How to effectively develop the Latin American e-commerce market: language, patience and demand differences
In the global e-commerce market, Latin America is rapidly rising and becoming one of the markets that attracts much attention. According to the latest data, Latin America became the fourth largest retail market in the world in 2019, and the scale of e-commerce is expected to reach US$118 billion in 2021. To successfully enter this market, Chinese sellers need to focus on several strategic elements.
1. The importance of language
Language barriers are often the primary difficulty for sellers entering the Latin American market. Most websites in Latin American countries are primarily in Spanish, and very few people are fluent in English. Therefore, mastering Spanish will open an important window into these markets, especially in countries such as Mexico, Chile and Brazil. In addition, the time difference between China and Latin America is about 12 hours, and the best time to communicate is usually at 10 pm China time.
2. The value of patience
The business culture in Latin America emphasizes patience. Most people are less efficient in handling affairs and often “let go”. Therefore, it is especially important to be patient when doing business with locals. Latin American society generally has a relaxed attitude towards lateness or no-shows for appointments, and sellers should be aware that not responding to emails for a few days may simply be due to vacation. For example, Chilean law prohibits forced overtime on holidays, so allow enough time for negotiations.
3. Consideration of diverse needs
Brazil is an important member of the Southern Common Market and has a sound industrial foundation. Many industrial products originate from Brazil and its own production capacity is strong. For Chinese sellers, when entering the Latin American market, they need to carefully consider whether their products have local competition in Brazil to ensure that they can effectively position their product advantages in order to differentiate their products. At the same time, high freight costs are also a challenge that Chinese manufacturers face in the Latin American market, which increases product costs.
4. Grasp the peak market season
As the Latin American e-commerce market continues to develop, it is crucial to understand important local shopping festivals. Seizing these important opportunities can effectively increase sales. By optimizing promotions, sellers can increase conversion rates. For example, during major festivals, we adjust promotional prices and increase inventory to ensure that we can meet consumer demand.
Although entering the Latin American market faces many challenges, this market is still untapped and full of opportunities. As long as sellers are prepared in terms of language, patience and diverse needs, exploring the Latin American market will become a sustainable growth path.