If you thought things are looking good when it comes to online shopping, think again. Because it’s about to get better.
Things have certainly changed quite a bit when the online stores opened in Brazil in the late 90s. Store like MercadoLibre have crossed the borders, literally, to serve in various Latin American countries. They have proved to be very popular as well. Men and women, alike, are friendlier towards the online world and take help from it for their day to day activities. Hence, more stores have mushroomed to cash in the trend, and sites have enabled to read their online habits, creating a different market for these online stores and brands.
So what’s the twist that we talk of?
Remember how popular culture portrays women as the one having shopping frenzy, dragging her partner around the stores? Well, it might still continue to be the case.
But men in Latin America will indulge in online shopping more than women in the coming decade. Of course their counterparts in US are already shopping more. Especially since the popularity of phones and tablets have been on the rise. Because 20.4 percent of men shop on a tablet compared to 16.9 percent of women. 22.2 percent of men shop on a phone in stark contrast to 18.2 percent of women.
So Latin American men will finally catch up in probably the late ‘10s or early ‘20s to give women a run for their money, literally.
But this isn’t really a surprise.
Latin American economy has been on a roll and the growth means more good news for the businesses that work through the World Wide Web. So here’s a piece of advice – feature youth-friendly products, because you can bet that 65 percent of the online users will be as young as 45 and younger. That’s a huge number of tech-savvy people to please.
So if you thought that the children of now will be the hopes of tomorrow (if you’re thinking of cashing in the online business), then you’re right. By the mid ‘20s, these children and teenagers will work, earn, and be their own bosses. We’ll also mention that this increase in addition to the means overall growth in GDP will result in higher discretionary spending. Doing the math is so much better now.
Of course, online shopping will amount to only 3.9 percent of the total purchases in the coming years. But that is almost double of what it is now (2.2 percent).
Especially for a country like Brazil, this news means billions of dollars’ worth of business. Online market is just a small part of it. After all, consumer electronics, sports equipment, and games will be at the top of the list of most bought goods online.
Technological progress assorted with the economic boom means people will be able to spend not only on materials, but spend through technology as well. This is where the online banking and commerce can prosper from. As micro-financing is already growing at a satisfactory speed, coupled with the aforementioned progress, it will mean the best of news for the companies involved in this sector and those who can benefit from it.
Online service is time-saving, efficient, and cost-effective. This is time-tested and the consumers are well aware of it. The more time they spend online, the better idea they give the retailers about the kind of services that would sell like hot cakes.
And for men and women who have their pockets bulging with new income, it won’t matter who spends more as long as they spend. Because that’s one more item in the wish list and off the counter.
Sachi Mulmi is a researcher with Frost & Sullivan. She can be reached at firstname.lastname@example.org
Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at email@example.com | +603 6204 5830