By following trends in social media, it’s easy to see why Brazil is currently the hottest market for foreign start-up technology and e-commerce companies. They see the vast potential for increasing their customer base and revenue by connecting with Brazil’s growing technology-hungry population.
E-Commerce and Brazil’s Social Media Explosion
While China is the world’s biggest emerging market for social media and technology companies, the government blocks public access to social media sites such as YouTube, Facebook, and Twitter. That’s why these companies are focused so intensely on Brazil.
According to the social analytics company Socialbakers, Brazil currently has more than 65 million users in Brazil. That makes Brazil the company’s second largest market after the United States. Amazingly, while the average time users spent on Facebook dropped 2% in late 2012, the average time users in Brazil spent on Facebook grew 208%, according to the research company comScore.
Similarly, Twitter reports that Brazil is one of the company’s top-five active user groups. Google is experiencing dramatic growth as well. Brazil is now one of the top-five markets for Google’s YouTube by revenue. Partly due to the success of other social media companies, Twitter is ramping up its presence in Brazil.
Brazil’s Culture Is an E-Commerce Gold Mine
The Brazilian culture is hardwired for online and social interaction. Brazilians enjoy chatting and sharing information with friends and strangers both offline and online. They also spend time online while watching TV programs such as soap operas and soccer matches.
So what does Brazil’s passion for social media mean for companies interested in selling their products online to Brazilians? It means that the market in Brazil is ripe for the expansion of e-commerce companies.
The research firm eMarketer reports that spending on online ads in Brazil is expected to double to $4 billion over the next four years. The fuel for such dramatic growth in ad spending is the fact that Brazilian consumers have demonstrated that they have an “unusual” willingness to make purchases online using credit cards. According to Alexandre Hohagen, vice president of Facebook’s Latin America division, Brazilians are buying everything from books to cars online.
The Sky Is the Limit for E-Commerce in Brazil
Thanks to United States-based telecom network developer Seaborn Networks and France-based global communications company Alcatel-Lucent, Brazilians will soon have improved access to the Internet. Together, the companies are planning a US$400 million project to build the first submarine cable between São Paulo and New York by 2015. This will give Brazilians a 100-gigabyte-per-second connection to the world.
Get in on Brazil’s E-Commerce Ground Floor
As you consider expanding your e-commerce company into Brazil, it’s important for you to get the best business and legal counsel available. Companies operating in Brazil face unique legal and cultural challenges. Still, there is a huge upside to tapping into Brazil’s online market. With Brazilians’ eagerness to spend both time and money online, now is the time to claim your share.