MexicoMexico
Statistics
Capital: Mexico, D.F. Population: 120 million (est. 2013)GDP (USD): 1.26 trillion (2014)
Currency: Mexican peso (MXN) Language: Spanish
Summary
Mexico’s business to consumer market is much more developed than its business to business (B2B) market. Mexican development bank NAFIN is creating a B2B platform to promote e-commerce in this sector.Companies entering the market can use English. Their customers are likely to belong to the upper-middle class and will know English. However, companies wanting to gain market penetration should offer Spanish-language sites.
Market Entry
Popular E-Commerce Sites
Given that airplane tickets and hotel reservations have traditionally been the object of most online purchases, travel sites such as despegar.com, Expedia, and TripAdvisor are among the most popular. The Spanish Privalia and Brazilian Netshoes sites also have been successful in the clothing and accessories market. Online marketplaces such as Mercado Libre are also used, as is iTunes for video and music purchases.Digital Advertising
E. mail marketing is the most popular method, followed by search engines, management of social network profiles, ads in social network platforms, and banners in online portals.Contact
Teresa Verthein Commercial Specialist teresa.verthein@trade.gov (5255) 5080 2000 x5228
Fulfillment Centers
Amazon will open a fulfillment center in Mexico in 2015. Most companies use the fulfillment centers of logistics companies such as DHL and FedEx.
Current Market Trends
There are currently 50 million Internet users in Mexico, and 37 percent claim to have made an online purchase. The value of the e-commerce market in 2013 was USD 9.2 billion, growing 42 percent from 2012. Buyers are evenly distributed along gender lines. Many buyers, 32 percent, are in the 25 to 34 age bracket, followed by 18 to 24 years at 31 percent and 35 to 44 years at 17 percent. During 2013, tourism (airline and bus tickets) fell from the top ranking for online purchases (double most other categories) to being in sixth place behind music and movies, computers, entertainment tickets, clothing and accessories, and hotel reservations.Popular Social Media Sites
Facebook, Twitter, LinkedIn, and YouTubePopular Online Payment Services
• Credit card: 64 percent• Direct bank deposit: 12 percent
• Online wire transfer: 11 percent
• Cash in participating convenience stores: 9 percent
Cross-Border E-Commerce
Of Internet users, 44 percent use only Mexican sites for their online purchases, 39 percent use Mexican and foreign sites, and 5 percent use foreign sites only.Promotions and Discounts
In order from most to least preferred, the most popular special offers include discounts, free shipping, some number of months without interest payments, and (to a lesser degree) gifts and reimbursements.Current Demand
Major Buying Holidays
Christmas (online purchases begin to spike in November due to the Buen Fin promotions— the Mexican equivalent of Black Friday). The month of May also sees a lot of e-commerce traffic (Mother’s Day and the beginning of the summer holiday season).Mobile E–Commerce
No data are available on actual purchases, but 12 percent of consumers access e-commerce websites through a smartphone and 8 percent from a tablet.Challenges
Data Collection
Preliminary regulations are found in the federal law on protection of personal data held by private parties. According to this law, companies must generate a privacy notice for all their electronic communications, including websites, advising customers of the way their data will be handled. Mexico is adopting a self-regulation model concerning further data protection legislation. Complying with regulations will not be mandatory, but companiesthat do comply will have incentives such as a better reputation, facilitation of international data transfers, and avoidance of violations for which there will be penalties. The self- regulation framework is still under development by the National Institute for Transparency, Access to Information and Protection of Personal Data (IFAI). Profeco, the Mexican consumer protection agency, also is becoming involved in data privacy and has signed
a memorandum of understanding with the U.S. Federal Trade Commission. The Mexican Internet Association, AMIPCI, issues a trust seal for e-commerce sites and is a member of the World Trustmark Alliance.
IPR
There is no intellectual property rights (IPR) regulation for e-commerce in Mexico. Currently, the entity that will oversee IPR for e-commerce is yet to be determined: the Mexican Institute for Industrial Protection (IMPI) or the National Copyright Institute (INDAUTOR).Regulations and Initiatives
E-commerce is featured in Mexico’s national digital strategy as a strategic market to be developed by better connectivity in the country. ProSoft, a program of the Mexican Ministry of Economy, is also promoting the use of online platforms both to consumers and to the Mexican industrial sector. The National Institute for Entrepreneurs, also under the Mexican Ministry of Economy, has programs in place to encourage e-commerce among small and medium-sized companies.Prepared by the International Trade Administration. With its network of 108 offices across the United States and in more than 75 countries, the International Trade Administration of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.