the
Internet.
 62

• 63.
  Aluno
Integrado
is
a
project
from
the
Department
of
EducaJon
of
 the
Brazilian
government
started
in
2010.
The
program
,
which
 targets
high
school
students
from
public
schools,
intends
to
teach
 ICTs
so
these
kids
can
use
their
knowledge
to
create
digital
 projects
that
can
help
their
schools
and
communiJes.
 Each
student
must
take
180
hours
of
classes
during
5
months;
the
 first
class
is
in‐
person
and
the
other
ones
are
virtualized.
 63

• 64.
  Anyone
who
thinks
technology
is
not
the
career
of
choice
in
LATAM
is
mistaken,
even
if
 in
2008
Computer
Science
was
only
the
10th
career
of
choice
in
Brazilian
universiJes
 and
colleges
–
with
112,857
enrollments
–
the
number
of
new
technological
schools
 that
opened
in
the
last
few
years
in
the
country
was
huge.
 These
technological
schools
teach
a
bunch
of
professional
courses,
which
are
usually
 fast
and
short
when
compared
to
undergrad
courses,
which
are
about
two
years.
This
 helps
fulfill
the
needs
of
the
NDMC,
who
are
worried
about
finding
a
job
ASAP
to
help
 with
their
family
income.
 Both
government
and
private
companies
are
jumping
on
the
tech
schools
bandwagon.
 The
Brazilian
government
plans
on
invesJng
R$
1,1
billion
through
the
end
of
2011.
 Currently
there
are
219,000
enrolled
students
in
the
federal
technological
schools,
this
 number
is
93%
higher
than
those
registered
in
2003,
when
there
were

only
113,000
 students.
Also
in
2002
there
were
140
federal
schools
of
this
kind,
today
they
are
214.
 The
private
educaJonal
companies
are
also
interested
in
this
trend,
and
these
private
 school
franchises
grew
34%
in
2010,
according
to
a
research
by
the
consultancy
Rizzo
 Franchise.
For
this
year,
354
new
schools
are
expected
to
open.
In
2009,
when
the
 country
had
only
1,044
insJtuJons
of
this
kind,
the
growth
rate
was
26%.
According
to
 Marcus
Rizzo,
of
the
consultancy
Rizzo
Franchise,
the
biggest
demand
is
for
informaJcs
 courses,
because
nowadays
even
the
simplest
jobs
require
computer
knowledge.
 64

• 65.
  In
Brazil,
more
than
3,7
million
NDMC
children
and
teenagers
are
going
to
private
high
 schools.
They
represent
more
than
half
of
the
5,5
million
Brazilian
kids
aLending
these
 insJtuJons.
 The
number
of
NDMC
undergrad
students
almost
doubled
since
2002,
when
they
 represented
only
16,2%.
 The
projecJons
for
organic
growth
for
the
next
five
years
(2015)
are
that
the
number
of
 NDMC
college
students
will
double
again,
making
the
NDMC
the
majority
of
higher
 educaJon
students.
 (SOURCES:
Educação
Magazine,
#156,
2010
‐
hLp://revistaeducacao.uol.com.br/ textos.asp?codigo=12881
 Ensino
Superior
Magazine,
#134,
Nov
2009
‐
hLp://edumeduem.blogspot.com/ 2010/01/classe‐c‐chega‐universidade.html

 Estado
de
São
Paulo
Newspaper,
Nov
2009
‐
hLp://www.conjur.com.br/2010‐fev‐07/ segunda‐leitura‐chegada‐classe‐ensino‐superior)
 65

• 66.
  Despite
the
perpetual
crises
in
the
ArgenJne
economy,
the
 ArgenJne
government
announced
an
ambiJous
plan
in
April
to
 buy
and
distribute
3
million
laptops
for
all
students
in
public
high
 schools
(~4,800
public
high
schools).
The
plan
will
be
completed
 in
2012.
Other
aspects
of
the
plan
include
the
improvement
of
 Internet
access
around
the
schools
(the
installaJon
of
~1200
 servers
in
schools)
and
the
digital
training
of
teachers.
Teachers
 will
receive
special
face‐to‐face
training
that
will
be
organized
by
 each
province
and
funded
by
the
Technical
EducaJon
Act.
 66

• 67.
  NGOs
are
fighJng
high
school
drop‐out
rates
and
fulfilling
the
 desperate
need
for
IT
professionals
by
offering
3‐4
month
IT
 courses
to
16‐25
year
olds
from
high
risk
areas.
Many
students
go
 to
these
programs
without
even
knowing
what
programming
(as
 a
word)
means!
They
get
into
these
programs
and
become
 fascinated.
The
drop‐out
rate
is
among
the
lowest
for
any
group,
 in
any
subject
area.
 67

• 68.
  In
September
2007,
the
Secretaria
de
Educacion
Pública
of
 Mexico
(Department
of
Public
EducaJon)
introduced
an
Open
 EducaJon
Pla„orm,
with
more
than
131
educaJonal
 establishments
in
the
country.
 More
than
131
public
insJtuJons
now
have
the
capacity
to
 educate
40
thousand
students
‐‐
thanks
to
the
use
of
new
 technologies.
These
new
virtual
classrooms
allow
students
to
go
 to
class
from
anywhere
at
anyJme,
the
only
barrier
is
the
need
 for
a
computer
with
Internet
access.

 68

• 69.
  The
study
revealed
an
interesJng
paLern
in
the
way
the
NDMC
 adopts
digital
media.
It
seems
to
occur
in
three
disJnct
phases.
 69

• 70.
  The
first
phase
is
Discovery
–
when
the
NDMC
understand
that,
 for
the
first
Jme
in
their
lives,
the
Web
puts
the
enJre
world
at
 their
fingerJps.
The
absolute
core
acJvity
during
this
phase
is
 social
media.

 70

• 71.
  The
highly
social
nature
of
LaJn
American
culture
plays
an
 important
part
in
the
rise
of
social
networks
in
the
region.
Along
 with
e‐mail
and
IM,
social
networks
offer
an
important
way
for
 users
in
the
region
to
stay
in
touch
with
friends
and
family,
both
 in
their
home
country
and
abroad.
The
heavy
penetraJon
of
 social
networking
in
this
region
is
also
playing
an
important
role
 in
facilitaJng
the
disseminaJon
of
other
types
of
Web
2.0
 content.
 71

• 72.
  Orkut
reaches
72%
of
all
Brazilian
internet
users.
In
April
2010
 Orkut
reached
30
million
daily
unique
visitors,
with
70%
of
its
 users
younger
than
34
years
old.
In
June
2010,
Orkut
had
60.7%
 of
all
the
visits
to
social
networks
in
Brazil.
 72

• 73.
  LaJn
America
loves
TwiLer,
with
Brazil
leading
the
world
in
the
 adopJon
of
the
pla„orm.
 73

• 74.
  Facebook
is
tremendously
popular
in
Mexico.
 74

• 75.
  Aher
the
“Discovery”
phase,
the
New
Digital
Middle
Class
begins
 to
understand
that
social
media
and
digital
technology
could
also
 be
the
primary
catalysts
for
entrepreneurship
and
financial
 advancement.
A
huge
percentage
of
NDMC
start
businesses
such
 as
Lan
Houses,
repair
stores
for
cell
phones,
IT
courses,
and
 reselling
of
consumer
goods
through
social
networks
and
instant
 messengers.
 75

• 76.
  Consider
Elizelma,
in
Sao
Paulo.
Four
years
ago
she
barely
knew
 how
to
use
the
Internet.
Today
she
uses
Orkut
and
MSN
as
a
re‐ seller
of
Natura
products,
the
Brazilian
leading
manufacturer
and
 marketer
of
skin
care,
cosmeJcs,
perfume
and
hair
care
products.
 Natura
has
an
"army"
of
more
than
1,500
women
selling
goods
all
 over
Brazil.
They
educated
these
women
in
the
use
of
the
web,
 and
as
a
result
they
increased
producJvity
and
diminished
all
sort
 of
errors
in
the
purchase
system.
Besides
doing
door‐to‐door
 sales,
Elizelma
sells
goods
through
MSN
(showing
clothes
in
the
 webcam)
and
uses
Orkut
to
display
for
the
cosmeJcs
and
 perfumes
she
sells.
 76

• 77.
  Unsurprisingly,
the
mobile
phone
is
not
only
the
lifeline
for
the
NDMC,
it
is
 increasingly
their
key
business
tool,
as
well.
And
when
the
cell
phone
 breaks
–
unlike
our
behavior
in
the
U.S.
–
they
don’t
simply
replace
it.
They
 take
it
in
to
get
it
repaired.
The
favelas
and
poor
commercial
areas
 throughout
LaJn
America
are
filled
with
Jny
repair
shops
like
this
one
in
 Mexico
City.
And
this,
in
turn,
has
spawned
a
secondary
industry
in
the
 training
of
people
to
perform
cell
phone
repairs.
This
Jny
“school”
offers
 basic,
intermediate,
and
advanced
training.
 The
Basic
module
takes
20
hours,
costs
US$
200.
 The
Intermediate
is
a
12
hours
course,
and
costs
US$
450.
 The
Advanced
take
8
hours,
and
costs
another
US$
400.
 At
the
end,
the
person
can
start
his/her
own
repair
shop.
It
is
a
huge
 investment
for
the
average
NDMC
person,
but
the
advanced
module
 assures
graduates
that
their
cell
phone
repair
business
will
have
at
least
a
 30‐40%
margin
(greater
than
drug
dealing).

 77

• 78.
  The
third
phase
of
digital
parJcipaJon
for
the
NDMC
is
called
 “TransformaJon,”
and
it’s
when
they
begin
to
use
digital
media
 and
tacJcs
to
influence
their
culture,
their
communiJes,
and
 their
poliJcal
landscape.
Digital
becomes
a
force
for
change.
 78

• 79.
  On
of
the
best
examples
of
this
occurred
in
Chile.
A
second
grade
student
named
Maria
 used
Facebook
and
SMS
to
organize
a
protest
against
the
educaJonal
policies
of
Chile’s
 president,
Michelle
Bachelet
and
the
educaJon
minister.
Maria
encouraged
all
the
 students
in
Chile
to
“Skip
School”
on
May
30.
600,000
students
protested,
making
it
the
 largest
student
strike
in
Chilean
history.
AuthoriJes
were
stunned
by
the
organizaJon
of
 the
protest,
now
widely
known
as
"the
march
of
the
penguins"
‐
in
reference
to
the
 protesters'
school
uniforms.
 Using
the
internet
and
cell
phones,
the
students
have
rewriLen
the
rules
of
dissent
 with
their
ability
instantly
to
organize
marches
and
make
collecJve
decisions.
The
 organizers
are
typically
very
young,
with
an
average
age
of
16,
and
their
support
goes
 all
the
way
down
to
11‐year‐olds,
who
organized
forums
and
debate
the
right
to
a
free
 educaJon,
turning
their
school
breaks
into
a
civics
lesson.
 Hundreds
of
colleges
were
occupied
and
classes
were
cancelled
for
up
to
10
days.
 Alliances
between
poor
students
at
state
schools
and
pupils
in
the
private
educaJon
 system
erased
the
usual
class
lines
that
mark
Chilean
social
protests.
 79

• 80.
  Mexico
has
also
used
digital
media
to
stage
major
poliJcal
 protests.
Just
this
year,
the
Mexican
government
wanted
to
 charge
a
3%
tax
on
Internet
services.
This
sparked
a
huge
social
 movement
–
ciJzens
used
social
networks
to
communicate
with
 each
other
and
directly
with
the
Senate,
asking
why
the
 government
would
charge
more
for
a
service
that’s
“essenJal”
to
 all
ciJzens.
 The
protest
occurred
almost
enJrely
in
TwiLer,
with
the
 #internetnecesario
tag.
“If
you
want
your
opinion
to
be
heard
use
 #internetnecesario.
You
are
the
Internet.”

 80

• 81.
  In
2007,
12
Brazilian
motorcycle
couriers
used
their
mobile
 phones
with
cameras
to
take
pictures
and
make
videos
of
bike
 and
car
accidents,
bad
road
condiJons,


poliJcian´s
promises
 that
never
come
true,
etc.
Everything
was
published
in
real
Jme
 on
the
website
www.megafone.net/SAOPAULO
with
tags
chosen
 by
these
city
chroniclers
of
São
Paulo.
The
project
was
later
 transformed
in
a
documentary.
 81

• 82.
  The
Ficha
Limpa
(Clean
Record)
Law
was
delivered
in
2010
to
the
Brazilian
 NaJonal
Congress
by
a
popular
iniJaJve,
requesJng
that
poliJcal
 candidates
found
guilty
of
commiˆng
serious
crimes
such
as
money
 laundering,
drug
dealing,
corrupJon,
use
of
public
funds
and
electoral
 infringements
be
forbidden
from
running
for
public
office.
 More
than
3
million
Brazilians
signed
an
online
peJJon
for
approval
of
the
 law.
When
some
poliJcians
in
the
Brazilian
Congress
–
not
interested
in
 passing
the
law
–
started
to
suggest
the
postponement
of
the
vote
on
the
 law,

more
than
41,000
e‐mails
were
sent
to
each
one
of
the
Brazilian
 Congressmen.
The
campaign
for
the
peJJon
was
done
through
e‐mail,
 TwiLer,
Facebook
and
Orkut.
In
fact,
Ficha
Limpa
became
a
top
TwiLer
 trending
topic
for
a
week
in
Brazil.
 Thanks
to
the
effort
done
by
digital
campaigners,
the
law
passed
through
 the
Brazilian
Congress
in
record
Jme
and
went
into
effect
in
October
of
this
 year.
 82

• 83.
  Mobile
is
a
key
trend
for
almost
any
social
class
in
almost
any
region
of
the
 world.
But
Razorfish
believes
that
there
are
some
unique
dynamics
playing
 out
in
mobile
among
the
NDMC
in
LaJn
America.
 Mobile
penetraJon
in
LaJn
America
and
the
Caribbean
was
approximately
 80%
in
early
2009,
well
above
the
world
average
which
was
about
58%.
 Several
countries,
including
ArgenJna,
Jamaica,
Uruguay,
 and
Venezuela
have
passed
the
100%
penetraJon
threshold.
 With
458
million
people
owning
a
mobile
phone
in
early
2009,
LaJn
 America
and
the
Caribbean
together
hold
approximately
12%
of
the
 world’s
3.97
billion
mobile
subscribers.
 83

• 84.
  The
NDMC
don’t
necessarily
want
smartphones
–
they
want
phones
that
 are
smart.

 The
cheap
and
awful
doesn’t
interest
them.
They
want
the
best
devices
 that
fit
their
lifestyle.
iPhones
and
BlackBerries
have
too
many
irrelevant
 features
and
funcJons,
and
they
would
probably
just
get
stolen.
 So,
instead
of
purchasing
low‐end
feature
phones
(like
simple
flip
phones)
 or
the
top
smartphones
in
the
market,
the
New
Digital
Middle
Class
looks
 for
a
specific
kind
of
product
that
meets
their
funcJonal
needs
and
also
 gives
a
lot
of
status
(another
big
concern
for
them):
the
Net‐phones.
 These
mobile
devices
look
like
the
best
smartphones:
they
are
touch‐ screen,
access
the
web,
have
an
aLracJve
design,
a
camera
with
lots
of
 megapixels,
radio,
mp3
player…
and
all
that
for
an
affordable
price.
Many
 of
them
also
have
built‐in
televisions.
 Some
great
examples
are
the
Motorola
CUBO,
the
Samsung
Star
and
LG
 Scarlet
and
the
Chinese
knock‐off
“iPhones”.
 84

• 85.
  85

• 86.
  LaJn
Americans
are
accessing
a
lot
of
social
media
and
 entertainment
content
through
the
mobile
web,
and
their
 potenJal
for
being
heavy
users
of
mobile
internet,
like
they
 already
are
for
tradiJonal
web,
is
huge,
but
there
are
two
major
 barriers:
 1.  Safety
–
Many
of
the
NDMC
live
in
neighborhoods
that
are
not
 enJrely
secure.
They
are
nervous
about
pulling
out
an
 expensive
phone
on
the
street
or
on
the
bus.
 2.  Cost
–
Data
charges
for
the
mobile
web
are
prohibiJvely
 expensive
for
most
members
of
the
NDMC.
 86

• 87.
  A
significant
percentage
of
the
NDMC
uses
phones
with
web
 access
capability,
but
only
a
fracJon
of
these
people
are
actually
 taking
advantage
of
this
capability.
The
data
plans
are
extremely
 prohibiJve,
pushing
the
Middle
Class
away
of
the
mobile
web.

 SOURCES:
 May
2009
Report
About
Habits
of
the
Mexican
Internet
Users
by
 AMIPCI;
 and
2009
Survey
on
the
Use
of
the
ICTs
in
Brazil
by
NIC.br.
 87

• 88.
  Again
and
again
we
have
seen
how
the
NDMC
is
really
creaJve
in
 solving
their
financial
dilemmas.
The
mobile
web
is
another
 example.
The
NDMC
are
heavy
users
of
Bluetooth
technology
to
 circumvent
carrier
charges
and
share
content
with
each
other.
 Movies,
games,
MP3s,
videos
–
if
it
can
be
shared,
the
NDMC
will
 be
sharing
it
by
Bluetooth.
This
occurs
from
phone
to
phone,
and
 also
from
phone
to
PC.
Bluetooth
is
the
pla„orm
of
choice
for
the
 NDMC.
 88

• 89.
  This
photo
is
from
one
of
the
dozens
of
booths
outside
the
main
 train
staJon
in
Mexico
City.
But
it
could
just
as
easily
have
been
 from
any
of
the
commercial
districts
in
any
of
the
poor
 commercial
areas
in
the
favelas.
These
booths
sell
any
Hollywood
 movie
or
PlaystaJon
Game
you
can
imagine
for
5‐10
pesos
–
all
 transferred
on
the
street,
via
Bluetooth.
 89

• 90.
  Transfercel
is
a
debit
card
Jed
to
a
cell
phone
applicaJon.
The
 company’s
target
are
Middle
Class
Mexicans
who
can’t
have
a
 bank
account,
and
Mexicans
living
in
the
US
who
want
to
transfer
 money
to
their
families
back
in
their
home
country.
The
users
can
 transfer
money
through
the
applicaJon
at
US$
5.00,
instead
of
 paying
the
usual
$35
for
the
bank.
The
Transfercel
card
is
not
Jed
 to
any
bank,
and
it
requires
users
to
press
only
2
keys
on
their
cell
 phones.

 90

• 91.
  Women
are
the
CTO,
CFO,
and
generally
early
adopters
of
New
 Digital
Middle
Class
household.
 NDMC
women
are
hard
workers
who
usually
have
more
than
one
 job
and
are
also
responsible
for
the
finances
at
home.
Because
of
 that,
they
are
the
ones
who
make
the
purchasing
decisions,
 including
the
tech
products
for
their
homes.
They
understand
the
 power
of
digital
to
improve
their
quality
of
life
through
access
to
 informaJon
and
educaJon,
to
change
their
children's
future
for
 the
beLer,
and
to
be
a
tool
for
entrepreneurism
and
generaJons
 of
new
income.
 91

• 92.
  All
across
LaJn
America,
women
have
achieved
parity
with
men
 in
their
access
to
digital.
 (SOURCES:
Amipci
‐
Internet
Users
2006,

Amipci
‐
Internet
Users
 2009,

Ibope
Net/RaJngs
September
2006,

Ibope
Net/RaJngs
 April
2010,

D’Alessio
ArgenJna
IROL
Internet
en
la
ArgenJna)
 92

• 93.
  Retailers
–
both
online
and
offline
–
understand
that
women,
not
 men,
are
the
main
drivers
of
purchasing
decisions.
This
flies
in
the
 face
of
many
paternalisJc
stereotypes
of
LaJn
America.

 93

• 94.
  Even
more
interesJngly,
in
Brazil
women
are
substanJally
more
 entrepreneurial
than
men.
Again,
this
data
runs
completely
 contrary
to
convenJonal
wisdom
about
the
role
of
women
in
the
 culture.
 94

• 95.
  The
Internet
plays
a
huge
role
in
the
lives
and
self‐percepJon
of
 women.
They
view
the
Web
as
not
only
as
a
beLer
source
of
 entertainment
than
“old
media,”
but
also
the
primary
means
of
 tangibly
improving
their
lives
and
the
lives
of
their
families.
 95

• 96.
  So
one
of
the
larger
messages
of
this
study
 is
the
central
role
of
women
in
the
digital
 evoluJon
of
the
NDMC.
The
beaJng
heart
 of
the
New
Digital
Middle
Class
is
female.
 Women
are
breaking
down
the
generaJon
 gap
and
bringing
down
the
digital
divide
by
 acJvely
using
the
Web
and
being
the
 primary
economic
engine
of
the
emerging
 classes.
 96

• 97.
  At
last,
we
return
to
the
test
from
the
beginning
of
the
report.
If
 you
are
like
most
people,
and
if
you
were
truthful
to
your
 insJncts,
you
probably
assumed
that
the
“most
digital”
group
was
 the
people
on
the
right
side
of
this
photo.
It
would
be
a
 reasonable
assumpJon.
But
Razorfish
hopes
that
now
you
might
 be
willing
to
adjust
your
beliefs.
 97

• 98.
  Should
you
have
quesJons
or
comments,
please
feel
free
to
drop
 me
a
line.
 Joe
Crump
 Senior
Vice
President
of
Strategy
and
Planning,
Razorfish
 joe.crump@razorfish.com

 98

• 99.
  This
study
could
not
have
been
possible
without
the
support
of
 our
good
friends
at
Terra,
the
largest
digital
communicaJons
 company
in
LaJn
America.
We
are
grateful
for
their
conJnued
 friendship.
 99