“Brazil’s children products market has become one of the most attractive markets in the world” | Key4Communications |

Brazil, one of the major emerging economies of the time, will host the first edition of the UBM baby care trade show Children-Baby-Maternity Expo South America (CBME South America), to be held between 27 and 29 August 2013 in the city of São Paulo. More than 15 million children under 4 years and nearly three million annual births, according to United Nations data, turn Brazil into a promising market for child-related industries.

Why is UBM working to organize a baby care trade fair in Brazil?
Brazil’s children products market has become one of the most attractive markets in the world in recent years. With 38 million children, Brazil’s baby children market is booming. This boom is driven by the rise of the middle class and an increase in its purchasing power. There have been numerous investments from children and baby products worldwide companies into Brazil.

What is the approximately business volume generated by the childcare industry in the country? Will it grow or will it decrease?
A fast growing middle class and highly favorable demographics put the country at the top of the ranking of markets with largest growth potential. The Brazilian market for baby and children products generates U$50 billion (EUR 38.34 billion) per year, and grows at an average of 14% a year. The baby and child care market is ranked as the second largest consumer market in Brazil.

What are the most commonly purchased childcare articles?
Everything surrounding the children and baby product market in Brazil is constantly growing. Strollers and car seats have grown considerably in the past years, as the law dictates that car seats are mandatory in Brazil. Baby care and cosmetics segments are expected to experience large growth in the future years.

The amount of money that families spend on childcare articles, is increasing or decreasing?
According to the Brazilian Institute of Geography and Statistics (IBGE), around five babies are born per minute in Brazil. Taking into consideration the Brazilian market research, a middle-class family spends about US$ 3,000 (EUR 2,300) a year on baby clothes in the first year of a child’s life alone. Taking into consideration the country´s economic growth, this is expected to increase significantly in the next years.

Which are the latest market trends of the childcare industry in the country?
Sustainability is a global trend affecting every aspect of brand and product development. Going natural (like organic food, clothes made of natural fibers, etc.) and alternative therapies are some of the trends also affecting the baby and children products industry.
 
Which are the strengths of the childcare market in Brazil?
Investment in the retail sector and the connection to a public that seeks innovation and design are strengths of the current market. The megastore model, where customer used to find all kinds of baby products in only one place, gave way to specialized companies such as furniture, clothing and accessories specialized stores. This new shape of business is making the children´s market grow in all regions of the country, offering a distinguished service with a great value added to the product.

And its weaknesses?
Some challenges in this industry are the high import taxes and bureaucratic process affecting the approval of children's products. Many companies have the impression that entering the Brazilian market is challenging and next to impossible. However, this can be overcome with huge success with patience, hard work, the right product and the right local partner. Brazilian entrepreneurs are faithful and cherish lasting partnerships, which in the long run, makes business profitable.

How will the childcare market evolve in the country?
There’s not a better time to enter this market but now! The market for maternity, babies and children products and services is developing rapidly. For this reason, Brazilian manufacturers and suppliers are aware of this opportunity and they want to grasp and take hold of this niche market. They are now increasingly focused on launching specialized stores and offering products and services capitalizing on this market.