How Chinese merchants are selling in Brazil?
25/06/2019Brazilians are gaining more access to various products from Chinese online merchants thanks to easier payment and delivery process.
As trade barriers between Brazil and China continue to fall, Brazilians are gaining access to a large variety of products at very good prices and conditions, since the Chinese currently lead the world in the production of industrial goods and offer the world’s most competitive prices. Many of the products manufactured in China are not yet available for purchase directly in stores in Brazil, but the reduced geographic trade barriers give Brazilians greater access.
China’s share of the international market expanded from 2008 to 2017, overtaking the leader, the European Union, according to the World Bank. In 2008, China’s share was 11.1%, which jumped to 16% in 2017.
Cross-border e-commerce, which is intensely explored in Brazil by the global giants Alibaba, Wish and Amazon¹, has annual sales of over US$3 billion, according to specialists, and with their growth outpacing the industry average, at around 15%. The global industry sells US$350 billion annually and is expected to grow 25% by 2020.
Some of the international e-commerce companies that sell to Brazilian consumers offer the possibility of payment methods in local currency, such as boleto, local credit cards, etc., to adapt and serve the particularities of Brazilian culture, with rates exponentially more attractive than those typically charged to end consumers whose only option is using an international credit card.
Products can be sold directly through Asian e-commerce platforms and also through local platforms well known to Brazilian e-shoppers, such as B2W Digital, which recently has launched in its marketplace a space dedicated to cross-border e-commerce, Americanas Mundo. The new version of the traditional Brazilian e-commerce website offers products imported from foreign retailers, including China and United States, which pay a commission on each product sold. Americanas Mundo currently offers over 2,300 products in the following categories: watches; computer and accessories; auto; sports and leisure; toys; and beauty and fragrances.
All these conveniences are made possible thanks to advances in technology and communication, as well as optimization of the logistics sector, which enables the delivery of products around the world faster and at competitive prices, making free trade more dynamic. The payment market also plays a key role in this expansion, since its innovations and integrated platforms support payment using various currencies, methods and channels, quickly and more efficiently. Brazilian e-shoppers, which should swell to the ranks of 96 million by 2021, represent a huge potential market for international merchants, which will increasingly connect to these consumers directly through payment solutions customized to the local public and companies that adopt a marketplace model, integrating multiple stores in a single platform.
Many Asian players already understand the opportunity that Brazil represents and are expanding into the market, but there is still a huge share of the market to be explored, since the e-commerce segment still accounts for a small share of the general retail market (3.3%) and enjoys highly optimistic growth prospects.
¹Webshoppers 2019 – Elo/ebit-Nielsen
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