Brazilian E-commerce

Jan-2011

Thomas Teichmann

Brazil

World’s 5th most populous nation (200M population)

World’s 8th largest economy

GDP 1.8 Trillion US$

GDP per head – $8,201

Key economic sectors: Mining, manufacturing, agribusiness and financial services

Commodities: Iron ore, manganese, bauxite, nickel, uranium, oil, wood, gold and

gems stones

Tupi and Carioca oil fields discovered in 2008 ranked in the world’s top 10

World’s 2nd largest Ethanol producer – fuels more than 50% of the country's

automotive consumption

The timing opportunity 40M new consumers entering class B and C over the last decade

45M new internet users from these classes in the last 3 years

Hosting the 2014 FIFA world-cup and the 2016 Olympic games will create 3M

new jobs

The creation of a viable consumer credit market since inflation was brought

down in the mid 90s

The unemployment rate has reached its lowest point since it began to be

measured

5.7%

0%2%4%6%8%

10%12%14%

Unemployment Rate, Brazil

240MUSA

The Internet Population

Brazil On-line

Brazil outpaces the global average and any other country in Latin-America on

time spent online per visitor

Brazil is increasing its number of internet users by 19% YOY, comparing to a 10%

growth worldwide (and 17% in LatAm)

Country Use of desktop Internet

GDP per head(US$ at PPP)

India 7% 3,481China 20% 8,408Brazil 38% 11,888USA 75% 48,387

E-commerce E-commerce has changed the major economies in the world and has made it

easier for people to conduct business. The general consensus is that this new way

to shop will continue to grow above 10% p.a. globally, replacing the brick and

mortar old way of shopping.

E-commerce Sales in 2010 as part of total retail sales:

6.56.5%%

1.91.9%%

0.50.5%%

88%%

3535%%

3030%%

Brazilian e-commerce 23M buyers in 2010 (representing 32% growth comparing to 2009)

R$14.3B (=US$8.4B) on web purchase in 2010. Up from R$10.6B in 2009 (35%

growth)

The Brazilian e-consumer is increasingly confident and secure in making his

purchases via the web. The satisfaction rate for the Brazilian consumer on their

web purchases was 86% on the first half of 2010

Brazilians prefer to buy in Brazilian sites,

as shown in this chart:

LoLocal web-sites Foreign web-sites