Como o e commerce no brasil pode aprender com os brics

Making Leaders Successful Every Day

Como o eCommerce no Brasil pode aprender com os BRICsZia Daniell Wigder, Vice President & Research Director

14 February 2014

It’s extremely hard to keep up with what’s happening

around the globe

© 2013 Forrester Research, Inc. Reproduction Prohibited 6

Agenda

›What are some key eCommerce trends in the other BRIC markets

›What are some of the eCommerce trends that extend globally

›What is unique about the Brazilian eCommerce market

*Forrester does not have a forecast for Russia – estimates are from Data Insight, East-West Digital News, PwC

eCommerce market sizes vary greatly

Focus on China

Some eCommerce trends in China

This year, the Chinese market will hit $373B

(B2C & C2C) compared to the US at $291B (B2C only) and will continue to grow at over 20% a year. Shoppers buy across all

categories online

Unprecedented size and growth

rates

Market concentration is greater than in any other

major eCommerce market.

Tmall is said to have 40-50% of the B2C

market, Taobao 80-90% of the C2C market

Market dominance by a

single player

Given the challenges of operating in China, numerous providers such as Baozun and

Yoox offer streamlined solutions for brands looking to enter the

market

Numerous players

streamlining market entry

Alibaba alone is investing $16B in a logistics network –

Jingdong has invested almost $4B.

Jingdong offers 3-hour delivery in 6 cities

Massive logistics

investment

Focus on India

Some eCommerce trends in India

Online retailers are receiving hundreds of millions of dollars of

investment:Flipkart: $360m (in 2013)Snapdeal: Raising $100m

Myntra: $50m

Small market, massive funding

Traditional retailers slow to embrace

eCommerce; some online retailers going

offline

Most traditional retailers are barely eCommerce

enabled (if at all);Some such as Healthkart

and Firstcry are online retailers going offline

Marketplaces dominate

All leading players now offer marketplaces:Flipkart, Snapdeal, Myntra, Amazon,

eBay.The shift to

marketplaces has brought customer

satisfaction challenges

India’s eCommerce market is dominated by local players in part due to the fact that foreign

multibrand retailers cannot sell online in India – although that

may change

Foreign direct investment (FDI)

restrictions

Focus on Russia

Some eCommerce trends in Russia

Unlike in China, where a single player dominates the market, Russia is the opposite: A.T. Kearney says no player holds more than 4% market

share*

Fragmented online retail environment

Significant cross-border eCommerce

– but with new hurdles for foreign

sellers

In 2012, eBay sellers sold over $400 million of

goods in Russia and 40% of small packages

entering Russia were said to come from Chinese

eCommerce companies. However, new package

delivery restrictions means FedEx and DHL

have suspended shipments to consumers

In Russia, leading online retailers like

Ozon.ru offer almost 20 payment methods,

including COD – there are also different pick-

up options such as QiwiPost terminals

Wide variety of payment and

pickup options

Leading apparel retailers like Lamoda, Ozon.ru and Wildberries are all said to offer a delivery

service where the courier waits 15 minutes while you try on clothing and provides fashion advice

Fashion advice via delivery

person

Source: Press release, “Russia Placed 13th in the Russia Retail eCommerce Index for Market Opportunity”, 18 November 2013.


Takeaways for Brazilian online retailers from the BRICs

› In markets like China, numerous solution providers are streamlining market entry to a challenging market. There is still a dearth of similar options in Brazil – what role can your company play?

› A shift to marketplaces is a big revenue generator for online retailers, but can take a serious toll on customer satisfaction. Be prepared.

› Russian online retailers have thought creatively about providing services that drive sales of key categories. How can online retailers in Brazil differentiate their offerings through service?


If those are some of the unique things about the other BRIC markets, what trends are happening globally?


#1. Profitability is elusive - everywhere

#2: eCommerce growth starts in big cities, but rapidly migrates to Tier 2-3 cities and towns

Sources: Tech In Asia, 17 July 2013, IMRG Press Release, 24 September 2013

#3: Mobile is primary driver of new user and buyer growth

#4. New eCommerce markets follow a similar path

Source: June 2013 “The Evolution Of Global eCommerce Markets”

Understand which phase countries are in

June 2013 “The Evolution Of Global eCommerce Markets”


Takeaways for Brazilian online retailers from these global trends

› If your brand is just entering the Brazilian market, don’t expect payback in 1-2 years. As in all emerging eCommerce markets, profitability is a challenge.

› Prepare for growth to come from smaller cities where offline product selection is limited, and think about how you will target consumers in these areas.

› Ensure your business is positioned to take advantage of mobile, and realize mobile offerings are a work in progress rather than a one-time initiative.

› Understand where your products fall on the eCommerce adoption curve, and what you’ll need to do to drive adoption of your product categories.

What is different in Brazil?

#1. Cash on delivery never took off as an online payment method – unlike in almost every other emerging market

#2. Online retailers do not own and operate delivery networks to the same degree as they do elsewhere

Source: Tech in Asia, Bloomberg

#3. The nature of brand engagement through social media is exceptional in Latin America

Strongly agree Agree

Brazil

China

US

UK

= >20% = 10-20% = <10%

Source: Latin American Technographics Online Benchmark Survey, 2013, Asia Pacific Technographics Online Benchmark Survey, Q2 2013, North American Technographics Online Benchmark Survey Q2 2013 (US Canada), European Technographics® Online Benchmark Survey, 2013

I think it is cool to be associated with a company/brand on social media

#4. The involvement of traditional retailers in Brazil looks more like the US than Asia

China

India

Brazil

US

Top 10 online retailers by principal market as ranked by Internet Retailer

= Web-only = TV or catalog = Traditional retailer*

* Includes any online retailer with a traditional retail store counterpart


Takeaways for Brazilian online retailers from these local trends

› You won’t have to deal with the headaches of managing cash on delivery, but you’ll need to come up with other ways to drive trust among online buyers.

› Online retailers that do not (and do not plan to) own their own delivery networks will need to work closely with logistics partners to create competitive offerings.

› Social networks present a different opportunity for brands operating in Brazil as compared to in the US and Europe – understand the differences and adapt.

› Omnichannel initiatives, while nascent in Brazil today, will soon change consumer expectations of the overall shopping experience.

Questions?

Thank you

Zia Daniell Wigder

[email protected]

@zdwigder

Thank you / Obrigada

mailto:[email protected]

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