Ken Research announced its latest publication on “Brazil E-commerce Market Forecast to 2020 – Growing Internet Penetration and Last Mile Delivery to Shape Future Growth” which provides a comprehensive analysis of the E-commerce market in Brazil. The report covers market size and segmentation of overall E-commerce market by online retail and travel. The report further segments the online retail market by major product categories, major cities, type of delivery, mode of payment, devices used for purchase, and customer profiles based on gender, age group, monthly household income and seasonal demand. The report covers detailed profiles of leading players in the space along with the share of major players in the market. The report also covers market segmentation of online travel market by industry verticals and means of travel along with customer profile based on gender, age group, income and device used. The potential and future outlook has been individually discussed for the online retail and travel industry and also for the overall e-commerce market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. The report also serves as a benchmark for existing players and every new player who wish to capitalize on the market potential and investors who are looking forward to venture into the e-commerce market in Brazil.
One of the major reasons for the growth of online sales of products 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. Major retail chains and travel agencies which traditionally operated via physical stores have been observed to set up online stores to take advantage of the growing sales through online channel and increase their reach of the target audience. 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 to grow from 2010 to 2015. 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.
In 2015, the online retail market was quite a concentrated one with top five leading players in this space occupied a cumulative market share of about 70%. B2W digital, with a portfolio of several e-commerce websites, emerged as the clear market leader by 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. The penetration of online travel in the total travel market of Brazil increased in 2015. 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. Also, online bookings these days provide easy price comparisons for different tickets which helps consumer choose the best option.
According to the research report, the e-commerce market in Brazil is anticipated to grow at a healthy CAGR between 2016 and 2020 to USD 71 billion in 2020.
“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 the Research Analyst, Ken Research.
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Key Products Covered in the Report
Companies Covered in the Report
Ankur Gupta, Head Marketing & Communications