Coronavirus in Mexico: Stores turn to E-Commerce to save themselves from Closure

Retail stores have to bet on electronic commerce to grow their businesses and even internationalize, according to a study prepared by the KPMG company released on Tuesday.

The importance of digital transformation and technology is clear, with 79% of company CEOs claiming that their investment in digitization has accelerated significantly as a result of the COVID-19 pandemic, according to the report. telecommunications and industry KPMG CEO Outlook.

As a sign of interest in e-commerce, the company Ecomsur registered growth of over 1000% by focusing on business models in online sales to reach USD 18,805 million in Mexico.

Although it is not enough to enter the virtual world of retail because you must constantly innovate since e-commerce is constantly evolving, commented Jorge Fernández-Gallardo, CEO for Latin America North of Ecomsur.

The so-called Omnichannel focus is the other trend for innovations for delivery such as high-tech robotics for products or meals to the consumer’s home.

In this sense, online sales face the following trend in Mexico this year: strength of electronic payments with the flexible payment concept. According to a study carried out by MercadoPago and Ipsos, the means of payment most used by Mexicans on the internet are: debit card (54%), online payment platforms (52%), credit card (50%), bank transfers ( 48%) and cash (16%).

The so-called Omnichannel focus is the other trend for delivery innovations such as high-tech robotics for products or meals to the consumer’s home.

It is also essential to take into account that consumers will increasingly demand better, cheaper and faster delivery, and understand that It is necessary to put the least possible number of obstacles to the consumer to make it easier to change clothes or objects in stores.

Finally, it is essential to have a solid digital strategy and to promote the own channel in conjunction with external showcases that also support sales to adapt to the unstoppable trend of electronic commerce growth, since in 2023 15% of commerce retail will be online, three percentage points more than what was considered before the pandemic.

E-commerce in Mexico had an estimated growth of almost 32% in revenue

The number of users will grow to 50.7 million Mexicans, representing an annual increase of 8.9% and a market penetration rate of 39.9%. 

Electronic commerce closes this 2020 as the great winner of the Mexican economy, with a estimated growth of nearly 32% in revenue, according to several specialists agree.

Online sales in Mexico will reach this year USD 18,805 million, an increase of more than USD 4,000 million compared to 2019, projects the “Ecommerce Report 2020” by Statista.

The number of users will grow to 50.7 million Mexicans, which represents an annual increase of 8.9% and a market penetration rate of 39.9%.

“There was a growth in the adoption of electricity commerce equivalent to two years, that is, what would have happened in two years happened in these months of pandemic,” explains Renata Raya, co-founder of Triciclo, an agency specializing in online sales.

“ARRIVED TO STAY”

The companies advised by Magento have experienced a growth of between 300% and 400% in their online sales. 

Nine out of 10 users who buy for the first time online they do it again in the short term, cita Raya.

“In general, if we forget the issue of the pandemic, I believe that this growth is here to stay and we have seen it in months where we relatively return to normal”, He says.

Mario Juárez, manager of business services at Magento Commerce, a leading platform for creating online sales sites, agrees.

“By human nature we would love to think that everything will go back to the way it was before, but that will not happen, although it is true that many are tired of being at home, too many people have noticed the comfort”, Considers the specialist.

The companies advised by Magento They have experienced a growth of between 300% and 400% in their online sales.

Although he acknowledges that there were temporary trends, especially in the first months of the confinement, Juárez argues that technological adaptation accelerated in Mexico.

“We are in a situation in which practically in a matter of months we grew more than 10 years in terms of technology,” he says.