E-commerce brazil: the increase in the influence of the global market
Posted: Mon Dec 09, 2024 4:46 am
The COVID-19 pandemic has significantly impacted the e-commerce sector, highlighting its importance as an essential component of modern commerce, while the e-commerce market in Brazil has seen remarkable growth, with Booknet pioneering the sale of books and CDs in 1996. The sector now represents 9.4% of active websites in the country, reflecting the mint database growing adoption of platforms, including popular marketplaces such as Mercado Livre and Magazine Luiza, and highlighting the relevance of the online market in Brazil to the current commerce landscape.
With the global e-commerce market projected to reach US$9.3 trillion by 2027, driven by a compound annual growth rate of 9.5% from 2022 to 2027, digital transformation and increasing digitalization are significant contributors to its expansion. Brazil, emerging as one of the main growth markets, aims to optimize e-commerce processes through digitalization, addressing challenges such as shipping and logistics, while standing out as a success story in innovative adaptations in the world of the market in Brazil.
The Expansion of E-commerce in Brazil and the World
E-commerce in Brazil is projected to continue growing, reaching R$185.7 billion in 2023 and R$273 billion by 2027. This growth is part of a broader trend in Latin America, where the market reached sales of US$85 billion in 2020 and the number of e-commerce users in the region is expected to reach 258 million by 2027, with a penetration rate of 61.4%. In addition, the market is expected to grow 18% by 2025, with credit card transactions representing 44.7% of all transactions.
The COVID-19 pandemic has accelerated this expansion, with an increase in the trust and convenience of online shopping, reflected in the growth of e-commerce (mobile commerce). Approximately 155 million Brazilians, or 84.4% of the population, own a smartphone, making it even easier to access the digital market. This change in consumer behavior, driven by the pandemic, has led to an increase in trust in online shopping and the convenience it offers, including the ability to compare prices, check product reviews and make purchases at any time, not just during traditional business hours.
The digital environment also offers the advantage of faster delivery times, with many companies now offering express delivery options. The Boston Consulting Group (BCG) predicts that 41% of global retail sales will be conducted online by 2027. In Brazil, the growth of e-commerce is expected to continue, with the sector already doubling in size from 2019 to 2023.
Digital Transformation and the Growth of E-commerce
Companies have been redirecting their marketing strategies to focus on digital channels, seeking to offer integrated and seamless shopping experiences, essential for success in the future of e-commerce. With digitalization accelerated by the pandemic, consumers now expect a smooth and user-friendly online shopping experience, with brands continually investing in improving this interaction.
In Brazil, digital transformation has been a driver for the growth of specific sectors within e-commerce. The fashion and electronics sectors, for example, have seen significant growth, while the increase in online sales has also been notable in the education and fitness sectors during the pandemic. In addition, with 82.7% of Brazilian households accessing the internet by 2019, consumers have benefited from a superior shopping experience, further boosting the e-commerce market in the country.
Consumer behavior and expectations are constantly evolving, requiring brands to adapt quickly to meet these new demands. Personalized and value-driven marketing campaigns have proven to be more effective in this new climate. The expectation is that the transition to e-commerce will continue to grow post-pandemic, with sectors such as hobby & bookstores and drugstores leading this advance in the Brazilian market, with increases of 110% and 88.7%, respectively.
The Impacts of the Pandemic on Consumer Behavior
The pandemic has significantly changed consumer behavior in e-commerce, with an increase in the use of these platforms for purchasing essential goods such as food and health products. There has also been a growing trend in the preference for local and sustainable products, as well as a rise in the popularity of digital payment methods, driven by security concerns. Contactless payment options have become more popular, reflecting a greater awareness among consumers in their purchasing decisions, where they are seeking to make more informed choices.
Excellent customer service has proven to be essential, with 96.8% of Brazilians considering it very or extremely important when purchasing a product or contracting a service. Empathy and understanding consumers’ needs are valued aspects, with 41% and 40% of respondents, respectively, considering that these factors have improved after the pandemic. This new dynamic requires companies to offer a more consultative sales approach and a seamless omnichannel experience to take advantage of the opportunities presented by digital transformation.
With the global e-commerce market projected to reach US$9.3 trillion by 2027, driven by a compound annual growth rate of 9.5% from 2022 to 2027, digital transformation and increasing digitalization are significant contributors to its expansion. Brazil, emerging as one of the main growth markets, aims to optimize e-commerce processes through digitalization, addressing challenges such as shipping and logistics, while standing out as a success story in innovative adaptations in the world of the market in Brazil.
The Expansion of E-commerce in Brazil and the World
E-commerce in Brazil is projected to continue growing, reaching R$185.7 billion in 2023 and R$273 billion by 2027. This growth is part of a broader trend in Latin America, where the market reached sales of US$85 billion in 2020 and the number of e-commerce users in the region is expected to reach 258 million by 2027, with a penetration rate of 61.4%. In addition, the market is expected to grow 18% by 2025, with credit card transactions representing 44.7% of all transactions.
The COVID-19 pandemic has accelerated this expansion, with an increase in the trust and convenience of online shopping, reflected in the growth of e-commerce (mobile commerce). Approximately 155 million Brazilians, or 84.4% of the population, own a smartphone, making it even easier to access the digital market. This change in consumer behavior, driven by the pandemic, has led to an increase in trust in online shopping and the convenience it offers, including the ability to compare prices, check product reviews and make purchases at any time, not just during traditional business hours.
The digital environment also offers the advantage of faster delivery times, with many companies now offering express delivery options. The Boston Consulting Group (BCG) predicts that 41% of global retail sales will be conducted online by 2027. In Brazil, the growth of e-commerce is expected to continue, with the sector already doubling in size from 2019 to 2023.
Digital Transformation and the Growth of E-commerce
Companies have been redirecting their marketing strategies to focus on digital channels, seeking to offer integrated and seamless shopping experiences, essential for success in the future of e-commerce. With digitalization accelerated by the pandemic, consumers now expect a smooth and user-friendly online shopping experience, with brands continually investing in improving this interaction.
In Brazil, digital transformation has been a driver for the growth of specific sectors within e-commerce. The fashion and electronics sectors, for example, have seen significant growth, while the increase in online sales has also been notable in the education and fitness sectors during the pandemic. In addition, with 82.7% of Brazilian households accessing the internet by 2019, consumers have benefited from a superior shopping experience, further boosting the e-commerce market in the country.
Consumer behavior and expectations are constantly evolving, requiring brands to adapt quickly to meet these new demands. Personalized and value-driven marketing campaigns have proven to be more effective in this new climate. The expectation is that the transition to e-commerce will continue to grow post-pandemic, with sectors such as hobby & bookstores and drugstores leading this advance in the Brazilian market, with increases of 110% and 88.7%, respectively.
The Impacts of the Pandemic on Consumer Behavior
The pandemic has significantly changed consumer behavior in e-commerce, with an increase in the use of these platforms for purchasing essential goods such as food and health products. There has also been a growing trend in the preference for local and sustainable products, as well as a rise in the popularity of digital payment methods, driven by security concerns. Contactless payment options have become more popular, reflecting a greater awareness among consumers in their purchasing decisions, where they are seeking to make more informed choices.
Excellent customer service has proven to be essential, with 96.8% of Brazilians considering it very or extremely important when purchasing a product or contracting a service. Empathy and understanding consumers’ needs are valued aspects, with 41% and 40% of respondents, respectively, considering that these factors have improved after the pandemic. This new dynamic requires companies to offer a more consultative sales approach and a seamless omnichannel experience to take advantage of the opportunities presented by digital transformation.