Brazil is a country of smartphone users. Last year, Brazilians owned at least 1 smartphone per capita, and this growth trend is not showing any signs of slowing down. Currently, there are 230 million active smartphones in Brazil, a number that reveals an increase of 10 million in relation to 2018, according to the 30th Annual Research of Management and Technology Usage in Companies, drafted by the Getúlio Vargas Foundation of São Paulo (FGV-SP). Meanwhile, the usage of computers or laptops is not keeping pace with smartphone adoption, given that 1 in 7 Brazilians does not have a PC, choosing to own only a smartphone device.
If the high rates of smartphone adoption were a forecast a few years ago, they have now become reality in Brazil, completely changing the purchase habits of consumers and opening up new business opportunities in the country.
AliExpress sells more than 6 thousand smartphones in just one week
As you can already imagine, it is almost impossible to find a single Brazilian who doesn’t already have a smartphone – and those who don’t have one are either actively looking to buy one or upgrade their older model. And the retail industry is making the most out of this situation, especially cross-border and e-commerce, like AliExpress that is one step ahead of the competition in terms of pricing.
In a single week, the Chinese e-commerce giant in Brazil sold 6 thousand smartphones to Brazilians during one of the biggest sales events called the “Mid of Year Campaign.” Apple and Xiaomi were among the most-wanted brands by Brazilians.
During that same campaign, however, AliExpress also sold 35 million smartwatches and 25 million wireless headsets to Brazilian consumers.
New business models are also trying to surf this wave
Created by an ex-Google engineer, the startup PayJoy offers the possibility of financing mobile devices, providing a negotiation in which the consumer can pay for their smartphone in small monthly installments. The company is already working in Mexico, India, and Indonesia – and Brazil is their next target, having announced some extra features to better enter into this market.
In Brazil, a payment method that allows customers to pay for their purchases in smaller monthly payments called “installments” is already very popular and is offered by all the national retail companies that sell smartphones. Nothing new to Brazilians.
Everything you need to know about installments:
“Why do Brazilians Love to Pay with Installments? Here Is the Full Story“
“How an Installments Payment Strategy Helped LightInTheBox to Increase Sales in Brazil“
The solution offered by PayJoy is a new feature that allows mobile devices to be accepted as part of the guarantee in the personal loan process, since some of these devices can be very expensive.
The startup aims to start operations in Brazil by the end of the year.