Brazil, probably best known for its magnificent beaches, vast rain forests, festivities-fueled cities, football (soccer) prowess and Carnival, is also the host for the upcoming 2014 World Cup and the 2016 Summer Olympics. But did you know that Brazil is actually the Latin American epicenter for eCommerce?
With a population of 202M and the 6th largest world economy, Brazil accounts for 59% of Latin American eCommerce revenues. World class technology combined with a market size bigger than UK, Italy, Russia or India makes Brazil the next great eCommerce opportunity.
Ralf Germer, CEO, of 4M Iberoamérica, shared the following insights into Latin America’s eCommerce presence and why Brazil is leading the charge:
- Brazil is the 5th most populated country in the world
- Brazil has the 5th highest number of Internet users worldwide
- Portuguese is the 5th most used language on the Internet
- Brazil accounts for 59% of LatAM eCommerce revenues, titled “King of Latin American eCommerce”
- Brazilians spend more time on the Internet than anyone
- Brazil’s technology market predicted growth of 9.2% for 2014
- IT accounts for 6.4% of Brazil’s GDP
- 2014 IT spending forecast of $175B USD
Consumers buying online in LatAM is growing with more than 105M Internet users, reflecting an eCommerce growth of 24% in 2013 and a predicted 27% growth for 2014. Internet indicators also highlight why Brazil may be the next market you’ll want to enter with: 86M Facebook users, 6+ hours/day spent on the Internet, #5 in time spent on social media, 59% usage of mobile social media apps, and 26% smartphone penetration.
However, breaking into the Brazilian market is not without its challenges. There are several factors to consider:
- Geographic extensions
- Legal and banking formalities
- Complex and ‘dynamic’ tax legislation
- Restricted access to domestic payment methods
- Closed and restricted currency market
- Finding the right local marketing partners
The shift to Brazil has started – don’t get left behind. The good news is that the Brazilian market is still available to become a market leader. Avangate has every thing you need to sell online and be successful in Brazil.
Come back next week when we’ll give you 5 Best Practices to becoming an eCommerce Star in Brazil. Stay tuned!
