Online Private Club Privalia Betting Its Model Will Bloom in Brazil

Privalia With almost 193 million inhabitants and a prospective growth rate of 6% for 2010, Brazil would appear to be one of the most attractive countries in terms of investment of foreign capital.

The consolidation of the middle class as the majority group has strengthened the e-commerce sector and at present 17.6 million people are known to purchase a wide range of items over the Internet.

The use of the Internet has risen rapidly in Brazil, and currently, with around 68 million users, it has shot ahead of the UK and Spain, with 51 million and 29 million Internet users, respectively.

According to Forrester Research, on-line fashion sales in Western Europe are expected to grow 10% between 2008 and 2012 and 4% in the United States, the leader in world e-commerce development.

However, whilst the e-commerce growth curve is beginning to consolidate and stabilize, the private sales Club sector has registered strong growth and shown a great capacity for development.

Brazil as a Hot Spot

The strongest sector in this country is undoubtedly that of electronic commerce. According to e-Bit consultants, Internet purchases for the year 2009 increased by 30% versus the previous year, with transactions surpassing US$ 6 billion  (10.6 billion Brazilian reais).

Around 17.6 million people stated they had made Internet purchases, which represents 26% of all Internet users in Brazil.

Forrester Research currently estimates the size of the on-line clothing sales market in Brazil at 325 million euros, and it expects it to reach US$ 650 million in 2012.

In percentage terms, this translates into an annual growth of 32.5% from 2008 to 2012, surpassing South European markets such as Spain with an expected 24% growth for the same period.

In 2009 Privalia, run by the company’s co-founders Lucas Carne and Jose Manuel Villanueva, expanded its business to Latin America, starting with Brazil.

Carne explains: “The Latin American market, with Brazil as a starting point, is the most attractive for investors, due to its very large population, the progressive increase of its middle class and the high growth rate of Internet sales and e-commerce market. This, together with different economic cycles vs. Europe, has enabled the company to diversify and to be less exposed to the current economic European situation. At Privalia, we foresaw this opportunity and were proven right”

Furthermore, subjective factors such as leanings towards brand names and a passion of fashion also contributed towards Privalia  successfully recognizing Brazil as one of the growth engines, expected to generate the largest income in 2013.

Brazil multiplied its invoicing fourfold during the first 12 months, as compared to invoicing in Spain and Italy for the same period – Privalia Brazil multiplied its income by twelve in the first six months of 2010 compared to the results for the first six months of 2009.

At present it has over 1.5 million members. Its distribution center has increased fivefold in just two years in order to cope with the mentioned expansion. At present there are over 140 “privalios” working for the company, when just 18 months ago there were only 5.

During the first campaign for recruitment of members in Brazil, the company registered more than 270,000 members even before sales began, thanks to a strong on-line marketing strategy which reflected the viral nature of the market and the potential of the region

Privalia is a private club which organizes periodical on-line sales of leading name products over the Internet, at discounted prices exclusively for members.

It was created in 2006 in Barcelona and at present has more than 4 million members worldwide, converting it in leader of operations and a reference point for this sector.

Privalia has tripled its invoicing in 2009 and operates in Spain, Italy, Brazil and Mexico under a multi-regional company regime.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil Gets World’s Only International Poverty Center

Brazil is the site of the world’s only International Poverty Center. The idea is ...

Snow in Brazil for Talks on Stimulating Brazil-US Growth

The 4th Meeting of the Brazil-United States Growth Group will take place today in ...

70,000 Brazilians Are Prostitutes Overseas. Police Busts a Little Gang in Spain

There are 70,000 Brazilian women working as prostitutes in Japan, Europe and South America. ...

Why Is Brazil Press So Infatuated with Marina Silva’s Candidacy?

Brazilian senator Marina Silva, from Acre state’s Workers Party (PT) was featured on major ...

Gathered in Brazil World’s Small Coffee Farmers Say They Want to Be Heard

A delegation of almost 200 small scale family coffee farmers gathered in Salvador, in ...

Feijoada with Soy Sauce

Koreans and Chinese seem to be the only people interested in emigrating to Brazil ...

Mexico’s Fox Vows Enduring Love and Proposes Brazil, Mercosur and the FTAA

Mexico will begin the Mercosur incorporation process during the first half of 2006 announced ...

Brazil’s Embraer Invites Americans to Pilot Its US$ 3 Million Phenom 100 Jet

Brazilian jet maker Embraer is showing off a full-scale interior mock-up display of its ...

Manifesto Urges Brazil to Promptly Cut “Absurd” Interest Rates

At yesterday’s, December 1st, meeting of Brazil’s Economic and Social Development Council, the president ...

Brazil Praises Chile for Opposing Iraq War

During a speech, in Santiago, President Luiz Inácio Lula da Silva showered effusive praise ...