Our research indicates that e-commerce will propel Chinese consumers to purchase different kinds of products—and in greater variety. Currently, there are only five categories in which at least 40% of e-commerce shoppers make purchases: casual wear, casual shoes, handbags, snacks, and smartphones. By 2020, we project, there will be 15 such categories, including small home appliances, financial services, cosmetics, and formal shoes.Another reason bullishness is that average consumers are spending more, and
In 2015, the Brazilian beauty industry exported products to 134 countries. Argentina is Brazil’s main trading partner, followed by the US and France.Euromonitor forecasts that the Brazilian premium beauty and personal care market will grow by 6.1% in 2016, while mass-market product sales decline by 0.2%.The total beauty and personal care market in Brazil is expected to increase by 0.2%.
Avon is currently implementing aggressive improvements in its e-commerce platform. In Brazil, Avon offers free shipping on orders over R$99 (US$30). On orders over R$60 (US$20), the company allows customers to pay in up to six monthly installments, interest-free, which is customary in Brazil.
The preferences of Chinese consumers are changing as the country&aposs middle class grows. A generation ago, most Chinese consumers bought almost everything at local state-owned stores, where both selection and supply were limited. Today, they not only have access to a wider selection of local retailers selling product from around the world, but also online retailers available at the touch of their smartphones. With rising incomes, Chinese tour groups are now ubiquitous in the shopping meccas of the world, from
In addition to offering better prices and wider selections, e-commerce actually stimulates new demand in China by filling many needs that aren’t being met at brick-and-mortar stores. For example, according to Taobao, spending by the average e-shopper on organic and imported food and beverages has expanded eightfold over the past three years. Many popular online offerings, such as organic baby foods, rice, and tea, aren’t carried in local stores.Another reason for bullishness is that average consumers ar