what do you need to know before starting your b2c in latin america

WHAT DO YOU NEED TO KNOW

BEFORE STARTING YOUR B2C IN

LATIN AMERICA

Alex Soncini» Computer Engineer and Master in Project Mgmt;

» Has been working in the e-commerce industry since 1999;

» International speaker and e-commerce teacher;

» VTEX co-founder and current North America GM, based

in Miami, FL;

VTEX» Digital commerce platform that helps brands and

retailers to expand globally;

» Offices in 9 countries with +180 employees;

» +1,600 online stores in 16 countries;

What do you really need to know about Latin America.

LATINAMERICA

IS NOTEUROPE

MAIN DIFFERENCES

EU HAS DEVELOPPED AN INTERNAL SINGLE MARKET ENSURING

FREE MOVEMENT OF PEOPLE, GOODS SERVICES AND

CAPITAL.

MONETARY UNION (19 MEMBERS).

CROSS-BORDER DELIVERY SERVICES

THAT WORKS.

For Latin America, the only option is by developing a

localized approach in each relevant region.

Argentina and Mexico are predicted to overtake Brazil in B2C e-commerce sales growth.

In 2015, Argentina was the strongest performer in terms of growth rate.

Mexico is ahead in the adoption of m-commerce and cross-border online shopping.

Chile had the highest internet and online shopping penetration in 2015.

Colombia is growing in the single-digitrate.

In Peru, the online market is less than 1% of the total retail sales. However, it is likely to be spurred by the rising of internet penetration.

Who is the LATAM online consumer?

◦64% are between 15 and 34 years old◦97% use social media◦ Spent 10.5 hours per month on social media◦179 million of Facebook users

In Brazil, almost half of respondents to the AT Kearney analysis are on their devices all day long. This is almost twice the rate of the US (and of the global average).

Brazil is already the 10th digital commerce market in the world.

Main Challenges◦ Political and economical roller coaster (currently is worse in Brazil, getting

better in Argentina, …).◦ Installments payment is cultural (in Brazil we can have credit card annual

interests rate up to 500%).◦ Totally different scenarios of customs and taxes.◦ The online payment industry is different in each country.◦ High online payment fraud rates.◦ In Brazil, the lack of department stores open new sales channels opportunities.◦ In Chile, Falabella, Ripley and Cencosud have 89% of the online sales market

share.◦ In Mexico, less than 20% of people have a credit card.

QUESTIONS?Alex Soncini – alex@vtex.com - http://en.vtex.com