Oct 6, 2016: E-commerce Market Forecast provides detailed overview and helps to identify ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. Useful for manufacturers, retailers, travel agencies, logistics providers and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
Latin America News: Brazil E-commerce market has been driven by the rise in the smartphone users, rising internet penetration, incline in population and personal disposable income of the people of Brazil and the improvement in logistics network to complement the demands from rising online purchases. Additionally, convenient payment option by installments has been influential in the growth of E-commerce industry in Brazil.
Brazil is not only the biggest but also the most developed e-commerce markets in the Latin America. It has the fourth largest internet market globally with over 129.6 million internet users of the total population of 208 million, as of 2015. One of the major reasons for the growth of online sales of products and services is that consumers are turning to online retailers to conveniently choose from a wider assortment of products and services at better prices. The online medium of operation has also made it possible to set up stores without investing in the physical infrastructure required for retail stores. The e-commerce market in Brazil grew at a CAGR of 28.2% during the period 2010 to 2015. The number of e-commerce consumers has increased from 23.4 million in 2010 to 72.7 million in 2015 providing the impetus for the e-commerce market in Brazil. The major drivers of growth include growth of internet users, rising broadband penetration, lack of assortment in traditional stores, young and digitally savvy marketplace, highly connected Brazilian consumers, low return rate and high taxation rates on trade.
The online retail market in Brazil has fared better than the online travel market in terms of GMV generated through online medium. As of 2015, large proportion of the total GMV of Brazil e-commerce market was generated by the online retail segment as compared to the second largest segment which is the online travel sector. Electronic products purchased online accounted for the highest share based on number of orders in 2015 amongst all product categories. Fashion and accessories, Cosmetics & perfumery, Books and magazines, Home & décor were some other product categories that generated bulk of the orders in 2015.
Online travel agencies in Brazil have become more popular over the years due to the growing interest of consumers in both domestic and international travel, placing the country as the largest market for tourism in Latin America. One of the main reasons for the growth of the tourism market in Brazil over the years is the increase in the purchasing power of the lower social classes, which has allowed a large number of consumers to consider travelling long distances for the first time. Online mobility services accounted for the largest share in the Brazil online travel market. Convenience was the major factor behind the incline in online ticketing; these platforms help the consumer to book tickets conveniently at any place and any time.
“Easy payment option in the form of multiple installments via credit cards, wide assortment of products and free product deliveries at comparatively cheaper prices has been influential in gaining consumer trust in online purchase of products and services. Implementation of faster product delivery can aid in improving the overall customer experience of e-consumers.”, according to Research.