Emerging markets tend to be dynamic and subject to constant change. Consequently, these economies present unique challenges alongside significant growth opportunities for global retailers.
The first step to entering markets like Brazil is to understand and adapt to the characteristics of its consumers.
According to a study by the Brazilian Association of Electronic Commerce (ABComm), Brazilians spent R$185.7 billion on online purchases in 2023 alone. This represents a 10% increase from the previous year and is forecast to continue growing, potentially exceeding R$ 277 billion by 2028.
Brazilians are increasingly embracing online shopping, following a trend seen in other developing countries.
According to PwC, 85% of the world's population lives in emerging markets.
In addition, nearly 90% of people under the age of 30 live in these countries. The inclusion of easier payment methods and the adoption of new technologies are therefore essential, and Brazil is a prime example of this reality. With its Brazilian roots and extensive knowledge of the market, Bazk understands the preferences of this type of consumer and provides global merchants with multiple payment methods for their sales websites.
With this in mind, it's worth highlighting some of the major considerations specific to Brazil. Check them out:
The first step for global merchants looking to succeed in emerging markets is to understand local payment habits. In Brazil, there are two clear preferences: credit cards and Pix. The latter is an instant payment system created by the Brazilian Central Bank that has grown exponentially.
Understand the specificities of each:
- Credit card: Although still one of the most popular payment methods in Brazil, credit cards are not always the best alternative. For example, in 2024, the Brazilian government decreed that betting websites will no longer be able to offer credit cards as a payment method.
- Pix: Since it was launched, Pix has become extremely popular because it's convenient, secure and fast. Its democratic nature even includes those without credit cards. With Pix, instant transfers and payments can be made directly from a smartphone at any time. Furthermore, when consumers find this option on international websites, they can avoid the fees associated with other payment methods.
Read also: How to choose a payment gateway for your business.
When it comes to online shopping, digital security is crucial. This is a major concern for Brazilians when making internet transactions. Therefore, merchants must invest in robust security systems to gain consumer trust.
- SSL certificates: It is essential that the platform has a digital certificate such as SSL, which authenticates the identity of the site and encrypts user data.
- Two-factor authentication: Implementing two-factor authentication can significantly increase transaction security.
- Fraud monitoring: Choose fraud monitoring systems to detect and prevent suspicious activity in real time.
In addition to security, scalability is crucial for effective online transactions. Operations must be capable of handling high demand without interruptions to ensure a seamless user experience.
A scalable payment infrastructure ensures that a site can process large volumes of transactions quickly. This capability prevents system overloads, which can lead to lost sales and customer frustration. With a robust payment solution in place, businesses can handle peak traffic and high demand seamlessly, maintaining a smooth and reliable shopping experience for customers. Which is exactly what Bazk offers to global merchants.
Read also: Compliance in Cross-Border Payments in Brazil.
Finally, merchants need to plan carefully before entering emerging markets. In addition, a thorough understanding of the local market will provide valuable insights.
Understanding the preferences of the target audience and the current regulations for operating in the country can be the difference between success and failure.
- Consumer profile mapping: Try to identify who your actual audience is. In Brazil, for example, the country's diverse culture means that it has a variety of customer/user profiles. Having a good understanding of potential consumers' preferences and buying behaviors will make it easier for you to develop effective marketing strategies.
- Standards and Regulations: Take the time to study the local regulations that may affect your business. Make sure you are familiar with the laws, tax regulations, and consumer protection standards in your area.
Entering a new market like Brazil, you need to have a thorough understanding of consumer behavior and the regulations that govern your operations in the country. There is more to this than simply introducing a product or service to a country; the knowledge of the local market will truly make the difference between your brand and the competition by helping it stand out.
Entering emerging markets such as Brazil can be challenging, but with the right strategies it is possible to unlock significant growth potential. By following the tips above, your company is likely to find it easier to conquer the Brazilian market and establish a strong and lasting presence.
Access this exclusive Bazk e-book for more information on how to start your successful journey in the Brazilian market.
