How attractive is the slum market that Brazilian e-commerce company Americanas has entered?

According to foreign media reports, Brazilian e-commerce company Americanas is expanding the delivery scope of orders , hoping to open up Brazil's slum market .

In April of this year, Americanas began working with Brazilian logistics company G10 Favela Brasil Xpress (G10 Favelas) to deliver goods in Paraisópolis, one of the largest slums in Brazil. Since the partnership, Americanas' daily delivery volume in the slum has increased nearly sixfold.

Because Brazil's favelas are prone to truck robberies and package delivery robberies, often perpetrated by organized crime, large retailers have begun to avoid delivering high-value products, such as electronics, in the favelas.

According to André Biselli, Americanas’ operations manager, since G10 Favelas took over deliveries in Paraisópolis, there have been no security incidents involving Americanas deliveries in the area.

Given the success of G10 Favela’s deliveries in favelas , Americanas and G10 Favela are joining forces to expand their delivery operations in Brazilian favelas . In August, the delivery operations were expanded to four more favelas in Brazil.

Gilson Rodrigues, head of G10 Favelas, said Americanas' delivery goal in 2021 is to expand delivery to 50 favela communities and then cover more than 300 favela communities in Brazil. He also revealed that residents of dozens of other favela areas in the country have been asking for delivery points to be set up locally, and G10 Favelas has also talked with other companies interested in the favela market.

It is reported that businesses created in the slums also plan to sell products on Americanas, which means that in addition to delivering packages, G10 Favelas will soon be responsible for pickup and transportation services in slum communities.

According to the Brazilian Institute of Geography and Statistics (IBGE) , the population of Brazilian slum communities is about 13 million, generating about 168 billion reais in sales each year. Americanas ' sales in the second quarter of this year were 12.6 billion reais, so the potential of the slum market is by no means small.

In addition, Latin American e-commerce companies are also increasing their investment in logistics. The region's e-commerce market has surged since last year and is the fastest growing region in the world. The growth of e-commerce orders has also increased the demand for logistics and distribution of e-commerce companies. Not long ago, Mercado Libre, the largest e-commerce company in Latin America , announced the acquisition of Kangu, a Latin American logistics company, to provide faster logistics services for Brazilian sellers and customers.

Brazilian e-commerce

Americanas

Slums