Market Trends of Mexico E-commerce Industry
Adoption of online mode of purchasing
- In Mexico, online marketplaces such as www.mercadolibre.com.mx and www.amazon.com.mx are popular. With over 50 million monthly views, Mercado Libre and Amazon were the most popular e-commerce site last year.
- Amazon announced a USD 100 million investment last year to establish two new distribution centers and 12 delivery stations in Mexico due to e-commerce expansion. Amazon is up against regional powerhouses like the e-commerce behemoth MercadoLibre, whose online sales increased considerably last year. Both businesses are working quickly to develop infrastructure and logistics in the area. Amazon now has seven fulfillment centers in Mexico and has stated that it will be opening four more in September 2021, one of which will be in Tijuana, serving both local consumers and those in neighboring Baja California regions.
- The Mexican Association of Online Sales reports that 90% of customers are satisfied with online purchases. They are, therefore, more likely to assign higher scores. Online shopping is more popular than offline buying since it's more convenient. In the previous 12 months, 80% of Internet users made online purchases. Eight of ten customers claim that the website's design influences their product choice.
- International companies seek to increase their global footprint and stake a claim in expanding the e-commerce industry, increasingly targeting Mexico. Alibaba, the Chinese e-commerce powerhouse, is one such example. It is investing in the creation of 'digital communities' in Mexico's 32 states to increase online spending.
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Growing B2C E-commerce segment
- The medium- to long-term growth story of Mexico's B2C eCommerce sector seems promising. More and more Mexican consumers anticipate shopping online in the next three to four years. As a result, e-commerce transactions as a percentage of overall retail sales would increase even further in the nation in short to medium term.
- E-commerce has added to in-store purchasing rather than taking its place for food and beverage sales in Mexico. According to the Mexico Online Sales Association, more than a third of online food and beverage consumers in Mexico purchase groceries online as frequently as once a week. Nearly 25% made similar purchases every month. This indicates a significant demand from the food and beverage sector.
- Cosmetics and personal care products are significant consumer goods sub-sector in Mexico. Mexico remains the second-largest market for beauty products in Latin America and is ranked in the top 10 global markets for cosmetics and personal care items. In addition to American goods being sold in Mexico, U.S. exporters of beauty and personal care products will face intense competition from European (French, Italian, German, and British) companies and a rising number of Asian firms. The popularity of Korean beauty products has spread to Mexico as well, and last year saw the highest increase in imports from that nation.
- Significant prospects for growth are in the developing niche markets, where there is less competition from large multinational corporations that dominate the mainstream market and invest heavily in marketing. Since Mexico's beauty industry is still developing, there are opportunities for suppliers to pioneer in markets that are still emerging in Mexico but are more established in the United States. These factors provide opportunities for the B2C segments during the forecast period.
