Amazon has traditionally steered clear of most overseas markets in its ebook retail business. Apart from minor efforts in Europe, Amazon Inc. and its Kindle brand have been restricted to the US market.
Now, however, the Jeff Bezos-led company may be about to take its very first steps in South America, as it plans to expand into Brazil.
According to Reuters, Amazon plans to start cornering the ebook reader market in Brazil, first and foremost. It intends to launch Kindle eReaders there, while also introducing a library of ebooks in Portuguese.
Amazon is apparently going to stay away from having a physical retail presence in the South American nation though, due to its infamous issues with poor infrastructure and excessive taxes.
Moreover, with the Brazilian economy on the throes of a minor crisis, there’s a high risk that consumer demand will depreciate from where it stands today. Then again, the Brazilian online retail market is said to be worth over $10 billion, and Amazon, being the world’s largest retailer, doesn’t want to miss out on the action.
Brazil is considered to be an especially viable option as a market for Kindle ebook readers as the amount of traffic driven to Amazon from Brazilian users is comparable to the likes of Germany and the UK, where Amazon has a full-fledged retail presence already.
What plays into Amazon’s hands further is that eReaders found in the Brazilian market currently sell at a huge premium compared to anywhere else. The Reuters report speculates that the basic Kindle will be sold at $239, a full three times more expensive than its American counterpart, but yet cheaper than competitors. If Amazon plays its cards correctly, it has a huge market just waiting to be tapped into.
[via Yahoo News]