Three foreign brands dominate Brazilian e-commerce

Ahead of the last quarter of the year, the most anticipated period for commerce, three e-commerce platforms appear in competition for access to Brazilian consumers – all foreigners: Argentina’s Mercado Livre (13.8% of total visits), Singapore’s Shopee (10.1%) and the national branch of the North American Amazon (6.8%). Together they amounted to approx. 700 million unique visits in August, as seen in Conversion’s report on e-commerce sectors in Brazil. This number represents 30% of the total e-commerce turnover.

(Source: Conversion)

Among the ten most accessible e-commerce platforms in Brazil today, five of them are from outside: in addition to Mercado Livre, Shopee and Amazon, the list includes China’s AliExpress (6th place) and South Korea’s Samsung (10th).

It is important to note that these figures were updated in September, using a new database, the result of a partnership between Conversion and SimilarWeb. In the August report, measurements from March 2022 onwards are already included in the new calculation, which has changed some positions among the most visited brands in e-commerce.

This foreign dominance is also seen in direct ranking of the most wanted brands of users on Google – measurement data of the so-called Search sharewhich compares the extent of citations of each company with the total number of researches in the segment in which it operates.

In this metric, Amazon, which was searched for by 52% of people within the retail segment in the month, took first place in the overall consolidation. Next up is a Brazilian pet product chain thursday (47%) and the North American thermo mug franchise Stanley (43%).

According to Diego Ivo, CEO of Conversion, international e-commerce has grown tremendously during the pandemic and each player has his own strategy to conquer the Brazilian. “Mercado Livre has built a positive reputation that alone attracts millions of consumers every month. Amazon, on the other hand, is known for dates that promote deep discounts, such as Prime Day. And Shopee, like most Asian e-commerce, is betting on a variety of products with a low average fare to attract Brazilians with their low prices,” he says.

E-commerce pulls back even on Father’s Day

After a significant increase of 5% in July, driven by the performance of the tourism segment, Brazilian e-commerce saw a decline of 1.2% in August, closing the month with 2.28 billion visits – even with Valentine’s Day. State. “It was difficult to maintain these good rates, but retail is still experiencing a moment of recovery,” notes Ivo.

In fact, it was the fourth best result in 2022 for the sector that is starting to count the days for more intensive consumption, such as e.g. Children’s DayOctober 12 of the year sexta-feira blackin November, i New Year parties, in December. All that, not to mention the proximity world cupthe effects of which will be felt already in the coming weeks, for example in segments such as electronics, clothing and tourism.

In August, some of the segments that had the biggest increase in visits were related to Father’s Day, such as sports (9.1%) – which performed best in 2022, with 102.4 million visits. The same is the case with the segment of electronics and household appliances, which recorded the second highest level this year, growing by 5.5% compared to July.

On the other hand, some segments lost ground in August, such as fashion and fashion accessories (-5.2%), gifts and flowers (-4.7%) – which had already fallen significantly in July – and home and furniture (- 4.7%).

If they keep up their pace of growth until the end of the year, Chinese platforms can come very close to leading the national e-commerce rankings. “Asian platforms could see a big gap in global e-commerce, which is low cost. They created a lot from there a sense of urgency with yours promotionspromoting a true discovery experience, which ultimately encourages people to spend more and more time within the site and app,” says Conversion’s founder.

Stanley Cups increase popularity in search share

Despite being on the Brazilian market since 2018, glasses from the North American brand Stanley have been blowing up social media for a few weeks now. Memes about the price of an item that costs R$ 200, apart from the audience that normally buys it, have taken over the screens of Instagram and Tiktok. But that’s not all: in Conversion’s report on e-commerce sectors in Brazil, the company’s citations on Google were so high that it placed its name among the most searched in the search engine in August: four out of ten (43%) searches were made within e-commerce she referred to Stanley cups with gifts and flowers.

In July, the brand did not even appear among the five most searched brands in the general compilation, and even less so in its segment, where the leading gift chain is Imaginarium with 31% of this Share of Search. In the following month, however, it already collected 42% of searches.

“Over the last two years, Stanley has invested heavily in the influencer marketing strategies and, at least in Brazil, it reached the right audience – brewers. Whether it will be just a fashion fad or whether Brazilians will definitely like their greater purchasing power is impossible to predict, but the data presented in the report are very important because they indicate a new trend of consumption in the market as a whole,” says Ivo.

In this metric, however, it is difficult to surpass the sovereignty of Amazon, which led in August with 52%, which represents a significant drop of 7 percentage points compared to the month of July. Petz (47%), Stanley (43%), Loja do Mecânico (41%) and Ifood (33%) complete the ranking.

Search share is a different metric than Market share, which measures the revenue share ratio of a particular industry, segment or market. In the case of search share, it is a predictive indicatorbecause studies show that the higher the share of mentions in Google searches, the higher the conversion rate.

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