The next big thing for e-commerce: the Brazilian sport paradise
Brazil, a melting pot of culture and a land of opportunity that boasts one of the fastest growing consumer markets worldwide. With the 2014 FIFA World Cup around the corner followed by the 2016 Olympic and Paralympic Games in Rio, an insurgency in travel, leisure, retail and events will no doubt play a pivotal role in the online landscape. With an estimated increase of 26.7 million digital buyers in 2013 – that’s 36% of all Brazilian internet users1 – businesses are increasingly aware of this market’s online consumption. This blog post looks into this emerging economy and its lucrative proposition over the next few years.
Internet usage in Brazil
Ranked the 7th largest internet market globally2, the online penetration rate in Brazil stands at 44% and is expected to rise to 48% by 20163. eMarketer estimate that 36% of the total online audience will be digital buyers by 2013 and by the outset of the World Cup around 40 million Brazilians will constitute a stable online audience.
(Source: eMarketer, July 2012)
Around 54.1% of online users in Brazil are aged 15 to 34 years old4. However, don’t believe this market’s audience will stay within the parameters of this demographic. Statistics indicate the online population is gradually ageing:
- In 2009, 14% of users were aged 45 years and over
- This same demographic group increased by 4% to 18% of users in 20115
When it comes to gender, there is little difference with 54% of males regularly using the internet compared to 52% of females6.
The number of users accessing the internet via mobiles has seen an upward trend, rising from 8 million in 2010 to 37 million in 2012. Naturally, the Smartphone has facilitated this growth and is expected to reach an impressive 47 million by the end of 20137. With this functionality and accessibility at their fingertips, Brazilians will be able to follow the World Cup, Olympic and Paralympic Games anytime, anywhere.
Word of mouth and social media networks are key factors in the purchase decision-making process of this magical country. Brazilians often check online portals for opinions about products as well as listen to comments made by friends. This market is driven by price comparison shopping and regularly read reviews before making a purchase decision8. A few facts to take into account in this emerging economy are:
- There are approximately 78 million Brazilians on social media platforms, which accounts a staggering 79% of internet users9 Facebook and Orkut (a Google-owned social media platform popular in India and Brazil) are the most visited social media networks, with Facebook currently the most popular site (an estimated 65 million users)10
- Social media usage accounts 36% of time spent online11
- Online video consumption in Brazil is high, surpassed by the United States only12
Online users in Brazil love spending time on social media networks. The opportunity to generate content around the games presents a lucrative launch pad for businesses with an online presence in this market. Seeding content that features commentaries, hashtags and videos could provide an exciting proposition to capture and engage new and existing online audiences.
Would you ignore a $23.53 billion opportunity?
In terms of online trends, the best is yet to come in Brazil. Despite an incipient internet penetration, e-commerce has steadily increased over the last few years. In 2012, earnings from e-commerce reached $16.97 billion13 and are expected to reach $19.76 billion in 201314. Thanks to the FIFA World Cup, predictions for 2014 look even more promising with the sales forecast set to rise to $23.53 billion15. The travel industry should pay particular attention to the 2014 FIFA World Cup as tourism is expected to increase by 3 million during the event16.
These highly anticipated sporting events present a fantastic opportunity for businesses with an online presence in Brazil. When developing your own online strategy for this market, Oban Multilingual’s advises the following:
- Optimise your online presence on social media channels, particularly Facebook
- Disseminate visual stimuli and videos through social media channels as a way to attract new audiences and engage positive word of mouth
- Geo-target your campaigns with exclusive offers to capture the interest of this price-sensitive market
- Note that travelling within Brazil will increase exponentially during the World Cup, as numerous matches are hosted by different cities. However, the Olympic and Paralympic Games will only take place in Rio. Worth remembering before you strategise your online campaigns!
- Word of mouth is a key factor in the purchase decision-making process. Pay particular attention to customer satisfaction. Social media plays an important role in delivering and managing customer expectations. Ensure you have a watertight social media policy to protect your brand so as to maintain consistency across online channels
1 eMarketer – More buyers join Brazil’s robust e-commerce market
2 New Media Trend Watch – Brazil
3 New Media Trend Watch – Brazil
4 Comscore: Brazil Digital Future in Focus 2013
5 Comscore: Brazil Digital Future in Focus 2012
6 New Media Trend Watch – Brazil
7 eMarketer: Brazil Commerce Sports Travel and Cheap Retail Maintain the Market Momentum
8 eMarketer: Brazil Commerce Sports Travel and Cheap Retail Maintain the Market Momentum
9 eMarketer: Brazil Social Audience Keeps Growing. New Users Join
10 The Wall Street Journal
11 Comscore: Brazil Digital Future in Focus 2013
12 The Wall Street Journal
13 eMarketer: Brazil Commerce Sports Travel and Cheap Retail Maintain the Market Momentum
14 eMarketer: Brazil Commerce Sports Travel and Cheap Retail Maintain the Market Momentum
15 eMarketer: Brazil Commerce Sports Travel and Cheap Retail Maintain the Market Momentum
16 eMarketer: Brazil Commerce Sports Travel and Cheap Retail Maintain the Market Momentum