Latin America 2008

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SHIFTING PARADIGM

Internet on wheels

Guilherme Caldas de Castro
Iván Casas
Gonzalo D. Peña

Abstract

The e-commerce Industry has been increasing at a steady pace worldwide for the past 5 years. However, in emerging markets its relevant accelerated growth has just started in the past 1 to 2 years and it will continue to grow as Internet penetration increases. In Brazil only, sales through e-commerce have reached US$ 2 Billion in 2006, a 70% increase with respect to 2005.

Nevertheless, the challenge resides in adapting an Internet-based model to non-traditional e-commerce products (products other than books, CDs, videos, electronic devices, etc.) that requires feeling, touching and testing before buying, especially in countries where the physical interaction with the retailer is essential.

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