1. WEBSHOPPERS
201634TH
EDITION
www.ebit.com.br www.buscapecompany.com

2. TABLE OF CONTENTS
INTRODUCTION
• What is WebShoppers
• About Ebit
• Ebit Certification
• Methodology
• Tailored Reports
EXECUTIVE SUMMARY
CHAPTER 1
360º appraisal of the first half of 2016
CHAPTER 2
Online purchasing cycle
CHAPTER 3
The economic and political crisis
according to FecomercioSP
CHAPTER 4
FIPE/Buscapé Index
FINAL CONSIDERATIONS
• Main clients
• Glossary
• Communication support
• Press information
• Team/Contacts
03
24
11
34
13
48
54

3. INTRODUCTION
3

4. WHAT IS WEBSHOPPERS
Performed by Ebit since 2001, WebShoppers
is the highest credibility report on Brazilian e-commerce
and it is considered the main reference for professionals in this segment.
In this study, we will show the current e-commerce market scenario,
estimates for 2016, as well as changes in behavior and preferences of consumers.
Insights obtained in this research aim at outlining the online market direction
and contributing to understand and develop the sector.
Present in the Brazilian market since January
2000, Ebit has been following the evolution
of online retail in our country since its begin-
ning, and it is a reference in this topic. Using a
sophisticated system that collects data directly
from the online buyer, Ebit generates detailed
information on e-commerce.
On its website, Ebit ( www.ebit.com.br) pro-
vides relevant information for purchase deci-
sion-making processes, and it offers products
and services to retailers. Ebit's store certifi-
cation helps consumers build trust in online
purchases. Through a classification by medals
(Diamond, Gold, Silver, and Bronze), which cer-
tifies the quality of services provided by retail-
ers, consumers find arguments that help them
at the moment of decision.
For the executive, Ebit works as a source of
knowledge on e-commerce in Brazil, contri-
buting to the growth of business and of the
sector in general. Learn more on Ebit and its
main products below.
This edition of the WebShoppers report uses
information deriving from the research carried
out by Ebit with over 21,000 online stores already
certified and with its consumer panel, as well as
from ad hoc research and external information.
ABOUT EBIT
WEBSHOPPERS
TABLE OF CONTENTS
4
INTRODUCTION | WHAT IS WEBSHOPPERS / ABOUT EBIT

5. 0976 8765 6543 0987
09 17
Pesquisa E-bit
DIAMOND BRONZESILVERGOLD
Ebit has partnerships with over
21,000 online stores. Once the con-
sumers complete a purchase on one of
these stores, they are invited to answer
a survey. There are three steps: one im-
mediately after the effective purchase
and another some days after, to assess
delivery, and the third one is about
product usability. The process is auto-
matic and simple, done over the Inter-
net. Through these evaluations, Ebit
calculates a score for each store and
classifies them by medals (Diamond,
Gold, Silver, and Bronze).
EBIT
CERTIFICATION
METHODOLOGY
BENEFITS FOR
CONSUMERS
Since January, 2000, Ebit has already collected
over 25 million questionnaires, answered af-
ter the online purchase process, and over 300,000
new questionnaires are added to this value on a
monthly basis. This compiled information gener-
ates monthly Business Intelligence reports that
indicate the social demographic profile of the
e-consumer, as well as the most sold products,
most frequently used means of payment, re-pur-
chase indicators, among other pieces of informa-
tion. Through another WebShoppers edition, Ebit
wishes to continue to contribute to developing In-
ternet and e-commerce in Brazil.
T he Ebit Store classification builds
trust in online purchases and en-
sures a higher quality service for all
users. Through the medal classifica-
tion, which verify the quality of the
services provided by the retailers, the
consumer finds arguments that help
them at the moment of decision.
Pesquisa E-bit
THE CONSUMER VIEWS THE EBIT BANNER
ON THE PURCHASE CONFIRMATION
SCREEN, WHICH WILL LEAD THEM
TO THE SATISFACTION RESEARCH.
ONE DAY AFTER THE DELIVERY
DEADLINE, EBIT SENDS A SURVEY
VIA EMAIL TO ASSESS THE POST-SALE
EXPERIENCE OF THE STORE.
ACCORDING TO THESE SURVEYS,
THE STORES ARE CLASSIFIED BY MEDALS:
BRONZE, SILVER, GOLD, OR DIAMOND,
ACCORDING TO PRE-ESTABLISHED CRITERIA.
BASED ON ALL INFORMATION
COLLECTED FROM CONSUMERS,
EBIT GENERATES REPORTS AND
INFORMATION ON E-COMMERCE AND
DISPLAYS THEM IN THE RETAILER'S AREA.
CLIENTS ANALYZETHE ONLINE STORE ATTRIBUTING
POINTS BASED ON THEIR PURCHASE EXPERIENCE
AND OTHER PIECES OF INFORMATION, SUCH AS
SHIPPING, PAYMENT METHOD, AND DELIVERY.
A FEW WEEKS AFTER THE PRODUCT
IS DELIVERED, EBIT SENDS AN
ASSESSEMENT RESEARCH ABOUT
OVERALL SATISFACTION WITH THE ITEM.
1.
4.
2.
5.
6.
3.
TABLE OF CONTENTS
5
INTRODUCTION | EBITCERTIFICATION / BENEFITS FOR CONSUMERS / METHODOLOGY

6. BI-YEARLY
MONTHLY
DAILY
6
1
The questionnaires, answered on a daily
basis by consumers, feed Ebit's databa-
se, and by cross checking this information, the
company has valuable reports which outli-
ne consumer profile and also comparatively
analyze the services provided by online stores,
regarding points such as delivery, product pri-
ce, means of payment, NPS®, among others.
The reports offered by Ebit to retailers
comply with operational, tactical, and strate-
gic objectives, and engagement varies accor-
ding to business needs. The Categories* defi-
ne the areas recommended for each report.
TAILORED REPORTS
*Categories: commercial, executive, management, business
intelligence, logistics, marketing, products, customer service.
SPECIAL STUDIES DEVELOPED FOR WEBSHOPPERS REPORTS
COMPARATIVE PERFORMANCE OF THE ONLINE STORE
COMPARATIVE ANALYSIS OF COMMERCIAL PERFORMANCE
Especially developed research for WebShoppers report:
E-commerce purchase cycle (WS34), Cross Border (WS33),
Mobile Purchase Habit (WS32), and World Cup impact (WS31).
Comparative study between the market and its competing market, along an
evolution over the last 12 months. With information on e-consumer profile, purchase
frequency, purchase and delivery aspects, average ticket, NPS®, among others.
Essential follow-up on the financial data of your store, comparing it with
definite market and general market. It offers the following data: sales, number
of orders, average ticket, general and new e-consumers, sales per categories
and subcategories, results per region and state.
GENERAL OBJECTIVE
OPERATIONAL OBJECTIVE
TACTICAL AND STRATEGIC OBJECTIVE
Business intelligence
Commercial
Commercial
Logistics Marketing
Marketing
Products Customer service
TABLE OF CONTENTS
6
INTRODUCTION | TAILORED REPORTS

7. PRODUCTS THAT GENERATED MORE VISITS TO THE STORES PRESENT ON BUSCAPÉ
DAILY
MONTHLY
REAL TIME
WEEKLY
MONTHLY
1
1
REAL-TIME FOLLOW-UP ON E-COMMERCE SALES
DETAILED FOLLOW-UP ON E-COMMERCE SALES
TIPS ON MOST SOLD PRODUCTS
TOP E-COMMERCE SALES
Dashboard to follow and compare your store's sales vs. general market
on an hourly basis, with e-commerce sales information, number of orders,
average ticket, and share per device (e-commerce x m-commerce). Particularly
for seasonal events such as Black Friday, Mother's Day, Valentine's Day etc.
Detailed sales database of the online store compared to the general market (without
the store). The following information is shown: category, subcategory, order volume,
financial volume, shipping value, gender, region, type of device (desktop, mobile),
new buyer, income range, reason for purchase, and type of shipping (paid or not).
List of the 10 most sold products in the market, in the most
important categories of your store (last 7 days).
Information on the most sold products in e-commerce with
average ticket paid by consumers (including shipping).
Information on the products that generated more visits to the stores present
on Buscapé, predicting the purchase intention of consumers.
TACTICAL OBJECTIVE
Commercial
Commercial
Commercial
Commercial
Commercial
Marketing
Marketing
Marketing
TABLE OF CONTENTS
7
INTRODUCTION | TAILORED REPORTS

8. REAL TIME
DAILY
DAILY
DAILY
WEEKLY
REAL-TIME COMMENTS BY CONSUMERS
COMMENTS BY CONSUMERS
EVOLUTION OF THE MAIN MANAGEMENT INDICATORS - DAILY
Comments made by consumers in the Ebit Certification Research,
at the moment of purchasing and after-sales, who answered “unlikely”,
“highly unlikely”, or “maybe” when asked about purchasing again.
Comments made by consumers in the research shall be daily sent in Excel format,
containing several pieces of information such as complaints, compliments, or
suggestions, probability of purchasing again on that store and order number.
Dashboard to follow the evolution of your store’s service
quality vs. general market on a daily basis, attributed by your consumers
in the Ebit certification research: delivery performance, delay, NPS®,
consumer profile, and comments on your store.
Customer service
Customer service
Management
Management
Management
Customer service
Customer service
Marketing
Marketing
NPS® - NET PROMOTER SCORE®
Information on customer satisfaction and loyalty using NPS® methodology,
compared to the market and to direct competitors.
EVOLUTION OF THE MAIN MANAGEMENT INDICATORS - WEEKLY
Information to follow clients’ scores in the Ebit certification research
on a weekly basis and their variation compared to the previous week,
analyzing purchasing aspects (price, payment, ease to buy, etc).
TABLE OF CONTENTS
8
INTRODUCTION | TAILORED REPORTS

9. DAILY
MONTHLY
1
MONTHLY
1
QUARTERLY
3
OVERVIEW FOR ONLINE STORE MANAGEMENT
COMPETITIVE SHIPPING ANALYSIS
ANALYSIS OF THE USE OF MEANS OF PAYMENT IN E-COMMERCE
PURCHASING BEHAVIOR OF CONSUMERS
Essential information on the store's performance.
It contains scores attributed in the research at the moment of purchase
and post-sales, orders delivered within and out of the deadline, daily,
30 and 90-day NPS®, client appraisal on purchase aspects (price, delivery,
customer service etc); client profile, comments by consumers, among others.
Full report focused on shipping, which shows its impact on sales and other
variables, compared to the market. Distribution of shipping value by price
ranges, average promised deadline in business days for each shipping range,
average ticket by installments etc.
Analyses of means of payments in online purchases.
Financial volume by means of payment, by flags, by issuing bank,
by State, by consumer profile (gender, age, income, education),
by device (e-commerce x m-commerce), and by category.
Information on customers’ purchasing process, with its evolution
over the last 12 months. Shopping motivators, omnichannel
behavior, installments, means of payment etc.
STRATEGIC OBJECTIVE
Management Customer serviceMarketing
Marketing
Commercial
Commercial
Marketing
Marketing
TABLE OF CONTENTS
9
INTRODUCTION | TAILORED REPORTS

10. MONTHLY
MONTHLY
1
1
TAILORED REPORTS
Is any data or information which you
need and not listed here?
We can tailor it for you.
Contact comercial@ebit.com.br
and let's talk about it!
EXECUTIVE PRESENTATION BY EBIT SPECIALISTS
Executive presentation by Ebit e-commerce specialists
with a detailed analysis of the online store's comparative performance
report x competing market, together with market insights
in the period and specific recommendations.
RELATIONSHIP WITH THE FINANCIAL MARKET
• Presence of Ebit e-commerce specialists
at meetings, lectures, and events held by your company
• Invite your clients, partners, and investors to
pre-launching events of WebShoppers reports at Ebit
• Monthly access to the most important
financial and metric e-commerce information
• Anticipated access to forecast of growth estimates (2 years) – December.
Commercial
Executives
Marketing
TABLE OF CONTENTS
10
INTRODUCTION | TAILORED REPORTS

11. Tthe current economic and
political moment in Bra-
zil has posed several obsta-
cles to the growth trajectory
observed over the last years,
with clear impacts on the pro-
ductive activity and on em-
ployment levels throughout
national territory. After the
adoption of a comprehensive
tax policy between 2009 and
2014, Brazilian public deficit
EXECUTIVE SUMMARY
ges in the Government. The
last two months of the first
half of 2016 signaled a react-
ion regarding sales recovery,
which caused e-commerce
market to reach a nominal
growth of 5.2% in the period,
with R$ 19.6 billion in sales.
The main e-commerce high-
lights of the first half of the year
are outlined on the next page.
increased substantially, espe-
cially in 2015, thus generating
several obstacles and a lack of
optimism by retail consumers
in the country.
Following this unfavorable
scenario, Brazilian e-commer-
ce did not show any growth
in the first months of the year,
when it started to show some
reaction after a few chan-
TABLE OF CONTENTS
11
INTRODUCTION | EXECUTIVE SUMMARY

12. MAJOR HIGHLIGHTS OF BRAZILIAN E-COMMERCE
IN THE FIRST HALF OF 2016
Driven by the increased
prices registered by FIPE/Buscapé
Index, the average ticket spent
by Brazilian consumers in
e-commerce was R$ 403.46
which represents a nominal
growth of 7% compared
to the first half of 2015.
23.1 million online
consumers performed at least one
purchase in the first half of 2016, a
volume 31% higher than in 2015,
boosted by migration of sales from
physical retail to the online channel.
ORDERS
AVERAGE TICKET
ACTIVE CONSUMERS
With increased
unemployment and weaker purchases
by class C, after a slowdown in sales at
the beginning of the year, we registered
a drop of 2% in the order volume,
compared to the previous year.
The actual e-commerce sales in
the State of São Paulo reached
R$ 3.6 billion in the first quarter
of 2016, which represents a 7.4%
drop compared to the R$ 3.9 billion
recorded in the same period in 2015.
Sales via mobile devices
showed a strong growth over the
year, reaching a share of 23% of
sales in June/2016.
E-COMMERCE
IN SÃO PAULO
MOBILE DEVICES
ONLINE PURCHASING CYCLE
Purchases of products over
the Internet can be better planned,
as the consumers can compare
products and prices before closing
an order on this channel. According
to the special Ebit research, people
took, on average, 16 days to perform
a purchase, for instance, of a mobile
phone/smartphone.
TABLE OF CONTENTS
12
INTRODUCTION | EXECUTIVE SUMMARY

13. CHAPTER 1
13
360º APPRAISAL
OF THE FIRST
HALF OF 2016

14. 360º APPRAISAL OF
THE FIRST HALF OF 2016
I
n addition to the challenges of the macro-
economic moment of the country, online re-
tail was affected in the first half of 2016 by
increased product prices, as registered by the
FIPE/Buscapé Index (chapter IV), changes in the
ICMS billing model, and also by the downfall if
AMIDST A TROUBLED POLITICAL AND ECONOMIC MOMENT IN BRAZIL,
E-COMMERCE IN THE FIRST HALF OF THE YEAR WAS MARKED BY THE FACT THAT
MANY COMPANIES IN THE SECTOR HAD TO RETHINK THEIR STRATEGIES AND
REVIEW THEIR EXPENSES IN SEARCH FOR SURVIVAL AND GROWTH
the “Good Law”, which ensured a zero PIS/Cofins
aliquot for computing and telecom products (In
summary increasing taxes).
In this scenario, the solution for companies
in the sector was to improve online consumer
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
14

15. experience both for access via desktop and via
mobile devices, which accounted for a total of
18.8% of the transactions in the period.
In addition, online retail operations aim at
improving their operational experience in or-
der to attract the highest possible volume of
consumers in the offline channel. In the first
half of 2016, we registered an increase in the
number of active e-consumers in Brazil. This
shows that, in general, consumers have been
in search of advantages in the sector, which
the traditional retail cannot offer.
POPULARIZATION OF SMARTPHONES IN
BRAZIL, ALONG WITH THE NEED TO IMPROVE
CONVERSION TO VISITS VIA MOBILE DEVICE HAS
FORCED COMPANIES TO OFFER A BETTER USER
EXPERIENCE ON RESPONSIVE WEBSITES AND APPS,
THUS DIRECTLY REFLECTING THE GROWTH IN
SHARE OF M-COMMERCE SALES.
states Pedro Guasti, CEO of Ebit
IN BRAZIL,
23.1 MILLION
CONSUMERS
PERFORMED
AT LEAST ONE
ONLINE SALE
IN THE FIRST HALF
OF 2016,
THUS ACCOUNTING
FOR A 31%
INCREASE COMPARED
TO 2015
of transactions
were performed via
mobile devices
of transactions
were performed via
computers/laptops
DEVICES USED
TO PERFORM ONLINE
PURCHASES WERE:
81.2%18.8%
EVOLUTION OF ACTIVE E-CONSUMERS
SOURCE: EBIT INFORMATION – NUMBER OF ACTIVE CONSUMERS, 1ST
HALF OF 2016
10
15
5
20
25
CONSUMERS
(MILLION)
VAR.
31%
20131ST
HALF OF 2014 2015 2016
14.1
18.9
17.6
23.1
SOURCE: EBIT INFORMATION
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
15

16. CONSUMER PROFILE IN THE 1ST
HALF OF 2016
SOURCE: EBIT INFORMATION
REGION
WOMAN
1S/2016
1S/
2015
1S/
2016
1S/2015
MEN
49.99%50.01%
48.13%51.87%
TO
24 YEARS
OLD
BETWEEN
25 AND 34
YEARS OLD
ABOVE
50 YEARS
OLD
AVERAGE
AGE
(YEARS OLD)
BETWEEN
35 AND 49
YEARS OLD
8%
8%
22%
23%
37%
37%
33%
32%
43.1
42.8
FAMILY
AVERAGE
INCOME
THE AVERAGE INCOME
OF ONLINE CONSUMERS INCREASED
BY 11%, BOOSTED BY A WEAKER CLASS C
IN E-COMMERCE PURCHASES
THE AVERAGE AGE OF THE BRAZILIAN CONSUMER IS STILL 43 YEARS OLD.
DUE TO THE INTRODUCTION OF NEW, YOUNGER CONSUMERS
LESS THAN
R$ 3,000
BETWEEN
R$ 3,001
AND
R$ 5,000
ABOVE
R$ 8.001
I’D RATHER
NOT
ANSWER
BETWEEN
R$ 5.001
AND
R$ 8.000
SOUTHEAST
SOUTH
NORTHEAST
MID-WEST
NORTH
FAMILY INCOME
SOUTHERN AND
MID-WESTERN
REGIONS HAVE
GAINED A LARGER
SHARE IN
E-COMMERCE
SALES
IN THE FIRST
HALF OF 2016,
THE SHARE OF
WOMEN WAS
HIGHER IN
E-COMMERCE THERE
WERE 828,655 MORE
WOMEN THAN MEN
GENDER
1S/2015 1S/2016
AGE GROUP
64.5%
13.7%
12.9%
6.1%
2.8%
63.8%
14.5%
12.5%
6.6%
2.6%
1S/2015
R$ 4.658
40,35%
21,99%
15,30%
15,09%
7,27%
1S/2016
R$ 5.174
34,70%
21,97%
16,51%
19,24%
7,58%
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
16

17. unemployment and additional discounts for
payments in one installment. In the first semes-
ter of 2016, 42% of online purchases were per-
formed with free shipping.
E-COMMERCE IS
MATURING AND FREE
SHIPPING NO LONGER
NEEDS TO BE USED AS
THE ONLY STRATEGY
TO STIMULATE
PURCHASES.
FROM NOW ON,
FREIGHT SHALL
BE DYNAMICALLY
OFFERED TO
CONSUMERS
ACCORDING TO THEIR
NEED OR URGENCY.
Online stores are still reducing their free
shipping policy and e-consumers started to
choose cash payment or payment in up to three
installments, due to high interest rates, risk of
highlights André Ricardo Dias,
COO of Ebit
SHARE OF INCOME RANGES IN E-COMMERCE (ORDER VOLUME)
SOURCE: EBIT INFORMATION
TOP 10 GENERAL MARKET
30%
50%
20%
10%
40% 43
33
19
43
27 26
43
40 40
44
40
42
1Q/15 3Q/152Q/15 4Q/15 2Q/161Q/16
SOURCE: EBIT INFORMATION
UP TO R$ 3 THOUSAND FROM R$ 3 THOUSAND TO R$ 8 THOUSAND OVER R$ 8 THOUSAND
1S/2013 1S/20162S/20151S/20152S/20141S/20142S/2013
FREE SHIPPING
10%
30%
50%
20%
40%
60%
SINCE JULY/2014
E-COMMERCE HAS DECREASED
THE PERCENTAGE OF
FREE SHIPPING, MOSTLY
BIG RETAILERS.
50.3
48.5
43.5
49.0
46.1
41.1
41.6
38.5 40.238.6 39.4
40.9
37.537.7
12.0 12.4 13.0 14.5
16.3 17.9
20.8
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
17

18. SOURCE: EBIT INFORMATION
With the worsening crisis, the first half
of 2016 registered a slight change in the pay-
ment forms on online purchase: in the same
period of 2015, 39.6% of consumers preferred
cash payment. On the other hand, in the first
six months of 2016, 42% have decided to pay
their purchases in only one installment, also
benefiting from discounts offered by stores.
HIGHLIGHTS
As SELIC rate
and inflation
remain high, stores
have chosen to offer
shorter installment
deadlines with interests.
Higher incentive to pay
in cash (with bank slip)
or in up to three installments.
Websites have limited
payments to a maximum
of ten installments.
SOURCE: EBIT INFORMATION
INSTALLMENTS:
IN 2016, ONLINE
CONSUMERS
HAVE CHOSEN TO
PURCHASE LESS WITH
INSTALLMENTS.
AVERAGE INSTALLMENTS
(NUMBER OF INSTALLMENTS)
MAIN PAYMENT METHOD
CASH 2-3 INSTALLMENTS
4-12 INSTALLMENTS
OR MORE
2.5
installments
2.4
installments
39.6%
42.0%
24.6%
25.1%
35.8%
33.0%
1S/2015 1S/2016
1S/
2015
1S/
2016
SOURCE: EBIT INFORMATION
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
18

19. FINANCIAL DATA:
ORDERS, SALES, AND AVERAGE TICKET
E-commerce sales in Bra-
zil in 2016 kept rising
and started to grow again.
According to the datacol-
EVEN WITH THE
SLOWER GROWTH IN THIS
SEMESTER, E-COMMERCE
ADVANCES AT MUCH
HIGHER RATES THAN OTHER
SECTORS OF THE ECONOMY.
THIS RHYTHM WON'T
STOP BECAUSE MORE
AND MORE BRAZILIANS
WILL UNDERSTAND THAT
PERFORMING A MORE
CONSCIOUS PURCHASE
IS POSSIBLE OVER THE
INTERNET, AS WELL AS
SAVING WITH AN EASIER
PRICE COMPARISON.
explains Sandoval Martins,
CEO of Buscapé Company
lected, e-commerce sales
were R$ 19.6 billion in the
first half of the year. This
number represents a nomi-
nal growth of 5.2% com-
pared to the same period in
2015, when a total of R$ 18.6
billion were sold.
ONLINE SALES (CONSUMER GOODS) IN BILLION OF BRAZILIAN REAIS
SOURCE: EBIT INFORMATION
FINANCIAL VARIATION
10
30%
20
70%
60%
40%
80%
5 20%
10%
15
50%
25
90%
100%
R$BILLION
1S/11 1S/141S/13 1S/161S/12 1S/15
27.5%
8.4
12.7
18.6
10.2
16.1
19.6
31.1%
16.0%
13.5%
25.9%
5.2%
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
19

20. The main factors driving
growthinBraziliane-commer-
ce sales were the increased
average ticket, boosted by
the increased prices of
products sold in the sec-
tor, as registered by the
FIPE/Buscapé Index; high-
er share of classes AB; and
continued sales of higher
value product categories,
such as Household Appli-
ances and Telephony/Mo-
bile phones.
We registered a 7% in-
crease in the average ticket
of online consumers in the
first half of 2016.
THE MAIN
FACTORS DRIVING
GROWTH IN
E-COMMERCE
SALES WERE
INCREASED
AVERAGE TICKET,
HIGHER SHARE
OF CLASSES AB,
AND CONTINUED
SALES OF PRODUCT
CATEGORIES WITH
HIGHER VALUE
EVOLUTION OF THE AVERAGE TICKET OVER THE 1ST
SIX MONTHS
NUMBER OF ORDERS IN E-COMMERCE
SOURCE: EBIT INFORMATION
SOURCE: EBIT INFORMATION
AVERAGE TICKET
TRANSACTIONAL
VARIATION
-20%
-10%
20%
30%
10%
20%
-10%
0%
30%
40%
0%
10%
450
60
350
40
250
20
150
50
400
50
300
30
200
10
100
40%
50%
50%
60%
70%
R$MILLION
VARIATION
353.4
309.5
376.6
334.1 333.4
403.5
25.0
35.5
49.4
29.6
48.2 48.5
40.4%
1S/11 1S/141S/13 1S/161S/12 1S/15
18.4%
-5%
-7%
7%
13%
7%
-7%
20.1%
35.5%
2.5%
-1.8%
1S/11 1S/141S/13 1S/161S/12 1S/15
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
20

21. HIGHLIGHTS
MOST SOLD CATEGORIES: IN VOLUME OF ORDERS
MOST SOLD CATEGORIES: IN SALES
SOURCE: EBIT INFORMATION – 1ST
HALF OF 2016
BOOKS /
SUBSCRIPTIONS /
BOOKLETS
FASHION &
ACCESSORIES
HOUSE
& DECOR
HOUSEHOLD
APPLIANCES
FASHION &
ACCESSORIES
BOOKS /
SUBSCRIPTIONS /
BOOKLETS
ELECTRONIC
DEVICES
ELECTRONIC
DEVICES
HOUSEHOLD
APPLIANCES
HEALTH /
COSMETICS
& PERFUMERY
COMPUTING
TELEPHONY /
MOBILE PHONES
HEALTH /
COSMETICS
& PERFUMERY
SPORTS
& LEISURE
SPORTS
& LEISURE
COMPUTING
TELEPHONY /
MOBILE
PHONES
AUTOMOTIVE
ACCESSORIES
TOYS &
GAMES
HOUSE
& DECOR
14%
5%
9%
24%
12%
4%
5%
12%
13%
5%
6%
20%
12%
3%
4%
10%
9%
3%
2%
7%
SOURCE: EBIT INFORMATION – 1ST
HALF OF 2016
Despite the 4% fall in
volume of orders, the
category Household
Appliances kept its
leadership position in
e-commerce sales.
In the second position
is Telephony/Mobile
phones with a 19%
increase compared to
2015, mainly strengthened
by the increase in average
price spent by consumers,
since there was
a 16% drop in volume
of orders compared to
the first half of 2015.
The category
Automotive Accessories
reached 3% of share in
Brazilian e-commerce
sales, with a 75% increase
compared to the
previous year.
SOURCE: EBIT INFORMATION
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
21

22. DELIVERY AND SATISFACTION:
NPS® AND DELIVERY DEADLINE
One of the major highlights of e-commerce
in 2015 was certainly related to the quali-
ty of services provided by online retailers. Ebit
registered a drop in volume of delayed
deliveries, reaching a percentage of only 7.7%.
However, we identified that the average
deadline advertised by the stores increased in
the first half of 2016, compared to the same
period last year, to ensure delivery within the
promised deadline.
Net Promoter Score® (NPS®), trademark of
Bain & Company, is an indicator that measures
client satisfaction and loyalty.
Since 2013, when Ebit started to perform
this measurement, the best result was in July
2015, with 66.3%, showing stability over the
subsequent months. However, from Decem-
ber on, there was a considerable drop in NPS®,
to 59.7% with increased delayed deliveries in
e-commerce due to the large volume of sales
of Black Friday.
From January 2016 onwards, the indica-
tor showed improvement, although it still
remained 1.9 percentage point lower than
what was registered in July 2015 when clos-
ing the period comprising the last 12 months
(in June 2016).
10%
70%
5%
60%
NET PROMOTER SCORE® - NPS® (%)
DELAYED DELIVERY (%)
SOURCE: EBIT INFORMATION
SOURCE: EBIT INFORMATION
SOURCE: EBIT INFORMATION
JAN16
JAN16
JUL15
JUL15
APR16
APR16
OCT15
OCT15
FEB16
FEB16
AUG15
AUG15
MAY16
MAY16
NOV15
NOV15
MAR16
MAR16
SEPT15
SEPT15
JUN16
JUN16
DEC15
DEC15
1S/2015 1S/2016
% DELAYED
DELIVERY
AVERAGE
DEADLINE
ADVERTISED
65.0
5.8
65.4
5.7
59.7
7.3
61.2
7.8
66.3
5.9
65.6
5.7
65.9
6.0
59.7
8.5
61.6
8.1
64.0
7.3
64.4
7.8
64.5
8.0
8.6% 7.7%
9.5DAYS
9.2DAYS
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
22

23. PROJECTION FOR 2016
After a nominal growth
of 5.2% in the first half
of 2016, Ebit projects that
growth in e-commerce sa-
les will remain at 8% in
2016, reaching a total of
44.6 billion in sales.
Although sales in the first
half of 2016 have shown a
2% drop in volume of orders,
Ebit estimates that, as the
optimism of consumers has
improved due to changes
in Brazilian politics, as well
as a second half strength-
ened by Black Friday and
Christmas, the sector shall
have a slight recovery. Thus,
by the end of the year, the
total volume of orders might
reach 106.5 million, a num-
ber close to the one shown
throughout 2015.
Without increase in sa-
les, growth in billing shall
be supported by the in-
crease in average ticket,
which shall reach an average
value of R$ 418 this year.
AVERAGE TICKET ESTIMATE IN 2016
ORDER VOLUME ESTIMATE IN 2016
SALES GROWTH ESTIMATE IN 2016
SOURCE: EBIT INFORMATION
SOURCE: EBIT INFORMATION
SOURCE: EBIT INFORMATION
450
350
250
150
50
50
40
30
20
10
30%
120%120
120%
10%
80%80
80%
20%
100%100
100%
-10%
40%40
40%
60%60
60%
20%20
20%
R$R$BILLIONVOLUME
0%
BRAZILIANREAIS
AVERAGE TICKET
ORDERS
FINANCIAL
VARIATION
VARIATION
VARIATION
2011 20142013 20162012 2015
0%
2011 20142013 20162012 2015
2011 20142013 20162012 2015
0%
18.7
53.7
349 338 327 347
388
418
66.7
88.3
103.4
106.5 106.5
22.5
28.8
35.8
41.3
44.6
26%
34%
-6%
-3% -3%
6%
12%
8%
17%
25%
3%
32%
0%
20%
28% 24%
15%
8%
2016
TABLE OF CONTENTSCHAPTER 1 | 360º APPRAISAL OF THE FIRST HALF OF 2016
23

24. ONLINE
PURCHASING
CYCLE
CHAPTER 2
24

25. I
t has become increasingly
important for e-commer-
ce companies to un-
derstand consumers and
their purchasing habits,
in order to create more
effective sales and client
loyalty strategies. When
performing a purchase over
the Internet or even in tradi-
tional retail, people usually
go through a natural pur-
chasing cycle before acquir-
ing a product or a service.
THE IMPORTANCE OF THE
CATEGORYTELEPHONY/MOBILE
PHONES IN E-COMMERCE
The purchasing cycle
starts when the consumer
identifies that they need
something or have a
problem that requires acquir-
ing a new product or service.
Some consumers are more
impetuous while others like
to think carefully about the
real need to acquire some
merchandise. From this mo-
ment on, the consumer who
is currently more aware
and wellinformed starts
to search for the desired
product or service, and might
be influenced by a huge
amount of ads and publicity
with the most diverse formats
until they make their decision.
After surveying the op-
tions, consumers then start
to analyze several features
such as quality, durabili-
ty, brand, and above all,
product price – this is one of
the main purchase-decision
IDENTIFY A
DESIRE, NEED,
OR PROBLEM
1
SEARCH FOR
THE PRODUCT
2
APPRAISAL5
ASSESS
ALTERNATIVES
3
PURCHASE
THE PRODUCT
4
1
2
34
5
PEOPLE'S
NATURAL
PURCHASING
CYCLE
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
25

26. factors. After making their
decision, having weighed
up all benefits as well
as negative points, con-
sumers decide to buy the
product with the best
cost-benefit ratio.
In this scenario, the
question posed by many
companies in the sector is:
"What is the process and
time to purchase a product
in different categories by
e-commerce websites?"
We know that the cate-
gory Telephony and Mobile
phones has been gaining rel-
evance with online practices
over the last years, with in-
creasing share in the nation-
al e-commerce market. In
2013, this category occupied
the sixth position in volume
of orders, with a 6% share of
sales; in 2014, it rose to the
fourth position with 8% of
share in online purchases. In
2015, the category rose again,
reaching the third position in
the ranking of most sold cate-
gories in the Brazilian e-com-
merce, with a total of 11% of
sales in volume of orders.
Having increasingly be-
come an object of desire and
a need for Brazilians, who
used to having smartphones
for personal and professional
use several times a day, this
category reached the sec-
ond position in e-commerce
sales in Brazil, with an aver-
age price of R$ 867 in the
first half of 2016. In the first
six months of 2016 alone, Ebit
estimates that approxima-
tely 3.98 million smart-
phones were sold in the
Brazilian e-commerce. This
high sales volume makes
Brazil a large market for
manufacturers and Telecom
operators, whose mission is
to broaden the installed 3G
and 4G base over the next
years. By crossing check-
ing information obtained by
PNAD survey with data from
Teleco/Anatel, Ebit estimates
there are approximately
100 million users who have
some type of mobile phone
with Internet connection.
An article in portal Ex-
ame.com in 2015 estimat-
ed that Brazilians like to ex-
change mobile phones, on
average, every year and one
month, thus generating a po-
tential market/year of 100
million new devices in Brazil.
The increasing use of
smartphones and mobile
phones has been largely de-
bated and displayed in the
last Ebit Webshoppers re-
ports. The share of online
purchases via mobile devices,
whichwaspracticallynon-exis-
tentinJune2011(0.3%),hasrisen
to 23% in five years, a 6,300%
growth over the period.
THE INTERNET
HAS SIGNIFICANTLY
CHANGED THE
WAY HOW
PEOPE ACQUIRE
A PRODUCT OR SERVICE
AS THE RULE IS
NO LONGER HOW
TO FIND YOUR CLIENTS
BUT HOW TO BE FOUND
BY THEM IN A NON-
INVASIVE MANNER AND
WITH CREDIBILITY.
says André Ricardo Dias,
COO of Ebit
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
26

27. ANALYSIS OF THE PURCHASING
CYCLE IN THE CATEGORY
MOBILE PHONE/SMARTPHONE
To better understand smartphone
commercialization opportunities for onli-
ne stores, manufacturers, and other markets,
Ebit carried out an online survey between
June 03 and July 11 2016 using its e-consumer
panel, collecting a sample of 7,809 e-consu-
mers throughout national territory.
In this survey, we asked interviewees which
products they had purchased recently over the
Internet (last three months). It was possible to
choose up to three out of the 19 previously de-
fined product subcategories, which were: Mobi-
le phone/Smartphone, Air Conditioner, TV sets,
Women's Fashion/Accessories, Men's Fashion/
Accessories, Sports & Leisure, Perfume, Refrige-
rator/Freezer, Washing Machine, Stove, Games,
Car Tires, Printer, Laptop, Wine, Coffee Machine,
Water Purifier, Microwaves, and Beer.
The survey pointed out that Mobi-
le phone/Smartphone was the most cho-
sen option, with 26% of consumer pre-
ference, followed by Women's Fashion/
Accessories (19%), Men's Fashion/Accessories
(15%), Perfume (12%), and Sports & Leisure (11%).
If we compare the current
share mobile devices have in
purchases of other, more ma-
ture markets, we might un-
derstand that although we
have 23% in Brazil, we still
have much to grow. On the
last Black Friday in the United
States, in November 2015, IBM
estimated that 36% of the total
e-commerce sales were per-
formedovermobiledevicesand
57% of circulation in the stores
came from these devices.
E-COMMERCE SHARE (ORDERS %)*
SOURCE: EBIT INFORMATION
20%
25%
15%
5%
10%
JUN/13JUN/11 JUN/12 JUN/14 JUN/16JUN/15
0.3%
7%
1.3%
10.1%
3.6%
23%
0%
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
27

28. ONLINE CONSUMER PROFILE:
MOBILE PHONE/SMARTPHONE
T he survey pointed out
that most consumers
in this category are men
(68%), due to the interest and
technological affinity usually
shown by this public. Overall,
considering all e-commerce
sales there is a technical tie
between men and women.
PURCHASING CYCLE SURVEY: MOST BOUGHT PRODUCTS ONLINE RECENTLY (%)*
SOURCE: EBIT INFORMATION BASE: 7,809 PERIOD: JUNE 03 TO JULY 11/2016
What is your gender?
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
PURCHASING CYCLE RESEARCH: PURCHASING BEHAVIOR
OF MOBILE PHONES/SMARTPHONES: GENDER*
PERFUME
CAR TIRES
REFRIGERATOR / FREEZER
PRINTER
WOMEN'S FASHION / ACCESSORIES
TV SETS
LAPTOP
AIR CONDITIONER
STOVE
WATER PURIFIER
MOBILE PHONE / SMARTPHONE
SPORTS & LEISURE
WINE
WASHING MACHINE
COFFEE MACHINE
MEN'S FASHION / ACCESSORIES
GAMES
BEER
MICROWAVE
NONE OF THE LISTED PRODUCTS
0% 5% 15% 25% 35%10% 20% 30%
MAN WOMAN
32%68%
26
6
4
15
5
3
11
4
3
2
19
5
3
12
5
3
7
4
2
31
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
28

29. Regarding age, buyers
in this category are, on av-
erage, 44 years old, and the
range between 35 and 49 is
the most representative, with
40% of the answers. This
average is above the mean
age of online consumers point-
ed out by Ebit in the first half of
2016, which was 43 years old.
Another piece of inform-
ation highlighted by the
survey is the balance in
education level among
people who said they bought
this category. While 52% of
consumers have completed
a graduation or post-gradu-
ation course, 47% said they
didn't start or complete any
graduation course.
On the other hand,
regarding purchasing power,
the average family income
stated in the survey,
R$ 5,322, is nearly 10%
higher than the average
income of the Brazilian on-
line consumer in the first half
of 2016, which was R$ 5,174.
PEOPLE WHO ARE, ON
AVERAGE, 44 YEARS OLD
ARE THE LARGEST BUYERS
OF MOBILE PHONES
AND SMARTPHONES
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
BETWEEN
18 AND 24
YEARS OLD
PRIMARY
SCHOOL
ELEMENTARY
SCHOOL
HIGH
SCHOOL
INCOMPLETE
GRADUATION
COMPLETE
GRADUATION
COURSE
POST-
GRADUATION
LESS THAN
R$ 1,000
BETWEEN
R$ 3,001
AND
R$ 5,000
OVER
R$ 12,000
BETWEEN
R$ 1,000
AND
R$ 3,000
BETWEEN
R$ 8,001
AND
R$ 12,000
BETWEEN
R$ 5,001
AND
R$ 8,000
I'D RATHER
NOT SAY
BETWEEN
55 AND 64
YEARS OLD
OVER
64 YEARS
OLD
BETWEEN
35 AND 49
YEARS OLD
BETWEEN
25 AND 34
YEARS OLD
BETWEEN
50 AND 54
YEARS OLD
How old are you?
What is your level of education?
What is your household's monthly family income?
40% 17%21% 14% 5%4%
0% 21%31%26% 19%3%
3% 28% 8%26% 12%18% 6%
PURCHASING CYCLE SURVEY: PURCHASING BEHAVIOR
OF MOBILE PHONES/SMARTPHONES: INCOME*
PURCHASING CYCLE SURVEY: PURCHASING BEHAVIOR
OF MOBILE PHONES/SMARTPHONES: AGE*
PURCHASING CYCLE SURVEY: PURCHASING BEHAVIOR
OF MOBILE PHONES/SMARTPHONES: EDUCATION*
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
29

30. PURCHASING BEHAVIOR:
MOBILE PHONE/SMARTPHONE
The higher the added value of the
acquired product, the higher the need
for researching and searching for the best
cost-benefit ratio, mainly when the product
belongs to a category that will be part of
the consumer's daily life, which is practi-
cally 24 hours connected a day.
Only 3% of consumers said they did not
research product prices, whereas 53% search-
ed for this piece of information only over
the Internet, and 37% used both digital
media and physical stores for that purpose.
The use of mobile devices positively helps
with this challenge. One of the leaders in
launching apps was Buscapé, with over
8 million downloads, which represents an
extreme change in the behavior of consumers,
whousuallyusethisresourceovertheweekend
at shopping centers and street stores.
Through another question, we under-
stood the relevance of the main attributes
that directly influence the purchase-decision
making process. When buying a mobile pho-
ne/smartphone, 57% chose price as the main
decision factor, while 50% chose quality, 23%
chose free shipping, and 22% chose product
brand as the most important aspect.
Therefore, choosing a product might take
longer than people think. The survey indica-
ted that only 15% of consumers immediately
chose the purchased item, while for 42%, it
took up to a week to choose the ideal item,
and over two weeks for another 42%.
BUSCAPÉ’S APP IS PART OF
CONSUMER BEHAVIOR HABITS, AS IT
MAKES THIS ROUTINE MORE PRACTICAL
AND PROVIDES A DIFFERENTIAL
EXPERIENCE ANYWHERE CONSUMERS
GO BY TURNING THE COMPARISON OF
PRICES AND PRODUCTS ON THE BEST
E-COMMERCE STORES IN BRAZIL
A SIMPLE PROCESS.
says Fábio Sakae,
Marketing Director of Buscapé
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
30

31. PURCHASING CYCLE RESEARCH: PURCHASING BEHAVIOR OF MOBILE PHONES/SMARTPHONES:
KEY FACTORS THAT INDUCE PURCHASE*
PURCHASING CYCLE SURVEY: PURCHASING BEHAVIOR OF MOBILE PHONES/SMARTPHONES:
PURCHASING SURVEY AND DECISION TIME*
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
Before performing this purchase, did you
research prices at stores or over the Internet?
When you think of buying a new product, what are the main features you consider the most?
On average, how long did it take for
you to decide to buy the product?
20%
60%
50%
40%
10%
30%
I DON'T KNOW /
DON'T REMEMBER
UP TO 1 WEEK
1 MONTH
2 WEEKS
OVER 1 MONTH
IMMEDIATELY
40% 50%10% 20% 30%0%
57%
17%
23%
10%
50%
10%
22%
6% 5%
7
3%
% 37%
%53
0%
SOURCE: EBIT INFORMATION BASE: 2,024 PERIOD: JUNE 03 TO JULY 11/2016
PRICE
QUALITY
IMMEDIATE
DELIVERY
INNOVATION
ADDED
VALUE
DELIVERY
DEADLINE
PAYMENT
CONDITION
BRAND
FREE
SHIPPING
18
15
13
11
2
I RESEARCHED
ON THE
INTERNET
I DIDN’T
RESEARCH
I RESEARCHED
AT PHYSICAL
STORES AND
ON THE INTERNET
I RESEARCHED
AT PHYSICAL
STORES
42
ON AVERAGE, IT TOOK
16 DAYS FOR PEOPLE
TO DECIDE TO BUY THE
MOBILE PHONE/
SMARTPHONE
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
31

32. PURCHASING FREQUENCY OF
MOBILE PHONE/SMARTPHONE
The study also point-
ed out the purchasing
frequency of this product
by consumers on online
stores in Brazil. We see
that 6% purchase this item
every six months, which is
typical of technological cat-
egories, as new products
THE GREAT MAJORITY
ANSWERED THAT
THEY BOUGHT THEIR
MOBILE DEVICES
ANNUALLY (34%)
OR EVERY
TWO YEARS (31%)
are frequently launched,
and also due to “early
adopters" and fanatics,
who always acquire newly-
launched products. The
great majority answered
that they bought their mo-
bile devices annually (34%)
or every two years (31%).
PURCHASING CYCLE SURVEY: PURCHASE FREQUENCY: MOBILE PHONE/SMARTPHONE*
How often do you usually buy it?
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
EVERY
MONTH
EVERY
2 YEARS
EVERY
3 YEARS
EVERY
SIX
MONTHS
EVERY
5 YEARS
MORE
THAN
6 YEARS
EVERY
THREE
MONTHS
EVERY
4 YEARS
EVERY
YEAR
EVERY
6 YEARS
FIRST
TIME I
BOUGHT
20%
40%
10%
30%
0%
3%
31%
1%
6%
3%
6%
4%
10%
1%
34%
2%
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
32

33. *IN QUESTIONS THAT USE SELECTION BOXES, THE TOTAL NUMBER OF ANSWERS MIGHT BE HIGHER THAN THE NUMBERS OF
INTERVIEWEES. THIS MIGHT CAUSE THE TOTAL PERCENTAGES OF THE ANSWER TO EXCEED 100%.
RELATIONSHIP BRAND x PRICE
IN DECIDING TO PURCHASE A
MOBILE PHONE/SMARTPHONE
As to the purchasing decision of products in
this category, 48% of consumers chose to
acquire another brand with lower price, 34%
were faithful to their usual choice and 13% cho-
se, along with their preferred brand, products
with higher value. Regarding brands preferred
by online consumers, the survey indicated Sam-
sung as the leader, with 41%, followed by Moto-
rola, in second with 18%, LG in third with 10%,
Apple in 4th with 4th
(8%), Asus in 5th
(5%) and
Microsoft/Nokia in 6th
with 5% of the answers.
The survey also pointed out which of
them have higher loyalty and preference by
Brazilian online consumers. The winner in
this category is Apple, as 63% of the inter-
viewees who bought a product of this brand
said they did not research any products from
a competing brand.
Ebit commercializes this type
of thorough study on other
19 product categories and
subcategories. Your company
can engage this study requesting
further information by email:
comercial@ebit.com.br
SOURCE: EBIT INFORMATION BASE: 2,025 PERIOD: JUNE 03 TO JULY 11/2016
Did you research another brand before purchasing? If so, did you by the more inexpensive or the more expensive brand?
PURCHASING CYCLE RESEARCH: PREFERRED BRAND BY E-CONSUMERS*
0% 50% 100%10% 60%20% 70%40% 90%30% 80%
I BOUGHT THE MORE INEXPENSIVE BRAND I DIDN'T RESEARCH ANOTHER BRAND I BOUGHT THE MOST EXPENSIVE BRAND DON'T KNOW / I DON'T REMEMBER
SAMSUNG
MOTOROLA
APPLE
LG
216 2063
5182355
4113846
6163147
TABLE OF CONTENTSCHAPTER 2 | ONLINE PURCHASING CYCLE
33

34. THE ECONOMIC
AND POLITICAL
CRISIS,
according to FecomercioSP
34
CHAPTER 3

35. B
razil is probably experiencing the great-
est crisis of its history. GDP (Gross Domes-
tic Product) shall decrease approximately
3.5% in 2016, after having registered a 3.8% drop
last year. It will be the first time since the 1930's
that the Brazilian economy registers a retraction
for two consecutive years. The per capita income
shall drop for the third consecutive year and re-
tail sales in São Paulo, which dropped 3% in 2014
and 6% in 2015, shall remain unchanged in 2016
in an optimistic scenario, according to data and
projections by the Federation of Goods, Services,
and Tourism of the State of São Paulo – Fecomer-
cioSP. Consequently, unemployment rate has
exceeded 11%. Over 100 thousand formal job
vacancies have been eliminated per month in
our country. In the trade in goods and services
of the State of São Paulo, over 260 thousand job
positions have already been extinguished in one
year, according to the survey conducted by the
federation based on data of the General Regis-
try of Employed and Unemployed – CAGED.
THE ECONOMIC AND
POLITICAL CRISIS,
ACCORDING TO FECOMERCIOSP
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
35

36. DESPITE THE DEPRESSION
IN THE ECONOMIC ACTIVITY
AND THE CONSEQUENT INCREASE
IN UNEMPLOYMENT, INFLATION
REMAINS HIGH – ALTHOUGH
THE LAST DATA HAVE
INDICATED A SLOWDOWN –
AND INTERESTS ARE ALSO HIGH
Despite the declining economic activi-
ty and the consequent increased unemploy-
ment, inflation remains high – although the
latest data have indicated a slowdown – and
interests are also high; banks are not willing
to lend; companies are postponing or cutting
down investments, while families, who work
more and more on a tight budget, are cutting
expenses and avoiding to take on debts.
The characteristics of the current re-
cession, however, are quite different from
conventional recessions, which usually oc-
cur within economic cycles, resulting, for
instance, from periods of euphoria and
excessive investments or as a reflection of
external shocks. The Brazilian crisis is above
all a confidence crisis. Evidence of that is
the pessimism of executives and consumers,
indicated in confidence indicators calculated by
FecomercioSP, which have reached the lowest
levels in history throughout 2015 and 2016.
It is difficult to pinpoint the exact begin-
ning of a crisis, which typically results of a
combination of factors; however, the fact is
that incorrect interventions performed by
the Government from 2012 on have under-
mined key sectors such as the energy sec-
tor, while subsidies to specific groups have
resulted in market concentration and inef-
ficiency. Structural problems, such as in-
creased Social Security expenses, have been
left aside throughout the last decade, some-
what overcast by a favorable international
scenario for Brazil.
However, the international situation
has changed. Misguided governmental
actions have made investors lose confidence.
Despite the decrease in revenue deriving from
a weaker economic activity, the Government
continued to expand costs, which resulted in
deficit in government accounts in 2014 and
2015. The country ended up having its invest-
ment grade lowered by the main international
risk assessment agencies.
While the crisis worsened, the Govern-
ment didn't seem confident in the diagnosis
shown by the main Brazilian executives and
economists, and did not submit proposals or
show any ability for political articulation to
overcome the problem. Thus, it lost popula-
tion and Congress support.
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
36

37. THE CRISIS AND RETAIL IN SÃO PAULO
Retail sales in São Paulo
have been falling since
2014 after nearly a decade
of continuous growth. This
year, the sector suffered
a negative impact by
increased interests, decreased
credit offer, and the increa-
sing distrust of consumers
due to the uncertainty that
started to take over the
scenario and to the need
for adjustments in economy
that began to take shape.
The insistence in an
economic policy that favored
increased consumption, credit,
and government expenses re-
sulted in a scenario with high
inflation, and unbalance in pu-
blic and external accounts. Af-
ter the election results, the Se-
lic rate was high again. Public
tariff realignment, particularly
for electric energy, hit consu-
mers' pockets hard. Unem-
ployment, which had already
been rising in the industry
and in civil construction, rea-
ched the sector of commerce
and services, the main em-
ployer in Brazil. After all, with
decreased sales, increased
costs, and in face of an
increasingly disruptive political
scenario, executives nee-
ded to improve efficiency,
cut costs, and readjust their
staff to a lower demand. All
factors started to retro-feed each
other, in a truly vicious circle.
With the crisis and a
tighter budget, consumers
became more conservative,
reducing consumption, and
avoiding to take on debts and
favoring the acquisition of es-
sential goods and services.
Thus, the highest sales drops
were observed in non-durable
and semi-durable goods.
The downswing in retail
sales was mitigated by the
positive performance of the
Supermarket, Drugstore, and
Perfumery sectors, which re-
gistered an increase becau-
se of the essential nature of
the goods marketed by them,
whose price increase is limited
less than proportionally to the
demand for them.
ACTUAL RETAIL SALES IN SÃO PAULO
(IN R$ BILLION, ACCORDING TO PRICES IN MAR/16)
SOURCE: FECOMERCIOSP, SÃO PAULO STATE TREASURY OFFICE (SEFAZ)
2008
2012
2010
2014
2009
2013
2011
2015
12M até
mar/16
525
625
475
575
450
550
650
650
500
600
493.9
503.4
557.2
593.1
595.2
620.2
602.7
564.6
562.3
-2.8%
-6.3%
-6.0%
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
37

38. From 2015 on, with the launching of the
E-commerce Conjunctural Research (PCCE),
FecomercioSP, in partnership with Ebit, start-
ed to systematically investigate the behavior of
sales performed over the Internet, the so-called
e-commerce. This was due to the acknowledg-
ment of the increasing and undeniable relevance
this segment has been gaining in the Brazilian
retail in general and in São Paulo, particularly.
The process of monthly monitoring
e-commerce required the elaboration of an
exclusive methodology, which, in turn, allowed
E-COMMERCE IN
SÃO PAULO
(FECOMERCIOSP/EBIT SURVEY)
ENABLED THE
KNOWLEDGE OF E-COMMERCE
SHARE IN RETAIL SALES, AS
WELL AS THE INDICATOR
BEHAVIOR OVER TIME
for surveying unprecedented information on
commerce in São Paulo and for elaborating,
for instance, comparisons between the volume
negotiated in e-commerce and monthly sales of
physical stores in the State of São Paulo, divided
in the 16 regions defined by the Regional Tax
Offices of the São Paulo State Treasury Office
(Sefaz). This enabled knowledge of the e-commerce
share in retail sales in each one of these regions, as
well as the indicator behavior over time.
In addition, in the exclusive context of
e-commerce, unprecedented monthly data start-
ed to be provided on number of orders, average
ticket, and the actual sales variation in this segment.
It is thus another important source
of information for the monitoring of the
situation of commerce in a segment of in-
creasing importance in the economy, which
can be a valuable instrument for executives
to define their strategies and also a guidance
element for public policies directed to safety
and improvement of transactions performed
in the world of e-commerce.
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
38

39. Actual e-commerce sales
in the State of São Pau-
lo reached R$ 3.6 billion in
the first half of 2016, which
represents a 7.4% fall compared
to the R$ 3.9 billion registered
in the same period of 2015.
In the first quarter of
2015, e-commerce sales in
São Paulo had registered
an increase of only 0.9%,
after an expressive growth
of 27.5% observed between
2013 and 2014. Similar to re-
tail in São Paulo as a whole,
e-commerce has also suf-
fered with the high inflation,
which undermines consumers'
purchasing power, high
HIGHLIGHTS OF
THE 1ST
QUARTER OF 2016
fore, e-commerce share in
retail sales in SãoPaulo,
which was 2.9% in the first
quarter of 2013, 3.6% in the
first quarter of 2014, and
3.6% in the first quarter of
2015, dropped to 3.3% in the
first quarter of this year.
In other words, techno-
logical advances and chang-
es in consumer habits were
capable of minimizing the
effects of the crisis on this
sector, which had been
growing at a two-figure rate
since 2014. The retraction of
e-commerce sales can also
be explained by the fact that
many of the activities that
interests, the lowest cred-
it offer for consumption, in-
creased unemployment, and
consumers' unwillingness to
take out loans.
While e-commerce in São
Paulo registered a 7.4% fall in
actual sales in the first quar-
ter of this year, retail in the
State of São Paulo (which
includes physical and online
stores) showed a smaller de-
crease, of 1.7%. When the sec-
tors Vehicle Dealerships, Car
Parts & Accessories, and Con-
struction Materials are con-
sidered, the (restricted) retail
result over the period be-
comes positive, 0.9%. There-
THE ACTUAL
E-COMMERCE SALES
IN THE STATE OF SÃO
PAULO REACHED
R$ 3.6 BILLION
IN THE FIRST
QUARTER
OF 2016
ACTUAL E-COMMERCE SALES IN THE STATE
OF SÃO PAULO (R$ MILLION¹)
¹ ACCORDING TO PRICES IN MARCH 2016. SOURCE: FECOMERCIOSP, EBIT
1Q13 1Q151Q14 1Q16
4.000
3.000
3.500
2.500
3.020
3.852 3.886
3.599
27.5%
0.9%
-7.4%
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
39

40. have been suffering the most
with the crisis, such as Cloth-
ing & Shoes and Household
Appliances & Electronics, are
precisely the ones with high-
er share in e-commerce sales.
While the total retail sales
in São Paulo registered a
1.7% drop in Clothing, Fabric,
and Shoe stores in the first
quarter compared to the
same period of 2015, down-
swing was 5.5%; in House-
hold Appliances, Electronic
and Department stores,
the drop reached 8.1%. Re-
traction of retail in the first
three months of the year
was mitigated by the good
performance of Drugstores
& Perfumeries (+10.6%) and
Supermarkets (+9%) whose
e-commerce share in sales is
still relatively low.
Monthly performances
for actual sales in São Pau-
lo compared to the same
months of 2015 were: -11.2%
in January, -5.5% in February,
and finally, -4.6% in March.
Therefore, in the first quar-
ter of the year, we observed
a 7.4% accumulated retrac-
tion compared to the three
first months of 2015. Actual
fall in e-commerce sales
thus continues to accelerate
¹ WITH THE AIM OF CREATING AN INDICATOR SIMILAR TO THE NATIONAL ONE ESTIMATED
BY EBIT FOR THE CALCULATION OF SHARE IN RETAIL, THE ACTIVITIES OF VEHICLE DEALERSHIPS, CAR PARTS
&ACCESSORIES AND CONSTRUCTION MATERIALS WERE NOT CONSIDERED. SOURCE: FECOMERCIOSP, EBIT
ACTUAL AVERAGE TICKET IN E-COMMERCE
OF THE STATE OF SÃO PAULO (R$¹)
NUMBER OF ORDERS IN E-COMMERCE
OF THE STATE OF SÃO PAULO (THOUSANDS)
E-COMMERCE SHARE IN RETAIL
SALES OF THE STATE OF SÃO PAULO¹
¹ ACCORDING TO PRICES IN MARCH 2016. SOURCE: FECOMERCIOSP, EBIT
SOURCE: FECOMERCIOSP, EBIT
400.00
350.00
375.00
325.00
4%
2%
3%
1%
12,000
10,000
11,000
9,000
1Q13
1Q13
1Q13
1Q15
1Q15
1Q15
1Q14
1Q14
1Q14
1Q16
1Q16
1Q16
361.44
8,357
2.9
344.24
11,190
3.6
378.50
10,267
3.6
377.66
9,529
3.3
-4.8%
33.9%
0.7P.P
10%
-8.2%
0.0P.P
-0.2%
-7.2%
-0.3P.P
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
40

41. THE NUMBER
OF ORDERS
IN THE STATE WENT
FROM 10,267 MILLION,
IN THE FIRST
QUARTER OF 2015,
TO 9,529 MILLION
IN THE FIRST
QUARTER OF 2016.
THIS REPRESENTS
A 7.2% DROP
after the downswing of 0.6%
registered in 2015, which
occurred after the expres-
sive growth of 18.9% ob-
served in 2014. In 12 months
up to March, the actual
e-commerce sales in São
Paulo had accumulated a
2.7% drop compared to the 12
months immediately before.
The number of orders in
the State went from 10,267
million in the first quarter of
2015 to 9,529 million in the
first quarter of 2016. This
represents a 7.2% decline,
very close to the drop ob-
served in sales. With this,
the average ticket (billing
per order) was practically
stationary at R$ 378, regis-
tered over the three first
months of last year. In the
sameperiodof2014,however,
the amount was 9.1% lower
(R$ 344). This suggests that
with the crisis, e-commerce
sales have concentrated in
higher value items. Moreover,
the unfavorable economic
situation might have stopped
the migration of lower so-
cial strata to this purchase
channel. With the higher
share of richer strata in pur-
chases, the average value
per order continues high.
E-COMMERCE SHARE IN RETAIL SALES IN THE STATE OF SÃO PAULO¹
¹ WITH THE AIM OF CREATING AN INDICATOR SIMILAR TO THE NATIONAL ONE ESTIMATED BY EBIT FOR THE CALCULATION OF SHARE IN RETAIL,
THE ACTIVITIES OF VEHICLE DEALERS, CAR PARTS &ACCESSORIES AND CONSTRUCTION MATERIALS WERE NOT CONSIDERED. SOURCE: FECOMERCIOSP, SEFAZ, EBIT
4.1
4.8
5.2
5%
4%
3%
2%
1%
FEB
MAR
JAN
FEB
JUN
OCT
APR
AUG
DEC
MAR
JUL
NOV
MAY
SEPT
JAN
FEB
MAR
JAN
JUN
JUL
OCT
APR
AUG
DEC
NOV
MAY
SEPT
DEC
FEB
JUN
APR
AUG
MAR
JUL
NOV
OCT
MAY
SEPT
JAN
2013 2014 20162015
2.8%
3.3%
3.5%
0%
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
41

42. APPRAISAL OF REGIONAL DATA
FROM THE STATE OF SÃO PAULO
Among the 16 regions appraised by PCCE,
considering the accumulated billion in
the first quarter of 2016, only two registered
a positive variation compared to the same pe-
riod in 2015: ABCD (0.4%) and Osasco (1.8%).
On the other hand, the highest falls were ob-
served in the regions of Presidente Prudente
(-30.4%), Bauru (-21.6%), and São José do Rio
Preto (19.4%).
The average ticket in São Paulo was
R$ 377.66 in the first quarter. The regions that
registered the highest average tickets were
Marília (R$ 472.97), Taubaté (R$ 470.39), and
Jundiaí (R$ 428.91). At the other end, the capi-
tal has the lowest average ticket, of R$ 339.71.
However, the region accounts for over 40%
of the total orders and for over 36% of actual
e-commerce sales; therefore, the average tick-
et is naturally lower than in the other locations.
In the State of São Paulo, e-commerce
share in retail (excluding the sectors Vehicle
Dealerships, Car parts & Accessories, and Fur-
niture & Decor) was 3.3% in the first quarter,
lower than the 3.6% registered in the same pe-
riod of 2015 and the 3.7% of the last quarter of
2015, when the result was influenced by the
good sales performance of November in the
sector due to Black Friday. In the ABCD region,
share reached 4.5% in the first quarter of 2016.
In the capital, it reached 4.2%.
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
42

43. ¹ ACCORDING TO PRICES IN MARCH 2016. SOURCE: FECOMERCIOSP, EBIT
SOURCE: FECOMERCIOSP, EBIT
REAL E-COMMERCE SALES IN REGIONS OF THE STATE OF SÃO PAULO (R$ MILLION¹): 1Q16
REAL E-COMMERCE SALES IN REGIONS OF THE STATE OF SÃO PAULO (R$¹): 1Q16 X 1Q15
BAURU
ARAÇATUBA
RIBEIRÃO PRETO
GUARULHOS
GUARULHOS
TAUBATÉ
ARAÇATUBA
BAURU
ARARAQUARA
MARÍLIA
LITORAL
ESTADO DE SÃO PAULO
TAUBATÉ
SOROCABA
CAMPINAS
ABCD
PRESIDENTE PRUDENTE
PRESIDENTE PRUDENTE
R$ MILLION
MARÍLIA
RIBEIRÃO PRETO
SÃO JOSÉ DO RIO PRETO
SÃO JOSÉ DO RIO PRETO
LITORAL
SOROCABA
ARARAQUARA
JUNDIAÍ
CAPITAL
OSASCO
CAMPINAS
CAPITAL
OSASCO
ABCD
JUNDIAÍ
250
-25%-30%-35%
750
-15%
1250
-5%
500
-20%
1000
-10%
1500
5%
0
0%
1,312
197
154
79
260
174
94
50
333
185
140
71
257
156
92
44
1.8
0.4
-4.1
-10.4
-17.0
-1.3
-5.8
-13.3
-19.4
-4.5
-11.4
-19.3
-2.7
-7.4
-15.6
-21.6
-30.4
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
43

44. ¹ WITH THE AIM OF CREATING AN INDICATOR SIMILAR TO THE NATIONAL ONE, ESTIMATED BY EBIT FOR THE CALCULATION OF SHARE IN RETAIL, THE ACTIVITIES OF
VEHICLE DEALERSHIPS, CAR PARTS &ACCESSORIES AND CONSTRUCTION MATERIALS WERE NOT CONSIDERED. SOURCE: FECOMERCIOSP, SEFAZ, EBIT
¹ ACCORDING TO PRICES IN MARCH 2016. SOURCE: FECOMERCIOSP, EBIT
AVERAGE TICKET OF E-COMMERCE IN REGIONS OF THE STATE OF SÃO PAULO (R$¹): 1Q16
E-COMMERCE SHARE IN RETAIL SALES OF THE STATE OF SÃO PAULO¹: 1Q16
PRESIDENTE PRUDENTE
PRESIDENTE PRUDENTE
GUARULHOS
BAURU
ESTADO DE SÃO PAULO
RIBEIRÃO PRETO
SÃO JOSÉ DO RIO PRETO
CAPITAL
SOROCABA
GUARULHOS
BAURU
ARARAQUARA
MARÍLIA
ARAÇATUBA
LITORAL
CAMPINAS
CAPITAL
TAUBATÉ
OSASCO
SOROCABA
RIBEIRÃO PRETO
RIBEIRÃO PRETO
JUNDIAÍ
ESTADO DE SÃO PAULO
ARAÇATUBA
OSASCO
ARARAQUARA
LITORAL
TAUBATÉ
ABCD
CAMPINAS
JUNDIAÍ
R$ BRAZILIAN REAIS
MARÍLIA
ABCD
1%
10050
3%
200
5%
300 350 400 450
2%
150
4%
250 500
0%
0
472.97
405.87
393.24
377.66
428.91
400.70
386.40
374.81
470.39
404.82
386.45
375.89
413.47
395.78
379.36
365.32
339.71
4.5
3.4
3.0
2.6
3.8
3.2
2.9
2.4
4.2
3.3
2.9
2.6
3.8
3.0
2.7
2.3
2.2
TABLE OF CONTENTSCHAPTER 3 | THE ECONOMIC AND POLITICAL CRISIS, according to FecomercioSP
44

45. After the increase in May,
the Consumer Confi-
dence Index (ICC) surveyed by
FecomercioSP started rising
again and reached 98 points
in June, an increase of 7.9%
compared to May of 2016,
and of 8.2% compared to
June 2015. This is the first in-
crease observed when com-
paring between a month and
the same month in the previ-
ous year since January 2013.
In other words, the index of
June interrupted a three-con-
secutive-year decrease (more
precisely 40 months) in this
basis of comparison. There-
fore, ICC has reached its high-
est value since 2015 – the last
month when it was above
100 points.
As opposed to the previ-
ous month, increased confi-
dence wasn’t only a reflec-
tion of renewed hopes. The
Consumer Expectations In-
dex (IEC) increased again and
reached 128.5 points in June,
a value 7.2% higher than May
and 26.6% higher than June
2015 – it is the highest growth
registered since January 2010;
therefore, it has reached the
highest level since Febru-
ary 2014, when it was 132.2
points. The Index of Current
Ec