Market Trends of South America E-Commerce Apparel Industry
Increased Influence of Social Media and Aggressive Marketing
- The apparel business across South America has been one of the most positively impacted businesses due to social media. It provides marketers with a wide range of tools to establish a personalized, interactive connection with target customers. The apparel brands that have a presence on social media platforms also provide online users with their digital catalogs and launch various campaigns, which help the clothing brands to improve their brand recognition and e-commerce sales across the region.
- For example, in February 2023, the "Welcome to the Third Academy" or "Bem-vindos à Terceira Academia" marketing campaign was launched by PUMA Brazil and Palmeiras to introduce the new HOME and AWAY shirts for the 2023 season. The campaign was also launched on Instagram, which is a popular social media platform being used across the region. Hence, various brands have been entering the social media space to attract the attention of various customers. For instance, Hypebeast, a media and lifestyle brand, launched its Brazilian social media channel- Hypebeast Brasil, in February 2022. The company offers a wide range of apparel collections in its fashion segment.
- Different cutting-edge techniques for large players' social media presence are made possible by various social media platforms. In this context, Instagram has flourished as a leading social media channel for apparel companies. As per World Bank data, the percentage of the population using the internet across Argentina rose to 87% in 2021. Increased internet usage has led to the exposure of customers across the region to various social media platforms and ad campaigns, and it has also led to access to different e-commerce websites. Hence, the increased internet usage and social media influence are expected to drive the market shortly.
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Brazil Dominates the Market Across the Region
- Brazil has been the dominant country in the South American e-commerce apparel market. With factors such as growing job creation, increased disposable income, and evolving fashion trends, the market for e-commerce apparel has been growing in Brazil over the review period. A recent trend seen in Brazil was a boom in athleisure as consumers swapped business casual and professional apparel for yoga pants and t-shirts. Brands such as Lululemon, Athleta, Calvin Klein, Tommy Hilfiger, and Dick's Sporting Goods reported strong sales for athleisure attire over the past few years.
- Hence, the players offering sportswear have been expanding their omnichannel distribution across the region. For example, in February 2020, Nike Inc. in Brazil, Argentina, Chile, and Uruguay announced their plans to strategic distributor agreements, enabling a more lucrative, capital-efficient, and value-adding business model, according to NIKE, Inc. The partnership plans also included collaboration with third-party e-commerce retailers across the region. This indicates the growth of the e-commerce apparel market across the region.
- Online sales have been thriving across the region owing to the development in the e-commerce channels and the convenience of purchase offered by them. According to the Brazilian Institute of Geography and Statistics, online sales accounted for 10.14% of the retail sales in Brazil, which was higher as compared to the percentage during the previous year, which was 9.14% in the year 2021. Hence, the increased acceptance of e-commerce channels is expected to drive the market studied across Brazil during the forecast period.
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