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Forrester Research estimates that the market for e-commerce in Brazil was approximately R$1.8 billion in 2004, will grow to R$2.9 billion in 2005, and will reach R$12.8 billion by 2010, representing a compound annual growth rate of 36%, compared to a 14% of the mature e-commerce market in the US. In addition, Forrester Research data shows that the number of online shoppers was 3.6 million and will grow to 29.5 million by 2010.
Online retailers have many advantages when compared to the traditional retailers in Brazil, including the ability to efficiently reach and serve a large and geographically dispersed group of customers from a single central warehouse, the lower website management and maintenance cost as opposed to the physical stores and the potential for low cost personalized customer interaction. Online retailers can quickly collect demographic and shopping behavior data, to react to the changes in consumer's tastes and preferences, and efficiently adjust their selections of products, editorial content, shopping interfaces, prices and visual presentations.
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We are the leading pure-play online retailer in Brazil. We have built a strong brand and a premium customer base by offering a wide selection of products combined with best-in-class customer service. Through our website at submarino.com.br, we offer more than 700.000 items across 20 product categories that we source from more than 950 suppliers. We also offer outsourced e-commerce services for some of Brazil's leading consumer products companies, including Natura, Nokia and Motorola.
From our distribution facility in São Paulo, we can deliver an order to any of Brazil's major cities within two business days, and we offer same-day delivery to the metropolitan area of São Paulo. According to IBOPE/Net Ratings, for each of 2004's quarters, we were number one in the number of unique visitors of any online retailer in Brazil. We delivered approximately 1,8 million orders to 914.000 customers for the year ended December 31, 2004
Our business has grown significantly since its launch in 1999. For the year ended December 31, 2004, we reported gross revenues of approximately R$361 million (U.S.$136 million), representing compound annual growth in gross revenues of 68% during the last three years.
Vision
Our business vision is "To be customers' first choice store by offering convenience, services, variety and safety". We have pursued this vision since the first day of the company's existence and are reflected in the customer satisfaction ratings we receive from E-bit and to Opínia.
Our Competitive Strengths
We believe that our key competitive strengths include:
First-Mover Advantage. We started our operations in August 1999 and were one of the first e-commerce companies in Brazil. As a result, we have achieved strong brand name recognition and a premium customer base, which have allowed us to be the leading pure-play e-commerce company in Brazil.
Broad Selection.
We offer consumers the broadest selection of products among the leading Brazilian retailers. We have developed a catalog of products that includes more than 700.000 items among 20 product categories. Our product selection includes books, music, videos, electronics, computers, hardware, cameras and cellular phones.
High Quality Customer Services.
To ensure customer satisfaction, we focus on simplifying the purchasing process and improving our delivery time and options and to assist our customers with their online shopping experience.
Local Solutions.
AWe have adapted the e-commerce model to meet our local business conditions. In most of our product categories, there are no distributors, so we must purchase products directly from manufacturers and keep a proprietary inventory. To offer our customers multiple payment options, we have implemented an online wire transfer option (in addition to the credit card purchase option) and online invoices, which now account for 15% of our total sales.
Low Operational Cost.
Our online business model allows us to reduce significantly our operating costs since we operate from a single location and use high technology to manage our day-to-day operations.
Strong Management Track Record.
Our management team combines relevant experiences in technology, retail, logistics and finance and has delivered consistent growth and rapidly improved profitability, despite of the adverse economic conditions in Brazil during various periods, since we began our operations.
WebSite.
Submarino's website was built with the highest technology available, in a partnership with Microsoft. It provides easy navigation and is designed to facilitate the purchasing process. Our technology provides maximum safety with regards to customer data. None of the information we collect from our customers traffics on the internet without been encrypted by the best algorithms available in the market. Additionally, Submarino has the certificate and guarantee from VeriSign, the world's authority on internet safety.
Facilities Structure
Submarino operates from its office and warehouse strategically located in Barra Funda, São Paulo. Our warehouse has a 8.000 sq. m and 12 km of shelf space, with the capacity to storage over 820.000 products ininventory.
The storage process, preparation and dispatch are computerized and use the best-in-class international standards, providing agility and precision when fulfilling orders. Our warehouse works 24 hours per day, 7 days a week. To fill your order in time, we work day and night.
Our operations and logistics systems are integrated with the Correios' delivery services: the e-Sedex, which has the same efficiency, rapidity and safety of the Sedex service, but was designed to serve the eCommerce market. In addition to e-Sedex, we also contract transportation services from other partner companies.
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Leader in Brazilian e-commerce
Submarino has the largest product assortment available in the Brazilian retailing market, with about 700.000 registered items, in 20 categories including: National Books, Rare and Import Books, CDs and Musical Instruments, DVDs, Electronics, Cine & Photo, Household Appliances, House Wares, Bed, Dining & Bath, Informatics, Games, Sport & Leisure, Telephony, Baby Products, Toys, Fashion, Jewelry and Watches, Automotive and Tools, Pet Shop and Health & Beauty.
And that is not all. Submarino is constantly working on the launch of new product lines, trying to completely satisfy its customers.
Obsession for Customer Services Submarino offers a large range of services to attend customers in a fast, easy, simple and safe way. Follow below some of our strengths and distinguished characteristics
Order Tracking - At Submarino, the customer can track all the order process, from the moment of the purchase until delivery, through an individual, personalized and safe system, available at the guide Meus Pedidos (My Orders) on the website Top Menu.
Learn more.
Packaging
All the products are carefully protected and packaged. There is the option of special packaging for gifts, including a message card.
• Delivery Commitment - Our sustem lets customers know our expected delivery time for the particular order before the customer confirms her order. For selected group of 75.000 items, we offer same-day delivery to the metropolitan area of São Paulo.
• Customer Service - Customer Service is very important for Submarino. There are three different ways for customers to talk to Submarino's crew and solve their doubts: through a telephone call, e-mail or through the Live Help available on the website - Submarno's innovation in the Brazilian e-commerce market. Learn more.
• Telesales - Besides the regular website purchases, customers may also make their orders through the telephone (11) 2199-8888 if in the Grande São Paulo area, or 0300-789-4000 if in any other area.
• Content - Submarino provides several information about its products, which allowcustomers to make informed purchasing decisions. Additionally, it is possible to read other customers' product reviews or leave a new review on a particular product.
• Wish List - Submarino allows you to create lists with products you want the most and share them with your friends. You can also use these lists to organize products you prefer - therefore, you won´t forget items that are onto your attention the next time you visit Submarino.Learn more.
• Wedding List - Brides and grooms choose the best products for their home and the guests can shop easily and safely. Besides that, brides and grooms have total control on what, how and when they want to receive the gifts, they can exchange it for other products and send virtual thank-you notes.
Learn more.
• Promotional E-mails - Os noivos escolhem os melhores produtos para sua casa e os convidados podem comprar com toda praticidade e segurança. Além disso, com a lista de casamento no Submarino, os noivos têm total controle sobre o quê, como e quando querem receber os presentes, podem trocá-los por outros produtos e agradecer os presentes com cartões virtuais gratuitos.
• E-mails - Only through Submarino's e-mail promotions, customers can have exclusive discounts on the best products, and also be informed about the latest news, launches, pre-sales and cultural contests.
• o Affiliate Programs - Our Affiliate Program was designed to provide meaningful profit opportunity to other private websites. The affiliates websites offer Submarino's products to theirs audience using banners, sales campaigns, links or other options. Affiliates receive a commission for each invoiced order for customer coming from their websites.
Learn more.
• Affiliate Teacher Program - Offers teachers the possibility to organize list of books for theirs classes, makes easier the communication with the students and also provides profit to be invested in their profession.
Learn more.
• Loyalty Program for Companies - The companies can use its technology and infrastructure platform and products to develop Loyalty Programs, Incentive Programs and Provide Reward Gifts.
Learn more.
• Submarino Stores - Major consumer brands can have their own exclusive Store inside Submarino's website. In this Store, the supplier can prominently display its products, and can publish product launches, editorial content and reinforce their image and brand.
• Corporate Sales - The corporate sales division has the objective to attend companies that want to acquire a large quantity of products with better negotiation terms. Learn more.
Our obsession with customer service has allowed us to win the most important awards of the Brazilian Internet market. Visit the
Galeria de Prêmios (Awards Gallery) in the website.
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Customer Service
São Paulo and Grande São Paulo - (0xx11) 4003-5544
E-mail: atendimento@submarino.com.br
Telesales
São Paulo and Grande São Paulo (0xx11) 4003-2000
Other Area - 4003-2000
Press Contact - Máquina da Notícia
Phone +55 (21) 3478-3100
Bianca Leão
E-mail: bianca.leao@maquina.inf.br
Cristina Ribeiro
E-mail: cristina.ribeiro@maquina.inf.br
Adélia Chagas
E-mail: adelia@maquina.inf.br
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