Mexico, with a population of 128 million, is Latin America’s second-largest economy after Brazil. As a market that was previously ignored, why is it now regarded as a “gold nugget” for e-commerce?
1. Increased Internet usage equals increased e-commerce opportunities
Previous restrictions One of the main reasons for the development of e-commerce in Mexico is the low Internet usage, but now the situation has changed. In 2019, Mexico had 88 million internet users and 82 million online shoppers. Statista data shows that by 2020, the number of online shoppers in Mexico is expected to exceed 9,640. In 2019, Mexico’s Internet coverage increased by 2,000% compared with 2000, and 64% of the population was connected to the Internet. The proportion of people with Internet access has also reached its highest level, with 89% having a desktop or laptop, 81% having a mobile phone and 55% having a tablet. Rapidly increasing internet usage has enabled more Mexican users to shop online, with 75% of internet users saying they want to buy something online.
2. Changes in Mexicans’ attitudes towards online shopping
Lack of online shopping experience and concerns about security issues have always been obstacles that restrict Mexican consumers from shopping online. As online shopping continues to become more popular, consumers are becoming more and more confident in online shopping. Data show that the scale of B2C e-commerce in Mexico has increased by 400% in the past five years. In 2017, the online shopping transaction volume was US$7.312 billion, reaching US$9.224 billion by the end of 2019.
3. Credit card users are gradually increasing
The relatively low credit card usage rate was once one of the factors hindering the development of e-commerce in Mexico. To this end, relevant Mexican institutions have taken some measures to increase the proportion of sales terminals that can accept bank card payments. At the same time, online shopping payment technology is also improving day by day. However, many Mexican consumers still hope to have other alternatives to bank card payment, such as cash on delivery, PayPal, bank transfer, e-wallets, etc.
Although Mexican consumers use a variety of devices to browse products, most still prefer to shop on a desktop or laptop computer. 86% of online purchases occur on computers.
4. Low-end consumer goods in Mexico are sold at high prices
Mexico has a large population, but most people tend to buy low-priced products. Income in Mexico is very uneven, and ordinary workers cannot afford high-priced products. It can be seen that low-price products have great potential in the Mexican market. Most Chinese products are high-quality and low-priced, and low-end products can also earn huge profits. Like many emerging markets, young people aged 25 to 35 are the main consumers. The main consumer categories are beauty, 3C electronic products and accessories, and furniture. Kitchenware and toys. With the continuous development of Mexico’s economy, leisure and sports products have also shown huge market demand.