2020
0
Online vs Offline Shopping: Incl Impact of COVID-19 – Brazil – September 2020
2021-02-17T03:00:56+00:00
OX990816
3265
134455
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Report
en_GB
“Except for essential stores, such as supermarkets and pharmacies, the impact of COVID-19 on online and offline shopping was almost opposite. While offline shopping has been severely impacted, forcing many…

Online vs Offline Shopping: Incl Impact of COVID-19 – Brazil – September 2020

£ 3,265 (Excl.Tax)

Report Summary

“Except for essential stores, such as supermarkets and pharmacies, the impact of COVID-19 on online and offline shopping was almost opposite. While offline shopping has been severely impacted, forcing many businesses to close their doors permanently, online sales have grown like never before in the country. To sustain this surge, however, online platforms still need to invest in cheaper and more efficient delivery solutions and more personalized shopping options. Meanwhile, physical stores need to invest in a high standard of hygiene, in a better and more authentic shopping experience and in a more personal service to attract consumers back.”
– Ana Paula Gilsogamo, Senior Research Analyst

This report examines the following areas:

  • How the COVID-19 pandemic is affecting Brazilian consumers’ behavior toward online and offline shopping
  • Which categories stand out in the migration from offline to online shopping during the pandemic
  • Which barriers still limit the online shopping growth in Brazil
  • What physical retail can offer to draw customers back into stores
  • Launches and consumers’ interest in innovation in online and offline shopping

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • COVID-19: market context
          • Executive Summary

              • Market overview
                • The impact of COVID-19 on online and offline shopping
                  • Figure 1: Predicted impact of COVID-19 in short, medium and long term on online and offline shopping, September 2020
                • The impact so far
                  • Short and medium term (September 2020-December 2021)
                    • Long term (2022-25)
                      • Mintel Trend Drivers
                        • Figure 2: Mintel Trend Drivers
                      • Challenges
                        • Coronavirus exposure remains a challenge, especially for physical stores
                          • In addition to cost, delivery delays are a major barrier to online shopping during the pandemic
                            • Online shopping has the challenge of increasing sales of groceries and cleaning products
                              • Figure 3: COVID-19 impact on in-store/in-person only shopping by category, Brazil, May 2020
                            • Additional services and specialists can attract consumers back to physical stores for leisure and sports equipment
                              • Opportunities
                                • Social commerce, especially via WhatsApp, shows potential among small and local businesses
                                  • Partnerships between brands and delivery apps can facilitate and streamline delivery
                                    • Personalized experience in specialized retailers can maintain consumer loyalty online
                                      • Online solutions that help consumers perform activities at home will continue to be relevant after the pandemic
                                      • Market Drivers

                                        • Brazil to face its worst economic recession
                                          • Figure 4: Quarterly rate – GDP change in volume compared to the same quarter of the previous year, Brazil, 2017-20
                                          • Figure 5: Quarterly rate – Household consumption change in volume compared to the same quarter of the previous year, Brazil, 2017-20
                                        • High unemployment rate and lower wages impact household income
                                          • Figure 6: Unemployment rate among the population able to work, Brazil, May 10-August 29, 2020
                                        • Despite the expansion of internet access, there are still discrepancies between regions and social classes
                                          • Figure 7: Percentage of households with internet access, by area, region and social class, Brazil, 2019
                                        • Initially banned, payment via WhatsApp should be approved in Brazil
                                          • Social isolation gives a boost to digital platforms, services and technologies
                                            • Figure 8: Percentage of people by level of education who are working remotely – Brazil, July 2020
                                            • Figure 9: Online activities, Brazil, March 2019-June 2020
                                        • Key Players – What You Need to Know

                                          • Companies and brands invest in online channels and innovative formats
                                            • With online solutions, Loft and Magazine Luiza stand out in 2020
                                            • Marketing Campaigns

                                              • Stores and brands invest in live shop
                                                • Figure 10: Renner live shop
                                                • Figure 11: Hering Father’s Day live shop
                                              • Google launches new feature for delivery
                                                • Figure 12: Google delivery function
                                              • Brands adopt vending machines during the pandemic
                                                • Figure 13: Casa Group vending machine
                                              • Shopping mall chains invest in digital solutions and drive-through options
                                                • Petlove invests in integration with local pet shops
                                                • Case Studies

                                                  • With a variety of online channels, including a marketplace, Magazine Luiza registered 50% growth even before the pandemic
                                                      • Figure 14: Magazine Luiza cashback and club features
                                                    • Loft is the startup that most quickly became a unicorn in Brazil, and already aims at international expansion
                                                      • Figure 15: How Loft works
                                                  • The Consumer – What You Need to Know

                                                    • Online sales of cleaning products could focus on fragrance recommendation and savings guarantee
                                                      • Social commerce, especially via WhatsApp, is essential for small and local stores and producers
                                                        • Brazilians aged 55+ are more likely to visit physical stores to reduce social isolation
                                                          • Partnerships between brands and delivery apps can streamline service
                                                            • High levels of hygiene and contactless payment can attract consumers back to physical stores
                                                              • Online solutions that help consumers perform specialized services at home will continue to appeal even after the pandemic
                                                              • COVID-19 Impact on Shopping by Category

                                                                • Online sales of cleaning products could focus on fragrance recommendation and savings guarantee
                                                                  • Figure 16: COVID-19 impact on shopping by category, household cleaning products, Brazil, May 2020
                                                                  • Figure 17: Ambev “Sempre em Casa” online channel
                                                                • Additional services and specialists can attract consumers back to physical stores for leisure and sports equipment
                                                                  • Figure 18: COVID-19 impact on shopping by category, sports/leisure equipment, Brazil, May 2020
                                                                  • Figure 19: Durasport climbing wall
                                                                • Pharmacies can invest in shopping apps to expand online sales among consumers aged 55+
                                                                  • Figure 20: COVID-19 impact on shopping by category, health products, by age group, Brazil, May 2020
                                                                  • Figure 21: Drogasil app
                                                              • Channels Used for Online Shopping during COVID-19

                                                                • Marketplace stands out as the main shopping channel during the pandemic
                                                                  • Figure 22: Channels used for online shopping during COVID-19, Brazil, May 2020
                                                                • Social commerce, especially via WhatsApp, is essential for small and local stores and producers
                                                                  • Figure 23: Channels used for online shopping during COVID-19, social media channels, Brazil, May 2020
                                                                  • Figure 24: Bao Hut using Goomer Go
                                                                • Brands’ own online channels can use WhatsApp to attract women
                                                                  • Figure 25: Channels used for online shopping during COVID-19, by gender, Brazil, May 2020
                                                                  • Figure 26: Boticário step by step for shopping via WhatsApp
                                                              • Barriers for Buying Online during COVID-19

                                                                • AB consumers are more likely to be concerned with hygiene/safety issues and damage during transportation
                                                                  • Figure 27: Barriers for buying online during COVID-19, by socioeconomic group, Brazil, May 2020
                                                                • Parents living with children under 18 try to avoid close contact with couriers
                                                                  • Figure 28: Barriers for buying online during COVID-19, by presence of children in the household, Brazil, May 2020
                                                                  • Figure 29: Rappi and Kiwibot delivery robot
                                                                • Brazilians aged 55+ are more likely to visit physical stores to reduce social isolation
                                                                  • Figure 30: Barriers for buying online during COVID-19, by age group, Brazil, May 2020
                                                                  • Figure 31: Football Museum campaign
                                                              • Motivations to Buy Online

                                                                • Partnerships between brands and delivery apps can streamline service
                                                                  • Figure 32: Motivations to buy online, Brazil, May 2020
                                                                  • Figure 33: Amaro Collective
                                                                • Customized options can motivate AB consumers to buy more online directly from brands
                                                                  • Figure 34: Motivations to buy online, by socioeconomic group, Brazil, May 2020
                                                                  • Figure 35: Indications on how to use MattressFit
                                                              • Motivations to Buy In-store

                                                                • High levels of hygiene and contactless payment can attract consumers back to physical stores
                                                                  • Figure 36: Motivations to buy in-store, Brazil, May 2020
                                                                  • Figure 37: Shiseido store in Tokyo
                                                                  • Figure 38: Air Touch Panel
                                                                • Men show greater interest in physical stores with interactive features
                                                                  • Figure 39: Motivations to buy in-store, by gender, Brazil, May 2020
                                                              • Online vs Offline Purchase Attitudes and Habits

                                                                • Online solutions that help consumers perform specialized services at home will continue to appeal even after the pandemic
                                                                  • Figure 40: Online vs offline purchase attitudes and habits, Brazil, May 2020
                                                                  • Figure 41: Buddha Spa’s Home range
                                                                  • Figure 42: Beauty Mix’s robot for preparing beauty and cleaning products
                                                                  • Figure 43: Big Mac Special Sauce
                                                                • Personalized experience in specialized retailers can maintain consumer loyalty online
                                                                  • Figure 44: Online vs offline purchase attitudes and habits, Brazil, May 2020
                                                                  • Figure 45: The Yes
                                                                • Personalized lifestyle-based recommendations can help AB consumers adapt their home to a new routine
                                                                  • Figure 46: Online vs offline purchase attitudes and habits, by socioeconomic group, Brazil, May 2020
                                                              • Appendix – Abbreviations

                                                                • Abbreviations

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