Brazilians and Luxury Brands

We were interested to read on the BBC Brasil site this week that according to recent research Armani (37%) and Christian Dior (28%) are the luxury brands most desirable amongst Brazilians consumers. On face value of some interest to know more about the aspirations of consumers in a time of economic growth. However as the research itself highlighted only 18% of Brazilians purchase luxury brands. Thus the value of brand naming amongst a consumer base with limited brand or product encounter is questionable. More interesting perhaps was the finding that only 36% of Brazilians believe that luxury brands offer the assurance of a better quality product and 13% that fake products were of the same standard as the original. Furthermore 75% of respondents stated that brands exaggerated their prices. All of which made the comments of Nielsen President Patrick Todd slightly confusing…”the appeal of luxury brands continues to grow – a famous brand is simply something that consumers, especially in emerging economies, are prepared to pay a higher price for”.