Brazil E-commerce Shows Impact of Economic Downturn; Smartphones Penetration Doubles in Brazil
In this week’s LATAM Roundup: eMarketer’s numbers about Latin American e-commerce shows that the Brazilian market will feel an impact of its poor economic situation, growing less than expected; Smartphone’s penetration in Brazil doubles from 19% to 40%; and, finally, a content analysis of the country’s main publishers about the speed in updating their platforms on the Rio Olympic Games.
Brazil e-commerce to feel the impact of the economic downturn
According to eMarketer, e-commerce sales in Brazil should reach USD$15.6bn (£11.9bn) this year, or 42.3% of Latin American’s online sales. Even though Brazil will keep being the biggest market in the region, the current economic downturn that the country is going through will harm future growth.
This way, Brazilian market share should drop to 30.2% in 2020, when the Latin American e-commerce is expected to reach USD$22.5bn (£17.2bn). Only in 2016, the country’s commerce forecast is a 2.1% decrease, impacted by the price of commodities, unemployment rates and, consequently, average family income downturn.
The Latin American e-commerce market will face not only the Brazilian difficult scenario, but also other challenges in countries that will have an impact in the online and offline market. The retail market, which totals USD$ 1.9tn (£1.45tn) in 2016, will see a modest growth (4.8%) in 2020.
Yet, total online commerce is expected to reach USD$ 36.9bn (£28.2bn) in 2016, keeping up with growth mainly because of better technology infrastructure, such payment systems.
Mexico, the second biggest electronic market in LATAM, is expected to reach USD$6bn (£4.58bn) in e-commerce this year, or 1.4% of the country’s retail market. This number should double until 2020, to USD$13.23bn (£10.1bn). It is worth mentioning the Mexican economy is still tied to the United States’ economic performance.
Argentina, on the other hand, will see a 50% increase on its e-commerce market, mainly due to the high inflation of the country.
In all Latin American countries, mobile still have a modest participation in terms of transactions: less than 20%. The main increase should happen this year, according to eMarketer, as retailers invest in their mobile platforms.
Smartphone penetration doubles in Brazil
Recent data revealed earlier last week by Ibope, confirmed that smartphone penetration in Brazil more than doubled from 2014 to 2016. The number jumped from 19% to 40%.
The research is part of a reported requested by Qualcomm, and also reveals that the main purpose of usage of smartphones is entertainment, cited by 57% of people. Work comes next. Social media is by far the most used app, according to users’ answers (75%), whereas messaging gets only 37% of mentions.
Ibope questioned men and women between 18-54 years old, with smartphones, from across different regions of Brazil.
Brazilian publishers’ race in the Olympics internet content
In the last week of Rio 2016, Dynatrace analysed content data from main publishers in Brazil to find out which website was faster with their content. They analysed 12 websites.
Globo.com and G1, both from the same media group (Globo Organisations), were the leads: three seconds ahead of the other publishers. Lance and Sportv, both specialised in sports but the latest one also from Globo Organisations, were third and fourth, respectively. yet, they are only 0.087 seconds apart from one another.
Ig, Terra, Globo Esporte, Bandnews, Esporte Interativo, ESPN, and Folha complete the list, in that order.
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