Brazil is not only the biggest but also the most developed e-commerce markets in the Latin America. With over 42% share, Brazil has the strongest cross-border consumer market in Latin America. US were the top destination for cross-border e-commerce with other top countries being China, Hong Kong, Japan and Canada. Prices of imported products were traditionally high owing to high import duties, taxes and stringent labor law.
The online retail market in Brazil has fared better than the online travel market in terms of GMV generated through online medium. Owing to meteoric rise in internet penetration in the country and the subsequent rise in e-consumers, both retail and travel market witnessed skyrocketing incline in the number of daily transactions by consumers.
Online travel market in Brazil grew at much higher growth rate during the same period. The online travel market grew at a CAGR of 36.0% during 2010 and 2015. Major online travel agencies included Decolar, Hotel Urbano, CVC Brasil, Booking.com and ViajaNet amongst others.
With the rising number of e-commerce transactions there will be an increase in number of companies offering logistics services which will further intensify the competition in the logistics market. This will lead to the improvements in the logistics services for packing, tracking and delivering at lower prices. Since logistics is an important component of the e-commerce market, improvements in logistics network will drive the retailers to go online with cheaper products and better services with respect to product deliveries and reverse logistics.
It has been observed that around 76 out of every 100 adults in Brazil possess a payment card as of 2015. This is the major cause behind such a high share of online payments in Brazilian online shopping market. Online payments in Brazil are dominated by the credit cards and Boleto Bancario.
Convenience is the major factor behind the incline in online ticketing; these platforms help the consumer to book tickets at any place without standing in the line. Also, online bookings these days provide easy price comparisons for different tickets which helps consumer choose the best option.
The popularity of these products in online shopping is attributable to innovations which tap into the consumers needs; many new ingredients were used to capture consumers’ notice under the intense competition. The best part of these ingredients is that they use the natural products which are extremely easily attainable. Consumers have shown a positive outlook for such innovations.
Ankur Gupta, Head Marketing & Communications