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WEBSHOPPERS

32nd EDITION | 1st HALF/2015


TABLE OF CONTENTS
INTRODUCTION
• What Webshoppers is

3 • About E-bit
• E-bit certification
• Methodology
• Benefits for consumers
• Report panel

16
• Executive summary

CHAPTER 1
360º APPRAISAL OF THE FIRST HALF OF 2015

32 CHAPTER 2
EXPECTATIONS FOR THE 2nd HALF OF 2015

36 CHAPTER 3
SPECIAL RESEARCH: MOBILE DEVICES

CHAPTER 4

43 FIPE/BUSCAPÉ INDEX

FINAL COMMENTS
• Main customers

53
• Glossary
• Credits
• Marketing support
• Press information / Contacts
WEBSHOPPERS
INTRODUCTION
INTRODUCTION | WHAT WEBSHOPPERS IS TABLE OF CONTENTS

WHAT
WEBSHOPPERS IS
Webshoppers, an E-bit/Buscapé Company
initiative, is the most solid and respected
report on e-commerce, in which the evolution
of e-commerce, trends, estimates, changes
in e-consumer behavior, and preferences
are analyzed, thus indicating towards
which direction the market is headed
and contributing for the understanding
and development of the sector.
jul/15 With semi-annual editions, this report
works as a guide for professionals and
stakeholders of e-commerce.

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INTRODUCTION | ABOUT E-BIT TABLE OF CONTENTS

ABOUT E-BIT
P resent in the Brazilian market since
January 2000, E-bit has been following
the evolution of online retail in the country
to retailers. For consumers, the E-bit store
certification helps to build confidence in
online purchases. Through a classification
since its beginning, and is a reference in this by medals (Diamond, Gold, Silver, and Bronze),
subject. Through a sophisticated system that which certify the quality of services provided
collects data directly from the online buyer, by retailers, consumers find arguments that
E-bit generates detailed information about help them in the moment of decision.
e-commerce on a daily basis.
For executives, E-bit works as a source
On its website, E-bit ( www.ebit.com.br ) of knowledge on e-commerce in Brazil,
provides relevant information for consumer contributing for the development of businesses
purchase decision-making processes, in and of the sector in general. Learn more
addition to offering products and services about E-bit and its main products below.

www.ebit.com.br

E-BIT CERTIFICATION
E-BIT HAS A PARTNERSHIP WITH OVER 21,000 ONLINE STORES.
WHEN PURCHASING AT ONE OF THESE STORES, CONSUMERS ARE ASKED
TO ANSWER SOME SURVEYS IN AN AUTOMATIC AND SIMPLE PROCESS VIA INTERNET.

E-bit certification service allows for Promoter Score), in addition to their


consumers to evaluate post-sales, purchasing experience at the store.
customer service, the probability of
returning to the online store, and the Through these evaluations, E-bit calculates
index that they will refer this store to a score for each store and classifies them by
friends and relatives, known as NPS (Net medals (Diamond, Gold, Silver, and Bronze).

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INTRODUCTION | METHODOLOGY TABLE OF CONTENTS

METHODOLOGY
HOW DOES E-BIT WORK?

CONSUMERS VIEW THE


E-BIT BANNER ON THE 1. 2. CLIENTS EVALUATE THE ONLINE
STORE IN ASPECTS REGADING
PURCHASE CONFIRMATION THEIR PURCHASING EXPERIENCE
SCREEN, WHICH LEADS Pesquisa E-bit AND OTHER INFORMATION, SUCH
0976 8765 6543 7098

THEM TO THE PURCHASE 09 7 1


AS FREIGHT, MEANS OF PAYMENT,
SATISFACTION RESEARCH. AND DELIVERY DEADLINE.

SOME WEEKS AFTER THE


PRODUCT IS DELIVERED,
4. 3. ONE DAY AFTER THE DELIVERY
DEADLINE INFORMED BY
E-BIT SENDS AN ASSESSMENT THE CUSTOMER, E-BIT SENDS
SURVEY REGARDING Pesquisa E-bit
A SURVEY VIA E-MAIL FOR
OVERALL SATISFACTION THE STORE’S POST-SALE
WITH THE ITEM PURCHASED. EXPERIENCE TO BE ASSESSED.

5. 6.
THROUGH THESE BASED ON ALL THIS
SURVEYS, THE STORES ARE INFORMATION COLLECTED FROM
CLASSIFIED BY MEDALS: CONSUMERS, E-BIT GENERATES
BRONZE, SILVER, GOLD, OR REPORTS AND INFORMATION ON
DIAMOND, ACCORDING TO E-COMMERCE AND DISCLOSES
PRE-ESTABLISHED CRITERIA. THEM IN THE RETAILER AREA.

S ince January 2000, E-bit has already


collected over 20 million questionnaires
answered after the online purchase process,
indicate the socio-demographic profile
of e-consumers, as well as the most sold
products, most frequently used means of
and over 300,000 new questionnaires are payment, re-purchasing indicators, among
added to this value on a monthly basis. other information. Through one more edition
of WebShoppers, E-bit intends to keep
This compiled information generates contributing to the development of
monthly Market Intelligence reports that Internet and of e-commerce in Brazil.

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INTRODUCTION | BENEFITS FOR CONSUMERS TABLE OF CONTENTS

BENEFITS FOR
CONSUMERS

THE E-BIT STORE


CERTIFICATION
INCREASES IT ENSURES
CONFIDENCE A HIGHER
IN ONLINE QUALITY
PURCHASES. SERVICE FOR
ALL USERS!

THROUGH THE
CLASSIFICATION STUDIES
IN MEDALS, SHOW THAT
WHICH CERTIFIES OVER 90% OF
THE QUALITY E-CONSUMERS
OF SERVICES READ AND
PROVIDED USE OTHER
BY RETAILERS, CONSUMERS’
CONSUMERS OPINIONS
HAVE ARGUMENTS TO MAKE
THAT HELP THEM PURCHASING
AT THE MOMENT DECISIONS!
OF DECISION.

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INTRODUCTION | REPORT PANEL TABLE OF CONTENTS

REPORT PANEL
T he questionnaires answered daily by
consumers feed the E-bit data base and,
by cross-referencing these data, E-bit produces
profile and also comparatively assess
the services provided by online stores,
in issues such as delivery, product price,
valuable reports that outline the consumer forms of payment, NPS, among others.

REPORT CONTENT CROSS


REFERENCES

BASIC PACKAGE

RETAILER AREA Research scores when purchasing and in the post-sales


WHEN JOINING E-BIT, ESSENTIAL Evolution of the number of surveys and further
REPORTS ABOUT THE STORE information on their medal

PERFORMANCE ARE PROVIDED Orders delivered within and outside the deadline
FREE OF CHARGE Probability of clients buying again at your store

Daily NPS of the store

Opinion of customers on aspects such as product price,


timely delivery, means of payment, customer service,
product quality, etc

Profile of their clients open by region, gender, age, and income

WEEKLY EVOLUTION Weekly evolution of purchasing issues


(price, payment, practicality, etc)
REPORT TO FOLLOW CLIENTS’
SCORES IN E-BIT SURVEYS Weekly evolution of delivery issues
(timely delivery, customer service and product quality, etc)
ON A WEEKLY BASIS AND ITS
VARIATION REGARDING THE
PREVIOUS WEEK

COMMENTS OF THE WEEK Email forwarding with comments received over the week
SENDING COMMENTS BY
CUSTOMERS OVER THE
WEEK TO THE RETAILER’S
REGISTERED EMAIL

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INTRODUCTION | REPORT PANEL TABLE OF CONTENTS

REPORT CONTENT CROSS


REFERENCES

PREMIUM PACKAGE

DAILY EVOLUTION Daily evolution of purchasing issues


REPORT TO FOLLOW CLIENT’ (price, payment, practicality, etc)

SCORES IN E-BIT SURVEYS ON A Daily evolution of the delivery aspects


(timely delivery, customer service and product quality, etc)
DAILY BASIS AND ITS VARIATION
REGARDING THE PREVIOUS DAY

REAL-TIME Email forwarding at each comment


received in the E-bit survey
COMMENTS
EACH CUSTOMER COMMENT
IN THE E-BIT SURVEY
IS SENT TO THE RETAILER’S
REGISTERED E-MAIL,
ENABLING FASTER
CONFLICT RESOLUTION

PURCHASING BEHAVIOR Purchasing motivators


DATA THAT ALLOW FOR KNOWING Installments
MORE ABOUT CLIENTS’ Free freight
PURCHASING PROCESS
Means of payment

Profile

NPS Number of detractors, neutral, and promoters


CUSTOMER SATISFACTION NPS calculation day
REPORT USING NPS NPS calculation 30 days
METHODOLOGY COMPARED
NPS calculation 90 days
TO THE MARKET AND
TO DIRECT COMPETITORS

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INTRODUCTION | REPORT PANEL TABLE OF CONTENTS

REPORT CONTENT CROSS


REFERENCES
PREMIUM PACKAGE

NEW E-CONSUMER E-consumer market vs. E-consumer store STATE

REPORT New e-consumer market vs. New e-consumers store REGION


KNOW MORE ABOUT THE NEW % First online purchase PROFILE
PUBLIC THAT JOINS ONLINE DEVICE
PURCHASING EVERY MONTH (E-commerce x
M-commerce)

CATEGORY

WEDDING LIST Billing

DATA FOCUSED REPORT Profile


OF CUSTOMERS WHO MAKE Region and state
WEDDING LISTS Motivators

Installments

Means of payment

New e-consumers

NPS

Categories

COMPETITIVE Distribution of freight values by range

ANALYSIS OF FREIGHT Average freight values by purchase value range


COMPLETE FREIGHT FOCUSED Average freight values related to purchase values
REPORT, WHICH SHOWS ITS Average promised deadline in business days
IMPACT ON SALES for each freight
AND OTHER VARIABLES, Means of payment by purchase value range
COMPARED TO THE MARKET Installment by purchase value range

Average ticket by installment

Distribution of freight values by range


segmented in regions

Distribution of freight values by range


segmented in categories

Number of complaints generated by freight value

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INTRODUCTION | REPORT PANEL TABLE OF CONTENTS

REPORT CONTENT CROSS


REFERENCES
PREMIUM PACKAGE

PURCHASE INTENTION Purchase intention by category


ADHOC RESEARCH TO KNOW
WHAT CONSUMERS ARE
THINKING OF PURCHASING
OVER THE NEXT QUARTER
AND IN WHICH PRODUCT
SEARCH STEP THEY ARE

TOP CLICKS BUSCAPÉ Most sold products in Buscapé CATEGORY


SPECIFIC DATA ON SUBCATEGORY
THE MOST CLICKED
PRODUCTS OF BUSCAPÉ,
PREDICTING CONSUMERS’
PURCHASE INTENTION

TOP SALES Most sold products in e-commerce CATEGORY


DATA ON MOST SOLD SUBCATEGORY
PRODUCTS IN E-COMMERCE STATE

PROFILE

DEVICE
(E-commerce x
M-Commerce)

TOP SALES Most sold products in e-commerce LIST OF


SPECIFIC
WITH PRICES Price of most sold products in e-commerce
PRODUCTS
REPORT OF MOST SOLD
PRODUCTS IN E-COMMERCE
WITH PRICES PRACTICED
BY THE STORES

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INTRODUCTION | REPORT PANEL TABLE OF CONTENTS

REPORT CONTENT CROSS


REFERENCES
PREMIUM PACKAGE

FINANCIAL REPORT Overall market billing x Overall store billing CATEGORY


A VALUABLE REPORT ON Overall market orders x Overall store orders SUBCATEGORY
THE STORE’S FINANCIAL General average ticket market x STATE
DATA COMPARED TO ITS General average ticket store
PROFILE
COMPETITORS
DEVICE
(E-commerce x
M-Commerce)

MEANS OF PAYMENT Financial volume by means of payment


DATA WHICH ALLOW TO KNOW Financial volume by flag
MORE ABOUT HOW CLIENTS Financial volume by issuing bank
SPEND IN E-COMMERCE
Financial volume by state

Financial volume by profile

Financial volume by device (E-commerce x M-commerce)

Financial volume by category

M-COMMERCE Billing Means of payment


DATA WHICH ALLOW TO Profile New e-consumers
KNOW MORE ABOUT CLIENTS’ Region and state NPS
PURCHASING PROCESS OVER
Motivators Categories
MOBILE DEVICES
Installments

EXECUTIVE REPORT Number of surveys and average score


A COMPLETE STUDY ON E-consumer profile
THE STORE, OUTLINING A Purchase frequency by e-consumer
COMPARISON TO THE MARKET
Purchasing issues
AND TO DIRECT COMPETITORS (price, payment, practicality etc)

Delivery issues
(timely delivery, service quality and products, etc)

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INTRODUCTION | REPORT PANEL TABLE OF CONTENTS

REPORT CONTENT CROSS


REFERENCES
PREMIUM PACKAGE

EXECUTIVE REPORT Delayed delivery and probability of repurchase


(by region, by category)

Ranking of categories in number of orders

Category share evolution

Freight: average promised delivery deadline,


Free freight x Paid freight, Freight value,
Freight value by region

Average ticket

Motivation to visit the store

NPS

% of customer comments (compliment, complaint,


or suggestion) in purchase x delivery

EXECUTIVE PRESENTATION Presentation of the executive report, together


with market insights over the period and
PRESENTATION WITH
specific recommendations
E-BIT EXECUTIVES IN WHICH
AN OVERVIEW OF THE STORE
IS OUTLINED, AS WELL
AS ITS POSICION REGARDING
THE COMPETITION

TAILORED REPORTS
Any data or information, which you need and is not listed here?
We can tailor it for you. Contact comercial@ebit.com.br
and let’s talk about it!

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INTRODUCTION | EXEUCITVE SUMMARY TABLE OF CONTENTS

In a highly competitive market such


as online sales, the stores currently have
processes capable of automatically changing
their prices based on the values practiced by
the competition, down to a pre-established
minimum margin. Some online stores even

EXECUTIVE vary the price of a same product more than


ten times in one single day. For this reason,

SUMMARY online sales prices generally tend to be


more competitive than traditional retail
prices, as registered by 90% of the historical

I ncreased interests, the increase in


inflation, the growth of unemployment
and credit slowdown, together with the
series of the FIPE/Buscapé Index. However,
in the only four periods when there was
an annual increase in prices on the
fall in income, generated a loss of trust Internet, three were registered in the
by Brazilians, who became more selective first half of 2015. This positive variation
in 2015, seeking to purchase products in in prices reflects an increase in the
a more organized and rational manner. overall inflation in Brazil measured
In this more unstable economic scenario, by IPCA, which reached a level of 8.5%.
e-consumers reported, in the two first
quarters of the year, that their intention Driven by this increase in prices and
to purchase in e-commerce would be strengthened by a purchase of products with
higher, since Internet allows for a more a better cost benefit relation, E-bit observed
planned purchase by allowing for prices a 13% nominal growth in the e-commerce
and products to be compared very easily average ticket, reaching the average value
before making the purchasing decision. of R$ 377 in the first half of the year.

IN THE ONLY FOUR PERIODS WHEN


THERE WAS AN ANNUAL INCREASE
IN PRICES ON THE INTERNET, THREE WERE
REGISTERED IN THE FIRST HALF OF 2015

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INTRODUCTION | EXEUCITVE SUMMARY TABLE OF CONTENTS

Also influenced by this increase in the BRAZILIAN


average ticket, Brazilian e-commerce
registered a nominal increase of 16% in the
E-COMMERCE
first half of 2015, when compared to the REGISTERED A NOMINAL
same period in 2014, reaching R$ 18.6 billion
in sales. Considering the most important
INCREASE OF 16%
categories in e-commerce, the ones with higher IN THE FIRST HALF
growth in the period in financial volume were
Household appliances and Telephony/Mobile
OF 2015, COMPARED
phones, registering a nominal growth of 41% TO THE SAME PERIOD
and 53%, respectively. On the other hand,
the sectors with fall in sales were Electronics
IN 2014, REACHING
(-17%) and Fashion & Accessories (-8%). R$ 18.6 BILLION IN SALES

OTHER HIGHLIGHTS FOR THE FIRST HALF OF 2015 WERE

• FREIGHT • ACTIVE CONSUMERS


In 2015 we had a greater movement 17.6 million online consumers
in the stores when “free freight” performed at least one purchase
decreased and a consequent growth in the first half of 2015
in the total transferred value in
e-commerce with freight of R$ 544,083,081 • NPS
in the first half of 2014 to R$ 659,843,814 The NPS (Net Promoter Score) Index
in the first half of 2015. showed the best historical index since
E-bit started using this methodology,
• ORDERS reaching 65% of satisfaction.
The transactional volume on Internet
remained the same as last year, • PAYMENTS
registering a 2.5% increase. We registered a change in online store
strategies to decrease installment sales.
• MOBILE DEVICES Currently, 54.2% of the orders are performed
The period registered a consolidation with cash payment or in up to three
trend of mobile devices (smartphones installments. In addition, only 3.59% of
and tablets) as a strong sales channel, the orders were performed with more than
reaching a transactional sales 11 installments in 2015, a lower percentage
of 10.1% of sales. than last year, when 7.95% were registered.

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360º APPRAISAL
OF THE FIRST
HALF OF 2015
Commercial Internet in Brazil celebrates
its 20 anniversary, and e-commerce still holds
th

great prominence in the country. Since it started to


monitor the online sales market 15 years ago, E-bit has
registered the entire evolution of Brazilian e-commerce,
seeking to measure the entire online purchase process.
CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

ONLINE
PURCHASE PROCESS
1
INFORMATION SEARCH
• Internet users
• Consumers
• Purchase motivators
• Types of devices

E-BIT ASSESSES THE ENTIRE PURCHASE


DECISION
PURCHASE PROCESS
• Installments

4 DELIVERY AND PERFORMED OVER THE • Freight


SATISFACTION
• Delay
INTERNET AND SHOWS THE
DATA ON WEBSHOPPERS
• Means of
payment 2
• NPS
AND IN MARKET REPORTS

FINANCIAL DATA
• Orders
• Billing
• Average ticket
• Category share

3
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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

ACCESS TO THE INTERNET


AND USER PROFILE
F irst of all, in order to understand the
online purchase dynamics, it is worth
mentioning that, according to Nielsen IBOPE,
residences was 74.2 million with average
monthly exposure time of 19h38min.

there already are over 103.4 million people Most of these internet users are concentrated
with home internet in Brazil. in the eleven major metropolitan areas of Brazil,
which account for 67% of the IPC (Spending
In June, 2015, the total active users in Potential Index - Pyxis IBOPE Inteligência).

INTERNET USER DATA IN THE 11 MAJOR METROPOLITAN AREAS IN BRAZIL.

SOCIAL CLASS
AB 52%
C 43%
DE 5%

GENDER
MEN 47%
BRASÍLIA 3% WOMEN 53%
BELO HORIZONTE 6%
CURITIBA 4% AGE
FORTALEZA 3% 12 AND 19 YEARS OLD 21%
PORTO ALEGRE 4%
RECIFE 3% 20 AND 24 YEARS OLD 13%
RIO DE JANEIRO 12% 25 AND 34 YEARS OLD 25%
SALVADOR 4% 35 AND 44 YEARS OLD 19%
SÃO PAULO 22% 45 AND 54 YEARS OLD 13%
SÃO PAULO Countryside (Total) 16% 55 AND 64 YEARS OLD 7%
SUL/SUDESTE Countryside 23% 65 AND 74 YEARS OLD 2%
THIS PERCENTAGE DISTRIBUTION REFERS ONLY TO THE 11 MAJOR SOURCE: TARGET GROUP INDEX BRY15W2+Y16W1
METROPOLITAN AREAS IN BRAZIL; THUS, IT DOESN’T OTHER BRAZILIAN STATES. (FEV14-MAR15) BASE 20,736 cases

18
DATA INDICATE THAT
MORE THAN HALF OF THE
BRAZILIAN POPULATION IS
CONNECTED, WHICH IS A
HUGE PROGRESS FOR THE
COUNTRY BECAUSE PEOPLE
ARE BEGINNING TO HAVE
INCREASINGLY EASY ACESS TO
EVERY TYPE OF INFORMATION
AND THE MEDIUM
GRADUALLY BECOMES
AN IMPORTANT TOOL FOR
DEMOCRATIZATION
JULIANA SAWAIA, Director of
Learning & Insights of IBOPE Media, observes

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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

PURCHASE MOTIVATORS
N owadays it is extremely
important to know, study,
and constantly monitor consumer
PURCHASE MOTIVATORS | 1ST HALF OF 2015

behavior to be able to direct TV 2%


marketing and sales activities
ADVERTISEMENTS/ARTICLES IN
objectively in e-commerce companies. NEWSPAPERS AND MAGAZINES 1%
According to the data surveyed STORE CONSULTANT OR REPRESENTATIVE 1%
by E-bit, e-commerce sales are more
and more influenced by digital MAGAZINES/BOOKS SUBSCRIPTIONS 1%
channels, such as price comparators.
Only 6% of consumers stated
that offline media was the main
PRINTED PORTFOLIO 1%
motivation for their decision
to purchase on an online store.
TOTAL 1h 15 6%
SOURCE: E-BIT

However, when asked about the influence of Internet during a purchase in physical retail,
38% of e-consumers interviewed who have any mobile device answered they have used
smartphones and/or tablets over the past six months to compare prices while inside a store.

MAIN ACTIVITIES OF CONSUMERS INSIDE A STORE

38% COMPARE PRICES


34% INFORMATION ABOUT PRODUCTS
24% COMPARE PRODUCTS

16% INFORMATION ABOUT STORES

9% PURCHASE PRODUCT

SOURCE: E-BIT SURVEY – PURCHASE HABITS & MOBILE, JUNE 2015 BASE Having at least 1 mobile device: 1,825

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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

EVOLUTION OF
(ACTIVE) E-CONSUMERS
I n Brazil, 17.6 million
people performed 18.9
17.6
20,000,000

CONSUMERS
at least one purchase
14.1 15,000,000
in the first half of 2015,
thus accounting for 10,000,000
1ST SIX MONTHS 1ST SIX MONTHS 1ST SIX MONTHS
a 7% fall compared to OF 2013 OF 2014 OF 2015
the same period in 2014.
SOURCE: E-BIT – NUMBER OF ACTIVE CONSUMERS, 1ST HALF OF 2015

This fall in e-consumer volume was potentialized by buyers classified as light users.
According to the data surveyed by E-bit, many e-consumers who typically perform one
purchase every six months over the Internet didn’t place any orders in the first half of 2015.
In the study “Purchase Habits & Mobile”, the reasons pointed out by those who didn’t perform
any purchases were, mainly:

CRISIS/COST CONTAINMENT/LACK OF MONEY 28%


HIGH PRICES 8%
I’D RATHER BUY AT THE PHYSICAL STORE 5%
FONTE: E-BIT SURVEY – PURCHASE HABITS & MOBILE, JUNE 2015 BASE Hasn’t purchased online over the last 6 months: 88

At the other end of the spectrum, heavy users understand that the Internet becomes
the main channel to perform the best purchases in times of higher economic instability.
Among the testimonials by online e-consumers, we highlight:

“ON THE INTERNET, “ONLINE PRICES ARE “MANY OF THE PRODUCTS I HAVE BOUGHT THIS YEAR WERE
I CAN COMPARE PRICES CHEAPER THAN IN THE ONLY AVAILABLE ON THE INTERNET AND I RECEIVED THEM
AND PRODUCTS STORES I VISITED, THAT’S WHY COMFORTABLY AT MY HOME WITHOUT PAYING ANYTHING
AT SEVERAL STORES I END UP BUYING ON THE FOR THE FREIGHT AND WITH NO COSTS WITH TO-AND-FRO. I
BEFORE PURCHASING.” ONLINE ENVIRONMENT.” BELIEVE I MANAGED TO SAVE TIME AND MONEY.”

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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

OVERVIEW OF ONLINE PURCHASERS

THE DEVICES USED TO PERFORM ONLINE PURCHASES WERE

10.1%
OF TRANSACTIONS WERE
89.9%
OF TRANSACTIONS WERE
PERFORMED THROUGH PERFORMED ON THE
MOBILE DEVICES COMPUTER/LAPTOP

AND WHAT WAS THE 2015 ONLINE BUYERS’ PROFILE?

Online buyers are


distributed equally between
male and female publics.

AGE GROUP 1h 14 1h 15

UP TO 24 YEARS OLD 8% 8%
BETWEEN 25 AND 34 YEARS OLD 23% 22%
BETWEEN 35 AND 49 YEARS OLD 39% 37%
ABOVE 50 YEARS OLD 30% 33%

AVERAGE AGE (YEARS OLD) 42 43


SOURCE: E-BIT

1h 14 48.40% 51.60%
Small increase in the average
1h 15 50.01% 49.99% age of e-consumers.
SOURCE: E-BIT

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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

FAMILY INCOME 1h 14 1h 15

LESS THAN R$ 3,000 44.71% 40.34%


BETWEEN R$ 3,001 AND R$ 5,000 21.41% 21.99%
BETWEEN R$ 5,001 AND R$ 8,000 14.14% 15.30%
ABOVE R$ 8,001 11.99% 15.09%
The average
I’D RATHER NOT ANSWER 7.75% 7.28% income of
online consumers
AVERAGE FAMILY INCOME R$ 4,210 R$ 4,658 increased 10,6%.

SOURCE: E-BIT

Southern and Northeastern


regions gained a higher share
in e-commerce sales.

REGIONS 1h 14 1h 15

SOUTHEAST 67.7% 64.5%


SOUTH 12.1% 13.7%
NORTHEAST 11.9% 12.9%
MID-WEST 5.8% 6.1%
NORTH 2.5% 2.8%
SOURCE: E-BIT

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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

PURCHASE In the digital environment, it is essential


to know and constantly monitor market

DECISION transfers, as well as consumer behavior


in face of these changes.

THE DATA BELOW REPRESENT THE MAIN FACTORS THAT INFLUENCE


THE PURCHASE DECISION-MAKING PROCESS OF ONLINE CONSUMERS:

FREIGHT

FOLLOWING THE TREND REGISTERED SINCE FREE FREIGHT APPEARED


JULY/2014, THE E-COMMERCE STORES DECREASED
THE PERCENTAGE OF FREE FREIGHT AND,
AT THE BEGINNING OF
CONSEQUENTLY, WE HAVE A 21% GROWTH IN BRAZILIAN E-COMMERCE
TOTAL FREIGHT VALUE PAID BY E-CONSUMERS:
TO ATTRACT CONSUMERS
OF R$ 544,083,081 IN THE FIRST HALF OF 2014
TO R$ 659,843,814 IN THE FIRST HALF OF 2015. WITH LITTLE KNOWLEDGE
ABOUT ONLINE PURCHASES.
FREIGHT FREE PAID
HOWEVER, OVER THE LAST
1h 14 50.1% 49.9%
YEARS FREE FREIGHT HAS
1h 15 43.5% 56.5%
INCREASINGLY BEEN OFFERED
DATE PAID VALUE IN A MORE CONSCIOUS
1h 14 R$ 22.64 MANNER BECAUSE THE
1h 15 R$ 23.68
MARKET HAS REALIZED
VARIATION 4.6% IT IS A TOOL TO ENSURE
CUSTOMER LOYALTY. THUS,
DATE TOTAL PAID VALUE
IT IS POSSIBLE TO OFFER
1h 14 R$ 544,083,081
NEW SERVICES TO DIFFERENT
1h 15 R$ 659,843,814
TYPES OF CONSUMERS.
VARIATION 21.3%
ALEXANDRE GONÇALVES,
SOURCE: E-BIT
Strategic Planning Manager
of Total Express

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CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

INSTALLMENTS AND PAYMENT FORMS

IN 2015, ONLINE CONSUMERS HAVE CHOSEN


TO PURCHASE LESS IN INSTALLMENTS.
THE INCREASED PREFERENCE
MEAN OF PAYMENT 1h 14 1h 15
FOR CASH PAYMENT REFLECTS
CREDIT CARD 74.0% 73.7%

BANK BILL 19.0% 19.2%


THE DECREASE IN OFFERS OF
DEBIT CARD 2.8% 2.5% INTEREST-FREE INSTALLMENTS
STORE CARD 1.8% 2.1% BY PART OF THE ONLINE
OTHERS 2.4% 2.5%
RETAIL, ALONG WITH THE
1h 14 1h 15
POPULATION’S WISH TO AVOID
CASH 39.3% 39.6% HAVING LONG TERM DEBTS.
3 INSTALLMENTS 13.5% 14.6% IN ADDITION, E-CONSUMERS’
10 INSTALLMENTS 8.0% 11.0%
MATURITY REGARDING
DATE NUMBER OF INSTALLMENTS
ONLINE SHOPPING AND
1h 14 4.0
THE CONSCIOUS USE OF
1h 15 3.7 LINES OF CREDIT CREATES
SOURCE: E-BIT
A NEW CONSUMER PROFILE
WITH THE INCREASE IN THE SELIC RATE OVER THE LAST
IN THE DIGITAL UNIVERSE
YEAR, THERE HAS BEEN A REDUCTION IN OFFER OF FLEXIBLE
PAYMENT DEADLINES PROVIDED BY THE STORES. MARCELO THEODORO,
Senior Director and Head
HIGHER INCENTIVE FOR CASH PAYMENT of Digital Products in Latin
(BY BANK SLIP) OR IN AT LEAST 3 INSTALLMENTS. America, MasterCard

WEBSITES HAVE LIMITED PAYMENTS


IN AT MAXIMUM 12 INSTALLMENTS.

WHEN THEY INTEND TO PAY IN SEVERAL INSTALLMENTS,


CONSUMERS PREFER THE MAXIMUM NUMBER OF INSTALLMENTS
MORE FREQUENTLY OFFERED (10 INSTALLMENTS).

25
CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

FINANCIAL DATA: ORDERS,


BILLING, AND AVERAGE TICKET
E -commerce sales in Brazil in 2015 have been rising and have grown again. According to the
collected data, sales in e-commerce are R$ 18.6 billion. This number represents a nominal
growth of 16% in relation to 2014, when a total of R$ 16.1 billion were sold.

ONLINE SALES (CONSUMER GOODS) IN BILLIONS OF BRAZILIAN REAIS

18.6
20 100%
16.1

15 12.7 75%
R$ BILLION

10.2
10 8.4 31.1% 50%
25.9%
5
13.5% 16.0% 25%
27.5%

0 0%
1h 2011 1h 2012 1h 2013 1h 2014 1h 2015

SOURCE: E-BIT
FINANCE VARIATION

VARIATION 2015 X 2014 IN % | January to June


In the first half of this year we
had a decrease in e-commerce growth,
and it still is more attractive than offline
-2.2 4.2 16 retail. According to IBGE, offline retail grew
4.2% in the first six months compared
SALES NOMINAL E-BIT to the same period in the previous year.
VOLUME IBGE REVENUE IBGE BILLING
OFFLINE RETAIL ONLINE RETAIL
E-commerce grew 16% over the
same period.

SOURCE: IBGE PMC AND E-BIT NOMINAL REVENUE AND VOLUME SERIES Based on the gross re-sale revenue investigated, indicators are built for two variables:
Nominal Sales Revenue and Sales Volume. The latter results from the deflation of current nominal values by specific price indexes for each activity group, and for each
Federation Unit, built based on the relative levels of IPCA prices and on the National Research System for Costs and Civil Construction Indexes - SINAPI. When building
the price indexes of UFs not covered by IPCA, the relative levels of prices from the most appropriate geographical areas were used. ONLINE RETAIL E-bit Methodology

26
CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

The main factors that have driven the growth in Brazilian e-commerce sales are mainly related
to the increase in the average ticket, boosted by the slight increase in online product prices,
as registered by the FIPE/ Buscapé Index, in addition to the higher sales volume for higher
value categories such as, Household Appliances and Telephony/Mobile Phones.

We registered a 13% growth in the average ticket of online consumers in the first half of 2015.

EVOLUTION OF THE AVERAGE TICKET OVER THE 1ST SIX MONTHS

380 376.55 50%


370
40%
360 353.38
350 30%
MILLION

340 334.08 333.40


20%
330
320 10%
309.48 13%
310
-5% 0%
300 -7% -7% 8%
290 -10%
1h 2011 1h 2012 1h 2013 1h 2014 1h 2015

SOURCE: E-BIT
AVERAGE TICKET VARIATION

The number of orders went from 48.2 million to 49.4 million, an increase of 2.5%.
In 2015, we have also observed a higher concentration of the general market sales towards
Brazilian large e-commerce stores.

SALES IN LARGE STORES

81%
TOP 50
86%

19%
+51
14%

1h 14 1h 15

SOURCE: E-BIT

27
DESPITE THE SLIGHT
SLOWDOWN IN THE
1ST SIX MONTHS OF 2015
COMPARED TO THE LAST YEARS,
E-COMMERCE HAS STILL BEEN
INCREASING AT MUCH HIGHER
RATES THAN THE BRAZILIAN
GDP AND TWICE AS MUCH
AS TRADITIONAL RETAIL.
THIS RHYTHM WON’T STOP
BECAUSE BRAZILIANS HAVE
ALREADY UNDERSTOOD THAT
THE INTERNET IS THE PLACE
TO FIND THE BEST PRODUCTS
AND WITH PRICES THAT ARE
GENERALLY MUCH LOWER THAN
AT PHYSICAL STORES
explains RODRIGO BORER, CEO of Buscapé Company

28
CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

CATEGORY SHARE
MOST-SOLD CATEGORIES | Volume of orders

FASHION & ACCESSORIES 15% THE CATEGORY FASHION


& ACCESSORIES IS STILL THE
HOUSEHOLD APPLIANCES 13%
LEADER IN TRANSACTIONAL
TELEPHONY/MOBILE PHONES 11% VOLUME OF E-COMMERCE;
COSMETICS & PERFUMERY/HEALTH 11% HOWEVER, IT SHOWED A
19% FALL COMPARED TO THE
SUBSCRIPTIONS & MAGAZINES/BOOKS 8%
SAME PERIOD IN 2014.
HOUSE & DECORATION 8%

COMPUTER PROGRAMS 8% THERE WAS A GREAT INCREASE


ELECTRONICS 5% IN SALES OF THE CATEGORIES
HOUSEHOLD APPLIANCES,
SPORTS & LEISURE 4%
AND TELEPHONY COMPARED TO
TOYS & GAMES 3%
2014: 22% AND 54%, RESPECTIVELY.

MOST-SOLD CATEGORIES | Billing

HOUSEHOLD APPLIANCES 25% THE CATEGORY HOUSEHOLD


APPLIANCES IS THE LEADER
TELEPHONY/MOBILE PHONES 18%
IN SALES OF E-COMMERCE,
ELECTRONICS 12%
WITH A 41% INCREASE
COMPUTER PROGRAMS 12% COMPARED TO THE SAME

HOUSE & DECORATION 7% PERIOD IN 2014.

FASHION & ACCESSORIES 6%


IN SECOND PLACE WE
COSMETICS & PERFUMERY 4% HAVE TELEPHONY/MOBILE
SPORTS & LEISURE 3% PHONES WITH EVEN HIGHER
GROWTH, 53%.
BOOKS 2%

TOYS & GAMES 2%

AUTOMOTIVE ACCESSORIES 2%

CONSTRUCTION & TOOLS 1%


SOURCE: E-BIT (1st half of 2015)

29
CHAPTER 1 | 360º EVALUATION OF THE FIRST HALF OF 2015 TABLE OF CONTENTS

DELIVERY AND SATISFACTION:


NPS AND DELIVERY DEADLINE
O ne of the major highlights for e-commerce in 2015 is certainly related to the quality of
services provided by online retailers. E-bit registered a fall in the volume of delayed
deliveries, reaching the percentage of only 8.62%.

1h 14 1h 15

DELAYED DELIVERY 14.40% 8.62%


However, to ensure delivery
PERIOD AVERAGE PROMISED DEADLINE
within the promised deadline, we
also observed that the average time
1º HALF OF 2014 8.5 DAYS
advertised by the stores increased in
the first half of 2015, when compared 1º HALF OF 2015 9.2 DAYS
to the same period last year.

Net Promoter Score (NPS) is an indicator that measures the satisfaction and loyalty of clients.
In the general balance sheet for the year, NPS in June/2015 showed the best result since E-bit
started to apply this methodology, beginning with 56.9% (January/2015) and ending with 65%
(June/2015). The indicator showed improvement in all the months of the year.

60%
62.7 62.4 63.0 62.0 62.6 65.0
59,6 60.8 60.5 59.1 58.6 58.3 59.7
57.4 56.5 56.9
52.6
40% 49.5

18.1 16.0
20% 13.8 12.0 13.3 12.1 10.5 9.2 10.4 9.6 9.7 9.1 8.5 8.0
8.1 7.2 7.1 6.6

0%
JAN 14 FEB 14 MAR 14 APR 14 MAY 14 JUN 14 JUL 14 AUG 14 SEPT 14 OCT 14 NOV 14 DEC 14 JAN 15 FEB 15 MAR 15 APR 15 MAY 15 JUN 15

NPS DELAYED DELIVERY

SOURCE: E-BIT

30
THE NPS (NET
PROMOTER SCORE) INDICATOR
DIRECTLY REFLECTS THE
QUALITY OF SERVICES
PROVIDED BY ONLINE STORES
TO THEIR CONSUMERS. IN THE
FIRST HALF OF 2015 WE HAD
AN IMPROVEMENT IN THIS
INDICATOR, SHOWING
COMPANIES’ EFFORT TO
IMPROVE THEIR SERVICES
AND GAIN CLIENTS’ LOYALTY.
THIS MAKES PERFECT SENSE,
BETTER YET IN MOMENTS
OF ECONOMIC CRISIS
evaluates PEDRO GUASTI, Institutional Relations VP
of Buscapé Company and Chairman of the Interaction
and E-Commerce Council of FecomercioSP

31
EXPECTATIONS FOR
THE 2 HALF OF 2015
nd
CHAPTER 2 | EXPECTATIONS FOR THE 2ND HALF OF 2015 TABLE OF CONTENTS

EXPECTATIONS FOR
THE 2nd HALF OF 2015
A fter a nominal growth of 16% in the first half of 2015, the reviewed projection for the year is that
e-commerce will have a nominal growth of 15% compared to 2014, reaching sales of R$ 41.2 billion.

ONLINE SALES (CONSUMER GOODS) IN BILLIONS OF BRAZILIAN REAIS

50 41.2 100%
35.8
38 28.8 75%
R$ BILLION

22.5
25 18.7 50%

13 15% 25%
26% 28%
24%
20%
0 0%
2011 2012 2013 2014 2015and

SOURCE: E-BIT
FINANCE VARIATION

We also estimate a 5% increase in total orders this year, reaching a total of 108.2 million in 2015.

ONLINE SALES (CONSUMER GOODS) IN NUMBER OF ORDERS

120 108.2 120%


103.4
88.3
90 90%
66.7
MILLION

53.7
60 60%

30 17% 30%
34%
32% 5%
25%
0 0%
2011 2012 2013 2014 2015and

SOURCE: E-BIT
ORDERS VARIATION

33
CHAPTER 2 | EXPECTATIONS FOR THE 2ND HALF OF 2015 TABLE OF CONTENTS

The expectation for the closing of 2015 is that the average ticket will be R$ 381.00 with a 10%
growth in relation to 2014. The growth of the average ticket will have a greater weight in sales
than volume of orders.

AVERAGE TICKET / E-COMMERCE

390
381.1 50%
380
40%
370
BRAZILIAN REAIS

360 348.5 346.7 30%


350 337.6
20%
340 326.9
330 10%
320 10%
-7% 6% 0%
310
300 -3% -3% -10%
2011 2012 2013 2014 2015and

SOURCE: E-BIT
AVERAGE TICKET VARIATION

According to Provar (Retail Management Program), after exceeding 90% of the purchase intention
in the first and second quarters of this year, we had a fall in purchase intention, maintaining the levels
of previous years. For the third quarter of this year, the index is 86.59%.

PURCHASE INTENTION 3RD QUARTER 2015 IN % | Online retail

100%

94.70
95% 92.80
89.90 90.30
90% 88.30
86.70 85.80 85.30 84.70
83.90
85%
86.59
85.50
80%

75%
76.50

70%
3q 12 4q 12 1q 13 2q 13 3q 13 4q 13 1q 14 2q 14 3q 14 4q 14 1q 15 2q 15 3q 15

SOURCE: PROVAR/E-BIT

34
CONSIDERING
THE YEAR AS A WHOLE,
THE ONLINE PURCHASE
INTENTION OF E-CONSUMERS
HAS REACHED HIGHER
LEVELS IN 2015 THAN
IN PREVIOUS PERIODS;
THIS SHOWS US THAT
IN ECONOMICALLY
UNSTABLE TIMES,
CONSUMERS SEE THE
INTERNET AS A CHANNEL
TO PURCHASE PRODUCTS
IN A MORE PLANNED
MANNER AND WITH
BETTER COST-BENEFIT
states CLÁUDIO FELISONI DE ANGELO,
CEO of IBEVAR and creator of PROVAR

35
PURCHASE
HABITS &
MOBILE
SURVEY
In 2015, the access volume via
mobile devices keeps growing
and E-bit estimates that more
than 37% of accesses to the
largest e-commerce websites
are already generated by
smartphones or tablets.
Thus, strategies of large
Brazilian e-commerce
stores already point out an
increasing mobile trend.
CHAPTER 3 | PURCHASE HABITS & MOBILE SURVEY TABLE OF CONTENTS

SURVEY - PURCHASE
HABITS & MOBILE
W ith the purpose of understanding and
measuring the use of these mobile
devices in Brazil, E-bit carried out a survey
six months through an e-commerce website
in Brazil. Among the e-consumers surveyed,
83% have at least one mobile device and
between June 2 and 12, 2015,that analyzed home wi-fi connection is the most frequent
Brazilian e-consumer behavior regarding way to access the Internet in these devices,
the use of smartphones and tablets. Using which have been indicated by 84% of the
an online questionnaire, the sample was respondents. After that, comes wi-fi at work,
comprised of 2,204 Internet users who had with 39%, followed by (post and pre-paid)
performed at least one purchase over the last operator plans, 36% and 32%, respectively.

SOME INITIAL DATA WHICH WERE HIGHLIGHTED IN THESE STUDIES:

6 meses

NEARLY ALL EIGHT OUT OF EVERY FOUR OUT OF EVERY TABLETS HAVE BEEN
INTERVIEWEES HAVE TEN HAVE SMARTPHONES TEN INTEND TO PURCHASE LESS APPEALING:
A COMPUTER/LAPTOP AND FOUR OUT OF EVERY COMPUTER/LAPTOP only two out of every
TEN HAVE TABLETS AND SMARTPHONE OVER ten intend to purchase
THE NEXT SIX MONTHS this equipment

37
CHAPTER 3 | PURCHASE HABITS & MOBILE SURVEY TABLE OF CONTENTS

User behavior has certainly changed. When asked about the frequency with
According to André Ricardo Dias, Executive which they access the Internet, 72% of the
Director of E-bit, “online consumers’ interviewees said they use their smartphones
computer hours shall certainly be impacted several times a day to access the Internet;
more and more consistently by mobile devices; this percentage drops to 64% if we consider
after all, consumers have smartphones the use of computers or laptops (as shown
in their hands nearly 100% of the time”. in the figure below).

INTERNET ACCESS FREQUENCY BY TYPES OF EQUIPMENT

72%
MANY TIMES
27%
A DAY
64%

16%
AT LEAST
29%
ONCE A DAY
22%

3%
3 - 5 DAYS
11%
A WEEK
6%

3%
2 - 3 DAYS
12%
A WEEK
4%

2%
ONCE
8%
A WEEK
2%

2%
LESS THAN
10%
ONCE A WEEK
1%

2%
I DON’T ACCESS
4%
THE INTERNET
0%

SMARTPHONE TABLET COMPUTER/LAPTOP

SOURCE: E-BIT SURVEY – PURCHASE HABITS & MOBILE, JUNE 2015 SAMPLE Have a smartphone: 1,736 / Have a tablet: 932 / Have a computer/laptop: 2,126

THESE DATA SHOW THAT BRAZILIAN INTERNET USERS HAVE INCREASINGLY BEEN CONSIDERING
THE SMARTPHONE AS AN ESSENTIAL DEVICE TO ACCESS THE INTERNET THROUGHOUTTHE DAY.

38
MOBILE IS THE
SHORTESTPATH BETWEEN
PHYSICAL (OR ONLINE)
STORES AND THEIR CONSUMERS.
HAVING A RESPONSIVE
WEBSITE IS NOT ONLY A
DIFFERENTIAL BUT AN ACTUAL
BUSINESS NEED TO ATTRACT
CONSUMERS AND GENERATE
SALES. MOBILE COMMERCE
HAS BECOME A REALITY
FOR LARGE- OR
SMALL-SIZED RETAILERS
FABIANO DESTRI LOBO, Executive Director
of MMA (Mobile Marketing Association), points out

39
CHAPTER 3 | PURCHASE HABITS & MOBILE SURVEY TABLE OF CONTENTS

ONLINE PURCHASE
E-CONSUMERS ACCESS THE INTERNET AND PERFORM ONLINE PURCHASES MAINLY AT HOME.

96%
AT HOME
95%

58%
AT WORK
46%

13% AT FRIENDS’/
9% RELATIVES’ HOUSES

USUALLY ACCESS INTERNET USUALLY PURCHASE ONLINE

SOURCE: E-BIT SURVEY – PURCHASE HABITS & MOBILE, JUNE 2015 SAMPLE 2.204 RESPONDENTS (PERIOD: 02 TO 12 JUNE/2015)

AMONG E-CONSUMERS WHO ADMITTED HAVING A SMARTPHONE OR A TABLET, NEARLY HALF HAS
PERFORMED AT LEAST ONE PURCHASE THROUGH THESE DEVICES OVER THE LAST SIX MONTHS.

ONLINE PURCHASE VIA SMARTPHONE ONLINE PURCHASE VIA TABLET


Last 6 months (%) Last 6 months (%)

47%
PURCHASED
48%
PURCHASED

53%HAVEN’T
52%
HAVEN’T
PURCHASED PURCHASED

HAVE BOUGHT 4 TIMES, IN AVERAGE HAVE BOUGHT 4 TIMES, IN AVERAGE

BASE Having a smartphone: 1,736 BASE Having a tablet: 932

40
CHAPTER 3 | PURCHASE HABITS & MOBILE SURVEY TABLE OF CONTENTS

MOTIVATION OF USE
BY TYPE OF DEVICE

THE MAIN REASONS FOR CONSUMERS WHO FOR THOSE WHO PREFER
USING COMPUTERS/ PREFER TABLETS TO USE SMARTPHONES
LAPTOPS TO PERFORM HAVE PROVIDED THE TO PURCHASE ONLINE,
ONLINE PURCHASES ARE: FOLLOWING REASONS: THE HIGHLIGHTS ARE:

25%
It’s safer
30%
Practical and
48%
Practicality
easy to use

24%
More practical
19%
Convenience
16%
The device
or easier to use and comfort is always
with the user

PEOPLE WILL MORE AND

24%
Larger screen
17%
Screen size
MORE TAKE ADVANTAGE OF
HOW PRACTICAL IT IS TO
PERFORM PURCHASES WITH A
size for better Advantage
visualization at least when SMALLER NUMBER OF CLICKS,
compared to
smartphones ANY TIME AND ANY PLACE.

41
CHAPTER 3 | PURCHASE HABITS & MOBILE SURVEY TABLE OF CONTENTS

ACTIVITIES INSIDE PHYSICAL STORES THROUGH MOBILE DEVICES | Evoked response %

40%
TAKE PICTURES
9%
PURCHASING
16%
INFORMATION
OF PRODUCTS A PRODUCT ON STORES

24% 34%
8%
INFORMATION
COMPARING
ON THE
PRODUCTS
PRODUCT
PAYMENT
OF A
PURCHASE

21% 38%
GEOLOCATION
GPS, maps, address
search, etc...
COMPARING
PRICES
27%NONE

SOURCE: E-BIT SURVEY – PURCHASE HABITS & MOBILE, JUNE 2015 SAMPLE Having at least 1 mobile device: 1,825

The main point of attention for mobile devices, in


the context of online purchases, is safety, which was
spontaneously pointed out by e-consumers in several
moments of the study and referred to as something
This study has
positive for computers/laptops.
addressed several
other points on the use
Mobile devices have very frequently been used inside
of mobile devices in the
physical stores during the purchase process to research
online purchase process and
products, prices, and stores.
is being marketed by E-bit.

Among e-consumers who have mobile devices, only


FOR MORE
three out of every ten haven’t used their devices for any
INFORMATION, CONTACT
activity related to purchases and 14% have performed
COMERCIAL@EBIT.COM.BR
purchases via mobile devices when inside a physical
store over the last six months.

42
FIPE/BUSCAPÉ
INDEX
FIPE is an institute that carries
out primary data surveys for the
elaboration of indexes, average
price tables, and quantity charts of a
series of economic variables, among
which is the most traditional evolution
indicator of cost of living for families,
IPC - Consumer Retail Price Index.

In 2011, Buscapé and FIPE established


a partnership to bring the same
knowledge to the online market,
launching the FIPE/Buscapé Index,
whose main goal is to analyze
price behavior of online shops in
Brazil and point out consumption
patterns of e-consumers.

The index is disclosed monthly and it


monitors approximately 10 million offers
for sale, with ten categories that
unfold in divisions, totaling 156 specific
subcategories, such as refrigerators,
laptops, air conditioners, tennis shoes,
among others. This metric covers an
average of 80% of online purchases
and it is the main overview of price
variations in Brazilian e-commerce.
CHAPTER 4 | FIPE/BUSCAPÉ INDEX TABLE OF CONTENTS

MONTHLY EVOLUTION
OF FIPE/BUSCAPÉ INDEX
O f the 53 months when the study was
published, prices fell in 42 (or 79%
in this period), reflecting dynamism and
the recent general increase in price levels,
and more particularly, the devaluation
of Brazilian Real and consequent growth
competitiveness in the sector and the nature in the value of imported products and
of the main products sold (see figure below). components, which has a great weight
In the first half of 2015, the positive in e-commerce. In spite of that, in four
accumulated variation of 3.73% denoted of the six months, the index dropped.

44
1.5%

1.0%
3.5%

2.5%
5.5%

3.0%
4.5%

2.0%

0.5%
5.0%

-1.5%
4.0%

0.0%

-1.0%

-2.5%

-3.5%
-2.0%

-3.0%
-0.5%
FEB 11 -0.64
MAR 11 -1.18
APR 11 -2.41
MAY 11 -0.79
JUN 11 -1.19
JUL 11 -0.03
AUG 11 0.59
SEPT 11 -0.05
OCT 11 -1.42
NOV 11 -1.06
DEC 11 -2,85
JAN 12 0.90
FEB 12 -0.73
MAR 12 -1.22
APR 12 -0.73
CHAPTER 4 | FIPE/BUSCAPÉ INDEX

MAY 12 -0.36
JUN 12 -0.25
JUL 12 -0.74
AUG 12 -1.21
SEPT 12 -0.40
OCT 12 -0.64
NOV 12 -1.42
DEC 12 -1.28
JAN 13 2.39
FEB 13 -0.42
MAR 13 -0.26
APR 13 -0.44
MONTHLY VARIATIONS IN FIPE/BUSCAPÉ PRICE INDEX (%)

MAY 13 -0.28
JUN 13 0.04
JUL 13 -0.37
AUG 13 0.24
SEPT 13 -0.34
OCT 13 0.17
NOV 13 1.00
DEC 13 -2,44
JAN 14 1.35
FEB 14 0.14
MAR 14 -0.52
APR 14 -0.32
MAY 14 -0.19
JUN 14 -0.34
JUL 14 -0.02
AUG 14 -0.01
SEPT 14 -0.67
OCT 14 -0.44
NOV 14 -0.40
DEC 14 -1.85
JAN 15 3.07
FEB 15 -1.91
MAR 15 -0.41
TABLE OF CONTENTS

APR 15 4.73
MAY 15 -0.35

45
SOURCE: FIPE INDEX/BUSCAPÉ

JUN 15 -1.28
CHAPTER 4 | FIPE/BUSCAPÉ INDEX TABLE OF CONTENTS

EVOLUTION OF ANNUAL
VARIATIONS AND JUNE/2015
C onsidering the 42 annual variations (t/t-12)
of the FIPE/Buscapé Index series, 38 had
price drop (90% of the series). Out of the four
reflects the rise of overall inflation, which
according to IPCA measurement went from an
annual variation pattern of 6.5% to 8.5%, and it
periods with annual price increase, three are reflects also the recent Dollar appreciation, which
situated in the 1st half of 2015 (figure below). increased approximately 17% between the 1st four
The expressive reversion of the trend observed months of 2015 and the 2nd four months of 2014.
in April (1.37%) and May (1.21%) of this year It is important to highlight that the categories
– since the mean annual variation was at with more weight in e-commerce are directly
-3% – slowed down with the 0.26% variation influenced by the exchange rate: Electronics,
in the period June 2015/June 2014. This reversion Computer, Photography, and Telephony.

ANNUAL VARIATIONS OF FIPE/BUSCAPÉ INDEX (MONTH Q / MONTH Q-12) SOURCE: FIPE/BUSCAPÉ INDEX

1.37
2%

1.21
0.42

0.26
1%

0%

-1%
-0.77

-1.22

-1.27

-1.31
-1.36
-1.48

-1.56

-2%
-1.61
-1.66
-1.78

-1.89
-1.99

-2.48

-3%
-2.78
-2.83

-3.25

-3.51

-4%
-3.62
-3.83
-4.24

-5%
-4.59
-4.87
-4.94
-5.22

-6%
-6.13
-6.42

-7%
-7.02

-8%
-7.67

-7.79
-7.89
-8.29

-9%
-8.92
-9.25
-9.32

-10%
-9.64
-9.73
-9.81
MAR 12 -9.85

-11%
JAN 12
FEB 12

APR 12
MAY 12
JUN 12
JUL 12
AUG 12
SEPT 12
OCT 12
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEPT 13
OCT 13
NOV 13
DEC 13
JAN 14
FEB 14
MAR 14
APR 14
MAY 14
JUN 14
JUL 14
AUG 14
SEPT 14
OCT 14
NOV 14
DEC 14
JAN 15
FEB 15
MAR 15
APR 15
MAY 15
JUN 15

46
CHAPTER 4 | FIPE/BUSCAPÉ INDEX TABLE OF CONTENTS

In the annual period June 2015/June 2014, in “TV set” prices and of -3.56% in “micro
out of the ten groups researched, six had price systems”. In the group with higher price
increases, and four had drops, with a significant increase – Cosmetics & Perfumery (8.23%)
difference between the groups of products – “electric epilator” (13.34%), “hair shampoo”
that comprise the index, which ranged from (11.17%), “hair dryer” (10.28%), and “body
a -12.19% drop in Telephony to a 8.23% increase moisturizer” (10.25%) were the highlights.
in Cosmetics & Perfumery (figure below).
Of the 165 categories researched, 139 (84%) Among all products that comprise the index,
had an average price increase of 5.47% and those whose increase outstood in the annual
26 (16%) had an average price drop of -5.28%. period of June 2015/ June 2014, in addition to
the ones previously mentioned, were: “printer
The group with the highest annual price cartridges” (25.27%), “gazebo tent” (21.52%),
drop in June 2015/June 2014 was Telephony “air conditioning” (18.68%), “processor” (17.62%),
(-12.19%), quite influenced by “cell phone/ “frying pan” (17.09%), “hair dryer” (10.28%), and
smartphone” (-8.41%). The second one was “PC” (10.28%). The ones with the highest drop
Fashion & Accessories (-9.83%) – influenced by were: “soccer shoes” (-18.98%), “sneakers (-16.31%),
tennis shoes (-16.31%) –, followed by Electronics “dishwasher” (-5.48%), “exercise bicycle” (-3.72%),
(-3.37%) – which recorded a reduction of -4.57% “treadmill” (-3.13%), and “tablet” (-2.21%).

ANNUAL VARIATIONS OF FIPE/BUSCAPÉ INDEX BY PRODUCT CATEGORIES (JUN15/JUN14)

COSMETICS & PERFUMERY 8.23


HOUSE & DECORATION 8.09
PHOTOGRAPHY 5.74
COMPUTER 5.45
HOUSEHOLD APPLIANCES 2.81
TOYS & GAMES 0.77
SPORTS & LEISURE -1.21
ELECTRONICS -3.37
FASHION & ACCESSORIES -9.83
TELEPHONY -12.19
139 CATEGORIES WITH INCREASE 5.47
26 CATEGORIES WITH DROP -5.28
OVERALL TOTAL (165 CATEGORIES) 0.26
-10% -5% 0% 5% 10%
SOURCE: FIPE/BUSCAPÉ INDEX

47
E-COMMERCE
IS GROWING SO MUCH
IN BRAZIL THAT THERE
ALREADY ARE SEVERAL
OPTIONS OF TOOLS AND
SERVICES OPTIONS THAT
HELP MONITOR THE PRODUCT
PRICES PRACTICED IN THE
SHOPS. TODAY IT IS ALREADY
POSSIBLE TO HAVE REAL-TIME
MONITORING OF E-COMMERCE
WEBSITES AND EVEN
AUTOMATIZE THE PRICES
TO CERTAIN LIMITS ESTABLISHED
BY THE SHOPS
says RICARDO RAMOS, CEO of Precifica

48
CHAPTER 4 | FIPE/BUSCAPÉ INDEX TABLE OF CONTENTS

E-COMMERCE PRICES
COMPARED TO
OVERALL PRICES
T he following graph shows that the annual
variation of e-commerce prices are 6.7%
lower than the average IPCA price in the period
weight in e-commerce – the variation
of the FIPE/Buscapé Index was approximately
13% lower than the average prices in the
May 2015/May 2014, and that while e-commerce economy. Despite the annual increases
prices have increased just 1.21%, IPCA recorded in the FIPE/Buscapé Index of April (1.37%),
significant 8.47%. Throughout 2012 – before the May (1.21%), and June (0.26%) 2015, its
impact of exchange rate devaluation over the variation is likely to continue at least
prices of imported products, which have a great 6% below IPCA in the next few months.

ANNUAL VARIATIONS OF FIPE/BUSCAPÉ INDEX, IPCA, AND DIFFERENCE (MONTH Q / MONTH Q-12)

10%

8%

6%

4%

2%

0%

-2%

-4%

-6%

-8%

-10%

-12%

-14%

-16%
JAN 12
FEB 12
MAR 12
APR 12
MAY 12
JUN 12
JUL 12
AUG 12
SEPT 12
OCT 12
NOV 12
DEC 12
JAN 13
FEB 13
MAR 13
APR 13
MAY 13
JUN 13
JUL 13
AUG 13
SEPT 13
OCT 13
NOV 13
DEC 13
JAN 14
FEB 14
MAR 14
APR 14
MAY 14
JUN 14
JUL 14
AUG 14
SEPT 14
OCT 14
NOV 14
DEC 14
JAN 15
FEB 15
MAR 15
APR 15
MAY 15
JUN 15

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

SOURCE: FIPE/BUSCAPÉ INDEX

49
CHAPTER 4 | FIPE/BUSCAPÉ INDEX TABLE OF CONTENTS

OVERAL IPCA INDEX, FIPE/BUSCAPÉ, AND FIPE/BISCAPÉ COMPRISED OF IPCA PRICES (JAN11=1)

1.350

1.300

1.250

1.200

1.150

1.100

1.050

1.000

0.950

0.900

0.850

0.800

0.750
JAN 11

MAR 11

MAY 11

JUL 11

SEPT 11

NOV 11

JAN 12

MAR 12

MAY 12

JUL 12

SEPT 12

NOV 12

JAN 13

MAR 13

MAY 13

JUL 13

SEPT 13

NOV 13

JAN 14

MAR 14

MAY 14

JUL 14

SEPT 14

NOV 14

JAN 15

MAR 15

MAY 15
OVERALL IPCA TOTAL FIPE/BUSCAPÉ INDEX COMPOSITE INDEX (IBGE PRICE AND FIPE-BUSCAPÉ WEIGHT)

SOURCE: FIPE/BUSCAPÉ INDEX

The figure above shows a comparison these two indexes is quite discrepant from the
between the Overall IPCA and FIPE/Buscapé behavior of the Overall IPCA, which increased
Index and an Index comprised of IPCA price approximately 56% more than e-commerce
variations (predominantly physical retail) prices in the period of May 2015/January 2011.
and weights of compatible product categories
in the FIPE/Buscapé Index weights (of A significant part of these differences can be
e-commerce products). We observed that the explained by the following factors: a) the FIPE/
behavior of the Index comprised of products Buscapé Price Index monitors a different product
that are researched in the IPCA and in the basket from the one evaluated by the overall price
FIPE/Buscapé Index – which account for 70% indexes, i.e., only those that are marketed more
of the weight in the e-commerce – is quite significantly through the Internet; b) the weight
aligned and consistent with the behavior of of products that comprise the FIPE/Buscapé Index
the FIPE/Buscapé Index. Specifically in April are quite different from their weight in generic
and May 2015 regarding the base of January indexes; c) the distribution channel monitored
2011, the FIPE/Buscapé Index is 17% below, and by the FIPE/Buscapé Index is exclusively
the FIPE/Buscapé comprised of IPCA prices is e-commerce, while the other indexes monitor
15% below. On the other hand, the behavior of many other traditional and physical channels.

50
CHAPTER 4 | FIPE/BUSCAPÉ INDEX TABLE OF CONTENTS

Another factor that is intrinsic to


e-commerce, which has a significant
influence on its growth, is long tail,
which reflects the possibility of the sector
offering more market niche-oriented

THE VALUE products. Consequently, e-commerce is


characterized by a much higher number

OF PRICE of offers than physical commerce, and it


also enables the dissemination of a large

RESEARCHING number of small shops; for consumers, this


translates into a greater number of options.

IN BRAZILIAN However, variety really gains economic

E-COMMERCE value if added to search mechanisms and


price comparison websites, which make

IN 2014 it possible for desired items to be easily


found, thus optimizing time and providing
pricing transparency so as to encourage
competition. In addition, considering that

T he B2C e-commerce in Brazil


generated R$ 35,8 billion in 2014,
reaching a 24.3% nominal growth rate.
operation costs for e-commerce are lower,
online shop prices are estimated to be much
lower when compared to traditional retail.
During the same period, the FIPE/Buscapé
Index had an average -1.92% reduction.
Preliminary research done in the
These data translate into a real growth
United States, France, and India has
of 26.7% in e-commerce sales, much
identified that online retail prices in these
higher than that the GDP, which must
countries are, on average, 10% lower
be around 0.2%, and traditional retail.
than in physical commerce. Assuming
Among the factors that explain this
this difference is similar in Brazil, and
success, the following stand out: the
considering the so-called “ROPO” –
increase in number of households
Research Online/Purchase Offline – effect,
with computers, the diffusion
related to customers who search online
of broadband access, the maturing
but buy in physical shops, the estimate
and consolidation of online retail
for 2013 is of an economic gain of R$ 9.2
structure, the greater security in payment
billion deriving from purchases made in
operations, and higher delivery reliability.
e-commerce and from the consequent
bargaining power of Internet search.

51
WITH THE INCREASE
IN INFLATION,
WHICH HAS ALSO
REACHED E-COMMERCE
PRICE COMPARATORS
GAIN IMPORTANCE
FOR HELPING CONSUMERS
TO FIND THE BEST PRICES
AND OFFERS AVAILABLE,
AS PEOPLE BECOME
MORE CONSCIOUS
IN SHOPPING MAINLY
WHEN THERE IS THE
PERCEPTION OF AN UNSTABLE
ECONOMIC SCENARIO
notes ROMERO RODRIGUES,
global CEO of Buscapé Company

52
FINAL
COMMENTS

53
FINAL COMMENTS | MAIN CLIENTS TABLE OF CONTENTS

MAIN CLIENTS

54
FINAL COMMENTS | GLOSSARY TABLE OF CONTENTS

GLOSSARY
A
ADHOC: research unpon request with BROWSER: browser to access the Internet
a specific purpose

APPLICATIONS: programs developed C


with a purpose (such as e-commerce,
CLASS A, B, C AND D: classification of
game, services) which might be
social classes by family or individual
downloaded by Internet, to be
income (A and B: income starting
used through mobile devices
in R$ 3,001/month; C and D: income
up to R$ 3,000/month)
APPS: abbreviation of applications

CONSUMERS’ DAY BRAZIL:


AVERAGE TICKET: calculated average
date defined in the online retail
amount spent by order or purchase
calendar and created by Buscapé
Company with the support from entities

B in the sector and retailers to have a day


with discounts similar to Black Friday.
BALANCE SHEET: sales result over It takes place in March, on a
a certain period Wednesday near the 15th

BILLING: Total amount raised from sales CROSS BORDER: operation involving
an e-commerce order to be delivered
BLACK FRIDAY: e-commerce date with to another country
great discounts, typically on the last Friday
of November. This event was originated
in the United States, and was implemented
D
in the Brazilian e-commerce in 2012 DESKTOP: desk computer

55
FINAL COMMENTS | GLOSSARY TABLE OF CONTENTS

E M
E-COMMERCE: Electronic MEDALS: E-bit medals, certification
businesses, e-commerce, assigned by E-bit to classify stores
online retail, purchases over according to online consumer satisfaction
the Internet or online store, the after evaluating the services provided (they
environment of electronic commerce might be Diamond, Gold, Silver, and Bronze)

E-CONSUMER: consumer who MOBILE COMMERCE: online commerce


performs purchases over the Internet performed through mobile devices,
such as smartphones or tablets
(its abbreviation is m-commerce)
F
MOBILE DEVICES: mobile devices,
FAMILY INCOME: the average income of a
such as smartphones and tablets
family, when summing up all family members
who work and live in the same residence

FIPE/BUSCAPÉ INDEX: systematized calculation


N
of prices in the Brazilian e-commerce NOMINAL GROWTH:
sales evolution without deducting
inflation, difference in sales increase
I
NPS: Net Promoter Score, an indicator that
INTERNET: global computer network
measures client satisfaction and loyalty

L O
LAYOUT: the layout of a website is its OMNICHANNEL: concept according
design, the display of an Internet page to which all channels of a retail brand
Online stores: stores established on the become available for consumers to contact
Internet, which perform sales in electronic them, by interconnecting off-line and
commerce. E-commerce online (traditional and online stores)

56
FINAL COMMENTS | GLOSSARY TABLE OF CONTENTS

ONE-TIME E-CONSUMERS: those searching and/or comparing prices, such


who have performed at least one as Buscapé and Bondfaro
purchase over the Internet
SHARE: market share
ONLINE RETAIL: e-commerce,
online commerce, purchases SMARTPHONES: mobile telephone device,
performed over the Internet which enables access to the Internet and
with other advanced features
ORDER: each purchase performed,
request for a product to be purchased SOCIAL MEDIA: websites (environments)
where people meet (such as Facebook,
Twitter, and others)
P
STORE CERTIFICATION: evaluation performed
PLAYERS: market components,
by E-bit through a survey with consumers
retailers (regarding e-commerce)
who performed purchases on Internet, in the
post-sales, to build trust in online purchases
PRICE COMPARATORS: websites whose
main feature is to search prices of a
product and list the variety found in T
several stores
TABLETS: mobile devices that work as
portable computers, having features and

R Internet browsing through touch screen


(sensitive to touch)
RESPONSIVE WEBSITES: websites
adapted to mobile devices, with settings TRANSACTIONAL VOLUME: sales proportion
and/or layout designed to the mobile
format, adjusting to screen size and TRANSACTIONS: operations, purchases
making browsing easier performed

S W
SEARCH ENGINES: service website for WI-FI: wireless access to Internet

57
FINAL COMMENTS | CREDITS TABLE OF CONTENTS

CREDITS

IBOPE MEDIA NIELSEN IBOPE


Brazilian private equity Nielsen IBOPE is a partnership
multinational company present between the Nielsen Company
in the Brazilian market for over group and IBOPE, which carries
70 years, with an important out surveys on Internet use
share in the consumer and public in Brazil and Latin America,
opinion research market, IBOPE is generating information on
the unchallenged market leader Internet users’ browsing habits,
in media research. Present in online advertising activities,
15 countries in Latin America and and people’s behavior on social
in the United States, its mission media, as well as delivering
is to provide information systems customized studies focused
and knowledge management on mapping scenarios for the
which offer a relevant online environment.
contribution to maximize results
and reduce risks for clients.

Access www.ibopemedia.com Access br.nielsennetpanel.com

58
FINAL COMMENTS | DISCLOSURE SUPPORT TABLE OF CONTENTS

DISCLOSURE SUPPORT

CAMARA-E.NET
Founded in May, 2001, the Brazilian Chamber consensus positions before major public
of Electronic Commerce (camara-e.net) and private, national and international
is the main multi-sector entity in Latin agents, regarding the promotion
America and the Brazilian company with the of information and communication
highest representation in Online Economy. technologies. Among its members,
Its mission is to qualify individuals and camara-e.net has the most important
organizations for the safe practice of online e-commerce players, with infrastructure
businesses, by generating and diffusing companies, social media, means of
forefront knowledge, as well as defending payment, insurances, retail, and e-banking.

Access www.camara-e.net

E-COMMERCE BRASIL
E-Commerce Brasil is a project for the promotion of online commerce market
in Brazil, and it offers specialized content, trainings for professional of the sector,
and it also promotes a series of events throughout the country, among which is
E-Commerce Brasil Forum, considered by Forrester as the third largest e-commerce
event in the world and the largest in Latin America

Access www.ecommercebrasil.com.br

59
FINAL COMMENTS | DISCLOSURE SUPPORT TABLE OF CONTENTS

FECOMERCIOSP
The Federation of Goods Trade, Services, and Tourism of the State of São Paulo
(FecomercioSP) is the main union entity from São Paulo for the commerce
and services sectors. Responsible for managing the Social Service of Commerce
(Sesc) and the National Service of Commercial Apprenticeship (Senac) in this State,
it represents a segment in Economy that mobilizes over 1.8 million business activities
of all sizes, and it gathers 154 employers’ unions, which account for 11% of the GDP
in São Paulo – around 4% of the Brazilian GDP –, generating around five million jobs.

Access www.fecomercio.com.br

IAB BRASIL
It was founded in 1998 with the core which is represented in over
mission of developing the interactive 43 countries, among which are USA,
media market in Brazil. In 2006, the Australia, Singapore, Spain, France,
Interactive Media Association (AMI) England, Italy, Chile, and Mexico.
became part of the most important
association network in the world – IAB Brasil has currently more than
Interactive Advertising Bureau –, and 220 associates, among websites, portals,
changed its name to IAB Brasil. Since technology companies, Web-development
then, the association is part of an agencies, which are leaders in their
international association network, segment in the country.

Access www.iabbrasil.net

60
FINAL COMMENTS | PRESS INFORMATION / CONTACTS TABLE OF CONTENTS

PRESS INFORMATION
DISCLOSURE OF E-BIT DATA
E-bit 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 E-bit property, and therefore,


those who use it must always inform the source, in order
to enhance the credibility of the information and to avoid that
data disclosed by the company is attributed to other sources.

CONTACTS
PEDRO GUASTI
ANDRÉ RICARDO DIAS
Institutional Relations
Executive Director of E-bit
VP of Buscapé Company
andre.dias@buscapecompany.com
pedroguasti@buscapecompany.com
+55 11 3848-8700
+55 11 3848-8700

PRESS OFFICE Luis Claudio Allan


FirstCom Comunicação luisclaudio@firstcom.com.br
www.firstcom.com.br Cíntia Yamashiro
+55 11 3034-4662 cintia.yamashiro.ext@buscapecompany.com

REPORT AND SURVEY IMPLEMENTATION


ENGAGEMENT OF E-BIT SURVEY
Contact Contact convenio@ebit.com.br
comercial@ebit.com.br Get further information aqui

61
www.ebit.com.br