Homeshopping in Brazil

2020 IMPACT

Homeshopping fails to capitalise on the opportunities presented by COVID-19

2020 saw homeshopping register sales declines in Brazil as the entire channel failed in its efforts to capture the imagination of the country’s population. Although the COVID-19 pandemic and the official response to it presented strong opportunities for non-store retailing channels to generate strong growth, homeshopping did not emerge as a popular alternative to store-based retailing.

E-commerce the main menace to the welfare of homeshopping

The main reason for the poor performance seen in homeshopping during the year was the strong preference for e-commerce among consumers who were unable to access stores. Indeed, the threat to homeshopping from e-commerce was building slowly over the entire review period as consumers became increasingly familiar with online transactions and more comfortable with online payments.

The leading players in homeshopping increasingly looking to other channels

Over the course of the review period, most of the leading players active in homeshopping in Brazil began to invest in diversifying their operations as a way of managing their withdrawal from homeshopping in light of the anticipated decline of the channel. Although e-commerce was the natural choice for homeshopping companies looking to expand their operations into new territories, many of them also looked to develop store-based retailing operations.

RECOVERY AND OPPORTUNITIES

The development of T-commerce points to the future of TV homeshopping

The future of homeshopping is not as bleak as some might suggest, despite the existential threat posed to the channel by the seemingly relentless development of e-commerce. Indeed, the forecast period is expected to see positive growth in homeshopping sales and central to this favourable performance is set to be the development of t-commerce.

Homeshopping players expected to increasingly leverage digital technologies

The companies operating in homeshopping in Brazil can be expected to continue migrating their operations towards both e-commerce and store-based retailing during the forecast period. The combination of these different channels represents opportunities for homeshopping retailers to diversify their operations whilst enabling them to manage their online and offline inventories in a more integrated way.

Faster and more reliable shipping likely to prove an increasingly crucial factor

One common aspect between e-commerce and homeshopping that has traditionally proven problematic is the difficulty that many customers have faced receiving delivery of their orders placed in both channels. Thus, as with e-commerce, the leading players in homeshopping are likely to focus increasingly on making improvements to their shipping and logistics operations.