Brazilian e-commerce company Magzine Luiza achieved net profit in the second quarter!

Recently, another Brazilian e-commerce company, Magzine Luiza, released its second quarter financial report. According to the report, the second quarter revenue increased by 60% compared with the same period last year , reaching 13.7 billion reais (Brazilian currency), and the net profit also turned from loss to profit compared with last year . The number of active users reached 32 million, and the e-commerce sales in the quarter were also higher than the average level of Brazilian e-commerce.

Magzine Luiza is one of the largest retailers in Brazil. It was founded in 1957 and operates more than 900 department stores across the country. Its online platform "Magalu" mainly sells electronic products, home appliances, furniture and other products. Magzine Luiza has accelerated the market development process by leveraging localized sales reputation.

In addition, Magzine Luiza launched a personal e-commerce project on Facebook a few years ago . The general content is that users can put their favorite products into a sales page. If someone buys something on their page, the user can get a certain commission. The simple operation steps attracted many people at the time. Magzine Luiza has also acquired companies in different industries in the past year or so, including Jovem Nerd (news website) and Plus Delivery (food delivery company), expanding its business to multiple fields. There is huge room for market development and diversification of profit sources.

In addition to Magzine Luiza, other local e-commerce companies in the Latin American market include NetShoes (a sports snacks company) and MercadoLibre. MercadoLibre is the first Latin American company listed on the New York Stock Exchange, and its market revenue doubled in the financial report released this quarter.

Overall, the development momentum of the Latin American market is still slightly behind that of the North American and European markets, but the potential remains unabated. In addition to the above-mentioned local e-commerce companies, large e-commerce platforms such as Amazon and Jiale Shen are also involved in the Latin American market, making the competition in the Latin American market more intense.

In July this year, Magzine Luiza announced the acquisition of 100% of Kabum’s shares, worth approximately 1 billion reais, which is expected to attract 2 million new sellers to the Latin American market.

Brazil

E-commerce

Turning losses into profits