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VIRGINIA FONSECA COSTA

International Marketing

Virginia is rated one of the fastest-growing influencers in Brazil and a very successful YouTuber and businesswoman. C She grew to popularity thanks to her beauty content, where she shares her daily routine, vlogs, DIY projects, and tags with challenges. C On 27th April 2016, only one day after Virginia started her channel, she released her first-ever YouTube video, “Cheguei no YouTube”, which gained over 2.2 million views and more than 185,000 likes. 7 Years later and she is the number most followed brazilian influencer. With Brazil ranking as the third-largest market for cosmetics in the world… how and why is Virginia Fonseca Costa a high-status opinion leader in Brazil? So if Virginia has such a major influence in Brazil and their personal care market, why was her most recent product met with so much backlash?

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HISTORY OF SOCIAL CLASSES

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Colonization Of Brazil

social class was primarily determined by one's ancestry and position within the colonial administration.

Early 20th Century

led to the emergence of a new middle class through industrialization and urbanization

Economic Boom In the 60s and 70s

rapid economic growth and urbanization, which led to the emergence of a new upper class of wealthy businesspeople and professionals.

Throughout its history, Brazil has been shaped by a complex social hierarchy, with individuals' social status often determined by factors such as ancestry, occupation, and economic standing.

During the colonial period, social class in Brazil was primarily determined by one's ancestry and position within the colonial administration. This meant that individuals with European ancestry and high-ranking positions within the colonial government were typically considered to be of a higher social class than those of mixed-race or African descent.

In the early 20th century, Brazil experienced significant industrialization and urbanization, which led to the emergence of a new middle class. This was a significant shift, as the country's social structure had previously been dominated by a small elite class of wealthy landowners and aristocrats.

In the 1960s and 70s, Brazil experienced a period of rapid economic growth and urbanization, which led to the emergence of a new upper class of wealthy business people and professionals. This new elite class was characterized by their wealth and status, with many members displaying their affluence through their clothing, homes, and other status symbols.

Despite these changes, social class in Brazil remains a complex and stratified system

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BREAKING DOWN THE UPPER CLASS

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Portuguese Influence

Corporations and Manufacturing assets

Plantation Lords

Slavery established as Elite Class

Present

Influencer’s now are lighter skinned and owners of businesses

The effects from Portuguese influence can be seen in the culture through Brazil’s respect towards the elite who are usually lighter skinned. These elite now tend to also hold positions of power through corporations and ownership of manufacturing assets. This can be traced back to the Portuguese empire that sent colonists to South America and Brazil for the hopes of trade. The elites were established during this time to center around the Plantation Lords. The plantation lords typically were typically white and were seen as the one to serve as they held the most profit from the trade, they also did not see death as a bad thing with regards to their darker skinned slaves, but more as a means to an end in trying to make a profit. Through colonialism of the country, the elite became the richer lighter skinned portuguese who had the resources and influence from their trade to Portugal instead of the natives of Brazil. This is how we can see the lingering effects on the culture by observing who holds the power now. The elites presently in Brazil remain to be the lighter skinned rich and business owners. With being an elite, this gives influence to, for example, Virginia Fonesca Costa.

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SOCIAL CLASSES TODAY

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Lower And Middle Class Gap

financially similar to each other

Middle Class Perception

want to be elite and present a lifestyle with characteristics of exclusivity

Upper Class Beliefs

lifestyle of luxury and extravagance

There are several different concepts of social classes in Brazil, but the one that is most widely adopted by the market classifies society in letters from A to E

the lower and middle class gap are considered to be financially similar to each other - separated by only a few dollars. This leads the middle class to try and differentiate themselves from the lower middle class in an attempt to climb the ladder. The middle class mirrors these elite as a possibility for social ascension because they PERCIEVE themselves to be upper class. As a marketer, this is perfect as the middle class makes up the majority of the population and they are willing to buy specific products that build an elite identity, such as clothes, cars, watches and jewelry with brands favored by the upper classes.

As for the upper class, The upper class has been criticized for its role in perpetuating social and economic inequality in Brazil, with many critics arguing that their wealth and influence are a result of historical and systemic inequality, rather than individual merit.

Despite this criticism, the upper class remains a significant force in Brazilian society and culture, with their influence felt in everything from politics to fashion and entertainment.

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VIRGINIA FONSECA COSTA

International Marketing

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VIRGINIA FONSECA COSTA

International Marketing

So where does Virginia Fonseca Costa fall in the pyramid?

With the combination of her C instagram followers she is the #1 most followed influencer in Brazil. CHer husband Ze Felipe is also a well known singer and music producer with 26 million followers on instagram making them the IT couple of Brazil. Her well curated social media presence lets everyone know that she is elite with pictures of C private planes, C sunbathing on a yacht, C jet skiing, C designer glasses, C and more. on top of all this, C when we compare her engagement rate with the #2 and #3 most followed influencer on instagram we see Virginia engagement rate is significantly higher with neither of them coming close to her. Her most profitable claim to fame in the beauty industry would be her C makeup company WePink that she started in 2021. According to forbes, the brand has earned 32.3 million USD since its launch and has a revenue target of 46 million USD by 2023. At 23 years old Virginia has dominated the beauty industry as the “it girl” to follow and has created an empire with her company WePink, her personal marketing agency, and her beauty clinic. With the middle class intent on buying products but also saving money Fronseca got in some hot water when people believed her product release was unaffordable. Brazil’s middle class strong desire to save their hard earned money drove Virginia to her prices and increase sales.

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BRAZILIAN BEAUTY MARKET

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Culturally, beauty and personal care are very important in Brazil, which leads to a high consumption of hygiene-related products and fragrances. Brazilian personal care industry grew to US$1.5B in 2022. Furthermore, Brazilians have recently adopted the health and wellness trend, as the middle class has expanded due to years of economic growth. The key players in Brazil’s cosmetic pharmacy market are represented by both domestic and international brands. International companies include Unilever, L’oreal and Procter and Gamble, which are focusing on acquisitions and expansions in the Brazilian cosmetic market in order to diversify their offering for further growth. However, a large part of the Brazilian beauty market is dominated by local companies, which export US$98million worth of products to 134 countries. Natura Cosmétics is a Brazilian-based manufacturer, which ranked first in Brazil in terms of beauty and personal care value share and 16th in the world.

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BRAZILIAN BEAUTY MARKET

International Marketing

So now let’s talk about the Brazil’s beauty industry overall.

Culturally, beauty and personal care are very important in Brazil, which leads to a high consumption of hygiene-related products and fragrances. Furthermore, Brazilians have recently adopted the health and wellness trend, as the middle class has expanded due to years of economic growth. And as you can see in this graph here C , Brazil is buying and selling beauty products far more than its other Latin America counterparts. C Brazil as a country also made over 2 billion dollars in 2021 off skin care products alone, which goes to show how much Brazilians care about their appearance. One factor that could contribute to this is that 35.2% of Brazil’s population is under the age of 24, and over half the population being under the age of 34. Another important factor is how important beauty is in their culture, as we know, beauty and status in Brazil are very intertwined, which inclines those in the middle to lower class to look as good as they can to seem high status, like Virginia Fonseca Costa. As we’ve already discussed, Virginia is a major opinion leader in Brazil with her millions of followers, and as you can see here C , Brazil is the country that is most influenced to purchase a product when its recommended by an influencer. This is just another example of the power Virginia holds as the most followed beauty influencer in Brazil.

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PREFERENCES OF BRAZILIAN SOCIAL CLASSES

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Lower Class Spending

prioritizes basic needs and does not have excess income to spend on goods

Middle Class Spending

focused on climbing social ladder, buying goods for status, saving money

Upper Class spending

more willing to spend, high buyers of luxury goods

The social classes of brazil spend their money very differently due to the unique circumstances that they live in. The lower class in Brazil focuses their purchasing on their necessities to survive. Monthly income for these individuals is commonly lower than $400 US dollars. Providing food and housing for their family is the primary focus of the lower class, so there is not much money to spend on goods outside of what is essential. The middle class is focused on climbing the social ladder. They attempt to emulate many of the lifestyles of the upper-class to differentiate themselves from the lower class. However, the members of this class are smart spenders and tend to save their money and want durable products whenever they make a purchase. Many businesses have implemented payment plans where consumers can pay in installments rather than all at once. This has allowed for many products to become available to those of the middle class and allows them to emulate high-end lifestyles at an affordable price. This has become such an important aspect for many businesses, as 1/3^rd of consumers in Brazil won’t make a purchase if a store doesn’t offer the option to pay in installments. The middle class prioritizes saving most of their money and moving up the social ladder. As mentioned earlier, the upper class has a wide diversity of income, and it can range from barely being rich to insanely wealthy, but in general the upper class is much more willing to spend their money. Many consumers within this class are heavy buyers of high-end fashion and accessories C. They tend to spend the most money on experiences such as travel C .

By promoting the lifestyle of the upper class, an influencer like Virginia Fonseca can have a significant influence on the middle class in Brazil, as she represents a lifestyle that many aspire to emulate. With her influence, she is a perfect candidate for introducing new products into the beauty industry as she is a trusted and well loved person that holds a high-status opinion.

By promoting certain products or experiences, she can have a significant impact on the consumer behavior in the middle class.

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