Super sales netted 400 million US dollars! What is the magic of this "fertile land for gold mining"?

Recently, news has come out that several large cross-border sellers have entered the Latin American market and have achieved fruitful results. This market with huge potential has once again attracted the attention of the entire industry.

SHEIN made a net profit of 400 million US dollars in Brazil, and a new fertile ground for gold mining has emerged

As a benchmark in the cross-border fast fashion field, SHEIN's entry into Brazil is the first step in its layout in Latin America.

Recently, a BTG Pactual report showed that SHEIN has made great strides in the Brazilian market and has earned 2 billion reais, or about 400 million US dollars, in Brazil. This news has sparked heated discussions among industry insiders: Is this emerging blue ocean market in Latin America really "blue"? How much potential does it have in the future?

Kuaishou launched Kuai Shop in Brazil , Shopee built a large local logistics warehouse in Sao Paulo, Brazil , and other independent e-commerce companies such as Urbanic, Cupshe, and Hibobi have also set their sights on Mexico, Brazil, Chile, etc. in Latin America ...

Data shows that in 2021 , e-commerce in Latin America grew by 37% year-on-year, with sales reaching US$115 billion, making it one of the fastest growing regions in the global e-commerce market . Latin America has become a new fertile ground for cross-border e-commerce. Many cross-border e-commerce platforms have made the Latin American market one of their key business layout points. E-commerce giants such as Amazon, Shopee, and AliExpress have successively started business in Latin America.

In this emerging market with more than 200 million online shoppers , the development potential of six countries , namely Brazil, Colombia, Mexico, Argentina, Chile and Peru, cannot be underestimated.

Among the many categories, outdoor sports products such as cycling glasses, gloves, and flashlights are very popular, and in the electronics category, high-quality and low-cost products such as car electronics and smart watches are more attractive to consumers in Latin America. In addition, survey data shows that 66.3% of Brazilians like to play video games, and more than 60% of players are between 25 and 54 years old. It is not difficult to see that video game products have a huge market in Brazil.

Overall, there is little competition from Chinese brands in the Latin American market, so it is a good time for sellers to enter the market. However, for some sellers who have already entered the market, logistics is still one of the problems that need to be solved urgently.

Why are so many e-commerce platforms and sellers optimistic about the Latin American market in the past two years, after being pessimistic for more than a decade?

In the battle for the Latin American cross-border market, how can sellers reduce costs and increase efficiency?

Recently, a cross-border seller in the Brazilian market gave feedback to the editor that although he could feel that the market demand was great, the store's orders never increased. After eliminating various reasons, he determined that the problem lay in logistics.

"The poor logistics has delayed us too much," the seller said. "We didn't understand the market in the early stages and didn't dare to stock up. The goods took half a month or even a month to arrive, which led to too many uncertainties in the process." The delivery time for goods shipped directly to Mexico and Chile is 16-26 days, and to Brazil is about 15-25 days. The seller feels deeply that the logistics timeliness is poor .

In addition, under the influence of platform policies, rising costs, poor timeliness, epidemics, port congestion, frequent lost items and other factors, after experiencing the ups and downs of the cross-border circle, sellers have a general consensus, that is, to deploy overseas warehouses . Overseas warehouses have gradually become a rigid demand for most sellers in the cross-border circle, especially for sellers in Latin America who face poor logistics timeliness and high comprehensive costs. The "attraction" of overseas warehouses is self-evident.

In the cross-border circle where chaos frequently occurs, cross-border chaos such as overseas warehouses is also happening from time to time. When talking about overseas warehouses, a senior person in the industry pointed out that overseas warehouses are a relatively fragmented service system. It is not as simple as receiving and shipping goods. Every link such as putting on shelves, taking off shelves, and leaving the warehouse is very important. However, the overseas warehouse service providers on the market are of varying quality. Choosing a reliable logistics company is particularly critical.

Leading the industry! Anjun Logistics helps sellers to make money in Latin America

The editor learned that the rapid growth of Latin American markets such as Brazil and Chile in the past two years is due to the optimization and improvement of cross-border logistics solutions from China to Brazil and Chile . Among them, the most outstanding performance in terms of cargo volume and transportation depth is achieved by Shenzhen-based Anjun Logistics .

In 2021, the company's cross-border direct mail parcels into Brazil accounted for 32.7% of Brazil Post Packet's total cross-border parcels, ranking top 1. Due to the optimization and smooth logistics channels, China's high-quality and low-priced products have become a new highlight of online shopping in Brazil during the epidemic.

In cross-border e-commerce operations in Latin America, the issue of returns has always been a difficult problem that e-commerce cannot avoid. There are mature reverse logistics solutions for returns in the European and American markets, but they are blank in major Latin American countries .

According to Ms. Wu, marketing manager of Anjun Logistics, the company launched a reverse logistics return solution for the Brazilian e-commerce market in 2021 , and built a 1,500- square-meter return warehouse near the airport in Curitiba, the city for entry clearance of Brazilian postal parcels . The company has a variety of processing options for returned parcels, including returning them to China, re-dispatching them for sale, transferring them to offline tax-paid sales, and transferring them to other countries in Latin America . In 2022, this return warehouse has expanded to 4,000 square meters.

As local consumers in Latin America, such as Brazil and Mexico, prefer fast delivery from local e-commerce companies , Chinese cross-border e-commerce sellers have begun to store goods in the destination country through overseas warehouses in Latin American countries to cope with the impact of high import taxes and high air freight costs . Anjun Logistics is also at the forefront, and will build a new 5,000 square meter local logistics warehouse in Sao Paulo at the end of 2021 , which can provide door-to-door collection, in-warehouse operations, product storage and drop shipping warehousing services.

The logistics road to the Latin American market has been opened, and it will also attract more cross-border e-commerce entrepreneurs to dig gold in Latin America. Interested sellers can add the QR code below to learn more, dig gold in Latin America, and start a journey of big sales!

Latin America

Brazil

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