eCommerce in Mexico has seen significant growth over the last 10 years, as more and more consumers in the country are now shopping online. We expect this trend to continue in the coming years. In this document we outline some of the main concepts and trends behind the online boom that was seen during the pandemic.
We note that companies, pure digital or traditional “Brick and Mortar (B&M)” players, are rushing to meet more demanding consumer expectations, including receiving the right product at home, at the right price, with no fuss and as quickly as possible.
Companies will have to embrace technology and artificial intelligence both in the interaction with their clients, suppliers, inventories as well as stakeholders. We believe only efficient, client-focused systems will survive in the retail world in the long run.
The main topics addressed in this report include the following: a) We estimate eCommerce will continue to grow globally at high-single rates while penetration is likely to reach c.25%; b) The Mexican eCommerce buyer is young (less than 44), urban, with smartphones (98%) and banked (92%); c) However, there is a major opportunity ahead associated with the unbanked population; d) Internet access at 66% is low, but not the main deterrent to using eCommerce in Mexico, while mobile phone penetration is already at 80%; e) Alternative vehicles, such a mobile money accounts, have made inroads in the area of financial inclusion,; f)Convenience and price are factors behind the growth in eCommerce; g) In terms of attractive eCommerce categories in Mexico, food-at-home, fashion and beauty and personal care items are the biggest online categories; h) Going forward, food and beverages (grocery) eCommerce appears attractive given its size; i) The main eCommerce players in Mexico include digital players (Amazon and Mercado Libre) and former B&M companies (Walmex and Liverpool). We include a quick comparative analysis of the main traits of these competitors, the additional services they provide that complement their basic online offering and a first look at their advertising services.