By Charles Whiteman
SVP Client Services, MotionPoint
Here’s some good news for companies eyeing to engage the Mexican market online: Mexican consumers are browsing and buying online far more than most retail experts believe. But there’s some bad news, too—the primary obstacle preventing them from spending more time and money online are retailers themselves.
I’ll explain that “bad news” in a bit. First, let’s examine the good news—the opportunity.
While you were sleeping, e-commerce became a major growth sector in the Mexican economy. Last year, e-commerce sales were $4.38 billion USD. This time next year, sales will be at $7.24 billion. By 2019, sales are estimated to reach $13.73 billion. Now that’s powerful growth.
As in other emerging markets, Mexico’s mobile e-commerce (m-commerce) growth is also especially noteworthy. According to a recent PayPal study of 22 international markets, Mexico led the pack in embracing m-commerce, growing nearly 40 percent this year. Adoption of smartphone technology is skyrocketing—nearly 90 percent of Mexican smartphone owners aged 18-34 have already made transactions on their smartphones (well above the 64 percent global average).
Indeed, Mexico’s smartphone penetration rate is second only to Brazil in Latin America. Last year, that rate was 24 percent. By 2018, that number is projected to rise to 40 percent. In comparison, less than one-fourth of Brazilians and Argentinians currently use smartphones. That rate drops precipitously in …
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