Expo Magalu 2024: Key Insights on Cross-border Commerce

Expo Magalu is a premier event in Brazil’s e-commerce sector, drawing a diverse audience of industry leaders, entrepreneurs, and tech innovators from across the globe. Organized by Magazine Luiza, Brazil’s largest retailer, the event highlights the company’s significant role in the region’s digital retail landscape. 

Magazine Luiza has established itself as a leader in digital commerce solutions. Its online marketplace, Magalu, empowers over 360,000 local and international sellers to tap into Brazil’s burgeoning e-commerce market. In Q2 2024, online sales reached $0.71 billion, marking a 4% increase compared to the same period the previous year.

This 2024 edition of Expo Magalu took place on August 21st, attracting over 20,000 attendees. It was especially notable for its vibrant array of presentations, panel discussions, and networking opportunities. Read on to explore the highlights of Expo Magalu 2024 and nocnoc’s participation in the event.

Key highlights from this year’s Expo Magalu edition

Attendees at Expo Magalu 2024 witnessed the latest advancements in technology and retail strategies shaping the future of commerce in Latin America. The event highlighted Magalu’s impressive growth and innovations, offering valuable insights into emerging trends and opportunities within the Brazilian market.

Among the key discussions were Magalu’s role in driving the digital transformation of Brazil’s retail sector, the potential of TikTok as a powerful tool for business transformation, and the latest innovations aimed at boosting year-end sales. Additionally, the event emphasized the rapid growth of the beauty segment on Magalu’s platform, showcasing its success through targeted marketing and strategic partnerships.

Cross-border growth and the opportunity for international sellers

In this third edition of the event, Ilan Bajarlia, CEO & Co-founder of nocnoc, participated in the panel titled “Connecting Markets: Effective Strategies in Importing, Brand Development, and Cross-Border Commerce.” He shared the stage with Luiz Rego, Executive Commercial Director at Magalu, Tsai Wen Hsing, Director of Imports at Magalu and Lincoln Fracari, Founder of China Link. During his presentation, Ilan provided valuable insights into the evolving landscape of cross-border commerce in Brazil, highlighting the significant opportunities it offers for international sellers. 

The discussion began by emphasizing the growing importance of cross-border commerce, which allows Brazilian consumers to purchase products from abroad, many of which are not available locally. Ilan noted that recent regulatory changes have significantly impacted the cross-border market. “Currently, there has been a revision in cross-border regulations. Now, it is allowed to purchase products valued up to R$ 50, with a fee of approximately 40%, and products valued above R$ 50 and up to R$ 200, with a fee of 60%.” This shift allows for more accessible and cost-effective international shopping, opening new avenues for consumers and sellers alike.

Another point discussed in the panel was about the unique nature of cross-border imports compared to traditional large-scale imports. Ilan emphasized that cross-border products are typically shipped individually, directly to the consumer’s home, often within just a few days. “These products do not arrive in large volumes or huge boxes; instead, they are bought and shipped individually, such as a phone or home item, which arrives directly at the consumer’s residence within a few days.” This model is particularly advantageous for acquiring products not readily available in the Brazilian market, providing consumers with access to unique and specific items they might otherwise struggle to find locally.

The panel discussion also addressed the potential for international sellers to access the Brazilian market through cross-border commerce. It was noted that for newcomers, this channel can serve as an entry point into larger-scale imports. Initially starting with personal use purchases, cross-border commerce can facilitate the transition to more formal business operations, particularly for entrepreneurs looking to test the market.

For large brands and established businesses, the advantages of cross-border commerce as a strategy to test products and explore new markets were emphasized. It was noted that some companies have successfully created their brands through cross-border channels, with examples of brands that have grown exclusively online and even reached IPOs without establishing a physical presence.

Is it possible to create a private or exclusive brand through cross-border commerce?

“Yes, it is possible. There are major brands in the world that were created exclusively online and through cross-border commerce. For example, many brands started on Shopify and even reached IPOs just with online operations, without ever having a physical store.”

Ilan emphasized that while cross-border is an excellent way to introduce products to the Brazilian market, building a strong, lasting brand in Brazil may require a more comprehensive omnichannel strategy. He suggested that for top-selling products, especially those like new smartphone models, a combination of cross-border and traditional importation strategies is necessary to ensure broad distribution and market penetration.

On the other hand, Tsai Wen Hsing, Imports Director of Magalu, highlighted that “for those who are just starting, cross-border is a great way to test the market by bringing in imported products, even if just for personal use. Some end up selling these products informally online. However, it is important to understand that if this entrepreneur wishes to professionalize, they will need to transition to a larger and more formal import process through a registered company.”

Among other points discussed, Lincoln Fracari, CEO of China Link, remarked that in Brazil, online sales are reaching 15% of total retail, while in China and the United States, e-commerce sales already represent more than 50%. He mentioned this to emphasize that as private brands grow, similar products will increasingly flood the market, leading to competition primarily based on price. Sellers will find themselves competing with products brought in by the Chinese, Arabs, and Brazilians, all offering similar items. Creating a private brand, however, can provide a competitive edge by adding value to the product. He also noted that using social media platforms like Instagram to develop and promote a private brand is one of the most significant trends that importation can offer. 

Magalu and nocnoc partnership to enhance cross-border e-commerce

nocnoc has partnered with Magalu to bring more products from the United States to Brazil. This collaboration, which has been in place for over a year and a half, connects global sellers to marketplaces through nocnoc’s platform. With the new Remessa Conforme regulation that took effect on August 1st, Magazine Luiza plans to accelerate the import of products from other countries, leveraging nocnoc’s expertise in cross-border commerce. nocnoc`s model aims to offer services that address the complexities of commercializing products in Latin American countries, related to customs fees and logistical challenges.

As previously mentioned, cross-border commerce plays a strategic role in the current Brazilian retail environment, offering several advantages for sellers. Key benefits include cost reduction, improved supply chain control, and the opportunity to create private labels. By strategically utilizing cross-border commerce, businesses can reduce expenses, achieve better control over their supply chains, and stand out in a competitive market by developing unique, customized products.

With operations in countries like Mexico, Colombia, and Chile, nocnoc considers Brazil its main market, representing 60% of the entire business. In addition to agreements with Magalu, nocnoc offers its services to platforms such as Mercado Livre and Amazon.

Expand to Magalu and unlock its potential

Expanding into Brazil with Magalu is a fantastic opportunity to tap into one of Latin America’s fastest-growing ecommerce markets. With Brazil’s online shopping scene booming and a growing number of digital consumers, this platform can help drive impressive growth. By aligning with local preferences and using the latest tools, international sellers can unlock huge potential and succeed in this dynamic market.

If you’re looking to sell online in Brazil quickly and effortlessly, nocnoc is your ideal solution. Within just 48 hours, your products will be live on Magalu, as well as on 15 other marketplaces across 4 other leading countries in the region, such as Mexico, Colombia, Chile, and Argentina. Start unlocking the full potential of Brazil and Latin America with nocnoc and discover endless opportunities for your cross-border business.

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