Brazilian e-commerce is set to grow 12,4% per year, according to Google

The e-commerce will double its participation in restricted retail by 2021 and grow on average 12.4% per year. The projections were made by Forrester Research Institute in a survey commissioned by Google to analyze e-commerce in Brazil.

According to the report, today the industry’s revenues are at R$ 47.1 billion, and it has 2.8% share in retail, counting food and beverages (R$ 46.3 billion excluding the two segments). However, according to Google’s projection, the figure should reach R$ 84.7 billion in 2021 and snatch up to 4.6% market share (R$ 82.9 billion and 9.5% of the market excluding food and beverages).

This corresponds to an increase of, on average, 12.4% per year, beginning recovery already in 2017 (see chart below).

Also according to the survey, most of the positive performance will occur due to the diversification in the types of purchases, now dominated mainly by books and electronic materials, corresponding, in 2010, 65% of online purchases, according to the study.

Sectors under development in e-commerce, such as clothing, shoes, beauty and food items will be more sought after by consumers from next year – Google projects that in 2018, about one in four sales made by Internet will be those segments. Today, they account for 11% of purchases.

Electronics and books will remain in first place, but represent something close to 52% of transaction volume.

Thus, Brazil is likely to get out of what Google calls “third phase” of e-commerce – in which comparable assets such as media items, electronics and books, are the most marketed – for the fourth phase of acquisition often of subjective goods (beauty and power, for example).

The study also points out the national e-commerce growth will also occur because of increase in the amount of internet users in Brazil.

Today, about 124 million people are connected to the internet – that’s about 60% of the population. By 2021, the number will increase to 151 million Internet users and reach 71% of the country.

Thus, the most likely age group to buy online in the future will be 25-44 years, that is, who currently has between 20 and 39 years.

 
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