All Signs Pointing Towards Brazil E-Commerce Market Explosion
As Brazil’s middle class expands, over 50% of the population is now online, meaning 108 million people are open to the Brazilian e-commerce market. There is an estimated 72 million Brazilian consumers searching through e-commerce sites, with 33 million of them making purchases—that’s 40% of the entire internet using population!
The Brazilians aren’t spending lightly! A McKinsey research quoted Brazil to be “Fashion conscious, credit ready “.
Consider the average e-commerce purchase in Brazil is $162 (and $600 on electronic purchases). By the end of 2014, the Brazilian e-commerce market is expected to grow another 11.7% to bring in $13.37 billion per year in sales. And all this is in spite of the so called “Brazil Cost” that keeps so many businesses away.
All Signs Pointing Towards Brazilian E-Commerce Market Explosion
What’s more is that Brazil is showing absolutely zero signs of slowing down in the digital expansion and buying sectors. While only 23% of the population has internet capable smart phones, that’s still the largest mobile phone network in South America. Over the course of the next few months, it’s predicted that Brazil will be the 5th largest mobile phone market in the world. Out of the over 100 million Brazilian internet users out there, 61% have already bought something online. The largest demographic in Brazil (15 to 34 year olds) is also the largest amount of e-commerce shoppers (62%). Plus, clothing made up for 15% of all e-commerce sales in Brazil, showing just how strong, the Brazilian e-commerce market really is.
Brazilian Social Media Habits Show Even More Promise for E-Commerce
With 65 million Facebook users, Brazil is second to America in the number of active users each month. And even with those numbers, Twitter is actually the largest social media platform in the country! Plus, Brazilians are on their computers 27 hours per month on average, compared to the 24 hours worldwide. They are a captive audience.
And not only are they captive online, they are also open to cross-border shopping. Brazil is in the top five countries for cross-border shopping, make it prime real estate for e-commerce websites. Consider that 79% of the Brazilian population shops in US-based stores.
Just be certain that all of your SSL certificates are in order and that your site is secure—credit card fraud is a major concern in Brazil. So is customer service and easy-to-return products, so be sure all of these areas are translated into Portuguese as well as English (it is taught in schools but only a small portion of the population speak it), and that you make your e-commerce customers feel extremely safe and secure.
Tips on Penetrating the Brazilian E-Commerce Market
Aside from translation for your e-commerce website, there are some other things that you can do to penetrate the Brazilian e-commerce market:
- Provide your customers with a currency converter, offering prices in both US dollars and the Brazilian Real. This will avoid confusion and eliminate hesitation upon checkout.
- Invest in Facebook and Twitter advertising with targeted ads to Brazil. This will help get your website out there.
- Reach out to bloggers in the your niche.
- For fashion e-commerce sites, reach out to Brazil’s top fashion bloggers: here is a list:
- Fashion Coolture
- Just Lia
- Glam 4 you
- Instinto Devestir
- Chatade Galocha
- Garotas Estupidas
- Draft up a press release and get the word out there that you’re now open for business and shipping in Brazil.
Research if the Brazilian market would be open to your product by monitoring twitter and Google trends. Test market needs by reaching out to Brazilian bloggers and getting feedback. Give yourself at least three months to assess if this market might be the right fit for your brand.