Brazilian Fashion E-commerce: A Fast-Growing Segment

The fashion sector has been one of the fastest growing e-commerce segments in Brazil in the past years. Not only traditional retail stores are betting on having an e-commerce presence but each day more and more new businesses start with an exclusive online focus. In a country with such a vast territory as Brazil’s, an online store helps merchants widen their audience beyond the place in which they are located. Furthermore, consumers can also get easier access to goods they cannot find nearby.

 

 

Insights on the Brazilian Fashion E-commerce Segment

 

Fashion and accessories were the leading product category by order volume in the Brazilian e-commerce market in 2016, with a share of 13.6%, according to the latest Ebit Webshoppers. As the category has a lower transaction value than that of household appliances, smartphones and tablets, electronics, computing and home and decoration, it takes the 6th position by revenue, representing 5.6% of the total e-commerce income.

 

It is also worth noting that 20% of the fashion online sales in Brazil are carried out on mobile devices, according to data from Criteo. When compared with more mature markets, such as Japan, UK and USA, where mobile devices are responsible for 62%, 55% and 43% of the fashion sales respectively, the Brazilian market shows great growth potential.

 

When it comes to cross-border sales, 24% of the 21.2 million buyers who purchased on international websites in 2016 have bought goods from the fashion and accessories category, which occupies the 3rd position only after electronics and computing. In 2014, its share was 33%. The decrease has a direct connection with the devaluation of the Brazilian currency (BRL), which makes it more expensive for Brazilian consumers to purchase in foreign currency. For this reason, international merchants focusing on the Brazilian market should partner with a local payment provider to offer local payment methods and charge their clients in BRL.

 

 

Tips for a Successful Fashion E-commerce

 

Providing buyers with a broad range of local payment methods is key to having a successful fashion e-commerce business. Credit cards are the main payment choice for Brazilian buyers. However, giving them the choice to pay via boleto bancário, online banking transfer and debit cards, in addition to enabling installment payments, can drive further conversions.

 

Other effective measures include:

 

  • Efficient marketing strategy: businesses must focus their marketing efforts on targeting the right audience. A deep knowledge of the market and consumer behavior can help in the development of an effective marketing strategy to reach those users that are most likely to purchase from an online store.
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  • Fast delivery: fashion goods are usually purchased in an impulsive way and buyers want to receive their products quickly. A fast delivery will increase sales conversions.
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  • Great customer service: a friendly, fast and effective customer service is essential for a successful customer retention strategy.

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Comments

  • EDUARDO RONAL VICAN RAMOS 17 de August de 2017

    GRACIAS ME SIRVIÓ PARA UNA INVESTIGACION

  • Jonny ho 12 de September de 2018

    Hello, I read your article. I think Brazil’s e-commerce prospects are very good. But too many brand e-commerce companies are investing in Europe and the United States. Want to develop a good e-commerce platform I think Brazil must have its own supply chain does not rely entirely on Amazon and other European and American companies. For example: if the price and quality of the clothing is higher than the line, it is definitely popular. I think Brazilian e-commerce lacks its own source of supply and as a fashion country should be a boutique clothing type e-commerce platform.If you receive my comment, I hope to get your reply

    • Bianca Lopez 26 de November de 2018

      Hi Jonny. Thank you for your comment. Brazil is a relatively young market in comparison to USA and Europe. There are many challenges to be faced, from the adequate channels to sell, to logistics and how to include the unbanked population in order not to miss out on a massive share of consumers. We cannot enter the specificities of the fashion industry as our core business is payments, but by observing the trends, we can see that social channels are a huge opportunity for fashion.