Political instability and the deterioration of macroeconomic indicators have placed Brazil in a deep recession that is taking longer to recover than expected. The prosperity seen a few years ago has ended, and since then consumers have seen their financial situations worsen significantly. This report describes this current scenario as the New Normal. In this scenario, consumers are making important changes to their lifestyles and purchasing habits, cutting back on a number of items/services and trading down to less expensive brands. Companies must accept this “New Normal” and face the repercussions on their current businesses and future goals.

This New Normal scenario also provides opportunities, and companies that are ready to understand the recent changes in consumer attitudes and adjust to them will likely succeed.

This Report explores the impact of the current economic situation of the country on consumer lifestyles. It identifies how Brazilians describe their current financial situation and the changes they have made to these as a result of the recession. It also identifies the categories they would cut back from their spending first and what they are interested in doing to save more.