The migration of 20 million people to class C, allied to more accessible credit and the increasing penetration of internet has created a new behavior profile and changed the interaction between consumer and retail.
What has Changed?
Seven years ago online shopping was not part of the reality of many Brazilians. The two main obstacles to the consecration of this shopping model were :
- Access to internet was still a privilege to middle and upper classes, promoting what was named “digital exclusion”;
- There was still a major concern regarding the protection of personal information used online, especially credit card numbers as every now and then the media would cover a fraud regarding online transactions.
Besides problems with internet itself, credit cards – which is the major payment option for online transactions – were not so strong in lower-classes. As the penetration of credit cards in classes A and B was reaching levels of saturation, banks and financial institutions started to target these lower-classes and to see them as potential consumers.
Easy access to credit allied to the expansion of internet penetration in Brazil resulted on the rising of a new kind of consumer, which is considered to be the modern one, the one whose object of desire is only a few clicks away.
How are Brazilians Shopping?
Over the years Brazilians have been experiencing new alternatives for shopping. Only 17% of the population state that they only shop directly at the store. Out of the remaining 83%, 53% shop from catalogs, 38% from the internet, 29% from telemarketing and 6% using a mobile phone.
The main reasons why there is a resistance against alternative ways of shopping is the difficult to return the product, lack of safety when providing personal information and the fear that the product will not be delivered.
Who is shopping online?
Initially, this consumption habit was restricted to younger people who used to buy books and CDs, but now it has expanded to older people and items range from perfume to tools.
According to a research made by IPEA (Institute of Applied Economics Research), most of these consumers (23%) is concentrated in the Southeast of Brazil and is more expressive in urban areas than in rural ones. The majority of online consumers still belongs to class A (59% of the total), while class C represents 13% of the online costumers.
Still according to the same study, online shopping still attracts more men than women and more than 50% of those who have adopted online shopping are from 35 to 49 years old. Also, 41% of the online shoppers have a college degree.
What are they shopping?
Ten years ago, the most sold products on the internet were books, CDs and DVDs. As new formats of video and music consumption have emerged, CDs and DVDs have lost their spots and gave room to perfumes, cosmetics and electronics. Here is a list of the most successful items of the online market:
- Books, CDs and DVDs
- Computers and digital devices
- Fashion accessories
- Personal hygiene products
Other Related Content
- Insolvency in Brazil
- Payment Methods in Brazil
- The Rise of Class D
- Consumer Behavior in the Favelas
- Social Classes in Brazil