“I always had to be the last one.” This is a reflection from the protagonist, Zeze, in the Brazilian novel ‘My Sweet Orange Tree.’ While the context differs, the feeling of waiting to be last is not unfamiliar in Brazil. Traffic jams are common, and long lines at hospitals and banks are the norm. However, just because people are accustomed to waiting doesn’t mean they want to. The moment alternatives arise, consumers choose cost over waiting.
Traditionally, our companies have viewed Brazil through three main lenses: industrial goods, consumer goods, and public demand. These approaches remain valid today. However, focusing solely on these three pillars in a market of 200 million can lead to missing significant nuances. The universal domestic market reveals what is inconvenient in everyday life and what shifts when something disappears.
It is at this intersection that innovation becomes a demand. The innovation discussed here is not merely about speed. It involves alleviating surrounding inconveniences such as costs, administration, and payment, and redesigning the user experience itself. While speed may open doors, it is the subsequent process innovations that expand the market. This transformation is already evident throughout daily life in Brazil.
Transportation exemplifies an innovation that expands touchpoints. Sem Parar began with automatic toll payments, but consumer response was not just about the convenience of automatic payments. It eliminated the time spent stopping, searching for payment methods, and collecting receipts, even if it meant paying a monthly fee. This experience has broadened to include payment touchpoints for parking, refueling, car washes, and drive-thrus. The public parking payment app Zul+ has also consolidated various procedures, such as related taxes, fines, and insurance, which drivers previously had to check separately, into a single interface. This goes beyond simplifying payments; it reduces the hassle of moving, parking, and managing a vehicle.
Healthcare represents an innovation in operational structure. The shared consultation model has transformed the administrative aspects surrounding medical care. Mobile platforms handle appointments, while kiosks manage on-site registration, payments, and document issuance. When the time comes, the doctor meets the patient directly. This structure allows consultations to proceed without dedicated administrative staff. The burdens of space, scheduling, registration, payment, and document issuance that a solo practitioner would typically bear have shifted to the platform. As a result, doctors are no longer confined to a physical location and can provide care across various regions, while patients can see a doctor more quickly and closer to home. This innovation goes beyond merely simplifying appointments; it changes how medical personnel and facilities are utilized.
The private sector is not the only one making strides. Pix is a government initiative that has reduced transaction costs for payments, broadening market options. The Brazilian Central Bank's payment system, Pix, has cut down on transfer and payment delays to mere seconds, but its success is not solely about speed. It has brought transactions into the mobile realm for consumers who struggle with account openings or credit card approvals, small businesses burdened by fees and equipment, and transactions previously tied to business hours and payment confirmations. Payments for street snacks, domestic help wages, and business transactions are now moving in real-time within this payment network. Pix has already garnered over 170 million users and has emerged as a leading payment method for online purchases, surpassing credit cards. The government-built payment infrastructure has transformed both consumption and sales methods.
What these developments indicate is clear: opportunities in Brazil's domestic market extend beyond the products themselves. They also encompass the reduced burdens of time, cost, and procedures during the user experience, which adds value. The 200 million domestic consumers cannot be fully understood through the existing three pillars alone. While industrial goods, consumer goods, and public demand remain relevant, narrowing the target is essential to see the market clearly. To fully leverage the value of this vast domestic market, one must also recognize the common demands that lie beyond these boundaries. Such demands manifest repeatedly across various touchpoints in consumers' daily lives. The fourth pillar, which alleviates discomfort and enables better choices, is crucial. Industries and products may segment the market, but experiences that reduce inconvenience unite dispersed consumers. At this juncture, the 200 million domestic consumers finally become a cohesive market.
/Kwon Jun-seop, Director of KOTRA São Paulo Trade Office
* This article has been translated by AI.
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