The rise of Mexico’s e-commerce market: opportunities and trends
As the second largest economy in Latin America, with a population of 128 million, Mexico has gradually been regarded as an important market in the e-commerce field in recent years. The following is a comprehensive analysis of several key factors for the development of e-commerce in Mexico.
1. Rapid increase in Internet usage
In the past, a significant obstacle to the development of e-commerce in Mexico was the low Internet usage. In recent years, however, this situation has changed significantly. According to data, as of 2019, the number of Internet users in Mexico has reached 88 million, and the number of online shoppers has also increased to 82 million. This number is expected to exceed 96.4 million by 2020. Internet coverage has increased by 2,000% since 2000, and 64% of the population is connected to the Internet. 89% of people own a desktop or laptop computer, and 81% own a mobile phone, which provides a good foundation for the development of e-commerce in Mexico.
2. Changes in consumers’ online shopping attitudes
Although lack of online shopping experience and concerns about security issues were once the main obstacles restricting consumers from online shopping, with the popularity of online shopping, consumer confidence has gradually increased. Data shows that the scale of B2C e-commerce in Mexico has increased by 400% in the past five years. In 2017, Mexico’s online shopping transaction volume was US$7.312 billion, which had increased to US$9.224 billion by the end of 2019, reflecting significant changes in consumers’ online shopping habits.
3. Increase in the number of credit card users
In the early days, the credit card usage rate in Mexico was low, which restricted the further development of e-commerce. In order to deal with this problem, the government and relevant institutions have taken measures to increase the proportion of sales terminals that accept bank card payments. At the same time, advances in online shopping payment technology have also promoted this change. However, many consumers still want alternatives to bank card payments, including cash on delivery, PayPal, bank transfers and e-wallets.
4. Market potential of low-end consumer goods
Despite Mexico’s large population, most consumers prefer to purchase lower-priced goods. In Mexico, income distribution is very uneven and many ordinary workers cannot afford high-priced goods, so low-priced products have huge potential in the market. In addition, Chinese products are known for their high quality and low price, which are very suitable for the needs of the Mexican market. Targeting this market, young people aged 25 to 35 have become the main consumer group, focusing mainly on beauty products, 3C electronic products and accessories, furniture, kitchenware, toys and other products. With the continuous development of the economy, leisure and sports products have begun to show greater market demand.
The development potential of the Mexican e-commerce market is increasingly apparent. Many factors have jointly promoted the rapid growth of this market and provided abundant opportunities for investors and entrepreneurs.