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WEBSHOPPERS

36 EDITION
TH
2017

www.ebit.com.br
TABLE OF CONTENTS

03 10 23 31 39
FINAL
INTRODUCTION CHAPTER 1 CHAPTER 2 CHAPTER 3
CONSIDERATIONS

• Webshoppers 360º Appraisal Digital Commerce Fipe Buscapé • Main clients


and What is Ebit of e-commerce Index
in the 1st half • Glossary
• Understand Ebit of 2017
• Partners
• How it works
• Press
• Solutions and Information and
Ebit products Team/Contacts

• Table of Contents
Executive

www.ebit.com.br
WEBSHOPPERS

INTRODUCTION

3
INTRODUCTION | WEBSHOPPERS / WHAT IS EBIT

WEBSHOPPERS
Performed by Ebit since 2001, Webshoppers
is the most credible study on Brazilian
e-commerce and the main reference
for professionals in the segment.

In this edition, we show the results of the


first half of 2017, estimates for the second
half of the year, and changes in consumer
behavior and preferences. In addition,
this edition has a special chapter
Digital Commerce, that shall provide
information on online tourism consumers,
tickets, and marketplaces.

This study aims at outlining the course of the


online purchase market and contribute with
the understanding and growth of this sector.

WHAT IS EBIT
Present in the Brazilian market since 2000,
Ebit ( www.ebit.com.br) has followed the
evolution of online retail in Brazil since its
beginning, and it is the greatest reference
in competitive intelligence for e-commerce.

We collect real time data directly from


the online buyer using a sophisticated
system. There are more than 30 million
researches collected in over 25 thousand
affiliate online stores.

4
INTRODUCTION | UNDERSTAND EBIT

UNDERSTAND EBIT
W hen consumers access one of many Ebit
affiliated online stores, they visualize the
Ebit certification medal, which classifies the
there. Thus, Ebit helps other consumers to de-
cide better where to purchase online. When fi-
nalizing the purchase, the client is invited to an-
stores in Diamond, Gold, Silver, Bronze, or Under swer a survey on their experience and that is
Appraisal, according to assessments performed when the three appraisal steps performed by the
by internet users who have already purchased consumer begin. See below how it works.

EBIT CERTIFICATIONS

FOR THE EBIT AFFILIATE ONLINE STORE, MEDALS GENERATE MORE VISIBILITY
AND CREDIBILITY WITH CONSUMERS. AS WELL AS INCREASED TRAFFIC, CONVERSION, AND SEO.

BRONZE SILVER GOLD

Under appraisal Good Very Good Great Excellent

5
INTRODUCTION | HOW IT WORKS

HOW IT WORKS
S ince January 2000, Ebit has already col-
lected more than 30 million consumer
assessments, with over 300,000 new ones
ports, which outline online consumer pro-
file and also comparatively assess the
services provided by online stores, on top-
every month. This information, once com- ics such as delivery, product price, pay-
piled, generates Market Intelligence re- ment forms, NPS, among others.

UNDERSTAND EBIT

EBIT CLASSIFIES ONLINE STORE REPUTATION ACCORDING


TO APPRAISALS BY THEIR OWN CONSUMERS

1 2 3 4

Consumers purchase a Ebit requests, After a while, According to the


product at one of the via email, a Ebit sends the reputation appraised
thousand stores actively new appraisal Search for by consumers in these
affiliated to Ebit. They regarding product Product via email surveys over the last
click the Ebit banner on delivery, sent to the consumer 90 calendar days, the
the purchase confirmation after the delivery so that they store receives the Ebit
page and answer the first date determined appraise their certification medal:
research regarding their by the consumer satisfaction with Diamond, Gold,
experience when on the previous the product Silver, Bronze, or
completing the purchase survey. purchased. Under Appraisal.

6
INTRODUCTION | EBIT SOLUTIONS AND PRODUCTS

SOLUTIONS AND PRODUCTS

BENEFITS OF EBIT

Free service! Benchmarking: Enables daily


You don't pay anything Know how your store is ranked feedback by your clients:
to affiliate to Ebit. compared to your competitors. Real time and Daily.

Increase in Turnover: Valuable Information Offers visibility


Through several studies, on E-commerce: on Ebit and Buscapé:
we observed that having Ebit provides reports Your store in the list
an Ebit seal might increase for a better decision- of top stores in
your turnover up to 73%. making process. e-commerce.

Analyses and information to meet


Do you want to know how to engage Ebit
the different market needs.
solutions for your company? Contact us at
comercial@ebit.com.br

In case of online stores, you must first affiliate to Ebit.


E-COMMERCE MARKETPLACE FINANCIAL INDUSTRY Acess www.ebit.com.br/cadastro-de-loja and know how
MARKET we can help your company.

7
INTRODUCTION | TABLE OF CONTENTS

TABLE OF CONTENTS
WEBSHOPPERS 36TH EDITION

In this first half of 2017, Brazilian economy


showed the first signs of reaction and this has
already reflected on a projection of growth in
3.5% increase, and sales were BRL 21 billion, a
7.5% increase.

the Gross Domestic Product (GDP) and of re- For the second half of 2017, the projection is
newed consumer market. It is also possible to that the three major retail calendar dates – Chil-
observe such signs in e-commerce. dren's' Day, Christmas, and mainly, Black Friday
– shall boost sales. Ebit expects a growth of 12%
The best example is the FIPE Buscapé In- to 15% for this semester. Considering the num-
dex, which monitors product prices marketed bers in the first half-year and estimates for the
in the sector, and that registered deflation in second half, Ebit expects the market to register
all months of the first half of 2017, compared a two-digit expansion again, updating the pros-
to the previous year, with loss of 5.38% over pect market growth to 10% for the whole year.
the period. In favorable market conditions, the
index behavior is deflationary, mainly due to Webshoppers 36 innovates by bringing a
its composition and characteristics. special chapter especially dedicated to Digital
Commerce, which adds the sales of new and sec-
Lower prices had a positive impact on the ond-hand products from companies to consum-
number of e-commerce orders, which exceed- ers (B2C), and from consumers to consumers
ed the 50 million mark for the first time in (C2C), as well as services (Tourism & Tickets).
the first half of 2017, with a 3.9% growth and Know the scenario and the trends for this vibrant
reversing the 1.8% drop registered in the first market, which sold BRL 93.5 billion in 2016, and
half of 2016. The average ticket was BRL 418, a has almost doubled in size in only four years.

8
INTRODUCTION | TABLE OF CONTENTS

WEBSHOPPERS 36 HIGHLIGHTS

FALLING PRICES HISTORICAL MARK NO INSTALLMENTS


E-commerce prices The number of The number of
accumulated a 5.38% drop orders exceeded e-consumers who chose to
in the last 12 months ended the 50 million mark for pay their purchases in cash
in June, 2017. the first time. has grown to 48.2%.

BOOMING HIGHER ADDED VALUE DELIVERIES


Brazilian e-commerce Higher added value Total freight paid by
sold BRL 21 billion in the products boosted the e-commerce clients was
first half of 2017, increase in average ticket, BRL 1.03 billion; average value
a 7.5% increase. which was BRL 418. was BRL 29.93 per delivery.

BOOMING MARKET BOOSTED MOBILE E-CONSUMERS


Digital Commerce has grown Sales via mobile 25.5 million
88% in four years and sold devices grew expressive performed at least
BRL 93,5 billion in 2016 (sales 35.9%, and already one e-commerce
of new and second-hand reached a 24.6% share purchase in the
products (B2C), (C2C), and of all sales in first half of 2017,
services (Tourism & Tickets). the market. a 10.3% increase.

9
CHAPTER 1

360º APPRAISAL
OF THE FIRST HALF
OF 2017

10
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

2017
1ST HALF-YEAR

360º APPRAISAL OF THE


FIRST HALF OF 2017
D espite the fact that the start of the year
was marked by investigations and scan-
dals in national politics, Brazilian economy
years. This number is still small compared
to the history of growth of this sector in the
country; however, it shows that e-commerce
has already shown a small positive reaction has plenty of room to keep growing in Brazil.
with inflation drop and the perspective of a
higher reduction in interest rates, thus gene- Among the several strategies available
rating an expectation of economy recovery for the sector, a highlight is large-sized com-
and a more expressive growth of the Gross panies, which have the highest investment in
Domestic Product (GDP) starting in the sales via marketplace, aiming at offering a
second half of 2017. higher assortment of products for their con-
sumers, and thereby increasing sales concen-
The scenario of a slight economic re- tration, as well as enhancing profitability. We
covery helped e-commerce to reach better also observed that entrepreneurs and inves-
growth levels in the first half of 2017, regis- tors remain focused on the sector, and each
tering a 3.9% increase in order volume, com- month an increasing number of shops have
pared to the same period in the two previous appeared in e-commerce .

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CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

Another highlight in the sector, similar to WE REGISTERED A NEW INCREASE


what was registered in previous years, was OF 56,2% IN SALES VIA SMARTPHONE
the increase in sales via mobile devices: IN THE FIRST HALF OF 2017. THIS
SHOWS THAT CONSUMERS KEEP
INVESTING IN DEVICES WITH MORE
DEVICES USED TO PERFORM FEATURES AND WHICH ARE MORE
ONLINE PURCHASES MODERN, AND THIS ENABLES
THIS MIGRATION OF CONSUMER
BEHAVIOR.

André Dias, COO of Ebit

The opportunity to access the Internet due to


the democratization of 3G and 4G access, in ad-

24.6% 75.4%
dition to the already known advantages offered
by e-commerce, such as low prices and product
information, allowed the amount of consumers
of transactions of transactions
were were who performed at least one purchase in the first
performed via performed via half of 2017 to be higher than last year, registering
mobile devices computer/laptop
a 10.3% growth and totaling around 25.5 million
active consumers buying over the Internet.

EVOLUTION OF (ACTIVE) E-CONSUMERS


ONE-TIME CONSUMERS (MILLION)

25.5
30
10,3% IN BRAZIL,
25 23.1 variation 25.5 MILLION
CONSUMERS
20 18.9 17.6 PERFORMED

15
14.1 AT LEAST
ONE ONLINE
PURCHASE IN
10 THE FIRST HALF
OF 2017, THUS
5 ACCOUNTING FOR
A 10.3% INCREASE
COMPARED
1s 2013 1s 2014 1s 2015 1s 2016 1s 2017
TO 2016
EBIT WEBSHOPPERS Source: Ebit – Number of Active Consumers in 1st half-year

12
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

CONSUMER PROFILE IN THE FIRST HALF OF 2017

GENDER AGE

UP TO BETWEEN BETWEEN ABOVE


24 YEARS 25 AND 34 35 AND 49 50 YEARS AVERAGE AGE
WOMEN MEN OLD YEARS OLD YEARS OLD OLD (YEARS)

50.04% 49.96% 8% 23% 38% 31% 43


1s 2017 1s 2017 1s 2017 1s 2017 1s 2017 1s 2017 1s 2017

51.87% 48.13% 8% 23% 37% 32% 43


1s 2016 1s 2016 1s 2016 1s 2016 1s 2016 1s 2016 1s 2016

EBIT WEBSHOPPERS Source: Ebit Information EBIT WEBSHOPPERS Source: Ebit Information

FAMILY INCOME (BRL)

LESS THAN 33.4%


3,000 37.5%
BETWEEN 3,001 23.7%
AND 5,000 23.8%
18.3% AVERAGE FAMILY
BETWEEN 5,001
INCOME
AND 8,000 17.9%
ABOVE 24.5% BRL 5,573
8,001 20.8% 1s 2017

0% 10% 20% 30% 40% BRL 5,174


1s 2016 1s 2017
1s 2016

EBIT WEBSHOPPERS Source: Ebit Information

IN THIS FIRST HALF OF 2017, THE AVERAGE AGE OF THE THE AVERAGE INCOME OF
THE SHARE OF WOMEN AND E-CONSUMER REMAINS 43 YEARS E-CONSUMERS HAD A RATED
MEN WAS PRACTICALLY THE OLD, DUE TO NEW CONSUMERS GROWTH OF 7.7% COMPARED TO
SAME IN E-COMMERCE WITH YOUNGER AGE THE FIRST HALF OF 2016

13
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

REGIONS

1th half-year of 2016

NORTH NORTHEAST

2.6% 12.5%
SOUTHEAST

63.8%
MID-
IN THE FIRST HALF OF 2017,
WEST SOUTH THE TOTAL FREIGHT VALUE
6.6% 14.5% PAID BY E-CONSUMERS
REACHED BRL 1.03 BILLION.
1th half-year of 2017 WHEREAS, ON AVERAGE, IT
WAS PAID BRL 29.93 FOR THE
FREIGHT PER PURCHASE
NORTH NORTHEAST

2.5% 12.6%
As already observed in previous editions
SOUTHEAST of this report, the market definitely tried to
62.8% keep its stand by offering free freight only
for some more specific categories or when
MID- consumers are not in a hurry to receive the
WEST SOUTH product. Therefore, they might wait longer for
7.3% 14.7% the delivery, or yet, retrieve the products at
some physical store.
EBIT WEBSHOPPERS Source: Ebit Information

Decrease in e-commerce free freight has


also impacted sales at some stores, and has
certainly contributed with the increase in shop-
THE MID-WEST WAS THE REGION
ping cart abandonment in online retail. In the
WHICH REGISTERED THE HIGHEST constant strive for increased market share in
INCREASED SHARE IN E-COMMERCE Brazilian e-commerce, offering free freight or
SALES IN THE FIRST HALF OF 2017 freight at lower prices than direct competitors
has become a decisive factor to close sales.

14
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

FREE FREIGHT

50% 43% 44%


40% 40% 40% 42%
38% 38%
40% 36% 35%
43% 43%
30%
33%
30% 28%
20% 27% 26%
22%
19% 18%
10%

0%
1q/15 2q/15 3q/15 4q/15 1q/16 2q/16 3q/16 4q/16 1q/17 2q/17

E-COMMERCE TOP 10

EBIT WEBSHOPPERS SOURCE: Ebit Information

Hence, companies in the sector have great- in this period paid, on average, BRL 29.93
ly invested in freight control and management for the delivery.
systems with the purpose of standing out
amidst the competition by decreasing logistic The first half of 2017 also registered a
costs, which accounts for over 5% of the in- change in payment method of online purchas-
come in most shops. es: in the first six months of 2017, 48.2% of sales
captured in e-commerce were paid in cash,
In the first half of the year, the total also taking advantage of incentives by stores
freight value paid by consumers reached with discounts. On the other hand, in the same
BRL 1.03 billion. Consumers who paid for period of 2016, 42.0% decided to pay their pur-
freight in their purchases over the Internet chases in only one installment.

PAYMENT METHOD

2016
42.0% 25.1% 33.0%
48.2% 19.4% 32.4%
INSTALLMENTS:
2017 IN 2017, ONLINE
CONSUMERS
CHOSE FEWER
INSTALLMENTS
CASH 2-3 INSTALLMENTS 4-12 INSTALLMENTS OR MORE
IN THEIR
PURCHASES
EBIT WEBSHOPPERS SOURCE: Ebit Information

15
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

FINANCIAL DATA: ORDERS,


BILLING, AND AVERAGE TICKET
T he first half of 2016 was
marked by a 1.8% drop
in sales, registered for the
hand, in 2017, following the
recovery of the Brazilian
economy, e-commerce grew
crease in order volume, and
exceeding Ebit’s expecta-
tions. According to the data
first time in the Brazilian again in the first half of the collected, the total orders
e-commerce. On the other year, registering a 3.9% in- performed were 50.3 million.

NUMBER OF ORDERS IN E-COMMERCE

70%
60
49.4 48.5 50.3 60%
48.2
50 50%
40.4%
35.5%
MILLIONS

35.5 40%
40
29.6 20.1% 30%
30
20%
20.0
20 18.4% 2.5% 3.9% 10%
-1.8%
0%
10
-10%

2011 2012 2013 2014 2015 2016 2017


TRANSACTIONAL VARIATION

EBIT WEBSHOPPERS Source: Ebit Information

AVERAGE TICKET
On the other hand, the higher average sales price,
VARIATION IN AVERAGE
average ticket spent by such as telephony. However,
consumers in the first half variation wasn’t higher due TICKET WAS NOT
had an increase of 3.5%. This to the strong price drop of HIGHER DUE TO THE
value was mostly influenced Internet products, which de- STRONG PRICE DROP
by the higher freight value creased by 5.38%, according
in purchases and also by the to records by FIPE Buscapé In- OF E-COMMERCE
growth in categories with dex in the first half of 2017. PRODUCTS

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CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

EVOLUTION OF AVERAGE TICKET IN THE 1ST HALF OF THE YEAR

500
50%
450 BRL 418
BRL 403
BRL 377 40%
400
BRL 353
350 BRL 334 BRL 333
BRL 309 30%
BRL REAL

300 12.9%
20%
250 7.7% 7.1%
200 3.5% 10%

150 0%
-6.8% -5.5% -7.4%
100
-10%
50

2011 2012 2013 2014 2015 2016 2017


AVERAGE TICKET VARIATION

EBIT WEBSHOPPERS Source: Ebit Information

BILLING
Therefore, despite the BRL 21 billion in the first also by the increased order
price drop of Internet prod- half of 2017, mostly boosted volume. Comparing to the
ucts in the year pointed by the increase in the aver- previous year, we had a 7.5%
out by Fipe Buscapé In- age ticket, although it was growth in the total e-com-
dex, we registered sales of lower than expected, and merce market value.

ONLINE SALES (CONSUMER GOODS) IN BILLIONS OF BRAZILIAN REAL

25 100%
21.0
19.6
20 18.6 80%
BRL BILLIONS

16.1
15 12.7 60%

10.2
10 8.4 31.1% 40%
25.9%
13.5% 16.0%
5 27.5% 20%
5.2% 7.5%

2011 2012 2013 2014 2015 2016 2017


FINANCIAL VARIATION

EBIT WEBSHOPPERS Source: Ebit Information

17
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

CATEGORY SHARE
IN VOLUME OF ORDERS IN VOLUME OF BILLING

1ST 14.8% FASHION &


ACCESSORIES 1ST 22.3% TELEPHONY/
MOBILE PHONES
GROWTH
CATEGORIES
Variation 1st half-year
2017 x 2016

12.2% 18.8%
HEALTH,
HOUSEHOLD
2ND COSMETICS AND 2ND APPLIANCES
PERFUMERY

3RD 10.6% HOUSE


& DECOR 3RD 9.6% ELECTRONIC
DEVICES

35% 43%
10.3% 9.2%
ORDERS SALES
HOUSEHOLD COMPUTER
4TH APPLIANCES 4TH PROGRAMS
TELEPHONY/
MOBILE PHONES

5TH 9.5% TELEPHONY/


MOBILE PHONES 5TH 8.3% HOUSE
& DECOR

8.5% 6.4%
BOOKS /
FASHION &
6TH BOOKLETS AND 6TH ACCESSORIES

31% 23%
SUBSCRIPTIONS

ORDERS SALES

6.1% 4.8%
HEALTH,
SPORT HOUSE
7TH & LEISURE 7TH COSMETICS AND
PERFUMERY & DECOR

8TH
4.8% COMPUTER
PROGRAMS
8TH
3.8% SPORT
& LEISURE

9TH
4.6% FOOD &
BEVERAGE
9TH
2.4% FOOD &
BEVERAGE 45% 22%
ORDERS SALES

AUTOMOBILES
10TH 3.5% ELECTRONIC
DEVICES 10TH 2.3% AUTOMOBILES
& VEHICLES
& VEHICLES

EBIT WEBSHOPPERS
EBIT WEBSHOPPERS Source: Ebit Information EBIT WEBSHOPPERS Source: Ebit Information Source: Ebit Information

18
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

PROJECTION FOR 2017


A fter a rated growth of
7.5% in the first half of
2017, Ebit's growth project-
Day might boost consump-
tion over the period.
GROWTH SHALL
BE HIGHER IN
ion for the Brazilian e-com- Unlike what we predict- THE SECOND
merce was adjusted to 10%, ed at the beginning of the HALF OF 2017,
reaching a total of BRL 48.8 year, that growth would be BOOSTED BY
billion in sales. We expect based mostly on increased
the sector to have a growth sales average ticket, the SEASONAL
between 12% and 15% in the expectation now is that we DATES SUCH AS
second half of the year to might have a 6.5% growth CHILDREN'S DAY,
reach that estimate. Season- in total order volume in the
al dates such as Black Friday, year and an increase of only BLACK FRIDAY
Christmas, and Children's 3.3% in the average ticket. AND CHRISTMAS

SALES GROWTH ESTIMATE IN 2017

60 120%

48.8 100%
50
44,4
41.3
BRL BILLIONS

40 80%
35.8

28.8
30 60%

22.5
18.7
20 40%
26.1% 28.0%
24.2%
20.4%
10 15.3% 20%
10.0%
7.4%

2011 2012 2013 2014 2015 2016 2017


FINANCIAL VARIATION

EBIT WEBSHOPPERS Source: Ebit Information

19
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

ORDER VOLUME ESTIMATE IN 2017

120%
120 113.2
106.5 106.3
103.4 100%
100
88.3
VOLUME (MILLION)

80%

80 60%
66.7
32.2% 40%
60 53.7
24.5%
17.2%
32.2% 20%
6.5%
40 3.0% -0.2%
0%

20
-20%

2011 2012 2013 2014 2015 2016 2017


ORDERS VARIATION

EBIT WEBSHOPPERS Source: Ebit Information

AVERAGE TICKET ESTIMATE IN 2017

500
30%

450 BRL 431


BRL 418 25%
400 BRL 388

BRL 349 BRL 347 20%


BRL 338
350 BRL 327
BRL REAL

300 15%
12.0%
250 10%
7.6%
6.0%
200
3.3% 5%
150
-3.1% -3.2% 0%
100 -6.0%
-5%
50

2011 2012 2013 2014 2015 2016 2017


AVERAGE TICKET VARIATION

EBIT WEBSHOPPERS Source: Ebit Information

20
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

M-COMMERCE
M -commerce continues to register growth
well above the market. As we observed,
the market's order volume grew by 3.9% in
same period in the previous year. Now, high-
lighting only sales via mobile devices, growth
reached expressive 35.9%, a 24.6% share of all
this first half-year when compared to the market sales.

AVERAGE TICKET VARIATION: 1ST HALF-YEAR 2017 X 2016

Market Market
(includes m-commerce) M-commerce (includes m-commerce) M-commerce

1st half
of 2016 BRL 403 BRL 363
ORDERS
3.9% 35.9%
BILLING
7.5% 56.2%
1st half
of 2017 BRL 418 BRL 417 AVERAGE TICKET
3.5% 14.9%
EBIT WEBSHOPPERS Source: Ebit Information EBIT WEBSHOPPERS Source: Ebit Information

21
CHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2017

THE CHANGE IN RANKING OF THE MOST SOLD CATEGORIES VIA


MOBILE DEVICES RESULTS FROM THE FACT THAT MANY COMPANIES
INVEST IN AND ARE FOCUSED ON IMPROVING CONSUMER EXPERIENCE
IN THESE DEVICES. MANY COMPANIES ARE IMPROVING THEIR
RESPONSIVE WEBSITES AND APPS AND ALSO OFFER COMMERCIAL
ADVANTAGES TO LEVERAGE SALES VIA SMARTPHONES.

Pedro Guasti, Ebit CEO

What is most impressive is the 56.2% growth the category of Telephony and Mobile Phone,
in financial volume. This movement is due to the which entered for the first time in the ranking
fact that the average ticket of sales via mobile of the top five most sold, with an increase in
devices (which registered a 14.9% increase) has order volume of 60%.
converged to the market as a whole.
In contrast, Books / Booklets and Subscrip-
The increase in m-commerce average tions dropped from third to seventh among
tick­et is due to the growth of categories with the best-selling categories, with a 24% de-
a higher average ticket. An example of this is cline in mobile orders.

SALES RANKING OF CATEGORIES VIA M-COMMERCE (ORDERS)

CATEGORIES
FASHION & HOME & PERFUMERY & COSMETICS/ HOUSEHOLD TELEPHONY /
ACCESSORIES DECOR HEALTH/PERSONAL CARE APPLIANCES MOBILE PHONES

SHARE
15% 14% 12% 12% 11%
RANKING
1st 2nd 3rd 4th 5th
1st half-year of 2017
POSITION
VARIATION 0 3 1 2 1

1st half-year of 2016

RANKING 1st 5th 4th 2nd 6th

SHARE 16% 10% 10% 14% 9%


EBIT WEBSHOPPERS Source: Ebit Information

22
CHAPTER 2

DIGITAL
COMMERCE

23
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

2016

DIGITAL COMMERCE
IN BRAZIL IN 2016
I n addition to the custom-
ary historical numbers of
online sales of consumer
line Tourism market in 2016
moved considering airline
tickets, hotel reservations,
The relevance and financial
movement increased with the
participation of large national
goods in Brazil, calculated and tour packages? And the and international players in the
since 2001, Ebit has brought online sales of tickets for offer of own and/or third-par-
a supplementary study for concerts, movies, and sports ty products, comprising what
this new Webshoppers edi- events? And what about the the market has defined as
tion on other online business numbers in sales in market- marketplaces. Among the gi-
models provided to consum- places of new and used prod- ants in this market, Amazon,
ers in Brazil, comprising what ucts between companies B2W, Magazine Luiza, Mercado
we call Digital Commerce. and consumers (B2C), and Livre, Shop Fácil, Walmart, and
consumers and consumers Buscapé stand out, the latter
How much did the on- (C2C), mostly used products? having recently announced

24
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

DIGITAL COMMERCE IN BRAZIL IN 2016

TOURISM
Hotel reservations,
airline tickets, travel TICKETS
packages, car movies, concerts, theater
rental, and rides and sports events

BRL 29.8 BI BRL 3.5 BI

B2C and B2C and C2C


Marketplace Marketplace for
(only new new and used
products) products and crafts

BRL 44.4 BI BRL 15.83 BI

EBIT WEBSHOPPERS Source: Ebit Information

its entrance in this market. ers at any time or place. a 7.4% increase compared to
2015. When we analyze Digital
With this study, we were As already shown in the Commerce, which adds new
able to broaden our coverage, last Webshoppers edition, in and used products from com-
which was already expressive 2016, the online market of panies to consumers (B2C) and
before, on the actions of con- consumer goods (B2C and from consumers to consumers
temporary consumers, who marketplaces – new products) (C2C), as well as services (Tour-
are highly connected, linked to monitored closely by Ebit, ism and Tickets), we observed
information, and potential buy- had BRL 44.4 billion in sales, a billing of BRL93.53 billion.

25
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

2012 2013 2014 2015 2016

DIGITAL COMMERCE FROM 2012 TO 2016


I n the period ranging from
2012 to 2016, Digital Com-
merce had a rated growth
that comprise Digital Com-
merce showed growth over
the period, with emphasis
of new and used products.
Concurrently, in the same pe-
riod, the Brazilian consumer
of 88% with mean annual on marketplaces of new and sought alternatives to online
growth (CAGR – Portuguese used products (B2C and C2C) purchases, whether in search
acronym for Annual Com- and crafts, which grew 178%, for more attractive prices and
pound Growth Rate) of 17%. showing an increased mar- conditions, or in the case of
In this same period, the Bra- ket share of 4.5 percentage crafts and used clothes, or
zilian Gross Domestic Prod- points over the period. in the purchase of products
uct (GDP) showed a setback that belong to niche catego-
of 3.9%; this shows the dy- The crisis that has taken ries that were found only at
namism and growth poten- place in Brazil over the last specialized physical stores
tial of national e-commerce. three years has encouraged before, such as automotive
new formal and informal parts, bricolage, tools, tires,
All the four segments sellers to enter the market and electronic components.

USED FASHION PRODUCTS ARE NO LONGER PERCEIVED


AS SECOND-HAND AND HAVE BECOME THE FIRST OPTION TO MANY PEOPLE.
WHEN THE CONSUMER HAS A POSITIVE PURCHASE EXPERIENCE,
THIS HABIT BECOMES EXTREMELY RECURRING.

Tiê Lime, , CEO and co-founder of Enjoei.com

26
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

C2C sales of used fashion five years. lowest among the four seg-
products are one of the exam- ments, although it was much
ples of this sector's strength. In the same period, online higher than what occurred
Data from Enjoei.com, sales share of Tourism-re- in the (offline) sector as a
leading marketplace in this lated services, such as air- whole, also quite impacted
market, points to a growth line tickets and hospitality, by the economic crisis over
of over 80% over the last showed a 73% growth, the the last years.

EVOLUTION OF DIGITAL COMMERCE SALES (2016/2012)


billing (BRL Bi) share

BRL 100 100%


100 % 100%
100 %
100%

BRL 90 93.53 90%

BRL 80 80%

BRL 70 70%

BRL 60 60%

BRL 50 50.
50,55%
%
50%
47.
47,5
5%
%
49.71
BRL 40 44.40 40%
34.6%
31.9%
BRL 30 30%
29.80
25.08
BRL 20 16.9% 20%

11.4% 15.83 17.19


BRL 10 3.7% 10%
3.5%
5.69 1.76 3.50

Rated
Growrh 77% 178% 73% 99% 88%

B2C and Marketplace Marketplace for Tourism Tickets DIGITAL


legally new and used Airline tickets, Movies, Concerts, COMMERCE
established products (B2C and Hotel and resort Theater, Sports etc. Total
B2C stores of C2C) and Crafts Reservations, (This does include
(new) consumer Mercado Livre, Elo7 Tour packages the Olympic
goods and Enjoei at operators Games)

SHARE 2012 SHARE 2016 2012 2016 TOTAL 2012 TOTAL 2016

EBIT WEBSHOPPERS Source: Ebit Information

27
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

ONLINE TOURISM
T o understand better the
behavior in the online
Tourism segment in Bra-
tickets, hotel reservations,
tour packages, and other ser-
vices related to the Online
WE CAN OBSERVE
AN INCREASING NUMBER
OF PEOPLE RESEARCHING
zil, Ebit conducted a special Travel Agency (OTA) segment.
AND MAKING TRAVEL
study between June 1 and
RESERVATIONS ON THE
28, 2017, in partnership with Regarding the profile of
INTERNET AND USING
Expedia.com, a giant in the the over 5 thousand respon-
DIFFERENT PLATFORMS,
sector, in an attempt to out- dents, we have 64% men,
SUCH AS TABLETS AND
line the online Tourism con- with average family income of
MOBILE PHONES, AND
sumer profile in Brazil. We BRL 7,308, 46 years old (aver-
WE EXPECT THIS TREND
have asked 5,535 people age), of which 65% are grad-
TO CONTINUE GROWING
throughout the country via uated and 64.8% live in the
OVER THE NEXT YEARS.
online questionnaire about southeastern region. Of this
their experience on digital universe, 70% have consumed Carolina Piber,
consumption of services re- online services related to Tour- Chief executive officer of
lated to travelling: airline ism over the last 12 months. Expedia for Latin America

MAIN REASONS FOR TRAVELLING


LAST 12 MONTHS, 3,874 RESPONDENTS

Vacations in general 51.7% More than half


of respondents (51.7%)
Break from routine 19.5% have travelled on
vacations, in general.
Work 13.4%
In second place
Explore the world 5.6% the main reason
to travel was
Get to Know Theme Parks 1.3% "Break from routine".

Baby layette 0.1% 86,6% of travels


were for leisure.
Others 8.5%
EBIT WEBSHOPPERS Source: Ebit Information

28
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

PROCESS TO MAKE RESERVATIONS MOBILE IS STILL travel reservations; first, con-


FOR A TRIP, IN ORDER OF EXECUTION sumers define the destination
LAST 12 MONTHS, 5,535 RESPONDENTS NOT PREFERENCE
(17%), followed by research
IN TOURISM. ONLY for flights (13.8%), research for
24% OF CONSUMERS hotels (13.3%), and comparing
1 PREFER TO PLAN flight and hotel prices (12.6%).

THEIR TRAVELS VIA Factors pointed out as the


17.0% SMARTPHONE most relevant for the choice of
Define destination a hotel were "safety", "easy ac-
cess to transport", "price of ac-
Out of the people who commodations", and "location",
have travelled, 51.3% used with more than 20% of prefer-
2 airplane and 86.6% said they
haven’t travel for business.
ence in all aspects. Moreover,
travelers said they usually save
Desktop was the most used in "entertainment", "car ex-
13.8% device by more than 60% of
clients with different goals
change", and "mobile exchange"
to make their trips possible.
Research flights
(comparing prices, defin-
ing destination, researching To purchase airline tickets,
flights and hotels, and reser- 64% of respondents prefer
vations), against an average to go directly to airline web-
3 15% who used smartphones. sites. In addition, 73% of peo-
ple would rather pay more
Carolina Piber, CEO of Ex- than R $1.000 in installments.
13.3% pedia for Latin America, em-
Research hotels
phasizes that the current insta- Mobile behavior is not
bility scenario of the U.S. dollar yet the preference for this
and Euro has strengthened area. Only 24% of consum-
domestic tourism, which has ers prefer to make hotel
4 been chosen over international reservations and other trip
destinations. This movement, defining activities via smart-
which might benefit all players, phone, while 17% made their
12.6% must be considered as a long- hotel reservations via apps.
Compare flight
and hotel prices term opportunity.
Of these, the main rea-
When the question is the sons for using smartphone
order in which the online were "use their free time"
EBIT WEBSHOPPERS Source: Ebit Information
process takes place to make (15%) and "flexibility to de-

29
CHAPTER 2 | DIGITAL COMMERCE IN BRAZIL IN 2016

cide what to do and where Regarding the most re-


PROCESS TO MAKE RESERVATIONS
FOR A TRIP, IN ORDER OF EXECUTION to stay" (14%). The tasks membered brands when re-
LAST 12 MONTHS, 5,535 RESPONDENTS
which were most common- searching, planning and/or
ly performed via mobile making travel reservations,
5 phone or tablet were "defin- CVC comes first with 34.1%, fol-
ing destination" (23%), "re- lowed by Decolar.com (16.2%)
searching hotels" (24%), and and Trivago (8.3%). These an-
12.3% "defining itinerary" (24%). swers were not guided.
Define itinerary

10.1% ONLINE TICKET


Review destination

7
E bit estimates that online
sales of tickets for movies,
theater, concerts, and sports
of access to clients and fans.

For Petras Veigas, CEO of


events (including the Olympic Ingresso Rápido, one of the
Games) were BRL 3.5 billion key players in this sector, the
9.0% in 2016, a volume 99% higher online ticket market is just be-
Book flight
than the one observed in 2012. ginning in Brazil, but it shall
have a strong expansion over
8 This segment has been
increasing its share of online
the next three years, with
smartphones joining in as con-
sales every year, with the in- sumer tools. In large centers,
8.5% clusion of large clubs and are-
nas selling soccer and con-
around 50% of purchases are
already performed online but
Review destination
cert tickets, offering more in the other regions, this num-
convenience and flexibility ber does not exceed 10%.
9
INGRESSO RÁPIDO HAS INVESTED A GREAT DEAL IN
USER EXPERIENCE (UX) AND HAS DOUBLED ITS ONLINE
3.3% SALES OVER THE LAST 18 MONTHS, WITH EMPHASIS
Others
ON MOBILE, WHICH WAS ZERO TWO YEARS AGO AND
TODAY ACCOUNTS FOR 50% OF ONLINE SALES.
EBIT WEBSHOPPERS Source: Ebit Information
Petras Veigas, CEO of Ingresso Rápido

30
CHAPTER 3

FIPE BUSCAPÉ
INDEX

31
CHAPTER 3 | FIPE BUSCAPÉ INDEX

MONTHLY EVOLUTION
OF FIPE BUSCAPÉ INDEX
BY SÉRGIO CRISPIM

F IPE/Buscapé Index was created to


monitor prices in the Brazilian E-com-
merce and has been published for 77 months,
of -0.71% of the FIPE Buscapé Index contrasts
with the 2.83% price increase in the first half
of 2016, and especially with the 3.73% increase
since February 2011. Over this period of more in the first half of 2015. This tendency is consis-
than six years, 55 months (equivalent to 71% tent with that observed in the National Wide
of the period) have been characterized by Consumer Price Index (IPCA), which had varia-
price drop. This reflects the sector’s dyna- tions of 1.2%, 4.4%, and 6.2% in the first halves
mism and competitiveness, and the nature of 2017, 2016, and 2015, respectively. There was
of the products that are predominantly sold. deflation of e-commerce prices over the last
four months of the first half of 2017, as shown
In this first half of 2017, the cumulative loss in figure 1.

FIGURE 1 – MONTHLY VARIATIONS IN FIPE BUSCAPÉ PRICE INDEX (%)


4.73

5.0%

4.0%
3.07

2.85

3.0%
2.39

2.23
1.75

1.67
2.0%
1.35
1.00
0.90

0.84
0.85
0.59

1.0%
0.40
0.28
0.24

0.20
0.17
0.04

0.14

0.11

0.0%
-0.02
-0.01
-0.03
-0.05

-0.06

-0.18
-0.19
-0.17
-0.25

-0.26

-0.28
-0.28

-0.32
-0.34
-0.37

-0.34

-0.35

-0.35
-0.36

-0.38
-0.40

-0.40
-0.42

-0.41
-0.44

-0.44
-0.52

-0.52

-1.0%
-0.64
-0.64

-0.67
-0.73
-0.73

-0.74

-0.76

-0.74
-0.78
-0.79

-0.81
-0.99
-1.18

-1.19

-1.16
-1.21
-1.22

-1.28

-1.28
-1.42

-1.42

-2.0%
-1.76
-1.85
-1.91
-1.06

-2.44
-2.41

-3.0%
-2.85

2011 2012 2013 2014 2015 2016 2017


OCT

OCT

OCT

OCT

OCT

OCT
FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

EBIT WEBSHOPPERS Source: FIPE Buscapé Index

32
CHAPTER 3 | FIPE BUSCAPÉ INDEX

EVOLUTION OF ANNUAL
VARIATIONS AND JUNE/17
C onsidering the 66 annual variations (t/t-
12) of FIPE Buscapé Index since 2012, there
has been price drop in 46 periods, or 70% of
es throughout 2015 – reaching a peak of nearly
11% at the beginning of 2016. Annual variation
has gradually grown, except for the second
the series, as shown in figure 2. Annual price quarter of 2016, and which was negative in De-
variations in e-commerce have kept a trend to- cember, 2016, and maintained the decreasing
wards increasingly higher drops, according to trend, which cul­ minated with -5.38% in June,
FIPE Buscapé Index. Graphic 3 shows that an- 2017. This is the seventh consecutive month
nual inflation escalated in the e-commerce pric- that annual e-commerce price has dropped.

FIGURE 2 – ANNUAL VARIATIONS OF FIPE/BUSCAPÉ INDEX (MONTH Q / MONTH Q-12)

10.78
10.72
10% 9.24
9.01

8.29
6.92

6.69

6.13
6.01
5.89

4.08
4.17

5%
3.54

3.09
2.03
1.98
1.37
1.21
0.42

0.26

0.03

0.0%
-0.77

-2.01

-1.95
-1.22

-1.27

-2.36
-1.31
-1.36
-1.48

-1.56
-1.66

-1.61
-1.78

-1.89
-1.99

-3.13
-2.48

-2.97
-2.78
-2.83

-3.25

-3.51
-3.62
-3.83

-5%
-4.24

-4.48
-4.59
-4.87
-4.94
-5.22

-5.38
-6.13
-6.42
-7.02
-7.67

-7.79
-7.89
-8.29

-8.92
-9.25

-10%
-9.32
-9.64
-9.73
-9.81
-9.85

2012 2013 2014 2015 2016 2017


MAY

MAY

MAY

MAY

MAY

MAY
SEPT

SEPT

SEPT

SEPT

SEPT
JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

EBIT WEBSHOPPERS Source: FIPE Buscapé Index

33
CHAPTER 3 | FIPE BUSCAPÉ INDEX

In the annual period June17/June16, seven resulted in the overall index of -5.38%.
out of the ten groups researched by FIPE Bus-
capé showed price drop, i.e., price deflation in Among the categories that comprise the
e-commerce was quite disseminated. There is index, those that had highlighted drops in the
an expressive difference in price behavior be- annual period June 2017/June 2016 were: smart-
tween the groups of products that comprise phone (-16.74%), video recorder (-9.02%), por-
the index, which goes from a -16.39% drop table sound player (-7.40%), tablet (-6.57%), TV
in telephony to a 1.08% increase in toys, as (-5.32%), mattress (-5.11%), sneakers (-5.06%,
shown in graphic 4. Of the 146 categories re- sun glasses (-4.61%), and laptop (-4.49%). Those
searched, 73 had a significant average price that had the highest increases were: frying
drop of -8.11%, whereas the other 73 had a pan (14.66%), printer cartridge (9.20%), sun
slight average price increase of 2.2%, which block (8.22%), and fan/air circulator (6.76%).

FIGURE 3 – ANNUAL VARIATIONS OF FIPE BUSCAPÉ INDEX BY PRODUCT CATEGORIES (JUN17/JUN16)

TOYS & GAMES 1.08

COSMETICS & PERFUMERY 0.99

HOUSE & DECOR 0.18

SPORTS & LEISURE -0.52

HOUSEHOLD APPLIANCES -0.57

COMPUTING -4.10

ELECTRONIC DEVICES -4.48

FASHION & ACCESSORIES -4.51

PHOTOGRAPHY -7.04

TELEPHONY -16.39

73 CATEGORIES WITH INCREASE 2.20

73 CATEGORIES WITH DROP -8.11


6%

OVERALL TOTAL (146 CATEGORIES) -5.38

-18% -16% -14% -12% -10% -8% -6% -4% -2% 0% 2% 4%


EBIT WEBSHOPPERS Source: FIPE Buscapé Index

34
CHAPTER 3 | FIPE BUSCAPÉ INDEX

E-COMMERCE PRICES COMPARED


TO OVERALL PRICES
C onsistent with what has occurred over the
last five years, the annual e-commerce
price variation of -5.38% in June 2017, mea-
last 16 months – which have become negative
over the last seven months - consistent with
the significant drop trend of overall infla-
sured by the FIPE Buscapé Index, is lower than tion, which was already lower than the new
overall inflation measured by IPCA, which was center of the Central Bank’s target (4.25%)
3.00% in the 12-month period ending in June in May and June, and approached the new
2017, as shown in figure 4. lower limit of the interval (2.75%). Comparing
June 2017 and June 2016, e-commerce prices
The FIPE Buscapé Index has shown a de- had a variation 8.1% lower than the overall
creasing trend of annual variations over the prices in economy.

FIGURE 4 – ANNUAL VARIATIONS OF FIPE BUSCAPÉ INDEX, IPCA, AND DIFFERENCE (T MONTH / T MONTH-12)

12.0
8.0
4.0
0.0
-4.0
-8.0
-12.0
-16.0

2012 2013 2014 2015 2016 2017


OCT

OCT

OCT

OCT

OCT
FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DEC

FEB

APR

JUN

AUG

DC

FEB

APR

JUN

ANNUAL IPCA VARIATION ANNUAL FIPE-BUSCAPÉ VARIATION DIFFERENCE FIPE-BUSCAPÉ/IPCA

EBIT WEBSHOPPERS Source: FIPE Buscapé Index

35
CHAPTER 3 | FIPE BUSCAPÉ INDEX

FIGURE 5 – OVERALL IPCA INDEX, FIPE BUSCAPÉ, AND COMPOSITE FIPE BUSCAPÉ WITH IPCA PRICES (JAN11=1)

1.50

1.40

1.30

1.20

1.10

1.00

0.90

0.80

2011 2012 2013 2014 2015 2016 2017


MAY

MAY

MAY

MAY

MAY

MAY

MAY
SEPT

SEPT

SEPT

SEPT

SEPT

SEPT
JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR

JUL

NOV

JAN

MAR
OVERALL IPCA TOTAL FIPE BUSCAPÉ INDEX COMPOSITE INDEX (IBGE PRICE AND FIPE-BUSCAPÉ WEIGHT)

EBIT WEBSHOPPERS Source: FIPE Buscapé Index

Figure 5 shows a comparison between indices is quite different from the behavior of
Overall IPCA, the FIPE Buscapé Index, and Overall IPCA, which rose approximately 50%,
a Composite Index comprised of IPCA price or 78% more than the FIPE/Buscapé Index in
variations (predominantly physical retail) with the period June 2017 compared to January 2011,
FIPE Buscapé Index weights (weights of e-com- and 59% more than the Composite Index.
merce products) for product categories com-
patible with FIPE Buscapé, although with dif- A significant part of these differences might be
ferent product baskets. explained by three key factors:
1) the FIPE Buscapé Price Index monitors a dif-
The behavior of the index comprised of ferent product portfolio from that evaluated
product categories which are researched in by the general price indexes, i.e., only those
IPCA and FIPE Buscapé Index – which repre- products that are commercialized more signifi-
sent 79% of the weight of FIPE Buscapé Index cantly via e-commerce;
and in e-commerce – is quite in line and con- 2) the weights of the products which comprise
sistent with the behavior of the FIPE Buscapé the FIPE Buscapé Index are quite different
Index. Specifically in June 2017, compared to from the weight of the same products in ge-
the basis of January, 2011 (77 months), the FIPE neric indices;
Buscapé Index is 15.8% lower, and the Com- 3) the distribution channel monitored by the
posite Index of IPCA prices and FIPE Buscapé FIPE Buscapé Index is exclusively e-commerce,
weights for matching products is 5.5% lower. while the other indices monitor several other
On the other hand, the behavior of these two traditional and physical channels.

36
CHAPTER 3 | FIPE BUSCAPÉ INDEX

THE VALUE OF PRICE


SEARCH IN BRAZILIAN
E-COMMERCE IN 2016
I n 2016, the Brazilian B2C e-com-
merce registered BRL 44.4 billion in
sales and reached a nominal growth of
Except for 2016, Brazilian e-com-
merce has grown far more than
economy, and according to Ebit data,
7.4%. In the same period, the FIPE Bus- the average nominal annual growth
capé Index had an average increase in the period ranging from 2001 to
of 5.64%. These data translate into an 2016 was 46.7%. Even eliminating the
actual growth of 1.66% in e-commerce two first years in the series – when
sales, i.e. approximately 1% higher than the basis was relatively low – and
the growth estimated for the Gross the two last years – influenced by
Domestic Product (GDP) of 0.7%. the economic crisis – the average

37
CHAPTER 3 | FIPE BUSCAPÉ INDEX

price variation in e-commerce in the


period ranging from 2003 to 2014 is
IN A MORE EXIGENT MARKET,
35.2% p.y., or 21.2% above the aver-
MARKETPLACE SOLUTIONS
age annual growth of 11.5% of GDP
ALLIED TO SEARCH
in the same period. Among the fac-
TOOLS STANDS OUT BY
tors that explain the sector’s strong
PROVIDING USEFULNESS
growth, the following stand out: the
AND ECONOMY.
increase in number of households
with computers, the diffusion of Sandoval Martins, CEO of Buscapé
broadband access and use of mobile
devices, the ripening and consolida-
tion of the online retail structure, the transparency to the values practiced
higher safety in payment operations so as to encourage competition. In ad-
and the higher reliability on delivery. dition, considering that e-commerce
operational costs are lower, the online
Other factors, intrinsic to e-com- store prices are expected to be lower
merce, and which have a significant in- compared to traditional retail.
fluence on its growth are long tail and
growth of marketplace transactions, Preliminary researches carried out
which reflect the possibility of the sec- in the United States, France, and India
tor offering more products oriented have identified that the online retail
to market niches. As a consequence, prices in these countries are, in aver-
e-commerce characterizes for a much age, 10% lower than in physical com-
higher number of offers than physical merce. Admitting that this difference
commerce, and it also enabling the is similar in Brazil, and considering
diffusion of a large number of small the effect called “ROPO” – Research
shops, which translates into a higher Online/Purchase Offline – referring
possibility of choices for consumers. to customers who research online
but purchase at physical stores, an
However, the variety actually gains economic gain of BRL 12 billion is es-
economic value when added to search timated for 2017, deriving from e-com-
engines over the Internet, which al- merce purchases and from the bar-
low for easily finding the desired item, gaining power with physical retail due
thus optimizing time and providing to online research.

38
FINAL
CONSIDERATIONS

39
FINAL CONSIDERATIONS | MAIN CLIENTS

MAIN CLIENTS

40
FINAL CONSIDERATIONS | GLOSSARY

GLOSSARY
ADHOC: Research under request FIPE/BUSCAPÉ INDEX: ORDER: Each purchase performed, an
A with a specific purpose. F Systematized calculation O order of a product to be acquired.
of Brazilian e-commerce.
APPLICATIONS: Programs
developed with a purpose
(such as e-commerce, game, PLAYERS: Market components,
services) which might be
downloaded through the Internet, H
HOUSEHOLD INCOME: Average
income of a family, when adding all
P retailers (in the case of e-commerce).

to be used via mobile devices. family members who work and PRICE COMPARATORS: Websites
live in the same residence. whose main feature is to search
APPS: Abbreviation of applications. prices of a product and list the variety
found in several stores.
AVERAGE TICKET: Calculated average
amount spent by order or purchase. I INTERNET: World computer network.

RESPONSIVE WEBSITES: Website


R adapted to mobile devices, with
BALANCE: Sales result over a certain LAYOUT: Visual aspect of a website; settings and/or layout designed
B period. L its design, the layout of an for the mobile format, adapted to
Internet page. the size of the screen and making
BLACK FRIDAY: E-commerce browsing easier.
date with great discounts,
typically on the last Friday of
November. This event originated in MEDALS: Ebit Medals. Certification
the United States, and was deployed M attributed by Ebit to classify stores SALES: Total amount raised
in the Brazilian e-commerce according to e-consumer satisfaction S from sales.
in 2012. after assessing the service provided
(they might be Diamond, Gold, Silver, SEARCH ENGINES: Service website for
BROWSER: Browser to access and Bronze). searching and/or comparing prices,
the Internet. such as Buscapé and Bondfaro.
MOBILE COMMERCE: E-commerce
performed via mobile devices, SHARE: Market share.
such as smartphones or tablets
CLASS A, B, C and D: Classification (m-commerce, in its abbreviation). SMARTPHONES: Mobile telephony
C of social classes according device, which enables access to the
to family or individual income MOBILE DEVICES: Mobile devices, Internet and other advanced features.
(A and B: income from BRL 3,001/ such as smartphones and tablets.
month onwards; C and D: income SOCIAL MEDIA: Websites
up to BRL 3,000/month). (environments) where
people meet (such as
CONSUMERS' DAY BRAZIL: NOMINAL GROWTH: Evolution of Facebook, Twitter, and others).
Date established in the online N sales without deducting inflation,
retail calendar and created by difference in sales increase. STORE CERTIFICATION:
Buscapé Company with support from Assessment performed
entities from the sector and retailers NPS®: Net Promoter Score®, trade by Ebit through a survey
for one day of discounts similar to mark of Bain & Company. Indicator with consumers who performed
Black Friday. It is held in March, that measures customer satisfaction purchases on Internet, in the
on a Wednesday near the 15th. and loyalty. post-sales, to build trust in
the online purchase
CROSS BORDER: Operation
of an e-commerce order to be
delivered to another country. OMNICHANNEL: Concept according
O to which all channels of a retail brand TABLETS: Mobile device that
are available for consumers to V works as a portable computer,
contact, through interconnection and use of features
between offline and online. and Internet browsing through
E-COMMERCE: Online store, touch screen (touch-sensitive).
E universe of e-commerce. E-business, ONE-TIME E-CONSUMERS: Those
e-commerce, online retail, purchase who have performed at least one TRANSACTIONAL VOLUME:
over the Internet. purchase over the Internet. Sales proportion.

E-CONSUMER: Consumer who ONLINE RETAIL: E-commerce, TRANSACTIONS: Operations,


performs purchases over the Internet. online commerce, purchases purchases performed.
performed over the Internet.

ONLINE STORE: A store established

D DESKTOP: Desk computer.


on the Internet, which performs sales
on e-commerce. E-commerce. W WI-FI: Wireless access to Internet.

41
FINAL CONSIDERATIONS | PARTNERS

PARTNERS
PREMIUM

www.fecomercio.com.br www.acsp.com.br

Since 1894, the Commercial


The Federation of Commerce of
Association of São Paulo has worked
Goods, Services, and Tourism of the
for entrepreneurs who work in the city
State of São Paulo (FecomercioSP)
of São Paulo. From family businesses
is the major union entity of São
to large industries, over 30 thousand
Paulo for the commerce and
entrepreneurs have the support of the
service sectors. Responsible
Association to defend their interests
for managing, in the State, the
before society and the Government
Commerce Social Service (Sesc)
and in providing exclusive services.
and the National Commercial
Learning Service (Senac),
represents a segment in economy
that moves over 1.8 million
corporate activities of all sizes
and gathers 154 employer unions.
www.cortex-intelligence.com

Cortex is the result of sophisticated


academic research in the data mining
and text mining areas. We noticed that
we could provide companies something
www.camara-e.net
they didn't have: a unique view of
information that affected their
Main multi-sector entity in Latin businesses, so that good decisions could
America and Brazilian association be made. One of the great differentials
with the highest representativeness of what we do is the ability to capture
of Online Economy, is to qualify and analyze text information, thus
people and organizations for the safe integrating them with structure data in a
practice of online businesses. simple and easy manner (Text Mining).

42
FINAL CONSIDERATIONS | PARTNERS

www.ecommercebrasil.com.br www.ibevar.org.br

It is an e-commerce market fostering The Instituto Brasileiro de Executivos de Varejo


project in Brazil and it offers over & Mercado de Consumo (Brazilian Institute of
100 activities over the year, among Retail Executives & Consumer Market) is a non-
which are: specialized content posted profitable institution. It was founded by a group
on the E-Commerce Brasil portal on of professionals linked to the retailer sector, with
a daily basis, print journal, trainings the objective of establishing discussion groups,
for professionals in the sector, relations, and knowledge regarding this market.
as well as promoting a series of
events throughout the country, with
emphasis on the E-Commerce Brasil
Forum, major e-commerce event
in the world and in Latin America,
according to Forrester. iabbrasil.net

Since 2006, IAB Brasil is part of an


international network of associations, which
has representations in over 43 countries. IAB
Brasil has currently more than 230 associates,
among websites, portals, technology
companies, Web-developing agencies, which
www.expedia.com.br
are leaders in their segment in the country.

Launched in August 1996, Expedia.


com is the largest online travel
agent with everything you need
to meet your travel needs. We
understand that shopping online
www.mmaglobal.com
involves a great deal of confidence
on your part. We take this trust Main non-profitable association of the mobile
very seriously. If you use Expedia. ecosystem in the world, with over 800 partner
com.br to book your dream trip, companies in approximately 50 countries.
we will make it our top priority MMA's mission is to speed up changes and
to ensure the security and innovation in marketing through mobile
confidentiality of the personal devices, promoting growth in the business
information you provide. with high consumer engagement.

43
CONSIDERAÇÕES
FINAL CONSIDERATIONS
FINAIS | INFORMAÇÕES
PRESS INFORMATION
PARA IMPRENSA
/ TEAM CONTACTS/CONTACT
/ CONTATOS

PRESS
INFORMATION
EBIT DATA DISCLOSURE
Ebit requires to be referred to as a source of information
in any academic study, press release, article, editorial or
news article stating data that was collected in studies
about the Brazilian e-commerce market, and especially
the Webshoppers report. We reinforce that the data is
Ebit´s propriety, and therefore, those who use it must
always inform the source, in order to enhance the
credibility of the information and avoid that data disclosed
by the company is attributed to other sources.

TEAM/CONTACTS
PEDRO GUASTI ANDRÉ RICARDO DIAS
Ebit CEO Ebit COO
+55 11 3848-8700 +55 11 3848-8700
pedro.guasti@ebit.com.br andre.dias@ebit.com.br
IMPLEMENTATION
OF E-BIT SURVEY
EBIT TEAM PRESS OFFICE Register
KEINE MONTEIRO KETCHUM
Business Intelligence Manager www.ketchum.com now at Ebit
JÉSSICA OLIVEIRA
Business Intelligence Analyst GUILHERME LOPES
+55 11 5090-8909 / R: 2941 REPORT
RENANN MENDES guilherme.lopes@ketchum.com.br
Marketing and Products Coordinator AND SURVEY
ANNA CIACCI MARIA DOMINGUES ENGAGEMENT
Marketing and Products Analyst +55 (11) 5090-8931
maria.domingues@ketchum.com.br Contact
VITÓRIA JABUR
Marketing and Products Analyst comercial@ebit.com.br
EMANUELA ZEN ART & LAYOUT
Key Account *In case of online stores,
RITA MAYUMI
MÁRIO FROES hello@ritamayumi.com you must first become
IT Manager www.ritamayumi.com affiliated to Ebit here

44
WEBSHOPPERS
36 EDITION
TH
2017

www.ebit.com.br
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