Brazil E-Commerce Market Forecast To 2020: Ken Research

The report titled “Brazil E-commerce Market Forecast to 2020 - Growing Internet Penetration and Last Mile Delivery to Shape Future Growth” provides a comprehensive analysis of the E-commerce market in Brazil and covers market size and segmentation of overall E-commerce market by online retail and travel. The report further segments the online retail market by major product categories, major cities, type of delivery, mode of payment, devices used for purchase, and customer profiles based on gender, age group, monthly household income and seasonal demand. The report covers detailed profiles of leading players in the space along with the share of major players in the market. The report also covers market segmentation of online travel market by industry verticals and means of travel along with customer profile based on gender, age group, income and device used. The potential and future outlook has been individually discussed for the online retail and travel industry and also for the overall e-commerce market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. The report also serves as a benchmark for existing players and for new players who wish to capitalize on the market potential and investors who are looking forward to venture into the e-commerce market in Brazil.

Brazil E-commerce Market

Brazil is not only the biggest but also the most developed e-commerce markets in the Latin America. It has the fourth largest internet market globally with over 129.6 million internet users of the total population of 208 million, as of 2015. The e-commerce market in Brazil grew at a CAGR of ~ % during the period 2010 to 2015. The number of e-commerce consumers has increased from 23.4 million in 2010 to 72.7 million in 2015 providing the impetus for the e-commerce market in Brazil to reach to USD ~ billion in 2015 from USD ~ billion in 2010. The major drivers of growth include growth of internet users, rising broadband penetration, lack of assortment in traditional stores, young and digitally savvy marketplace, highly connected Brazilian consumers, low return rate and high taxation rates on trade.

Although Brazil’s economy has been witnessing a downfall since the last 2 years, the online retail industry has been blooming as the industry is still in its early growth stages and has enormous growth potential. Brazil online retail market grew at a CAGR of ~% during 2010-2015 from USD ~ billion in 2010 to USD ~ billion in 2015. Electronic products purchased online accounted for the highest share of ~%, based on number of orders in 2015 amongst all product categories. Fashion and accessories, Cosmetics & perfumery, Books and magazines, Home & décor were some other product categories that generated bulk of the orders in 2015. 

In 2015, the online retail market was quite a concentrated one with top five leading players in this space occupied a cumulative market share of about ~%. B2W digital, with a portfolio of several e-commerce websites, emerged as the clear market leader by accounting for ~% market stake in 2015 and the company’s websites reached ~% of the total e-commerce visits in the country. Cnova Brazil, Mercado Libre, Magazineluiza and Netshoes were other market leaders in the online retail segment. Apart from the major players catering to multiple products, there were also some of the leading pure play players which cater to the particular segments such as Dafiti, Kanui, Lojasrenner and others in Fashion and accessories; Natura, Boticario and others in Cosmetics; Samsung, Kabum, DX and others in Electronics and Amazon, Editorajustodivm and others in books and magazines.

Online travel agencies in Brazil have become more popular over the years due to the growing interest of consumers in both domestic and international travel, placing the country as the largest market for tourism in Latin America. One of the main reasons for the growth of the online tourism market in Brazil over the years is the increase in the purchasing power of the lower social classes, which has allowed a large number of consumers to consider travelling long distances for the first time. The overall market for online travel and bookings increased to USD ~ billion in 2015 from USD ~ billion in 2010.

Online mobility services accounted for the largest share in the Brazil online travel market. Convenience was the major factor behind the incline in online ticketing. These platforms help the consumer to book tickets conveniently at any place and any time. Also, online bookings these days provide easy price comparisons for different tickets which helps consumer choose the best option. The sector comprised a market share of ~% in 2015 with GMV of USD ~ billion. 

Decolar, Hotel Urbano, CVC Brasil, Booking.com and ViajaNet were the major companies operating in this space of online travel in Brazil.

Brazilian economy is expected to rebound and register positive growth post 2017/2018. With consumer getting increasingly tech savvy and preference shifting towards online bookings of hotels and flights utilizing phones, tablets or desktops rather than booking them from stores or agents, the prospects of online travel market looks promising in the long term.

The e-commerce market in Brazil is anticipated to grow at a healthy CAGR of ~% between 2016 and 2020 from USD ~ billion in 2016 to USD 70.1 billion in 2020. 

Key Topics Covered in the Report:

·         Brazil E-commerce Market Introduction and Size by Gross Merchandise Value

·         Regulatory Environment for E-commerce Companies in Brazil

·         Growth Drivers, Trends and Developments in Brazil E-commerce Market

·         Issues and Challenges in Brazil E-commerce Market

·         Brazil Online Retail Market Introduction and Size by Gross Merchandise Value

·         Brazil Online Retail Market Segmentation

o   By Major Products, 2015

o   By Major Cities, 2015

o   By Type of Delivery, 2015

o   By Mode of Payment, 2015

o   By Devices Used for Purchase, 2015

·         Customer Profiles in Brazil Online Retail Market

o   By Gender, 2010-2015

o   By Age Group, 2014-2015

o   By Monthly Household Income, 2015

o   By Seasonal Demand, 2015

·         Competitive Landscape of Major Players in Brazil Online Retail Market

·         Market Share of Major Players in Brazil Online Retail Market

·         Brazil Online Retail Market Future Outlook and Projections, 2016-2020

·         Brazil Online Travel Market Introduction and Size by Gross Merchandise Volume

·         Brazil Online Travel Market Segmentation

o   By Verticals, 2015

o   By Means of Travel, 2015

·         Consumer Profiles in Brazil Online Travel Market

·         Competitive Landscape of Major Players in Brazil Online Travel Market

·         Brazil Online Travel Market Future Outlook and Projections, 2016-2020

·         Brazil E-commerce Market Future Outlook and Projections, 2016-2020

·         Analyst Recommendations

·         Macro Economic Factors impacting Brazil E-commerce Market

To know more on coverage, click on the link below:

https://www.kenresearch.com/technology-and-telecom/it-and-ites/brazil-ecommerce-market-forecast/52499-105.html

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https://www.kenresearch.com/consumer-products-and-retail/wholesale-and-retail/online-retailing-europe/48911-95.html

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Government Initiatives Support the Boom in Peru Cards and Payments Industry: Ken Research

Ken Research announced its latest publication on, “The Cards and Payments Industry in Peru: Emerging Trends and Opportunities to 2020”, offering insights on the changing trends and key issues within the Cards and Payments Industry in Peru. The publication includes an insightful analysis of market trends in the Peruvian cards and payments industry.The report provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, direct debits and credit transfers during the review period (2011-2015). The report also analyses various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2016-2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

Economic Environment of Peru

Peru is one of the best performing countries in Latin America. Over the past decade, Peru has been one of the region’s fastest-growing economies, with an average growth rate 5.9 percent and low inflation (averaging 2.9 percent). This scenario of high growth with low inflation can be attributed to a combination of favourable external environment, prudent macroeconomic policies and structural reforms in different areas..

Peru has experienced a drastic decline in poverty rates between 2005 and 2015. The significant growth in employment and income have reduced poverty rates, from 55.6 percent to 21.8 percent. It is estimated that in 2014 alone, 221,000 people escaped poverty in the country. Extreme poverty also declined dramatically, from 15.8 percent to 4.1 percent, during the same period.

After a downfall in GDP in 2014, the GDP growth recovered in 2015, from 2.4 percent to 3.3 percent, owing to increased inventories (mainly copper) and exports (3.3 percent). Private investment contracted by 7.5 percent as result of lower business confidence and sluggish real estate sector. The inflation rate exceeded the target range (4.4 percent) given the devaluation of the local currency, which drove up electricity rates and real estate prices.

In the forecast period, major challenges to be faced by the economy will include achieving more sustainable economic growth and further strengthening linkages between growth and equity.  To this end, the country must take into account the segment of the population that could fall back into poverty as a result of economic fluctuations, which would reverse the progress made over the past decade.

Brief Overview of the Cards and Payment Industry in Peru

The government of Peru developed the National Financial Inclusion Strategy (NFIS) in July 2015. It aims to provide access to financial accounts for at least 50% of the adult population by 2018, and 75% of the adult population by 2021. The strategy promotes access to savings, insurance and financing, consumer protection, financial education programs and the use of electronic payment instruments. A rise in bank penetration is expected to drive demand for products such as bank accounts and debit cards.

In line with government's financial inclusion program, the national mobile payments system Modelo Peru launched Bim mobile money, a fully interoperable payments platform, in February 2016. Through this, Modelo Peru aims to provide much of the unbanked population with access to digital financial services. It enables Peruvians with a mobile phone to open a bank account, transfer funds and make utility payments, and can be accessed with any basic mobile phone. Modelo Peru plans to have more than 2 million active Bim mobile money users by 2020. Modelo Peru is formed by the partnership of 40 Peruvian financial institutions, including private-sector and state-owned banks, credit unions, microfinance institutions, non-bank electronic money issuers and telecommunication companies.

In terms of number of cards in circulation, the Peru payment cards market grew during the period 2012-2014 and it is expected to grow further over the forecast period. The increase in Peru’s GDP per capita and population is expected to increase the cards usage and also increase the card spending over the forecast period. 

In Peru, the debit cards dominate the card payments market in terms of number of cards in circulation as well as in terms of number of transactions and value of transactions. The transaction value of credit cards reported at POS terminals was greater than at ATMs. 

Major Players in Peruvian Cards and Payment Industry

Debit cards dominate the Peruvian cards and payment industry in terms of the number of cards in circulation and also in terms of number of transactions. Some of the key players in the debit cards market include Banco de Credito del Peru, BBVA Continental Scotiabank, Midbanco, Banco Financiero and Banco Falabella Peru. Banco de Credito del Peru was the leading bank in terms of the number of debit cards in 2014. Some of the key players in the credit card market of Peru include Banco Falabella Peru, Banco de Credito del Peru, Interbank, BBVA Continental and Scotiabank. In the credit card segment, Banco Falabella Peru was the leading bank in 2014, in terms of number of credit cards in circulation. 

Peru’s Cards and Payments Industry Prospects

The growth of the Peruvian Card and Payments market is expected to continue in future. A large number of factors have contributed to the growth of the Peruvian card payments channel over the review period, both in volume and value. Examples of this include the government’s initiative to provide banking access through the financial inclusion plan, the growing popularity of payment cards, the availability of retail bank agents in every part of the country, and banks’ aggressive promotional strategies. Besides these, increase in disposable income and increasing market for mobile commerce and e-commerce have also contributed significantly to the growth of the Peruvian Cards and Payments Industry.  With high mobile penetration, companies in Peru are increasingly using mobile technology with a focus on financial inclusion. Movistar, a mobile operator in Peru, in collaboration with MasterCard, introduced the country's first electronic mobile money service, Tu Dinero Movil (Your Mobile Money), in January 2015. The service which is now available to Movistar's more than 16 million customers is allowing them to conduct a number of transactions such as money transfers, purchases at MasterCard-affiliated establishments, and paying for mobile recharges. 

Key Topics Covered in the Report

·         Detailed profile of the Peruvian Cards and Payments Industry

·         Competitive dynamics in the Peruvian cards and payments industry

·         Historic and forecast values of Peru’s cards and payments industry

·         Market trends and growth opportunities in the Peruvian cards and payments industry

·         Marketing strategies used for various cards in Peru

·         Regulations governing the Peruvian Cards and Payments Industry

To know more on coverage, click on the link below:

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/cards-payments-industry-peru-emerging-trends/33376-93.html

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Ken Research

Ankur Gupta, Head Marketing & Communications

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Elevating Demand for Hot Tea in Eastern Europe: Ken Research

Ken Research has recently announced its latest publication “Hot Tea Consumption Volume and Growth Forecast to 2021-East Europe”, which aims at providing detailed analysis of hot tea market of East Europe. It provides an overview and thorough vision of the business environment for the Hot Tea market in East Europe. It aims at providing knowledge of market to new players that are considering entering the market. It provides information about market scenario of forecast period by analyzing situation of current period.

Overview of hot tea industry of Eastern Europe
Regions of eastern zone of Europe included in this report includes 18 countries like Belarus, Bosnia, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovak Republic, Slovenia, Turkey, and Ukraine. Though Europe is facing serious economic turbulences due to oil crisis, but eastern European region emerged stronger even in such economic situation with stable economic growth and development.
Tea was introduced in eastern part of Europe by Dutch community which was considered immensely expensive and extravagant at that time. Soon this hot beverage gained popularity in entire Europe and was considered as an indispensable beverage of evening parties and get together. Hot Tea is a ready to drink beverage from infusion of dried tea leaves or herbal and/or fruit ingredients in hot water or from instant, freeze-dried tea in granular or powdered form.  Asian flavors influenced tea tastes of Eastern Europe since large part of import was done through countries like India, China and Sri Lanka. Russian tea chifir and Turkish rize tea became most admired beverages in Eastern Europe.
In last few decades, this craze for tea intensified even more. Turkey became leading consumer of tea in the world. It further became leading producer and exporter of tea. Demand for Turkish tea reached sky high levels. Russia was second largest consumer of tea in Europe. Though pessimism was observed in production sector of tea in Russia but no deterioration of consumption of tea was observed despite of economic instability in Russia. Other regions of east zone of Europe also saw hike in demand for tea.
Key drivers in hot tea market in Eastern Europe
Thus demand for tea is elevating substantially in Eastern Europe. Demand for European varieties like peppermint tea, alpine berry herbal, red raspberry, etc. is not only rising in Europe but also globally. Various factors that led to increase in demand are:

• Tea an integral part of culture of Europe

Ever since tea was introduced in Europe it gained a special importance in Europe’s culture and traditions. It became extremely desirable in gallant tea parties of Europe. People used expensive tea and ingredients as way of boasting about their luxurious lifestyles.

• Health campaigns

Since people are becoming more aware about health benefits of green tea, demand for green tea is rising of only in Eastern Europe but throughout the world. Further, people are raising their consumption of herbal tea, detox tea, decaf tea, slimming tea, etc. which have enormous health benefits.

• Introduction to new variety of exotic flavors

Many tea brands have introduced appealing flavors of tea like Jasmine, vanilla, hazelnut, fruity, saffron, etc. which are new attractions of tea cafes and breweries in Eastern Europe. Further, after globalization people were introduced to new varieties and tastes which soon became popular. Latest fad of European tea industry are Indian masala chai and Chinese bubble tea.
Future of hot tea industry
Substantial optimism is associated with European tea industry which is expected to expand even more in future. Stable consumption of tea is expected in Ukraine and Russia while other nations are witnessing growth in tea consumption and production. Further, demand for Turkish tea is expected to rise even more in future. Aggressive advertisement campaigns, strengthening of economic position and introduction of better channels of sales would boost demand even more in future.
For more coverage click on the link below:
https://www.kenresearch.com/food-beverage-and-tobacco/non-alcoholic-beverages/hot-tea-consumption/32018-11.html
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Ken Research
Ankur Gupta, Head Marketing & Communications
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Hot Tea Consumption Rising in Latin American: Ken Research

Ken Research has recently announced its latest publication on “Hot Tea Consumption Volume and Growth Forecast to 2021-Latin America” which aims at providing in depth analysis of hot tea market of Latin America and it further provides profound understanding of the latest consumer trends and key macroeconomic factors driving demand for Latin American hot tea market. Further, it offers thorough insights of the market including information about leading market players and major influences driving innovation in market. Report also seeks to sketch a detailed view about future of Latin American tea industry by looking into recent market trends.

Overview of hot tea industry of Latin America

Few countries of Latin American economy is facing immense economic adversities while others are becoming economically affluent. Except Brazil and Ukraine other countries of Latin America is facing positive economic growth. Latin American countries covered in the report include Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela.

Hot Tea is a ready to drink beverage from infusion of dried tea leaves or herbal and/or fruit ingredients in hot water or from instant, freeze-dried tea in granular or powdered form. Despite of rising tea culture demand for tea culture is also rising in Latin America. Chile and Bolivia are highest consumer of tea in South America. These are the only two nations that prefer tea over coffee. Further, rising demand is witnessed in nations like Brazil, Bolivia, Chile, etc. Further, Guatemala’s tea plantations are expanding its production in South America which are significantly contributing to world tea exports. Major tea brands like meh tea, brisk tea, the tao of tea, organic Rio, etc. becoming popular not only in Latin America but throughout the world.

Key drivers in hot tea market in Latin America

Demand for tea is rising substantially in Latin America. Demand for major varieties like mate leao, rosamonte, etc is rising globally. Various factors has led to expansion of Latin American tea market:

ü  Popularity of health campaigns

Since health awareness is rising throughout the globe thus demand for many health friendly teas are rising. Significant rise in demand for herbal tea, slimming tea, antioxidant tea, etc. is rising throughout Latin America. 

 Rising demand for Latin American tea globally

Demand for Latin American mate tea is increasing on a massive rate globally. This is leading to expansion in production base and rise in exports of Latin American coffee.

  Demand for exotic flavors and variety

Demand for exotic flavors and new innovative taste of tea are rising. This has surged demand for tea in various parts of Latin America.

Future of hot tea industry

Latin American tea industry is rising significantly with higher demand, production, revenue and exports. Though this industry is facing competition from other hot beverages like coffee, but still tea industry is expected to grow significantly in future. Higher demand is expected from regions like Chile, Bolivia and Brazil. Aggressive marketing campaigns, research and development to introduce new flavors, better channels of distributions, etc. are used for further expansion of market.

For more coverage click on link below:

https://www.kenresearch.com/food-beverage-and-tobacco/non-alcoholic-beverages/hot-tea-consumption/32019-11.html

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China Surpassed US as Largest Ecommerce Retail Market: Ken Research

Ken Research announced its latest publication on, “Retailing in China-Market Summary & Forecasts”, offer insights on the changing trends and key issues within the China’s Retail Market. The publication includes an insightful analysis of changing consumer behavior, changing economic and demographic factors, technology innovations, leading domestic and international players, distribution channels and regulatory framework within which China’s Retail Market operates. The aforementioned analysis has been done for 26 products across 12 products categories in the retail market.
China’s Retail Market is the world’s second largest retail market. In 2013 China overtook the US as the largest e-commerce market in the world and is expected to again overtake the US as the world’s largest overall retail market by 2018 with Chinese spending to be accounting for one-quarter of the global retail market within a decade.
Mapping the China’s Retail Market Landscape












Global recession has slowed down the growth in China’s retail market. However the rapid evolution of China’s economy into a consumption-driven economy still provides for enormous growth opportunities in the retail sector. Increasing population with rising middle class, changing lifestyle, retailers spreading to second and third tier cities, market supporting govt. policies and online shopping takes off are expected to be the key factors boosting demand in the China’s retail market.
Despite the sluggish economic situation, the retail sector is expected to register a significant growth over the next five years to 2020. Various retail market products are expected to show increased sales, however at a decreasing rate.A strong affinity towards brands and increasing fashion consciousness will result in more spending on clothing and footwear. The food & grocery segment will continue to be dominated by local players and is forecast to grow at a CAGR of 11.17%, to reach an estimated value of CNY25, 982 billion in 2020. Online platform including e-commerce and m-commerce will be a key channel for retailing over the next five years.China continues to be the second the largest Duty Free market in 2020.

China is already the world’s largest e-commerce market. However, year-on-year growth in online sales in China slowed in 2013, but was still estimated at 42%. It is expected that Chinese e-commerce sales will reach US$650 billion by 2020, on account of increased mobile sales and increased internet penetration.
Key Macroeconomic Trends Driving Growth in China’s Retail Market
The growth of China’s retail market, though at a slower rate, has been possible on account of consistently improving macroeconomic conditions of China, which has led to increased demand for retail market products in one way or another. Consequently, the growth of the retail market in term of volume has shown positive but declining growth rates and is expected to continue with the same trend over the next five years.

China Economic Snapshot	2011	2012	2013	2014	2015
Population (million)	1347	1354	1361	1368	1375
GDP per capita (USD)	5575	6260	7037	7569	7808
GDP (USD bn)	7511	8476	9576	10,352	10,736
Economic Growth (GDP, annual variation in %)	9.5	7.8	7.7	7.3	6.9
Unemployment Rate	4.1	4.1	4.1	4.1	4.1
Consumption (annual variation in %)	11.0	9.1	7.3	7.8	-
Retail Sales (annual variation in %)	17.1	14.3	13.1	12.0	10.7
Inflation (PPI, annual variation in %)	6.0	-1.7	-1.9	-1.9	-5.2
No. of households earning over US$50,000 (in 000’s)	1,951	2,764	3,655	4,694	6,047

Table 2:UAE Economic Snapshot (Source: Focus-Economics. Com)
Some macroeconomic factors driving growth in China’s Retail Market include:

• Increasing population with rising middle class has increased household consumption.
• Economic growth with increasing GDP per capita has brought prosperity and a change in lifestyle of consumers.
• Consistent unemployment rates implies that every year the labor force entering that labor market is employed, hence increase in consumer base for retail market.
• of Households earning over US$ 50,000 has been increasing consistently over the years, which is driving the market for luxury items.

To know more on coverage, click on the link below:
https://www.kenresearch.com/consumer-products-and-retail/wholesale-and-retail/retailing/29891-95.html
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Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204