InsightaaS: Forrester Research is one of the world’s leading IT analyst firms — it is generally thought to be a key source of insight into and influence over use of new technologies. The company’s blog page acts as a “roll-up” of blogs by its analysts. Today, we are highlighting a post by VP and research director Zia Daniell Wigder on eCommerce evolution in Brazil. Although Wigder’s post isn’t especially ‘meaty’ (at least by Across the Net standards), we found it interesting for three reasons. One is that it includes a forecast for ecommerce in Latin America. A second is that it sheds at least a little bit of light on how ecommerce is coming of age in the developing world; for example, it highlights the anticipated growth in “later-stage categories like apparel and beauty.” The third, and most important, is that the post contains an interesting graphic illustrating five forces – the aforementioned category growth, mobile, online marketplaces, online/offline integration and the use of customer intelligence to better target and serve customers – that will be important to the direction and velocity of ecommerce in Brazil.
Many brands eyeing Latin American eCommerce markets look first to Brazil, and with good reason. Brazil is Latin America’s largest online retail market by a wide margin and growth rates remain high: Our forecast shows the market growing by a CAGR of 18% to reach $35 billion in 2018.
As in every fast-growing eCommerce market, however, companies that compete in this environment face numerous challenges. Issues like complex tax navigation and the long path to profitability are well documented. In addition, companies need to prepare for shifts in what consumers buy online and how they make these purchases. The dynamics of online shopping are shifting.
Our report published today on The Evolution Of eCommerce In Brazil (client access req’d) discusses five trends that will impact the online retail market in the country. While these same trends will play out in many markets around the globe, our report dives into how and when we expect to see shifts in Brazil…