Zia Daniell Wigder, VP e Research Director, Global E-Commerce da Forrester Research fala sobre "Como o e-commerce no brasil pode aprender com os BRICS" no Congresso de Search e Vendas 2014 - E-Commerce Brasil

1. Making Leaders Successful
Every Day

2. Como o eCommerce no Brasil pode
aprender com os BRICs
Zia Daniell Wigder, Vice President & Research Director
14 February 2014

5. It’s extremely hard to keep
up with what’s happening
around the globe

6. Agenda
› What are some key eCommerce
trends in the other BRIC markets
› What are some of the eCommerce
trends that extend globally
› What is unique about the Brazilian
eCommerce market
© 2013 Forrester Research, Inc. Reproduction Prohibited
6

7. eCommerce market sizes vary greatly
*Forrester does not have a forecast for Russia – estimates are from Data Insight, East-West Digital News, PwC

8. Focus on China

9. Some eCommerce trends in China
This year, the Chinese
market will hit $373B
(B2C & C2C) compared to
the US at $291B (B2C
only) and will continue to
grow at over 20% a year.
Shoppers buy across all
categories online
Unprecedented
size and growth
rates
Alibaba alone is
investing $16B in a
logistics network –
Jingdong has invested
almost $4B.
Jingdong offers 3-hour
delivery in 6 cities
Massive
logistics
investment
Given the challenges of
operating in China,
numerous providers
such as Baozun and
Yoox offer streamlined
solutions for brands
looking to enter the
market
Market concentration is
greater than in any other
major eCommerce
market.
Tmall is said to have
40-50% of the B2C
market, Taobao 80-90%
of the C2C market
Market
dominance by a
single player
Numerous
players
streamlining
market entry

10. Focus on India

11. Some eCommerce trends in India
India’s eCommerce
market is dominated by
local players in part due
to the fact that foreign
multibrand retailers
cannot sell online in
India – although that
may change
Online retailers are
receiving hundreds of
millions of dollars of
investment:
Flipkart: $360m (in 2013)
Snapdeal: Raising $100m
Myntra: $50m
Foreign direct
investment (FDI)
restrictions
Small market,
massive funding
All leading players now
offer marketplaces:
Flipkart, Snapdeal,
Myntra, Amazon,
eBay.
The shift to
marketplaces has
brought customer
satisfaction challenges
Most traditional retailers
are barely eCommerce
enabled (if at all);
Some such as Healthkart
and Firstcry are online
retailers going offline
Traditional retailers
slow to embrace
eCommerce; some
online retailers going
offline
Marketplaces
dominate

12. Focus on Russia

13. Some eCommerce trends in Russia
In Russia, leading online
retailers like Ozon.ru
offer almost 20 payment
methods, including COD
– there are also different
pick-up options such as
QiwiPost terminals
Unlike in China, where a
single player dominates
the market, Russia is the
opposite: A.T. Kearney
says no player holds more
than 4% market share*
Wide variety of
payment and
pickup options
Fragmented
online retail
environment
Significant crossborder eCommerce
– but with new
hurdles for foreign
sellers
In 2012, eBay sellers sold
over $400 million of
goods in Russia and 40%
of small packages
entering Russia were said
to come from Chinese
eCommerce companies.
However, new package
delivery restrictions
means FedEx and DHL
have suspended
shipments to consumers
Leading apparel retailers
like Lamoda, Ozon.ru
and Wildberries are all
said to offer a delivery
service where the courier
waits 15 minutes while
you try on clothing and
provides fashion advice
Fashion advice
via delivery
person
Source: Press release, “Russia Placed 13th in the Russia Retail eCommerce Index for Market Opportunity”, 18 November 2013.

14. Takeaways for Brazilian online retailers from
the BRICs
›
In markets like China, numerous solution providers
are streamlining market entry to a challenging
market. There is still a dearth of similar options in
Brazil – what role can your company play?
›
A shift to marketplaces is a big revenue generator
for online retailers, but can take a serious toll on
customer satisfaction. Be prepared.
›
Russian online retailers have thought creatively
about providing services that drive sales of key
categories. How can online retailers in Brazil
differentiate their offerings through service?
© 2013 Forrester Research, Inc. Reproduction Prohibited
14

15. If those are some of the unique things about
the other BRIC markets, what trends are
happening globally?
© 2013 Forrester Research, Inc. Reproduction Prohibited
15

16. #1. Profitability is elusive - everywhere
© 2013 Forrester Research, Inc. Reproduction Prohibited
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17. #2: eCommerce growth starts in big cities, but
rapidly migrates to Tier 2-3 cities and towns

18. #3: Mobile is primary driver of new user and
buyer growth
Sources: Tech In Asia, 17 July 2013, IMRG Press Release, 24 September 2013

19. #4. New eCommerce markets follow a
similar path
Source: June 2013 “The Evolution Of Global eCommerce Markets”

20. Understand which phase countries are in
June 2013 “The Evolution Of Global eCommerce Markets”

21. Takeaways for Brazilian online retailers from
these global trends
›
If your brand is just entering the Brazilian market,
don’t expect payback in 1-2 years. As in all emerging
eCommerce markets, profitability is a challenge.
›
Prepare for growth to come from smaller cities where
offline product selection is limited, and think about
how you will target consumers in these areas.
›
Ensure your business is positioned to take advantage
of mobile, and realize mobile offerings are a work in
progress rather than a one-time initiative.
› Understand where your products fall on the
eCommerce adoption curve, and what you’ll need to do
to drive adoption of your product categories.
© 2013 Forrester Research, Inc. Reproduction Prohibited
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22. What is different in Brazil?

23. #1. Cash on delivery never took off as an
online payment method – unlike in almost
every other emerging market

24. #2. Online retailers do not own and operate
delivery networks to the same degree as they
do elsewhere
Source: Tech in Asia, Bloomberg

25. #3. The nature of brand engagement through
social media is exceptional in Latin America
I think it is cool to be associated with a
company/brand on social media
Strongly agree
Agree
Brazil
China
US
UK
= >20%
= 10-20%
= <10%
Source: Latin American Technographics Online Benchmark Survey, 2013, Asia Pacific Technographics Online Benchmark
Survey, Q2 2013, North American Technographics Online Benchmark Survey Q2 2013 (US Canada), European
Technographics® Online Benchmark Survey, 2013

26. #4. The involvement of traditional retailers in
Brazil looks more like the US than Asia
Top 10 online retailers by principal market as
ranked by Internet Retailer
China
India
US
Brazil
= Web-only
= TV or catalog
= Traditional retailer*
* Includes any online retailer with a traditional retail store counterpart

27. Takeaways for Brazilian online retailers from
these local trends
›
You won’t have to deal with the headaches of managing
cash on delivery, but you’ll need to come up with other
ways to drive trust among online buyers.
›
Online retailers that do not (and do not plan to) own
their own delivery networks will need to work closely
with logistics partners to create competitive offerings.
›
Social networks present a different opportunity for
brands operating in Brazil as compared to in the US
and Europe – understand the differences and adapt.
› Omnichannel initiatives, while nascent in Brazil today,
will soon change consumer expectations of the overall
shopping experience.
© 2013 Forrester Research, Inc. Reproduction Prohibited
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28. Questions?

29. Thank you / Obrigada
Thank you
Zia Daniell Wigder
zwigder@forrester.com
@zdwigder