Consumer Discretionary

Home Improvement Industries In The Brazilian Market

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<p style="text-align: justify;">After a real &ldquo;boom&rdquo; in sales during the pandemic, with the population restricted to their homes and the need for many adaptations and improvements in their homes. Many things in the post-pandemic came to stay, among them; Hybrid work, the home office, the adoption of e-commerce purchases (even by generations more resistant to this type of purchase), and the adoption of Do-It-Yourself, among others.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Adoption of DIY</span></h2><p style="text-align: justify;">Like the rest of the world, Brazilians adopted the &ldquo;new normal&rdquo; and had to dedicate a large part of their budget to improving their homes. Along with purchasing products in this new scenario, professional installers were needed. This high demand increased the cost, which was not very high here (compared to North America and Europe). Due to the high cost of hiring professionals, many were forced to adopt DIY, something not very common for Brazilians until then.</p><p style="text-align: justify;">However, in addition to the economy, many Brazilians discovered their passion for DIY, expanding their interest, passion, and pleasure in doing it themselves. Because of this, there is a new trend with a robust implementation of new tool rental stores, and the demand for tools and products in the DIY concept increased by 36% in 2020 compared to 2019 (National Brazilian Association of Traders Building Materials).</p><p style="text-align: justify;">In this sense, when we compare many product categories and read the range of many categories here and compare with the main players in North America and Europe, there is a big difference in the numbers of references and product options, leading many Brazilians to make international purchases of these items over the internet (via major e-commerce platforms).</p><p style="text-align: justify;">With a population of 207 million inhabitants and being the 10th largest economy in the world, there is still a large housing deficit to be resolved. Furthermore, with this new Brazilian passion for DIY and a market estimated at 30 billion dollars, I see countless opportunities for many industries to watch Brazil as a promising market and a great business opportunity.</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/jose-luis-s-487b904b/" target="_blank" rel="noopener">Jose Luis Scaglia</a></em></span></p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Jose Luis Scaglia</span></h3><p>&nbsp;</p><h2><span style="font-size: 12pt;">1. What is the size of the global do-it-yourself (DIY) home improvement retailing market? </span></h2><p><span style="font-size: 12pt;">It is estimated to have a market of around US$ 800 billion in 2022. A large concentration of this market is found in North America and Europe. However, the biggest growths are found in Asia-Pacific and Latin America.&nbsp;<br /></span></p><p>&nbsp;</p><h2><span style="font-size: 12pt;">2. Which segment has the largest share in the do-it-yourself home improvement retailing market? </span></h2><p>Most market segments are:</p><ul><li>Painting</li><li>Tools and hardware</li><li>Building materials.&nbsp;</li></ul><p>But, the biggest growth is in kitchens, bathrooms, gardening, and decoration due to the greater attachment to homes, whether due to the need for renovation or adaptation or pleasure, since people started to spend more time in their homes (work-from-home, hybrid work) after the pandemic. These participations can vary from region to country due to climate, seasons, and home-building and decorating cultures.&nbsp;</p><p>&nbsp;</p><h2><span style="font-size: 12pt;">3. Why is the home improvement industry growing? </span></h2><p>After the pandemic, there was an increase in the DIY market due to the adaptation of improving homes, like painting, tools, hardware, home storage and organization, home safety products for people, gardening, kitchen accessories, bathroom accessories, etc. Faced with this need, I see that many Brazilian consumers have joined DIY in the post-pandemic and discovered that it could be economical, funny, and pleasurable</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Jose Luis Scaglia

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