Mexico: E-Commerce Is Still In Its Infancy. Foreign Internet Operators Have Great Opportunities.

In many developing countries, young people are the main force to promote the development of e-commerce.

India and Vietnam have large population base and young population structure, and their e-commerce market is full of vigor.

The total population of Mexico is over 100 million, and the average population of the country is only 28 years old.

Although e-commerce is still in its infancy, it has grown rapidly under the promotion of young consumers.

However, the development of e-commerce in Mexico still faces many obstacles, such as the popularity of credit cards and the backwardness of payment systems.

In recent reports, Mexico has always been known for its reputation as poverty and crime. It is hard to imagine that this is an ideal place for business.

However, Mexico has a population of 122 million 300 thousand and a middle-income group of 47 million 900 thousand people. Which of them has great potential to become a good market?

For e-commerce companies, Mexico is more attractive, they do not need to set up any physical store in Mexico, so do not worry about the interference of criminal activities.

Mexico is the third largest e-commerce market in South America after Brazil and Argentina.

Forrester Research Institute said that from 2013 to 2018, Mexico's online retail sales will grow by 150%, from $2 billion 200 million to $5 billion 500 million.

Mexico's Internet shoppers will also increase by 114%, from 8 million 400 thousand to 18 million.

The forecast for research firm eMarketer is even more optimistic: retail sales of physical goods outside Mexico online travel have reached $3 billion.

In many developing countries, young consumers tend to push ahead.

The driving force of development is that Mexico's population structure is very young, with an average age of only 28 years old.

These young people are easy to accept and try new things, which will be a huge consumption power in the online retail market.

Mexicans are enthusiastic about luxury goods.

In 2012, designers in the Mexico market.

Sales of shoes and shoes are as high as $685 million, while high-end fashion accessories sales amount to $294 million 300 thousand.

Most of these goods are sold in physical stores in big cities, but online retail is attracting more consumers.

Consumers in Mexico's three largest cities, Mexico City, Guadalajara and Monterey, account for 1/3 of the total number of online shoppers in the country.

This is because consumers in big cities have better economic conditions and are more receptive to online shopping.

The popularity rate of mobile phones in Mexico is as high as 86.7%. Most people like intelligent machines equipped with Android systems, which account for 62% of the market share.

Ericsson found that the consumption of smart phone users in Mexico is three times that of other Internet users.

Unlike China and India, there are few big local shopping websites in Mexico.

Some large retailers in the United States have opened physical stores in Mexico, and have seen opportunities in the field of online retailing.

WAL-MART launched the localization shopping website in Mexico in early 2013, and then home depot and Lowe 's launched the Mexico retail website.

WAL-MART provides Mexico customers with "day service" service. This strategy is very precise, making it an advantage in the e-commerce market of Mexico. According to the news, 92% of the online shopping products of Mexicans come from WAL-MART and its subsidiary Superama.

Most of Mexico's customers in Mexico are wealthy families or families earning more than $3000 a month, while in the US, WAL-MART customers are mostly middle-income people.

WAL-MART's success in Mexico also benefited from the fact that although Amazon has extended its business tentacles to Mexico, it only sells kindles e-books and e-books, and has not yet touched on groceries.

In addition, Mexico's local supermarkets hardly launched the online retail business, which provided huge market space for WAL-MART.

Mexico's local shopping websites focus mainly on small niche markets.

For example, Growlers is a beer shopping website, mainly selling domestic and imported beer, providing door-to-door service to customers, while Petsy.mx mainly sells pet food and pet care products.

These local websites only aim at a narrow consumer group with low service level.

If foreign competitors accelerate their entry into Mexico to meet customer demand, they will soon gain competitive advantage.

At present, the Mexico government is making great efforts to improve the payment system, making online retailers more convenient to operate.

At the same time, the logistics system is constantly improving.

Most Mexicans do not have bank accounts.

(2) the popularity rate of credit cards in Mexico is very low, and debit cards are far more popular than credit cards, but they do not support foreign currency pfers.

(3) uneven network connections make many reluctant to go shopping online, but this problem is not so serious in big cities of Mexico.

(4) the financial system in Mexico is still at a relatively primitive stage, and the payment industry is also short of modern technology support, which has become a huge stumbling block for the development of online retailers.

Allpago, a payment company, says that many payment products, such as checking accounts and refund, are not perfect.

In addition, many credit cards are not compatible with foreign currencies.

The government of Mexico constantly monitors the credit payment system and discovers and attacks money laundering activities.

At present, the most popular way of shopping is cash payment or cash on delivery, followed by credit card payment.

Cash payment mainly occurs in convenience stores.

Some consumers will log in to some convenience store websites, fill out checkout documents, and print out tickets containing two-dimensional codes.

Customers can produce paper tickets or pay cash when they go shopping.

Oxxo is a large chain convenience store in Mexico and has 11000 stores nationwide.

It is the leader of the above payment method.

At the same time, PayPal's business in Mexico is just beginning.