In 2006, Brazilians spent more than BRL13.3 billion (approximately $6.5 billion) shopping online, according to a January 2007 report by Câmara Brasileira de Comércio Eletrônico and E-Consulting.
Furthermore, research by e-bit published in February 2007 shows a jump in online buyers from 7.0 million in 2006 to a projected online crowd of 9.8 million in 2007.
According to a case study published in February 2007 by CorreiosNet Shopping, The Brazilian Post's e-commerce portal, the best-selling products sold online are books, magazines and newspapers (17%), CDs and DVDs (16%) and electronic goods (15%). The average purchase through CorreiosNet is approximately $140. Most buyers (38%) are between 35 and 49 years of age, followed closely by buyers between the ages of 25 and 34. Currently, the site hosts about 790 shops.
The leading e-commerce site by far is MercadoLivre, Brazil's version of eBay. Rather than providing Web hosting for bricks-and-mortar shops, MercadoLivre is an online warehouse of sorts, selling items ranging from clothing to sunscreen. MercadoLivre also caters to a different economic grouping than the CorriosNet Shopping site.
Perhaps one reason for the expansion of online advertising in Brazil can be found in the mind-set of the population. In a study published by GlobeScan in May 2006, people in Brazil join those in Nigeria, Indonesia, India and Russia in having more trust in their media outlets than in their governments.
As everywhere, the issue of online trust is highly linked to the success or failure of e-commerce strategies. This is even more critical in Brazil, due to a specific characteristic of Brazilian society, which is based on the idea that social position is a direct result of the friends one has. Some analysts even report that Brazilians are unable to conceive of a relationship that is not based on friendship.
While this may be seen as a somewhat antiquated point of view regarding a quickly emerging and technology-friendly market, it still might pay marketers to keep in mind the old Brazilian axiom: Mais vale ter amigos na praça que dinheiro em caixa — "It is worth more to have friends in the marketplace than cash."
Get the big picture of Brazil's Internet users. Read the eMarketer Brazil Online report.