Cash-strapped Brazilians turn to e-commerce

By Chris BARKER

- Last updated on GMT

Cash-strapped Brazilians turn to e-commerce

Related tags: Cosmetics, Marketing

Brazilian buyers are increasingly using e-commerce to purchase cosmetics as a result of the country’s poor economic situation, according to a report by market research company E-bit.

The study shows that whilst face-to-face selling continues to play an important role in Brazil’s beauty markets, online retail is rapidly growing in importance.  

This trend is attributed in part to Brazilian consumers being attracted to more efficient spending methods in a hostile economic environment which combines low GDP, economic slowdown and a general international crisis.

Pedro Guasti, general director of E-bit, commented: “They (consumers) tend to be more careful and demanding in these times.”

“Thus, they are attracted by the advantages offered by the sector such as lower prices, practicality and payment deadlines which are more flexible.”

E-commerce spending grows

The survey shows that cosmetics, perfumery and personal care products sold via the net increased by 12.2 percent in the first half of 2013 alone.

Hair care and fragrance are consistently the strongest sellers in the general beauty market and are expected to grow by nearly 40 percent up to 2016.   

In the meantime, other sectors of the online economy continued to grow at an impressive rate, with the fashion and accessories market, the leading segment for e-commerce in Brazil, posting particularly impressive results of 13.7 percent.

The e-commerce sector as whole grew by nearly a quarter in the first half of 2013.

Brazilian beauty market

A 2012 Euromonitor report shows that whilst direct selling is still the biggest category in Brazil, e-commerce is expected to increase over the coming years and make up a more significant proportion of the market’s total value.  

The country is currently the third largest beauty market in the world, having reached a value of $43bn in 2011.

This high revenue comes largely as a result of mushrooming 79 percent growth from 2006 to 2011- whilst emerging markets may be suffering from a relative economic dip, Brazil's spending on cosmetics is still being propelled upwards by high numbers of young adults in the general population and women in the workforce. 

Brazil's cosmetics industry is predicted to grow by up to 38 percent in the period from 2011-2016.

Related topics: Regulation & Safety, Financial focus

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