Dublin, March 06, 2023 (GLOBE NEWSWIRE) -- The "Brazil Social Commerce Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on Social Commerce Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.
Social commerce industry in Brazil is expected to grow by 31.5% on annual basis to reach US$2563.6 million in 2023.
The social commerce industry is expected to grow steadily over the forecast period, recording a CAGR of 18.1% during 2022-2028. The social commerce GMV in the country will increase from US$2563.6 million in 2023 to reach US$6940.4 million by 2028.
In Brazil, the rising disposable income along with the wider use of smartphones has resulted in an upsurge in social commerce. The affinity to shop from social channels has resulted in more global firms expanding their presence in Brazil. The presence of global players, including Meta and TikTok, will further drive investment and a competitive landscape in the Brazilian social commerce sector.
To capitalize on the potential growth offered by the social commerce sector in Brazil, global players are forging strategic alliances with domestic creators, which is part of their localization strategy to increase user retention. Furthermore, as the interest in social commerce among brands continue to grow in the Latin American market, more new players including startups are projected to enter the Brazilian industry from the short to medium-term perspective.
Social media giants are making a bigger push in the Brazilian market to accelerate their global growth
With smartphone penetration still relatively low, but growing, the Latin American market has strong growth potential. Consequently, to tap into the market, which is projected to record significant growth over the next three to four years, global social media giants are making a bigger push in the social commerce segment.
WhatsApp, the chat messaging social app owned by Meta, is making further inroads in the Brazilian social commerce industry. In Q4 2022, Meta announced that it is expanding its directory feature to all businesses in the country. The wide-scale rollout of the service will allow consumers to search for businesses, products, and services on the social platform.
Furthermore, consumers will be able to place orders by adding items to their carts.
The payment service, which WhatsApp has launched in India, is still in the testing phase in Brazil. With millions of consumers using the messaging app daily in the country, the expansion strategy of WhatsApp can accelerate the growth of the social commerce sector significantly from the short to medium-term perspective.
Chinese short-video format social platforms are seeking localization to drive user retention in Brazil
Short-video format social platforms have gained widespread success in China in the social commerce sector. However, they have struggled to replicate their success in global markets, such as Brazil. In their efforts to tap into the growing market size, these firms have adopted a localization strategy to drive user retention.
Kuaishou, the second-largest short video app in China, is seeking to make further inroads in the Brazilian market through its localization strategy. From the short to medium-term perspective, the firm has planned to partner with different third-party firms and local creators to increase user retention, while also driving increasing traffic on its platform. In Brazil, the firm is seeking to partner with creators and working-class users to keep up with the growing competition in the segment.
TikTok, the domestic and global competitor of Kuaishou, is also expanding its presence and investment in the Brazilian market to capitalize on the growing market size. As the firm seeks to drive incremental revenue and sales, the firm is expected to expand its Shop feature in the Latin American market, starting with Brazil. With two of the leading Chinese social commerce players competing for market share, the publisher expects the industry to record strong growth from the short to medium-term perspective.
Domestic social commerce firms are partnering with logistic providers to simplify last-mile delivery service
Convenience is one of the major factors when it comes to online shopping for consumers in Brazil. Consequently, to make the shopping and delivery experience seamless and more convenient, domestic social commerce firms are partnering with logistic providers in Brazil.
In December 2022, Facily, a social commerce firm in Brazil, announced that the firm had entered into a strategic collaboration with Cainiao, the logistic service owned by Alibaba. Under the collaboration, the two firms are launching a network of 1,000 smart lockers in Sao Paulo for parcel pickup. Once the orders are placed through Facily, consumers can select the optimal pickup point based on their convenience and location.
Shoppers can then access the lockers anytime as preferred using the digital code to access the items.
The service is expected to reduce the pickup time significantly compared to other pickup options. The firms are currently testing the service in Sao Paulo. However, it plans to further launch the service in more cities across Brazil.
Scope
Brazil Ecommerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Brazil Social Commerce Industry Market Size and Future Growth Dynamics by Key Performance Indicators, 2019-2028
Brazil Social Commerce Industry Market Size and Forecast by Retail Product Categories, 2019-2028
- Clothing & Footwear
- Beauty and Personal Care
- Food & Grocery
- Appliances and Electronics
- Home Improvement
- Travel
- Hospitality
Brazil Social Commerce Industry Market Size and Forecast by End Use Segment, 2019-2028
- B2B
- B2C
- C2C
Brazil Social Commerce Industry Market Size and Forecast by End Use Device, 2019-2028
- Mobile
- Desktop
Brazil Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Domestic
- Cross Border
Brazil Social Commerce Industry Market Size and Forecast by Location, 2019-2028
- Tier-1 Cities
- Tier-2 Cities
- Tier-3 Cities
Brazil Social Commerce Industry Market Size and Forecast by Payment Method, 2019-2028
- Credit Card
- Debit Card
- Bank Transfer
- Prepaid Card
- Digital & Mobile Wallet
- Other Digital Payment
- Cash
Brazil Social Commerce Industry Market Size and Forecast by Platforms
- Video Commerce
- Social Network-Led Commerce
- Social Reselling
- Group Buying
- Product Review Platforms
Brazil Social Commerce Industry Market Size and Forecast by Consumer Demographics & Behaviour,2022
- By Age
- By Income Level
- By Gender
For more information about this report visit https://www.researchandmarkets.com/r/1ezxyb
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