eRetail Day Latam: the most notable data for ecommerce

Last Tuesday, June 11, at the WTC of the Mexico City (CDMX), specialists and businessmen met to be part of the eRetail Day Latam, Retail & Digital Channels Revolution. In talks and panels, the most relevant aspects of electronic commerce were discussed.

However, the activities also took place on June 10 and 12, but the conversations spread throughout Latin America through digital channels.

This is how ecommerce advances

Those in charge of welcoming those present were Marcos PueyrredonCo-Founder & Global Executive SVP of VTEX and President of eCommerce Instituteand Pierre-Claude BlaiseCEO of the Mexican Online Sales Association (AMVO). Both celebrated the realization of this, which was the eleventh edition of eRetail Day, within the framework of 25 years of electronic commerce.

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They quantified the relevance of electronic commerce by ensuring that it represents 6% of the Gross Domestic Product (GDP) of our country. “If he ecommerce “If it were a state of the Mexican Republic, it would occupy fifth place in its economic contribution to the country,” he stated. Marcos Pueyrredon.

For its part, Daniela OrozcoMarket Research & Economic Intelligence Director of AMVO, expanded the panorama of local e-commerce horizons. “By the year 2023, the e-commerce in Mexico generated 658.3 billion pesos. In this way, our country leads in the growth rates of this sector worldwide, above countries like the Philippines and Malaysia,” he noted.

In this way, today the profits that businesses obtain through retail They are 13.5%. The categories with the greatest growth last year are:

• Home appliances
• Computers and tablets
• Do It Yourself (DIY)
• Automotive
• Audio and video

Likewise, during last year, 64.5 million people bought some material good through a digital channel. “The average age of Mexicans who make online purchases is 38 years old. While the widest range of buyers ranges from 25 to 34 years old, which represents 31% of Mexican buyers,” he specified.

Among the most relevant data, he highlighted that 48% of purchases made are made online.

How do Mexican buyers behave?

Daniela Orozco outlined the profile that buyers have in Mexico. The reasons to shop online more often are:

• Variety of products and exclusivity
• Practicality and customization
• Delivery benefits
• Payment facilities
• Detailed product information

Regarding the incentives they consider to buy, these are:

• Discounts – 86%
• Rewards – 76%
• Delivery benefits – 76%

For the owners of a retail channel who were present, he advised that the attributes that the pages have that provoke customers to buy are:

• Reviews from other customers
• Product description
• Order tracking in real time
• Shipping and return details
• High definition photographs of the product

On the contrary, the factors that can discourage a digital purchase can be:

• Delivery times
• Online tracking
• Product description

Key factors for the growth of digital commerce

Now, the factors that must be taken advantage of in order to accelerate the pace in the growth who experiences the digital commerce are the following:

• Accelerated growth and market opportunities
• Increase internet and smartphone penetration
• Increase in online purchases based on the demographic pyramid and purchase frequency
• Breadth of categories that integrates more players in the ecosystem
• Professionalization of the digital offer
• Business strategy alignment omnichannel
• Capitalization of first party data to identify consumption patterns and segmentation
• Generation of integrated shopping experiences through AI either machine learning
• Specialized training in eCommerce for all sizes of companies
• Role of banking institutions
• Generation of commercial strategies through additional benefits as purchase triggers
• Opening of non-banked payment methods for demographic pyramid
• Improved check-out and integration of anti-fraud tools
• Streamlining delivery processes
• Inventory management and compliance with delivery times
• Transparency and clarity with the consumer
• Professionalization of logistics allies

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Regional perspectives

In the following morning panel, Roberto Butragueño RevengaRetail Vertical Director Mexico of NielsenIQstressed that Latin America continues to represent the region with the highest growth for the e-commerce. Most countries grow at double digits, but Colombia and Argentina stand out. This, he assured, is a sign that “the ecommerce “It continues to grow beyond offline formats.”

For their part, the measurements of NielsenIQ place Mexico in sixth place in the countries with the most online shopping users with 37%. Thus, the consumer market for durable goods in Latin America is at the same level as in Europe or China. “80% of purchases are driven by a promotion while 67% of purchases are made in marketplaces“, he pointed.

In the short and medium term, there could be an increase in the following aspects:

• Digitization
• Automation
• Integration
• Live trading
• Hypersonalization

Marcos Pueyrredon speaks about ecommerce in Mexico

During the eRetail Day Latam We had the opportunity to talk again with Marcos PueyrredonCo-Founder & Global Executive SVP of VTEX and President of eCommerce Institute.

What is the opportunity that Mexico has to grow in digital commerce, facing a phenomenon as important as Nearshoring?

Mexico, along with Brazil, Colombia, Argentina, Chile, are the mature ecosystems of Latin America that are already on an almost equal footing with North America, with Canada, with the United States and with any country in Europe. Mainly because today we have double-digit penetration rates of digital channels over traditional business.

The pandemic brought us a hyper, if you like, digitalization, a change in consumer habits, and that has brought a very strong development of the ecosystem. And it also made us stop depending so much on Asia as a large factory, and Mexico is transformed into a large factory, that B2B model, direct consumer, and the possibility that Mexico begins to supply American consumers, it already has the ecosystem prepared to be able to do it. So, it is an opportunity where cross-border or global sailing becomes a must, because today any company, any entrepreneur in Mexico can and has the resources and capabilities to be able to sell to any client in the United States.

Furthermore, the Latino community will soon be the first minority in the United States. That is very strong, because it has a much stronger economic power, socioeconomic level and level of digitalization than when those diasporas of foreigners were in their countries of origin. Because they have blended in with all the services and opportunities they have in the United States. So, they are more friendly and need and want to be close to what is theirs.

There are opportunities for producers who have products, everything that is products for the buyer persona, of Mexicans, there is a very great opportunity to be able to provide them with the same experiences and products and services that they have in Mexico, but in the United States.

What are the aspects of e-commerce in which Mexico should accelerate?

Go back to the origins, the go to basic. Now we have to go and do the minimalism of digital commerce. Do little and very well. Because? Because we have volume. So, what has been done is that very complex issues have to be resolved in a simple way. Deliver the product in a timely manner.

It seems silly, but it means delivering the product in a timely manner.

And fulfilling the promise, that positive experience, is when you have volume, it is one thing to deliver ten products and another thing to deliver a thousand products per day. Today we are in that happy problem, if we want. So, for that you have to do little and very well. The pillars and keys of digital commerce are claimed, which are mainly everything that is the four pillars and the four keys of digital commerce. The four pillars are platform and technology, operation and logistics, unified marketing and customer service.

Sell, not only through my direct channels, but through my indirect channels. And there begins collaborative commerce, unified commerce, conversational commerce. Everything that has allowed us to humanize this entire purchasing process through digital channels. Finally, the most important key, which is a positive purchasing experience. One, if you want to be profitable and sustainable, you have to deliver on the promise. And basically it is achieving the same level of satisfaction, or better than through traditional channels.

Where can small businesses start to implement AI in the retail sector?

Well, basically we have a program within the E-commerce Institute that is practical implementation of artificial intelligence in the value chain to the final consumer. Only in six classes, in a month and a half of crusade, one ends up identifying what, how, when and how that application of artificial intelligence generates impact. Because today the great challenge is healing. Today you have many tools, we are bombarded, but how do you get value from them, how do you make that use of artificial intelligence have an impact.

So here you return to go to the basics, to minimalism. First you have to copy intelligently. In other words, today you have many companies that are already showing you where and how. And there are, if you want, good practices on how to implement it with Quick Wings, which are baby steps, which is to start using it. For me the most important thing is to start using it and apply it to something specific. Customer service, cataloging, route optimization, stock prioritization, creation of promotions. So you have many things that are simple to use, but have a high impact.

You have to go on that path of healing, and that is why these events and retail days are good, where you see in practice how others are using it. Then copy intelligently, as Peter Drucker did, adding value. Benchmarking and seeing how retailers and brands are using it in practice.

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