THE

PRODUCT
MINDSET
2013

CONSUMERS

MANUFACTURERS

BRAZIL REPORT
MANUFACTURERS

THE
PRODUCT
MINDSET
2013
The Product Mindset is an annual study created to better understand manufacturer and
consumer concerns and priorities about the products they make, sell, buy and use. Now in
its third year, the study is broader in scope and more nuanced in its findings. With Brazil
added in 2013, this years study covers four continents and defines the collective mindset
based on data from five of the worlds top 10 largest economies. The 2013 study has also
been expanded to further explore emerging issues related to the supply chain and human
health, both of which yield interesting findings relative to Brazil. We hope you find this
report informative and thought provoking.

UL is a premier global independent safety science company with more than 118 years of
history. Building on our product safety heritage, we created The Product Mindset to
help businesses better understand the growing concerns and priorities of your diverse
constituents and peers. The studys insights can provide a platform for you to consider how
you think, plan and deliver in todays complex product ecosystem.

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 2

THE BRAZIL REPORT

This report focuses specifically on the context, findings and

the U.S. This report should be viewed as complementary to The

rankings that define the mindset in Brazil, highlighting the

Product Mindset 2013 full report, which contains the complete

areas where Brazilian manufacturers or consumers differ

set of key global findings.

significantly from their peers in China, Germany, India and

AUDIENCES

306 - BRAZIL

302 - BRAZIL

MANUFACTURERS

CONSUMERS

1,521 - GLOBAL

1,528 - GLOBAL

Director-level executives specializing in

management, research and development,
marketing and sales, quality control, sustainability,
product management or design

A representative mix of age, gender,

education and income

TABLE OF CONTENTS

CONTEXT 4
FINDINGS 7
RANKINGS 16
MORE PRODUCT MINDSET 19
ACKNOWLEDGMENTS & METHODOLOGY 20

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BRAZIL: CONTEXT

Despite Brazils advancement and worldwide recognition,

more complex. A point of difference is that

the mood in the country appears to reflect a more

manufacturers in Brazil are much more open than

restrained optimism. Brazils economic growth outpaced

their global counterparts in expressing a need

the global average by more than three times during the

for across-the-board business improvements.

early years of the economic crisis (2008-2010) but has

slowed the past two years. 1 Brazil is now the seventhlargest economy in the world 2 and will celebrate the
2014 World Cup and 2016 Olympic Games, making it
the powerful focus of the global stage.

Consumers are positive about the improving product

quality in Brazil although less so than consumers
in other emerging economies. Additionally, the vast
majority of Brazilian consumers desire more stringent
governmental regulation of manufacturers. This may

Today, Brazilian manufacturers exhibit a more

be linked to the serious concerns these consumers

realistic outlook. They are significantly less global in

express about the environment and to their overall

their sourcing than manufacturers are in developed

growing sophistication.

economies, but their industries are fast becoming

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 4

CONTEXT

BRAZIL: GLOBALIZATION

Brazil is less globalized than developed nations today, particularly relative to sourcing, which translates
into less complexity; however, there are signs that Brazil is rapidly becoming more global and complex

Significantly fewer Brazilian manufacturers operate globally, but the vast majority see the benefit of it

64

SAY: They operate

multinationally,
significantly below the
current global level (78%)

89

AGREE: Global sourcing is a

means to improve product
quality, which is significantly
above the global average (78%)

Distribution/Sales is Brazilian manufacturers most global function today, which is on par with the global average
(61%) globally, sourcing is the most common multinational function (70% of manufacturers), and here Brazil lags
Percentage of manufacturers that operate
multinationally in the following areas:
62% | DISTRIBUTION/SALES
52% | SOURCING
42% | MARKETING/PROMOTION
37% | MANUFACTURING

Significantly more Brazilian manufacturers

than the global average (48%) state they will
increase global sourcing over the next five years...

57

...and they are 56% more likely than global manufacturers

to source from new countries

39

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 5

CONTEXT

BRAZIL: MOOD

Brazilian consumers feel better about product quality but still want to see more regulation of manufacturers

Brazilian consumers believe product quality

is better than it was five years ago...
DEVELOPED

50%
59%
61%
79%
88%

EMERGING

...but the vast majority of them desire more stringent governmental regulation

DEVELOPED

EMERGING

53%

63%

Similar to manufacturers around the world, those

in Brazil already feel stringently regulated...
83%

86%

86%

87%

88%

79%

81%

92%

...but they are significantly more likely to see a need

for improvement across 13 business success measures

94

Cost
Ethical Sourcing
Env. Friendly Manufacturing
Env. Friendly Products
Health Impact

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 6

13 measures:
Innovation
Performance
Quality
Reliability
Safety

Speed to Market
Traceability
Transparency

BRAZIL: FINDINGS

The findings identify the key considerations where Brazil

of products are all areas where Brazilian manufacturers

stands apart from China, Germany, India and the U.S.

and consumers differ from their peers. Highlighting these

Manufacturer improvements, the environment, the impact

differences helps us understand what is distinctive

of environmental products, Quality, supply chain

about the Brazilian mindset.

Transparency, Country of Origin and the Health Impact

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 7

BRAZIL STANDS APART

Across 13 business success factors, Brazilian manufacturers express
a far greater need for improvement than do manufacturers in
other countries, which may reflect a higher degree of openness
about their issues, pessimism about their prospects or need
relative to their competitiveness

64

GERMANY | 42%

see a need for

improvement

CHINA | 41%
INDIA | 40%
USA | 35%

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 8

BRAZIL DESIRES PROGRESS

The environment has continued to advance as a priority in Brazil; however,
consumers seem to doubt the intentions of manufacturers in terms of their
commitment to environmentally friendly products and manufacturing procedures

RANK

MOST
IMPORTANT
RISING PRIORITY

RANK

MOST
IMPORTANT
RISING PRIORITY

48% of Brazilian consumers 26% more than in other countries

dont think manufacturers are doing enough in terms of environmentally
friendly manufacturing procedures or products

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BRAZIL THINKS ENVIRONMENT

Only in Brazil do consumers see the environment as the most
important impact of environmental products

59

BRAZILIAN CONSUMERS AGREE:

Impact on the environment is more important
than the impact to human health

CHINA | 79%
GERMANY | 62%
INDIA | 60%
USA | 64%

CONSUMERS AGREE:
Impact to human health is more
important than the impact on the environment

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BRAZIL WANTS TRANSPARENCY

Gaining visibility into all aspects of the supply chain
is a Rising Priority that is more important in Brazil

+30

BRAZILIAN CONSUMERS:
Are significantly more likely than their global peers
to agree that manufacturers do not provide sufficient
transparency into their supply chains

YET

87

BRAZILIAN MANUFACTURERS AGREE:

Internal and external stakeholders are increasingly
demanding supply chain transparency, which makes
them significantly more likely than their counterparts
in other countries to agree

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 11

BRAZIL WANTS REAL QUALITY

Although it is the most important manufacturer and consumer priority
in Brazil, Quality appears to be an area where as in the rest of the
world there is a sizable gap in consumer confidence

93

BRAZILIAN MANUFACTURERS BELIEVE:

Product quality is important, making
it their No. 1 overall consideration

VS.

53

BRAZILIAN CONSUMERS BELIEVE:

Manufacturers use the lowest-cost materials
in their products regardless of quality

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BRAZIL FOCUSES ON COST

Cost/Price is a critical consideration for Brazilian manufacturers on
par with those in the developed economies and significantly more
important than it is to manufacturers in the other emerging economies

93%

95%

DEVELOPED

EMERGING

79%

85%

92%

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 13

BRAZIL AGREES ABOUT ORIGIN

Outsourcing/Country of Origin, which takes into account where
products are made, is an area of growing awareness where there is
significant alignment between Brazilian manufacturers and consumers

78

of both groups agree that consumers are aware of the Country

of Origin, which is significantly higher than the global averages
for manufacturers and consumers

AND

82% of manufacturers and 67% of consumers believe

that its important to know the Country of Origin

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BRAZILS HEALTH IMPACT GAP

In Brazil, consumers see a critical need to improve the Health Impact of
products, but manufacturers dont see this as an improvement priority

1
2
3
4

#
VS.

2
3
4
5
6

RISING PRIORITY
FOR IMPROVEMENT

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 15

RISING PRIORITY
FOR IMPROVEMENT

BRAZIL: RANKINGS

This year, our research revealed insights that resulted

Rising Priorities are newer factors that are becoming

in a new way to classify the complex and growing

increasingly critical in todays marketplace, including

considerations facing manufacturers and consumers

supply chain transparency and making environmentally

today. We divided them into two categories to

friendly products. The Rankings highlight both what

compare like-minded issues. The Fundamentals are

Brazilian manufacturers and consumers prioritize and

the most important factors driving behavior, including

how their priorities differ from those of their peers

considerations such as quality and product safety. The

around the world.

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 16

RANKINGS

BRAZIL: FUNDAMENTALS
The Fundamentals are the essential considerations that are the primary
drivers of manufacturer success and consumer choice
global average

brazil

FUNDAMENTALS

IMPORTANCE:

IMPROVEMENT:

(PRIMARY DRIVER OF
SUCCESS/CHOICE)

(AREA MOST IN NEED OF

ENHANCEMENT)

most to least

most to least

Quality
Cost/Price
Innovation
Reliability
Product Safety
Performance
Speed to Market/Newest Features

OBSERVATIONS
In terms of how Brazilians rank the Importance of the

Brazilian manufacturers and consumers are closely aligned

Fundamentals, manufacturers and consumers are more

on Improvement, but there are two key differences relative

closely aligned than are their global counterparts.

to their global peers:

Cost/Price is a more important consideration to both

Brazilian consumers place greater emphasis on improving

Brazilian manufacturers and consumers than it is to

Cost/Price, which reflects the overall importance of this

the rest of the world.

consideration in Brazil.

Innovation is not as important to Brazilian

Brazilian manufacturers and consumers place much

manufacturers as it is to their global peers.

less emphasis on Product Safety than do their global peers.

Performance is not as important to Brazilian

consumers as Reliability, which is the opposite of how

global consumers prioritize these considerations.

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 17

RANKINGS

BRAZIL: RISING PRIORITIES

The Rising Priorities are emerging considerations that are increasingly
important to both manufacturers and consumers
global average

brazil

RISING PRIORITIES

IMPORTANCE

IMPROVEMENT:

(PRIMARY DRIVER OF
SUCCESS/CHOICE)

(AREA MOST IN NEED OF

ENHANCEMENT)

most to least

most to least

Environmentally Friendly Manufacturing

Health Impact
Environmentally Friendly Products
Transparency

N/A
N/A

Outsourcing/Country of Origin

N/A
N/A

Traceability

N/A

Ethical Sourcing

N/A

N/A

N/A

OBSERVATIONS
Relative to Importance, Brazilians closely mirror the

Brazilian manufacturers prioritize Outsourcing/Country

rest of the world in their rankings of Rising Priorities.

of Origin, Traceability and Ethical Sourcing much more

than do their global peers.

In terms of Brazilian Improvement priorities, however,

there are a number of substantial differences:

Brazilian consumers see Improvement in Traceability and

Ethical Sourcing as low priorities, which is consistent with

There are large gaps between Brazilian manufacturers

their global counterparts. This creates gaps with Brazilian

and consumers in Health Impact and Environmentally

manufacturers who emphasize Improvement in these

Friendly Products because Brazilian manufacturers do

areas over Health Impact and Environmentally Friendly

not prioritize the Improvement of either consideration.

Products, which are much more important to consumers.

THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 18

MORE PRODUCT MINDSET

This year, we have made the results of The Product Mindset more interactive. An online data visualizer will enable you
to explore and compare the information in meaningful ways. We will also field questions and comments from our many
subscribers around the world and engage in dialogue through social media channels.

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FURTHER INFORMATION
Visit: www.ul.com/productmindset
Email: productmindset@ul.com
Call: +1 847.664.2226
THE PRODUCT MINDSET 2013 - BRAZIL COUNTRY REPORT | 19

ACKNOWLEDGMENTS
EXECUTIVE EDITOR
Suzanne Lavin, Vice President, Corporate Marketing
This study was concepted and created in partnership with

METHODOLOGY
During the winter of 2012 and spring of 2013, UL employed an independent research
firm, ORC International, to conduct a global quantitative survey among 1,528 consumers
and 1,521 manufacturers across five countries: Brazil, China, Germany, India and
the United States. The two samples each have a margin of error of 2.5% at the 95%
confidence level. To meet the objectives of the survey, manufacturers across the hightech/consumer electronics, food, home building materials and smart appliances sectors
were interviewed by phone, and consumers were interviewed through an online survey.
Manufacturers were director-level executives specializing in management, research and
development, marketing and sales, quality control, sustainability, product management
or design. Consumers were a representative mix of age, gender, education and income.
Data tabulations among subgroups have been tested for statistical significance at the
90% and 95% confidence levels. Considerations in The Product Mindset were selected
based on the importance and overall significance of the data.
All reported differences are statistically significant at the 90%+ confidence level,
unless otherwise noted. Also note that agree and believe denote a 6+ rating on a
10-point scale.

SOURCES
1. GDP Growth, The World Bank, 2013. Web: 3 Nov. 2013. http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG. 2. GDP
Ranking, The World Bank, 2013. Web: 3 Nov. 2013. http://data.worldbank.org/data-catalog/GDP-ranking-table.

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