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Momentum
E-commerce speeds up expansion
Marcos Gouvêa de Souza - CEO, GS&MD - Gouvêa de Souza
Online retail sales are expected to grow 19.4% per year in the 2010-2013 period, jumping from US$ 572 billion to more than
US$ 1 trillion, according to a JP Morgan study. This growth, however, will be uneven: in the US, sales will go up 12.4%, while
in Europe will rise by 13.2%. The fastest-growing markets will be Asia, with 27.5%, and the “rest of the world” will see sales go
up 29.2% per year.
In Brazil, using the figures of e-Bit’s Webshoppers report, sales went up 40% in 2010 year-on-year, to R$ 14.8 billion (US$
9.25 billion). A GS&MD – Gouvêa de Souza study on the Neoconsumer (the global, multichannel and digital consumers) pointed
out that, of the new global consumers, the Brazilians are specially impacted by the digital media and has been particularly prone
to try and use them. And the positive economic scenario leverages this behavior.
Online retail sales have been growing worldwide, and studies forecast this year they may rise to US$ 680.6 billion, more than
doubling from the US$ 273.05 billion five years ago.
In this same period, in the US, the number of online shoppers have gone up from 130 million in 2006 to around 176 million
this year, indicating the consumer base has been growing slower, but average sales have been going up. Total online sales have
gone up from US$ 126 billion in 2006 to US$ 204 billion.
And all this process may be boosted once again, as the use of the web for shopping becomes more usual, due to the mobility.
Specially in Brazil, where in many residences there are only mobile phones and no fixed lines, stimulating a more intense
browsing in the mobile environment.
In Brazil, the fact that some of the top retailers, as Casas Bahia, Walmart and Carrefour, only started their online operations
recently, made internet shopper base and average sales rise faster, as positive shopping experiences strengthen a more frequent
use of the internet for purchasing goods and, specially, services. The fact that in the country there’s a lower store per person
rate, when compared to more mature markets, as the US and Europe, shall bring a strong boost to keep internet sales rising
faster than the world average.
In the Brazilian reality, the number of e-consumers reached 23 million in 2010, from 17.6 million one year earlier. This growth
was leveraged by the new e-commerce concepts, specially Social Shopping and Purchase Clubs, and by the growing presence
of the midclass consumers, who rose from 36% of the market in 2006 to 53% last year.
In Brazil, seasonal dates, as Christmas, Mother’s Day and Father’s Day, have been the moments in which consumers increase
their purchases, leading average sales to R$ 373 (US$ 224.70). close to Valentine’s Day this figure rises to the R$ 400 (US$
240.96) range.
It’s important to notice the growing presence of the industry, directly reaching consumers and changing behaviors, as in Brazil
as worldwide. The opening of new shopping and relationship channels by suppliers is another element to create options and
opportunities for e-consumers to shop.
The expansion of e-commerce, online or via mobile, will be in the next years the fastest-growing sales channel, and the
e-consumers shopping experience stimulates the growth of businesses, average sales and frequency of shopping. The
e-commerce figures in Brazil and worldwide will be the biggest factor to make retailers and industries devote growing attention
to this channel, creating a new universe of experiences and relationships, in a digital environment.
Brazilian Retail News (BRN) is a weekly newsletter published by GS&MD - Gouvêa de Souza with the most important news
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