The brazilian edition of Online retail report 2024, developed globally by FTI Consulting on trends in e-commerce, highlights that Brazilian e-commerce has great potential for expansion.
While peak online sales occurred during the 2020 pandemic, with an increase of 30%, the industry has continued to grow at a faster rate than offline retail since 2019.However, rising household indebtedness, which reached 48% of annual income, has impacted the growth of online and physical retail in recent years.
Despite these challenges, the e-commerce market in Brazil remains promising, currently accounting for 9% of total retail sales.This number, although expressive, is still below more mature markets, such as the United States, China and European countries, as well as Latin American neighbors, such as Mexico (14%) and Chile (11%). This demonstrates the considerable space for expansion as more consumers prefer online shopping.
One of the main factors driving this growth is the use of smartphones as a preferred means of online shopping in Brazil. In 2023, 55% of online shopping was carried out through smartphones, consolidating this device as an essential tool for e-commerce.
Companies such as Magazine Luiza, which has expanded its distribution network to 22 centers and 206 cross-docking units, show how major players are investing in logistics to meet this growing demand.In addition, Mercado Livre, which operates with 97% of its sellers being outsourced, has won the largest market share (14,2%).
Sectors such as fashion and beauty have registered significant growth, following the popularity of home appliances and technology.
Regionally, the Southeast leads in the number of online shoppers, favored by more advanced infrastructure and greater technological familiarity. However, regions such as the North and Northeast have shown great growth potential.The development of public infrastructure and the improvement of economic conditions in these regions can accelerate the adoption of e-commerce, creating new opportunities for local companies and for major players to expand their operations.
Brazilian e-commerce also benefits from a young and increasingly connected population.The lower income class, which represents about 13% of online consumers, still has a limited share, but this trend is expected to change as the purchasing power of these people increases and more technological generations become more influential consumers. Currently, 34% of online consumers are in the age group of 35 to 44 years, which suggests a promising future for the industry.
Another factor that strengthens e-commerce in Brazil is the growing use of digital payment solutions. Pix, created by the Central Bank, is already the second most used means of payment in e-commerce, behind only credit and debit cards.In addition to increasing financial inclusion, allowing more consumers to participate in digital commerce, Pix has proved to be an attractive alternative for those who do not have access to credit. According to the Locomotiva Institute, 81% of Brazilians have a bank account.
It is worth noting that the e-commerce market in Brazil is still quite fragmented compared to markets such as the United States, which opens opportunities for mergers and acquisitions that can consolidate the sector in the coming years. Companies such as Mercado Livre and Magazine Luiza have invested in strategic partnerships to stand out. An example is the partnership between Mercado Livre and Disney, which offers subscribers of Mercado Livre Premium access to the Disney Plus streaming service.
The growth of e-commerce could also be driven by the use of new technologies such as artificial intelligence and logistics automation, optimizing processes and improving the shopping experience. Leading companies are already implementing automation to optimize deliveries and customize the shopping experience, consolidating e-commerce as an increasingly efficient alternative to traditional retail.
With a young, connected population and continuous improvements in logistics and payments infrastructure, Brazil is well positioned for a future of growth in e-commerce, with opportunities for expansion in several regions and sectors
