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Internet in Brazil: fashion and beauty industries pulling E-commerce numbers up by in 2012

Sales of clothing, footwear, sporting goods, medicines, health and beauty products have the highest growth prospects in the market of Brazilian e-commerce and should pull the number of requests in 2012 […]

Sales of clothing, footwear, sporting goods, medicines, health and beauty products have the highest growth prospects in the market of Brazilian e-commerce and should pull the number of requests in 2012.

“The problem before was the lack of standardization of the size of the clothes and the fact that consumers are not accustomed to buying certain products on the Internet,” said the general director of company e-commerce tracking, e-bit, Pedro Guasti.

In 2011, the group of products related to fashion and accessories established itself as one of the five largest markets by number of requests in electronic commerce, with a share of 7%. The challenge for the segment is to standardize sizes and references numbers to children, male and female clothes: This is essential for online retailers to help reduce the number exchanges and returns.

Another segment that goes on sale through the Internet is the health, beauty and medicinal products, which also responded by 7% of orders placed by consumers on Brazilian e-commerce sites in 2011. The list is headed by  appliances (15%), followed by computers (12%) and electronics (8%).

Among the Internet users who purchased their first product through the Internet last year 61% belong to middle class. According to the director’s business e-bit, Chris Rother, customers of class A and B buy more on impulse, while the C and D take longer to complete orders.

According to a survey of e-bit, in 2011, an increase in the number of customers who said they were “satisfied” with shopping, reaching a percentage of 86.45% against 85.62% the year before, when this indicator was negatively influenced by problems with delays in deliveries of the period before that Christmas.

Guasti also noted that sales at the end of last year were encouraged by sales like “Black Friday” in November, and “Boxing Day”, after Christmas, whose sales totaled R $ 158 million (over 87 million US dolalrs), representing an increase of 91% over the same periods in 2010.

According to research in the last quarter of last year, the 50 largest companies accounted for 87.73% of revenues, compared to 89.27% in the same period in 2010. This space was occupied by small to medium-sized e-commerce sites, which increased its share in the same range, from 10.73% to 12.27%.

The group purchasing segment had revenues of $ 1.6 billion in 2011, a total of 20.5 million tickets issued. As the sport arrived in Brazil in 2010, the numbers are not comparable. The average ticket in these transactions was $ 78 last year.

“We expect this market to go through a strong phase of consolidation and professionalization, with smaller companies being acquired. Other companies should specialize in niche markets or become regionalized,” he said. The group of health and beauty leads the number of requests, followed by food and products.

Last year, the total consumers of group purchases totaled 9.98 million, according to the e-bit. The number of companies active in this business is close to 500, estimates Guasti.

via Economy – E-commerce will be driven by fashion and beauty industries in 2012.

By Itamar Medeiros

Originally from Brazil, Itamar Medeiros currently lives in Germany, where he works as Director of Design Strategy at SAP.

Working in the Information Technology industry since 1998, Itamar has helped truly global companies in multiple continents create great user experience through advocating Design and Innovation principles. During his 7 years in China, he promoted the User Experience Design discipline as User Experience Manager at Autodesk and Local Coordinator of the Interaction Design Association (IxDA) in Shanghai.

Itamar holds a MA in Design Practice from Northumbria University (Newcastle, UK), for which he received a Distinction Award for his thesis Creating Innovative Design Software Solutions within Collaborative/Distributed Design Environments.

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