Table of Contents
Executive Summary
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- Challenges
- Online shopping penetration is high, but the frequency is still low
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- Figure 1: Online shopping frequency – Brazil, September 2019
- The new law on personal data protection needs to be considered when collecting customers information
- Difficulty to return or exchange a product is a major barrier
- Click and collect systems and pick up lockers can help those who can’t have products delivered at home
- Opportunities
- Internet access grows even in rural areas and among poorer classes
- High usage of social media is a great asset when boosting online shopping
- Customization can help online sales of fashion items
- Online subscription services can extend their reach to facilitate frequent purchases at lower prices
- What we think
Market Drivers
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- Internet access grows even in rural areas and among poorer classes
- High usage of social media is a great asset when boosting online shopping
- High unemployment encourages informal work
- High dollar might be an opportunity for local products and retailers
- The new law on personal data protection needs to be considered when collecting customers information
- Amazon’s voice assistant Alexa is launched in Brazil
- Amazon expansion in Brazil can stimulate online shopping
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- Figure 2: Frustration-Free Packaging label
- New payment formats and virtual coins may impact the online shopping market
- Expansion of delivery services impacts the market, especially the categories of foodservice, food and drinks
Key Players – What you need to know
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- Large companies with various brands create their own ecommerce platforms
- AliExpress opens temporary physical store in Curitiba
- With promotion and geolocation, Burger King sells Whopper at McDonald’s stores
Marketing Campaigns and Actions
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- Large companies with various brands create their own ecommerce platforms
- AliExpress opens temporary physical store in Curitiba
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- Figure 3: AliExpress store
- Magazine Luiza buys Netshoes
- Brahma launches beer ecommerce for subscribers of sports channel
- ZARA launches an online store in Brazil and promises to deliver on the next day in some regions
Case Studies
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- With promotion and geolocation, Burger King sells Whopper at McDonald’s stores
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- Figure 4: “The Whopper Detour”
- Lego uses online search to enter the Christmas gift list
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- Figure 5: “Making the List”
The Consumer – What You Need to Know
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- Customization can help online sales of fashion items
- DE consumers are more likely to use mobile apps when shopping online despite limited data plans
- Personal shopper services can add value by offering alternative delivery hours and perfect condition guarantee
- Click and collect systems and pick up lockers can help those who can’t have products delivered at home
Online Shopping Frequency
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- Online shopping penetration is high, but the frequency is still low
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- Figure 6: Online shopping frequency – Brazil, September 2019
Online Shopping by Category
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- Offering additional experiences can add value to travel and entertainment products sold online
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- Figure 7: Online shopping by category – Brazil, September 2019
- Customization can help online sales of fashion items
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- Figure 8: Online shopping by category, by barriers for purchasing online – Brazil, September 2019
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- Figure 9: Mandala Clothing
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- Figure 10: Nike Adventure Club
- No shipping fees motivate AB consumers to buy online
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- Figure 11: Online purchase drivers, by socioeconomic group – Brazil, September 2019
Devices Used for Online Shopping
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- Online shopping needs to adapt completely to mobile phones and smartphones
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- Figure 12: Devices used for online shopping – Brazil, September 2019
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- Figure 13: Nike Fit app
- Figure 14: FonQ in Huis app
- Brands focused on Baby Boomers can invest in websites and apps for laptops/desktops that makes online shopping easier
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- Figure 15: Devices used for online shopping, by generation – Brazil, September 2019
- DE consumers are more likely to use mobile apps when shopping online despite limited data plans
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- Figure 16: Usage of mobile sites vs mobile apps, by socioeconomic group – Brazil, September 2019
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- Figure 17: Internet users by mobile phone and connection type used exclusively or simultaneous – Brazil, 2018
Changes in Online Shopping
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- Online subscription services can extend their reach to facilitate frequent purchases at lower prices
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- Figure 18: Changes in online shopping – Brazil, September 2019
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- Figure 19: Apius – Shopper.com.br
- Personal shopper services can add value by offering alternative delivery hours and perfect condition guarantee
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- Figure 20: Barriers for purchasing online, by total and users of personal shopper services – Brazil, September 2019
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- Figure 21: Singu app
- Specialized websites can invest in products and services sold exclusively online
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- Figure 22: Changes in online shopping, specialized websites/apps, by generation – Brazil, September 2019
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- Figure 23: YouTube ad
- Figure 24: Yoox: The World’s Most Exclusive Collection
Barriers for Purchasing Online
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- More effective ways to exchange or return a product can encourage Brazilians to shop online more often
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- Figure 25: Barriers for purchasing online – Brazil, September 2019
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- Figure 26: Exchange guide
- Click and collect systems and pick up lockers can help those who can’t have products delivered at home
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- Figure 27: Barriers for purchasing online, by working and housing status – Brazil, September 2019
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- Figure 28: ITAB click and collect lockers
- Buying from a social media platform appeals to Generation Z
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- Figure 29: Online purchase drivers, by socioeconomic group – Brazil, September 2019
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- Figure 30: Adidas Baseball’s Next Level
Habits toward Online Shopping
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- Geolocation and identification of products via smartphone can increase competitiveness between brands and retailers
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- Figure 31: Habits toward online shopping – Brazil, September 2019
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- Figure 32: AdelcoBot
- Men aged 35+ prefer shopping with retailers that have physical and online stores
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- Figure 33: Habits toward online shopping, by gender and age group – Brazil, September 2019
Appendix – Abbreviations
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- Abbreviations
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