Covering a geographical area with the size of the United Kingdom and hosting a population which numbers exceed those of Argentina and Canada (42 million), the State of São Paulo is home to Brazil's largest consumer market, thanks to the population's socioeconomic status and having a GDP per capita that is 50% more than the national average and, consequently, offering access to more sophisticated consumer goods.
According to the Brazilian Institute of Geography and Statistics (IBGE) and IPC Marketing, the population of São Paulo concentrates a consumer potential of US$ 390.5 billion, with an average GDP of US$ 16,923 per capita, whereas 30% of the total population represent an average GDP of US$ 8,462 (2012).
According to the Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (Sebrae – Brazilian Micro and Small Business Support Service), five key factors have been driving the growth of the consumer market:
- The significant growth in the purchasing power of the social class "C";
- The homosexual population accepting their sexuality and revealing a consumer profile dedicated to their tastes and needs;
- Increased consumerism amongst youths;
- More women in the labor market;
- Growth of the aging population.
Sebrae believes that the key niche in the consumer market is the "C" class and its significant growth in purchasing power. Individuals in this class do not limit their spending to necessary items only; they are interested in buying quality products. The sectors receiving most investment from this class are technology and education.