IDC released its annual study on the Brazilian retail software market, with results for 2018. According to the study, the estimated total addressable market (TAM) reached BRL 10.0 billion, an increase of 5.9% over 2017. Total revenue from retail management software (POS and ERP) in 2018 was BRL 1.3 billion, an increase of 6.1% over 2017 and a 13.3% penetration of TAM. This is a very positive result and reflects the resilience of solutions that make retailing more efficient and productive. Linx’s market share reached 42.2% in 2018, a 90 bps growth over the previous year. Since the survey began in 2012, Linx has gained nearly 15 percentage points of market share, reflecting continued consolidation of its competitive position in the retail management software market.
We understand that the retail solutions market continues to provide a solid foundation for significant growth in Brazil because of its strategic position for the retailer. This view is underpinned by the need for increased process efficiency and the continuous evolution of consumers’ shopping experience. In this scenario, Linx, with its high level of investment and leadership, can continue to take advantage of new opportunities based on the adoption of management software that continue to evolve towards the use of an 100% integrated end-to-end platform.
On the e-commerce market, still according to IDC, Linx achieved 12.2% market share in 2018, an increase of 450 basis points compared to the previous year, consolidating its position as the second largest player in the market. In the same year Linx grew more than twice the market leader, while the other players decreased their participation or remained practically stable.
These data demonstrate the results of our investments in Linx Digital. Over the past five years, we have invested over BRL 280.0 million between acquisitions and R&D to develop digital services natively integrated with our end-to-end platform. This enables our customers’ digitization process through our e-commerce platform, enabling a personalized shopping experience through Linx Impulse (search, recommendation and retargeting), as well as enabling retailers to become OmniChannel through our OMS solution.