Brazilians are more willing to spend on Father’s Day gifts
Brazilians are more willing to buy Father’s day gifts this year. After interviewing 1,854 people, the Consumer Survey by FGV’s Brazilian Institute of Economics (IBRE) revealed a recovery compared to 2016. The study gauges whether respondents are thinking of spending less, the same amount, or more compared to the previous year when purchasing gifts for Father’s Day.
According to the survey, consumer intent to buy leaped 18.7 points, from 58.0 to 76.7 points. The ratio of consumers who intend to spend less dropped 13.5 points, from 45.2% to 31.7%. On the other hand, the number of people who intend to spend the same amount rose 8.2 points, from 51.6% to 59.8%.
“The result shows that there was a post-crisis recovery in the indicator that measures consumer intent to buy. However, the biggest change is the increase in the ratio of people who migrated from the negative ‘spend less’ response to the neutral ‘spend the same’ response”, said Viviane Seda, Coordinator of the IBRE’s Consumer Survey.
However, when analyzing the average gift amount, the economist saw a decrease in the average spending from BRL 110 to BRL 105 between 2016 and 2018 – down 5.2%. Respondents with family income above BRL 9,600 tended to be more conservative – the average spending in this range dropped from BRL 165.50 to BRL 153.50 (-7.2%). The range of families who earn between BRL 2,100 and BRL 4,800 had the highest accrued drop since 2015, around 22%.
“The survey shows that consumers are more cautious when spending. This is attributed to greater uncertainty, the sluggish economy, and the job market’s recovery, in addition to the high level of indebtedness”, said the economist.
Clothes and accessories are the main choices of 72.8% of respondents, followed by perfumes and cosmetics (9.2%). Footwear and books are the preference of 4% of Brazilians, while home appliances and electronic products accounted for 2.8%. The number of undecided respondents leaped from 11.8% in 2016 to 24.1% this year. A positive data point was that the percentage of respondents who are not buying gifts for Father’s Day dropped significantly – from 45.9% in 2016 to 9.1% in 2018.
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