“I always had to be last.” 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 does not mean they desire it. 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. Universal domestic demand reveals itself through the inconveniences of everyday life and what changes when those inconveniences disappear.
At this intersection, 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 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 has seen structural innovations. The shared consultation model has transformed the administrative aspects surrounding medical care. Mobile platforms handle appointments, while kiosks manage on-site check-ins, payments, and document issuance. When the time comes, the doctor meets the patient directly. This structure allows consultations to proceed without additional administrative staff. The burdens of space, scheduling, check-ins, payments, 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 doctors more quickly and closer to home. This innovation changes not just appointment scheduling but also the utilization of medical personnel and facilities.
The private sector is not the only one making moves. Pix is an example of how the government has reduced transaction costs to broaden market options. The Brazilian Central Bank's payment system, Pix, has reduced 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 found it difficult to open accounts or obtain credit cards, small businesses burdened by equipment and fees, and transactions previously tied to business hours and transfer confirmations. Payments for street snacks, domestic helpers, and business transactions have begun to flow in real-time through this network. Pix has already secured 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. These demands do not remain confined to specific industries but repeatedly manifest at various touchpoints in consumers' daily lives. The fourth pillar, which alleviates inconveniences and enables better choices, is the pillar of benefits. Industries and products may segment the market, but experiences that reduce inconveniences unite dispersed consumers. At this point, the 200 million domestic consumers finally become one cohesive market.
* This article has been translated by AI.
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