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Enthusiastic samba, hot football, grand carnival In the world's impression, Brazil is always associated with "fierceness". In the eyes of cross-border e-commerce sellers, Brazil's "hot" has more meaning - it is the largest market in Latin America, with a large number of young consumers and huge e-commerce potential. Under the development trend of "multi platform, multi market and multi-channel" operation in the industry, cross-border e-commerce sellers hope to write more stories in Brazil, an e-commerce hot spot.
1. The growth rate ranks first in the world! The potential of Brazilian e-commerce should not be underestimated
"Latin America may be the last blue ocean of cross-border e-commerce." In the past two years, this statement has been widely spread in cross-border circles. Compared with Europe and the United States, which are gradually saturated, and Southeast Asia, the e-commerce market in Latin America is relatively competitive and full of stamina. According to the latest data from Morgan Stanley, Latin America is one of the fastest growing e-commerce markets in the world. It may grow by 20% in the next five years, with a rapid momentum.
As the largest economy in the region, Brazil's e-commerce market size should not be underestimated. In 2021, the total revenue of the Brazilian e-commerce market will reach 26 billion US dollars [1]. According to the latest report of Coupon Valido, Brazil will rank first in the world with 22.2% increase in online sales in 2022. The report also predicted that the compound annual growth rate of online sales in Brazil would reach 20.73% from 2022 to 2025, almost twice the world average (11.35%).
Why does Brazil's e-commerce market have such potential?
From the perspective of population structure, Brazil has a population of 215 million, ranking fifth in the world. The average age is 26 years old, showing an obvious trend of youth. In terms of consumption power According to IMF data, Brazil's per capita GDP will reach US $7541 in 2021, about twice that of Indonesia. In addition, Brazilians pursue "hedonism", and their consumption intention is generally strong. In terms of Internet popularity The proportion of Internet users in Brazil was 79.57%, reaching 165 million, of which mobile Internet users had exceeded 130 million. According to statistics, the average usage time of mobile terminals in Brazil is even higher than that in China (3.4 hours), reaching 5 hours [2].
The above factors, Create good basic conditions for the development of Brazilian e-commerce 。 Under the influence of the epidemic, the trend of consumption shifting to online is more obvious. Data shows that by 2021, Brazil's e-commerce penetration rate will reach 78%. [3] It is worth mentioning that the Brazilian middle class, as the main consumer force, attaches great importance to the "cost performance" of products. For Chinese sellers who have the advantage of supply chain, it is undoubtedly a great benefit.
2. Trends and categories that cannot be ignored in the Brazilian market
Based on its strong growth momentum, more and more cross-border sellers are starting to layout the Brazilian market. But emerging markets are often more complex. Facing consumers across the ocean, how to do a good job in localization will determine whether sellers can "survive" and "live well" in this hot land. So, what are the consumption trends worth paying attention to in the Brazilian market?
- Trend 1: Millennials who are keen on "cutting hands" and middle-aged and elderly consumers who "refuse to accept the old"
According to the data of E-shopper Barometer 2021, 70% of online shopping consumers in Brazil are women. In terms of age, the millennials account for 50% of the total, and their purchase volume is larger. On average, they place orders at least 3-4 times a month.
In addition, fashion consumption of the middle-aged and elderly in Brazil is also rising quietly. NielsenIQ data shows that in 2021, the online shopping volume of the elderly in Brazil will reach 33.9%, even exceeding the middle-aged group. Their favorite categories will tend to be younger, such as cosmetics, clothing, etc.
- Trend 2: Rising social e-commerce
Thanks to the rapid development of mobile Internet, the proportion of Brazilian consumers who shop through smart phones has reached 86% [4]. With the rise of social media, social platforms are playing an increasingly important role in the shopping decision-making process of Brazilian consumers. Consumers are keen to find better and cheaper products through social media, and are also vulnerable to KOL when making purchase decisions. According to the AP, in August 2021, more than 60% of consumers will participate in social e-commerce, and about 26.5% will shop through live broadcast. This trend may become a breakthrough for sellers to link with Brazilian consumers and achieve sales growth. （ Click here to learn More Brazilian local platforms)
- Trend 3: installment payment prevails
Due to the prevalence of credit cards in Brazil, Brazilians have less cash at their disposal, and they tend to choose installment payment when shopping online. According to statistics, more than 79% of Brazilian consumers will choose this payment method. Other data shows that if the website provides the installment function, the conversion rate will increase by more than 50%. For products with a unit price of more than $50, installment payment is almost a must.
- Trend 4: Festival shopping becomes a common practice
The hedonistic Brazilians are especially keen on holiday shopping. In addition to e-commerce shopping festivals such as "Black Five" and "Cyber One", Brazil's Valentine's Day (June 12) is also a node that cannot be ignored. According to JPMogan
According to the survey, Brazil's Valentine's Day in 2020 exceeded the "Black Five" and generated sales of R $7.7 billion. In addition, Christmas and Mother's Day are also important nodes for Brazilians to "cut hands crazily".
According to the latest survey of e-commerce intelligence company Neotrust, mobile phones, home appliances and electronic products are the three categories with the highest sales volume of Brazilian e-commerce in Q2 2022, while fashion accessories, beauty care, perfume and personal health categories occupy the top four orders. Another group of data from CouponValido shows that the categories that Brazilian consumers are keen to buy include fashion (38%), electronic products (36%) and home decoration (24%).
It can be seen that the traditional competitive categories of cross-border e-commerce are still very popular in the Brazilian market. What are the specific hot selling products? Cross Commerce Store (hereinafter referred to as "Cross Commerce Store"), a cross-border e-commerce company from Brazil, summarized the following hot selling products in Brazil for sellers' reference through a large number of local research.
3C products: Smart watch, Bluetooth headset, camera, UAV, intelligent wearable device, etc
Computer accessories: Laptop, tablet, camera, wireless mouse, hard disk, mechanical keyboard, etc
Small household appliances: Wall breaking machine, toaster, coffee machine, sweeping robot, etc
Children's Toys: Dolls, electric toys, acoustic toys, wooden toys, etc
Personal beauty care: Perfume, hair care oil, body cream, hair remover, razor, etc （ Register now , sell the goods to Brazil)
3. Nugget Brazil, one click!
There is no doubt that Brazil, with its rapid development, is full of opportunities, but the past experience also reminds sellers that the greater the opportunities, the greater the challenges. In the blue ocean market of Brazil, Chinese sellers have to cross not only the distance of more than 16000 kilometers, but also the difficulties in market registration, product management, logistics operation, customer service and many other aspects. Specifically, the main challenges come from the following aspects:
Platform settlement
In Brazil, there are many active platforms, except for the Latin American giant Mikado Americanas、Outors、Shopee、 Amazon and other mainstream platforms, as well as some emerging cross-border platforms that are popular locally. It often takes a lot of time and manpower to understand the policies and rules of these platforms, and the seller may not be able to successfully settle down with a little carelessness.
product management
In terms of store operation, in addition to ensuring the correct uploading of products, sellers should also consider the listing optimization of sales pages, such as correct translation, attractive titles and descriptions. When multiple platform sales are involved, pricing management and market integration should also be taken into consideration. At the same time, a background is needed to manage orders.
Marketing Skills
In addition to basic market insight, to do a good job in localization, we need to have a deeper understanding of consumer trends and habits. Due to various reasons, the current sellers have a lot of resistance in local market research, and they urgently need a more professional local team to help marketing
logistics
China is far away from Brazil, with few routes. In addition, Brazil's logistics infrastructure is not perfect, and terminal distribution is slow, which not only has high transportation costs, but also has slow time efficiency. The seller has to transfer this part of cost to the commodity price, which will inevitably affect the competitiveness of the commodity to a certain extent.
Difficulties abound. How does Nuggets Brazil break the game? In fact, sellers can use Saas cross-border service system, such as cross trade store CCS, to solve problems.
It is understood that Cross Trade Store CCS is a cross-border e-commerce company from Brazil, with the endorsement of American funds such as GFC, Maya Capital, OneVC e Norte Ventures, etc. Cross trade store CCS is committed to helping sellers sell products in the Brazilian market simply and quickly. For the above difficulties, cross trade store CCS provides a one-stop solution for Chinese sellers.
In terms of platform settlement The seller only needs to upload the product to the CCS background, and then it can be sold to the mainstream Latin American platforms such as Amway, Amazon Brazil, CASAS BAHIA, ponto, and extra with one click, saving the time and energy to settle one by one. In terms of product management, Based on the self-developed integration background, sellers can upload products, check sales, download labels, check sales data and logistics information, and achieve efficient order management. In marketing, Cross trade store CCS professional customer manager team will closely communicate with the seller to help the buyer's localized marketing. In terms of logistics, Cross trade store CCS is cooperating with Chinese logistics service providers. The seller only needs to send the goods to any warehouse in China. CCS will be responsible for international logistics, customs clearance and the last mile delivery. （ Register Now Cross Trade Shop CCS!)
In short, the seller is only responsible for selecting the product, ensuring the supply and creating the best model. Cross trade store CCS can help them solve many worries. Dig gold in Brazil, cross trade store CCS can help you get it!
reference material:
1、 https://ecommercedb.com/en/markets/br/all
2、 https://datareportal.com/reports/digital-2022-global-overview-report
2、 DataReportal 2022
3、 E-Shopper Barometer 2021
(Source: Yan said cross-border)
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