E-commerce of Baby Products in Brazil

The segment of baby products is one of the fastest growing and most innovative in online commerce in Brazil. In this article we will outline the characteristics of e-commerce baby products in Brazil.

Baby Products E-commerce Niche in Brazil

Some of the statistics regarding the overall market for baby products in Brazil serve as indicators to the notable potential of this segment. It is estimated that three million children are born in Brazil every year, and that the revenue for the baby products sector has almost doubled in the last five years. Statistics from Brazil’s Alana Institute indicate that the annual revenue is currently set at BRL 13 billion, and that 15% of all revenue of the clothing market in the country is related to baby products.

Due to these fruitful conditions, online stores of various types and sizes have attempted in the last few years to tap into the consumer base for baby products in Brazil. Out of the country’s major e-commerce segments, the one of baby products can be considered a relatively recent development, as most of the main retailers like Baby.com.br have only been established in the last few years compared to online stores of other sectors that accumulate close to a decade of operations.

A great part of their success, aside from the numerous investments from foreign funds that foresaw the potential of this market segment, can be related to changes in some aspects of the Brazilian population. For example, it has become increasingly common for women to plan their pregnancies and have children at an older age. Data from IBGE, the Brazilian Institute of Geography and Statistics, indicates that from 2000 to 2014 the rate of births for mothers aged 30 to 35 increased from 15% to 20%. Incidentally, this is one of the age groups that is most interested in finding the most convenient channels for making purchases, such as online retailers. Reports from market analyst E-bit show that during the first semester of 2015 consumers aged between 25 to 34 were responsible for 22% of all orders from e-commerce websites in Brazil.

What Brazilian online stores of baby products explore, aside from the commonly purchased clothing and hygiene items related to the first years of infancy, are the many paths to provide a better shopping experience to parents, such as allowing for the subscription of certain product categories. For this particular consumer audience, such strategies can be considered a decisive factor for generating recurring revenue, and have contributed to turning some specialised online shops in this segment into a phenomenon of the Brazilian e-commerce landscape.

Product Subscriptions

One of the most recent innovations in this segment in Brazil was the launch of subscriptions for items such as diapers and hygiene products. Although this sales model remains limited to a small number of stores it was able to grab the attention of certain markets such as larger Brazilian cities, which are the regions where it is common for parents to have a limited amount of time to make regular purchases of products for their children.

The initiatives to allow for product subscriptions not only generate high engagement to consumers but can also serve as a way to strengthen the store brand and generate more conversions. E-commerce Bebê Store, for example, sets prices for monthly bundles at competitive levels, while presenting subscribers with free gifts with each delivery and also granting discounts to other product categories at the moment of subscription. Over the last few years, they have also launched various types of monthly subscription services designed for gestating and new mothers, which in some cases offer a surprise list of products chosen specifically for each period of the mother’s lives.

Product Diversification

Some of the leading players in the segment have also broadened their product catalogue in an effort to retain consumers for a prolonged period. These initiatives can be related to the characteristic of this market niche of being limited to a specific lifetime period, which spans only a few years.

Aside from offering products designed for the period of early childhood, some of the major baby products e-commerces have either launched or affiliated themselves with online retailers focused on other age segments, such as those for pregnant women and children. E-commerce Tricae, for example, has diversified their product lineup in recent years and currently offers products for pregnant women, newborn babies and children up to 11 years old.

Focus on Convenience

It is a common trend for e-commerces of baby products in Brazil to offer same day or express delivery, in order to provide an option of increased convenience to consumers. This type of delivery is often related to some types of items that might require immediate use, such as hygiene products, which without rapid delivery would be hardly competitive with purchases at physical stores.

Mobile platforms have become a major focus point over the last years, as mobile devices present another helpful and convenient option for young parents. According to reports by market analyst E-bit from 2015, the category of baby products is ranked 3rd in the list of e-commerces that had the highest volume of sales originated from mobile devices, while the segment of women aged 35 to 49 years is currently the most representative for consumers in m-commerce in Brazil.

Currently all major e-commerces of baby products have implemented websites with responsive designs for multiple screen sizes, and have also launched mobile apps to facilitate access to purchases. Considering smartphones and tablets are becoming the main platform for young and adult Brazilians to access the internet, it is expected that this trend will be maintained for the sector of baby products in the near future.