BRAZIL – Aiming to strengthen the focus on the new middle class, Movelsul Brasil, the largest furniture and accessory fair in Latin America, expects an increase in the purchasing power of its target audience. The forecast is that the 19th edition of the fair, held by the Furniture Industry Association of Bento Gonçalves (Sindmóveis), will generate business worth US$ 300 million over a period of 12 months. Scheduled for March 24-28, 2014, the event takes place in Parque de Eventos in Bento Gonçalves.

In 2013, Brazilian spending on furniture totaled R$ 50 billion, almost half of it -R$ 23 billion – was made by the middle class. According to the Instituto Data Popular, the regions that most spent were the Southeast, accounting for R$ 23 billion, followed by the Northeast, R$ 10.3 billion. The northeastern and southeastern states also appear in the survey as those which intend to make more purchases over the next 12 months. The study also shows that 19 million middle class Brazilians wish to buy furniture this year.

Among those who have already bought furniture, 85% say they prefer larger stores. When choosing a product, 49% of the middle class takes into account the price and quality, and credit card and cash are the preferred method of payment.  Income is directly related to the style of furniture that people most want. The lower the wage is, the greater is the preference for modern style. Based on this information, the Northern and Northeastern regions are the ones that most want to buy contemporary articles.

Movelsul Brasil has been focusing on the new middle class since its last edition in 2012. According to the president of Sindmóveis, Henrique Tecchio, manufacturing companies that have also bet on this new market are already seeing results. In 2013, manufacturers of low-end furniture were the fastest growing in the industry, while companies that make customized furniture struggled not to finish the year in the red.