To bring tailored content from Latin America to the world is our motto here at LABS. And when it comes to the region, Brazil emerges as its first economy and most developed market regarding sectors such as e-commerce, payments, and tech. With a rising number of internet users and online shoppers, especially with the growth of e-commerce sales through mobile devices, the country is in a moment of disruption, opening room for several business opportunities. We know that keeping up with Brazil news today is no easy task, but it’s essential to anyone interested in seizing business opportunities in the country. In this section, you will be able to get news and updates on only what matters about Latin America’s major economy. Take a look at what you will find here:
- Brazil economy news
- Brazil payment methods
- Brazil e-commerce
More than keeping you up to date, our mission here at LABS is to select for you the most recent and important news related to Brazil President Jair Bolsonaro economic politics, such as the impact of each change in the country’s benchmark interest rate in the economy. . On LABS, you will also read about the big companies that were attracted by the country’s potential–read: Amazon, Mercado Livre, Microsoft, Uber–only to name a few.
Brazil economy news: a player back in the game
“Brazil is a hub for great investments, past, present, and future”. That’s what Karl Sauvant believes , an expert of Columbia University’s Center on Sustainable Investment. And this is what we also believe in. When it comes to Brazilian news, especially Brazilian economic news, the economic downturn is long behind us and it is not by chance that the country got on the radar of global companies such as Amazon and Microsoft in 2019, to name a few. Moreover, a survey conducted by PricewaterhouseCoopers (PwC) found that 70% of Brazilians intend to maintain or increase their spending as of 2018.
After the biggest and longest economic crisis of its history, between 2014 and 2016, if you think about Brazil news today, the country resumed its path towards stability. The election of a right-wing candidate for the presidency, who chose a political and economic team aligned with the market, had investors optimistic with the Brazilian economy again.
Brazil e-commerce: an ocean of opportunities
One of the sectors that has been working as a driver of the country’s economy is e-commerce. Brazil e-commerce is one of the fastest-growing worldwide–and although the country has been watching a lot of disruption happening in this sector–that are still plenty of opportunities for those wanting to target this market. It’s just a matter of taking a closer look at the data: the Beyond Borders Research 2018-2019 – The Cross-border Consumption in Brazil, held by the global fintech EBANX and conducted with over 3 thousand e-shoppers, has shed light on the potential of e-commerce in Brazil, which should grow, on average, 17% within 3 years, according to Americas Market Intelligence (AMI).
Moreover, being the fifth-largest internet and smartphone economy in the world, Brazil has 236 million mobile subscriptions and 143 million unique mobile subscriptions. And when it comes to smartphone entry, the country is far from saturation. AMI Associate Managing Director Lindsay Lehr analyzes that the Brazilian market is growing beyond the audience already connected and familiar with e-commerce. “Individuals within a medium-high and high salary rage already make online purchases, but the biggest changes will come from individuals in the medium sector, which are now familiarized with mobile and are beginning to use it for commercial and financial transactions,” points out. “The market is growing beyond the traditional customer base, expanding to consumers with only moderate purchasing power and who may be underbanked. This is the potential of Brazil: it still has an enormous under-tapped market,” Lehr adds.
Bottom line? Brazil e-commerce has in smartphones the great opportunity for companies to grow exponentially in this booming – yet still under-tapped – market.
Brazil payment methods: time for disruption
While some sectors have been watching a steady growth for the coming years in Brazil – a particular segment has been pushing this growth: payments. Due to financial inclusion, that is currently taking the country by storm with the surge of several fintechs, digital wallets, and alternative financial solutions – Brazil payment methods are now living a moment of great disruption, especially Brazil online payment methods – pushed by growing connectivity and mobile adoption in the country.
But although the significant increase in the number of smartphones and internet penetration is driving big shifts in this market, that doesn’t mean that deep-rooted habits lost space. From the famous cash voucher payment method boleto bancário to splitting the total value of a purchase in monthly parcels – called installments – it’s important to understand these payment habits to draw the right strategy for these consumers.
3,000 Brazilians from different regions, ages, and socio-economic conditions who bought on international websites within 12 months before September 2019 were interviewed in The Beyond Borders Research 2018-2019, held by EBANX. And you might be surprised or not, but results show that 51.5% of respondents used the boleto to pay for foreign products and services. Among those who made this choice, 53% had a credit card.
The familiarity between Brazilians and boleto is not limited to regions, generations and purchasing power. The numbers reinforce this intimate relationship: the voucher is present in 17% of e-commerce transactions in the country, equivalent to $ 6.1 billion.
Although Brazilians are on the radar of big enterprises that are well aware of the country’s power of consumption – in order to succeed in the moment of selling to these consumers, companies should adapt to the particular behavior Brazilians have when it comes to paying for their purchases. After all, offering the right payment methods can be the key to thrive in this market.
LABS – Latin America and Brazil news in English
That Brazil is a booming economy and an ocean of business opportunities, you are probably aware by now. But to understand this market – and why you should not overlook its potential – it’s a whole other story. A content platform about Latin America (LATAM), focused on economics, business, technology, and society, LABS provides deep and accurate content about the economic and technological landscape of Latin America, both in Portuguese and English, in order to help entrepreneurs understand the region’s particularities.
Long story short: only what matters about Latin America and Brazil news in English – for you to deep dive into the region’s business potential. Enjoy the reading!