MercadoLibre announces record investment in Brazil to expand reach in key market
03 Apr 2024 --- MercadoLibre is investing BRL23 billion (US$4.6 billion) into the Brazilian market this year. The investment represents a 21.1% surge from last year, emphasizing the South American online retailer’s plans to strengthen its hold within its primary market.
Fernando Yunes, senior VP at MercadoLibre, who manages marketplace operations in Brazil, affirms the company’s plans to widen its market share this year. Yunes expects a “marginally improved market” compared to the previous year, which will be a significant factor driving the company’s investment strategy.
MercadoLibre sells a broad variety of beauty products across various categories, including Eucerin sunscreens, Minoxidil hair loss treatments, Huda Beauty makeup products and Cicatricure Gold night creams.
Tying into growth objectives
Yunes asserts that the new investment ties into long-term objectives and sustainable growth initiatives. Brazil is a primary market for MercadoLibre and the company has consistently grown its investments there following a pandemic-induced surge in e-commerce activity.
MercadoLibre’s investment in Brazil was BRL2 billion (US$396.1 million) in 2019, followed by a significant rise over the past few years.
Yunes sees logistics as as a critical priority so the e-commerce giant is considering setting up two additional distribution centers to expand its presence in regions with lower market penetration. This builds upon the previously announced opening of a new distribution center in the Brazilian state of Pernambuco, which is scheduled for July or August.
The company also aims to funnel investments into tech advancements, particularly through talent acquisition, and its fintech arm Mercado Pago, with plans to introduce innovative products in the credit, insurance and investment domains.
MercadoLibre will bolster its advertising arm, Mercado Ads, by introducing new tools designed to attract a broader audience base for advertisers.
In other Brazilian market developments, Natura &Co explored the separation of Natura &Co Latam from Avon by creating two independent listed companies. Natura &Co announced plans last February to delist from the New York Stock Exchange and keep its primary listing in Brazil.
By Benjamin Ferrer
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